Solar powered vehicles are partially or completely powered by solar energy. It uses photovoltaic cells to transform solar energy into electrical energy and to energy the vehicle. The global solar-powered vehicles market is growing at a significant rate, due to technological advancement and increase in the requirement of an efficient vehicle with zero carbon emission.
Different electric vehicle type such as fully electric vehicle and hybrid electric vehicle contributed to the solar-powered vehicles market size. The market has witnessed high demand for the fully electric vehicle due to mounting government backing for these vehicles in the mode of subsidies and incentives.
Insight by Electric Vehicle Type
On the basis of the electric vehicle type, the solar-powered vehicle's market is subdivided into the fully electric vehicle and hybrid electric vehicle. Of all-electric vehicle types, fully electric vehicle segment is expected to grow at a faster rate in the market due to mounting government backing for these vehicles in the mode of subsidies and incentives.
An electric vehicle encompasses electric motors and accumulation energy in rechargeable batteries. Moreover, hybrid vehicles contain two type of power i.e. the internal combustion engine and electric motors to power the vehicle electrically.
Insight by Vehicle Type
On the basis of vehicle type, the market is subdivided into commercial vehicles and passenger cars. Among the all vehicle type, the passenger cars accounted the larger share in the solar-powered vehicle market due to mounting demand for fuel-efficient vehicle and mounting environmental awareness among consumers.
Insight by Type
On the basis of the type, the market is subdivided into three wheelers and four wheelers. Among both types, the four wheelers segment is expected to grow at a faster rate in the market due to escalating acceptance of solar panels in passenger car and buses.
Augmented prominence by the government of several countries to encourage environment-friendly vehicles and decreasing prices of solar panels are the primary growth drivers for solar powered vehicles market.
In addition, an increase in the requirement of an efficient vehicle with zero carbon emission, mounting alarm about environmental pollution and strict regulations regarding vehicle emission is also driving the growth of the market. For instance, according to the World Health Organization (WHO), globally 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 WHO guidelines limit.
Technological advancement and escalating automation in production are also facilitating the growth of the solar-powered vehicle's market. For instance, a technological advancement that substitutes the traditional engine could transform transportation and support the environment by diminishing 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, and stringent rules for installation of charging stations are also hindering the growth of the 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 augmented prominence by the government of several countries to encourage environment-friendly vehicles. In addition, an increase in the requirement of an efficient vehicle with zero carbon emission, and mounting alarm about environmental pollution is also up surging growth of the Asia-Pacific solar-powered vehicles market.
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. In July 2016, Hanergy Holding Group introduced four full solar power vehicles at Beijing and introduced the advantages of thin film solar cell.
In August 2017, 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, Audi AG, Mahindra & Mahindra, Cruise Car, and Guangzhou Jcar Industrial Company Ltd are the key players offering solar-powered vehicles.