|Status : Published||Published On : Aug, 2021||Report Code : VRAT4019||Industry : Automotive & Transportation||Available Format :||Page : 209|
The global solar-powered vehicle market was valued at USD 290.1 million in 2020 and is anticipated to reach USD 2850.7 million in 2027, registering a CAGR of 37.56% during the forecast period 2021-2027. Solar-powered vehicles are a type of electric vehicle that is partially or completely powered by solar energy as a fuel for propulsion. It is equipped with photovoltaic cells which convert solar energy into electrical energy and are stored directly in the battery of the vehicle.
The global solar-powered vehicles market is growing at a significant rate, due to technological advancement, low maintenance and operating costs of solar vehicles, and rising demand for an efficient vehicle with zero carbon emission. Moreover, environmental degradation caused due to air pollution, fossil fuel exhaust, and emission from internal combustion engines has led the government to take initiatives in shifting towards clean and renewable energy sources.
The COVID-19 pandemic has affected many economies and the companies are facing unprecedented losses. Owing to the spread of the novel coronavirus, the government had announced strict lockdown and there are no operational activities in the industries. The regulatory authorities of various countries such as China are finding relaxation of emission mandates as auto manufacturers have less funding which is the key issue for cost reduction and technological development od=f solar vehicles. However, there are initiatives taken by the government also, to bring the economy back and start industrial activities.
Insight by Electric Vehicle Type
Based on the electric vehicle type, the solar-powered vehicle market is segmented into fully electric vehicles, hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV). Among all-electric vehicle types, the fully electric vehicle segment is expected to grow at a faster rate in the market due to the rising support from the government in the mode of subsidies and incentives.
An electric vehicle encompasses electric motors and the accumulation of energy in rechargeable batteries. Moreover, hybrid vehicles contain two types of power i.e. the internal combustion engine (ICE) and electric motors to power the vehicle electrically.
Insight by Vehicle Type
Based on the vehicle type, the global solar-powered vehicle market is segregated into commercial vehicles and passenger cars. Among all the vehicle types, passenger cars accounted for the larger share in the solar-powered vehicle market owing to the increase in purchasing power of consumers, changing lifestyle and preferences, rising demand for a fuel-efficient vehicle, and mounting environmental awareness among consumers. Moreover, the rise in investment by OEMs in R&D activities for producing cost-effective solar vehicles is anticipated to drive the growth of solar-powered passenger cars.
Insight by Type
Based on the type, the market is bifurcated into three-wheelers and four-wheelers. Of these two types, the four-wheelers segment is anticipated to grow at a faster rate in the market due to the rise in the adoption of solar panels in passenger cars and buses.
Insight by Battery Type
Based on the battery type, the global solar-powered vehicle market is divided into lithium-ion, lead-acid, and lead-carbon. The lithium-ion segment is expected to hold the most significant CAGR during the forecast period due to the highest power conversion ratio and smooth charging cycle owing to high energy density with rapid discharging capability, good high-temperature performance, and excellent specific energy (140Wh/kg).
Insight by Solar Panel
Based on the solar panel, the market is divided into monocrystalline and polycrystalline. Among both the segments, the monocrystalline segment is anticipated to witness the largest market share as it has a long life span, space-efficient nature, and has high efficiency as compared to other types of solar panels.
The increasing level of concerns regarding the environment has led the government of various countries to adopt eco-friendly vehicles and decreasing prices and technological innovation in solar panels are the key growth drivers for the solar-powered vehicles market. The increase in the sale of electric vehicles i.e. solar cars which are self-charging vehicles is acting as range-extenders, thus boosting the demand for the solar-powered electric market.
Moreover, an increase in the demand for energy-efficient vehicles with zero carbon emission and strict regulations regarding vehicle emission is also driving the growth of the market. For instance, according to the 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 a place where air quality exceeds the WHO guidelines limit.
Technological advancement and escalating trends of automation in vehicles are also contributing to the growth of the solar-powered vehicle market. For instance, a technological advancement that substitutes the traditional engine could transform transportation and support the environment by diminishing the requirement on fossil-fuel combustion. Moreover, Ford introduced a plug-in hybrid electric vehicle with solar panels on the roof that allow the car to recharge itself.
Enormous R&D funds essential for incorporating technologically innovative and aesthetical solar panels and high manufacturing price are the major challenges for the growth of solar powered vehicles market. In addition, poor charging infrastructure, less operational efficiency, high installation cost, lack of standardization and stringent rules for installation of charging stations are also hindering the growth of the market.
Excessive research in far-field wireless charging technologies and technological development in the field of wireless charging is anticipated to create promising opportunities in the global solar-powered vehicle market.
Globally, the manufacturing companies trying to enter the solar-powered vehicle market are required to maintain stringent regulatory standards. Moreover, the high level of capital requirement also poses a major barrier to the entry of new players. This offers an edge to the established players in the industry competition.
Geographically, Asia-Pacific is the largest solar-powered vehicles market due to the increasing prominence by the government to encourage environment-friendly vehicles, rise in purchasing power of consumers, and high demand for passenger cars from this region. It is one of the largest markets for electric vehicles. In addition, an increase in the requirement of an efficient vehicle with zero carbon emission, and increasing concern about environmental pollution is also up surging growth of the Asia-Pacific solar-powered vehicles market.
Europe is anticipated to grow in the solar-powered vehicle market due to the strict environmental policies, pollution control measures, favorable government support, decreasing battery cost, and economies of scale are the factors that contribute to the growth in the region.
Key players in the solar-powered vehicle's market are catering the demand by collaborating with small players and investing in technologically advanced products across the globe. Key players are adopting strategies such as merger and acquisition, partnership, and introduction of new products to maintain a competitive edge in the market.
Ford and Volkswagen have entered into a partnership for development and manufacturing of new electric cars. This partnership helps in developing the commercial vehicles and autonomous driving technology.
MAN Trucks and Sono Motors partnered to analyze the technical and economic feasibility of integrating Sono Solar technology into MAN’s eTGE electric transporter.
Hanergy Holding Group introduced four full solar power vehicles at Beijing and introduced the advantages of thin film solar cell.
Audi partnered with Alta Devices Inc, to implant highly integrated solar cells into the roof glass of passenger cars.
Ford Motor Company, Hanergy Holding Group, Toyota Motor Corporation, Nissan Motor Company, Sono Motors, Audi AG, Mahindra & Mahindra, Cruise Car, and Guangzhou Jcar Industrial Company Ltd are the key players offering solar-powered vehicles.
Source: VynZ Research
Source: VynZ Research