The Electric Vehicle Market to reach $5,421.38 billion by 2030, at a CAGR of 27.6% from 2023 to 2030. By Volume, this market is projected to reach 372.38 million units by 2030, at a CAGR of 19.9% from 2023 to 2030. The growth of the global electric vehicle market is driven by factors such as supportive government policies and regulations, increasing investments in EV development by leading automotive OEMs, rising environmental concerns, decreasing battery prices, and the increasing consumer demand for electric vehicles. The growing adoption of autonomous electric vehicles and the increasing focus on electric mobility in emerging economies are expected to generate growth opportunities for the stakeholders in EV market.
However, the high purchasing costs of electric vehicles and the lack of charging infrastructure in developing countries are expected to obstruct the growth of this market to some extent. The range anxiety among consumers and the low cold weather performance of electric vehicles are major challenges for market growth. Additionally, shared mobility, smart electric vehicle charging stations, wireless EV charging, and solar-powered EV charging stations are prominent trends in the global electric vehicles market.
Increasing Investments in EV Development by Leading Automotive OEMs to Drive Market Growth of Global Electric Vehicle Market During the Forecast Period
The global automotive industry is gradually transitioning from fossil fuel-based vehicles to electric vehicles. Technological advancements and increasing investments in EV development by automotive OEMs, coupled with decreasing battery prices, are driving the growth of this market. In 2022, the Chinese government set targets requiring fixed parking spaces in newly built residential communities to have charging facilities and meet charging station installation requirements to make residential charging more accessible. Leading automotive companies are investing significantly in electric vehicle development to meet the increasing demand for electric vehicles.
Key Findings in the Electric Vehicle Market Study:
The Light Commercial Vehicle Segment to Become the Fastest Growing Segment by 2030
Based on vehicle type, the global electric vehicle market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, two-wheelers, and e-scooters & bikes. The light commercial segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the growing awareness regarding the role of electric vehicles in reducing emissions, the increase in demand for electric vehicles to reduce fleet emissions, and stringent government rules and regulations towards vehicle emissions.
The Less than 100kW Segment to Become the Fastest Growing Segment by Power Output During the Forecast Period
Based on power output, the global electric vehicle market is segmented into less than 100 kW, 100 kW to 250 kW, and more than 250 kW. The less than 100 kW segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment is attributed to the increasing adoption of electric scooters and mopeds, increasing investments by government authorities in the development of EV charging infrastructure, and favorable policies, incentives, and subsidies introduced by several state governments.
Major players worldwide are also focused on new strategies to launch light EVs, such as e-scooters and two-wheelers, advance the capabilities of existing vehicles, and cater to the changing demands. For instance, TVS Motor (India) launched the iQube electric scooter in India, equipped with a 4.4kW electric motor. It has a maximum speed of 78 kmph and traverses 75 km on a full charge.
The Battery Electric Vehicles Segment to Become the Fastest Growing Segment by 2030
Based on propulsion type, the global electric vehicle market is segmented into hybrid electric vehicles and battery electric vehicles. The battery electric vehicles segment is expected to grow at the highest CAGR during the forecast period. Innovations in electric powertrains, such as improvements in power and torque, are creating new opportunities for utilizing battery electric vehicles (BEV) in diverse environments. In addition, increasing initiatives by local government bodies and automotive players for developing BEVs, the proliferation of fast & ultra-fast charging technologies, and increasing acceptance due to reduced noise & vibrations with no emissions drive the BEVs market.
The Commercial Use Segment to Become the Fastest Growing Segment by End Use During the Forecast Period
Based on end use, the global EV market is segmented into private, commercial, and industrial use. The commercial use segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the increase in fuel prices and stringent emission norms set by governments, the growing adoption of autonomous delivery vehicles, and the increasing adoption of electric buses and trucks.
Several manufacturers and suppliers in countries including Spain, the U.S., France, and Japan are focused on improving battery and charging technology efficiency for commercial EVs. China is by far the forerunner when it comes to making e-buses. For instance, in September 2021, Tata Motors announced the commercial launch of the ‘XPRES T EV’ for fleet customers with FAME subsidy pricing. The XPRES-T EV will come with an optimal battery size and a captive fast charging solution, ensuring outstandingly low ownership cost in addition to safety and passenger comfort, making it a comprehensive and attractive proposition for fleet owners and operators.
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Europe to Become the Fastest Growing Region in the Global EV Market
Based on geography, the Global ev market is segmented into Asia–Pacific, Europe, North America, Latin America, and Middle East & Africa. Europe is expected to become the fastest growing region in the global electric vehicle market by 2030. The high growth of the electric vehicles market in the European region is majorly attributed to the consistent developments in making stringent emission regulations by the European Union and increasing focus on reducing the number of conventional cars. Norway leads the way for electric mobility adoption in Europe. According to the European Automobile Manufacturers Association (ACEA) report, In June, new registrations of battery-electric cars in the EU increased by a significant 66.2%, reaching 158,252 units. Battery-electric cars are the third most popular choice among new car buyers, overtaking diesel cars. Most EU markets recorded impressive double- and triple-digit percentage gains, including the largest, such as the Netherlands (+90.1%), Germany (+64.4%), and France (+52.0%).
Key Players
The prominent players in the global electric vehicle market, with a significant electric vehicle market share, include Tesla, Inc. (U.S.), BMW AG (Germany), BYD Company Ltd. (China), Volkswagen AG (Germany), Hyundai Motor Company (South Korea), Volvo Group (Sweden), Mercedes-Benz Group AG (Germany), Ford Motor Company (U.S.), Honda Motor Co., Ltd. (Japan), General Motor Company (U.S.), Nissan Motor Co., Ltd. (Japan), Tata Motors Limited (India), Alcraft Motor Company Ltd. (U.K.), Zero Electric Vehicles Inc. (U.S.), and Faraday & Future Inc. (U.S.).
Scope of the Study:
Electric Vehicle Market Assessment, by Vehicle Type
Electric Vehicle Market Assessment, by Power Output
- Less Than 100 kW
- 100 kW To 250 kW
- More Than 250 kW
Electric Vehicle Market Assessment, by Propulsion Type
- Hybrid Electric Vehicles
- Pure Hybrid Electric Vehicles
- Plug-In Hybrid Electric Vehicles
- Battery Electric Vehicles
Electric Vehicle Market Assessment, by End Use
- Private Use
- Commercial Use
- Shared Mobility
- Micromobility
- Public Transport
- Industrial Use
Electric Vehicle Market Assessment, by Geography
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Singapore
- Thailand
- Rest Of Asia-Pacific
- Europe
- Germany
- France
- U.K.
- Norway
- Sweden
- Netherlands
- Italy
- Spain
- Switzerland
- Denmark
- Rest Of Europe
- North America
- Latin America
- Middle East & Africa
Key Questions Answered in the Report: