|Status : Published||Published On : Aug, 2021||Report Code : VRAT4005||Industry : Automotive & Transportation||Available Format :||Page : 218|
The global electric vehicle market is expected to grow from USD 180.12 billion in 2020 to USD 801.76 billion by 2027, registering a CAGR of 21.6 % during the forecast period 2021-2027. Electric vehicle (EV) also called electric motors, is a self-propelling vehicle that needs one or more electric motors and makes its own electricity for propulsion. The global electric vehicle market is growing at a substantial rate, due to the rise in environmental pollution, rising demand for fuel-efficient vehicles, concerns regarding sustainable growth, and promising government strategies and supports. Different types of propulsion have contributed to the electric vehicle market size. The market has seen a high demand for battery electric vehicles during the forecast period owing to improvement in charging infrastructure, government assistance in the form of permits, supports, and tax rebates, decreasing charging time, and zero-emission of carbon.
The COVID-19 pandemic had a severe impact across all the verticals especially the automobile sector is severely impacted by it. The production and sales of new vehicles had come to a halt and OEMs resumed the production after the lockdown was lifted. The conditions have improved after the lockdown was lifted and EV manufacturers are producing zero-emission vehicles, resulting in an increase in demand for electric vehicles in the market.
Insight by Component
On the basis of components, the global electric vehicle market is subdivided into infotainment systems, EV battery cells & packs, instrument clusters, and onboard chargers. Of all components, the EV battery segment accounts for the largest share in the market because it is the most important component of an EV and it makes up the substantial cost of an EV due to its high cost.
Insight by Propulsion Type
On the basis of propulsion type, the global electric vehicle market is segmented into the plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), fuel cell electric vehicle (FCEV), and hybrid electric vehicle (HEV). Among all the propulsion types, the BEV is anticipated to be the most lucrative segment owing to the refining charging infrastructure, government assistance in the form of permits, supports, and tax rebates reduced charging time and zero-emission of carbon. In addition, the FCEV segment is expected to grow at the fastest rate in the electric vehicle market owing to the rising demand for vehicles with low carbon emissions, government support and availability of better subsides. Moreover, FCEV offers various advantages such as fuel refueling, increasing investment for advanced fuel cell technology.
Insight by Vehicle Type
On the basis of vehicle type, the global electric vehicle market is divided into two-wheelers, passenger cars (PC), and commercial vehicles (CV). Of all these vehicle types, passenger cars are anticipated to have the largest share in the electric vehicle market due to the rising for fuel-efficient vehicles and mounting environmental awareness among consumers. The commercial vehicle is anticipated to be the most promising and fast-growing segment during the forecast period owing to the rising adoption of electric buses especially in China and India by replacing fossil-fuel-based public transport fleet. Moreover, the trend of using eCommerce, logistics, and shared mobility will propel the growth of the electric commercial vehicle market during the forecast period.
Insight by Power Output
On the basis of power output, the global electric vehicle market is segregated into less than 100 kW, 100 kW to 250 kW, and more than 250 kW. The 100 kW to 250 kW is anticipated to witness the high CAGR during the forecast period owing to the rising adoption of electric buses and trucks for public transportation and freight service applications.
Insight by Vehicle Class
On the basis of vehicle class, the global electric vehicle market is bifurcated into mid-priced and luxury, The mid-priced segment is anticipated to grow at a high CAGR during the forecast period and it has limited functions and has less emphasis on infotainment, dashboards and other expensive functions. China is one of the leading countries in the mid-price segment. For instance, the world’s cheapest EV, Wuling HongGuang Mini EV was launched in China and its cost was USD 5000. This was the top sold EV model with no additional features except traditional driving.
Insight by EV Charging Points
On the basis of EV charging points, the global electric vehicle market is bifurcated into normal charging and supercharging. The supercharging segment is anticipated to witness the fastest growth during the forecast period. The Asia Pacific region has the highest number of superchargers in the world as Asian people prefer to fast charge their vehicles for daily use.
Insight by Vehicle Drive Type
On the basis of vehicle drive type, the global electric vehicle market is divided into front-wheel drive, rear-wheel drive, and all-wheel drive. Among all these segments, the demand for real wheel drive EVs is anticipated to be high during the forecast period. It has easier vehicle control and the rising demand in the Asia Pacific and Europe.
Development of electric taxi, battery swapping, light electric vehicle, robo-taxi and electric autonomous vehicles are the trends observed in the electric vehicle market.
The growing government strategies and supports, significant investments from automakers in EVs, rising prices of petroleum, the launch of novel & innovative technologies, expanding vehicle range, and amplified vehicle variety per charge are the major growth drivers for the electric vehicle market.
Moreover, rising demand for a fuel-efficient vehicle with zero carbon emission and soundless operations, rising concern about environmental pollution due to greenhouse gases emission, and stringent rules and regulations regarding vehicle emissions are further driving the growth of the market. For instance, according to World Health Organization (WHO), global exposure to ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in places where air quality exceeds WHO guidelines limits.
Adoption of vehicle-to-grid (V2G) EV charging stations, volumetric swell in the automotive sector, improving charging infrastructure, reducing the cost of lithium-ion batteries, and EV charging stations motorized by solar panels are also contributing to the growth of the electric vehicle market. Nevertheless, the increasing scale of economies for electric vehicle manufacturers will significantly drive the growth of electric vehicles during the forecast period.
Insufficient standardization, the short lifespan of the EV battery, lack of sufficient charging infrastructure, and stringent rules for the installation of charging stations are the major challenges for the growth of the electric vehicle market. In addition, limited vehicle range, longer charging time in comparison to other fuels, the high manufacturing cost of EVs, and the small distance traveled by EVs are the challenges faced by the electric vehicle market.
Technological development in electric vehicles, development of Wireless EV Charging Technology for On-The-Go Charging, and proactive government initiatives are expected to create various opportunities for the growth of the market.
Globally industry players are leveraging market growth through launching new products. Different players are investing in development of new battery technology to lower the cost of electric vehicles to compete against gasoline vehicles in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance performance of these vehicles leading to adoption by masses.
Geographically, Asia-Pacific is the largest electric vehicle market and is expected to witness the fastest growth in the market due to government initiatives in the form of permits, supports, and tax rebates. Constantly refining charging set up in countries such as Japan and China and expanding vehicle range are also up expanding the growth in Asia-Pacific electric vehicle market. Furthermore, China is the largest producer and budding market for EVs, as it has an utmost number of EVs fabrication industries and the largest fleet of EVs on the road. Moreover, the availability of strong charging infrastructure and government support are the factors driving the growth of the China electric vehicle market.
Key players in the electric vehicle market are catering to the demand by collaborating with small players, building strong distribution networks, invest in R&D to develop new products, and investing in technologically advanced EVs across the globe.
Toyota launched the new LS and Mirai models in japan which come with advanced driving assist technology.
BYD launched four new electric vehicle models equipped with Blade batteries in Chongqing. The new vehicle models, Tang EV, Qin Plus EV, Song Plus EV and E2 2021 come with advanced battery safety features.
Tesla, BMW, Volvo, Nissan Motor, Toyota, Hyundai, Volkswagen, Ford, BYD Auto, Honda and Daimler are the key players offering electric vehicle.
Source: VynZ Research
Source: VynZ Research