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The EV market size is forecast to increase by USD 343.01 billion at a CAGR of 13.51% between 2023 and 2028. The market is expanding rapidly due to increasing demand for low-emission vehicles, spurred by stringent regulations and declining prices of lithium-ion batteries. The rising interest in eco-friendly vehicles and adherence to regulatory standards are pivotal drivers of this growth. Moreover, the decreasing costs of batteries are bolstering market expansion. Together, these factors are fostering the adoption of sustainable transportation solutions, and revolutionizing the automotive industry. As consumers and governments prioritize environmental sustainability, there is a significant shift toward cleaner technologies and mobility-as-a-service. This trend not only addresses environmental concerns but also aligns with economic incentives for reducing emissions and enhancing energy efficiency. The evolving landscape underscores a transformative phase in automotive innovation, paving the way for widespread adoption of low-emission vehicles across global markets.
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The EV market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The BEV segment is estimated to witness significant growth during the forecast period. A battery electric vehicle (BEV) is an EV powered by a battery. Unlike the PHEV model, the only source of propulsion is the battery, which generates the power required by the vehicle. Instead of a fuel tank, a large battery is used to store the required energy to run the electric motor.
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The BEV segment was the largest and was valued at USD 152.02 million in 2018. A BEV is a 100% pure EV. Some of the most popular models of BEV available in the market as of 2019 are Tesla Model 3, Nissan LEAF, and Renault ZOE. Some of the benefits of using BEVs are from the market players' point of view, BEV is one of the most manufactured vehicle types due to its ease of manufacturing. Thus, such factors will drive market growth through this segment during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global EV market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. From the automotive industry's point of view, APAC is the most diverse region in the world. It is a major producer as well as consumer of vehicles, with many major vehicle manufacturers, such as BYD, Mahindra, and Nissan, based in the region. Japan, South Korea, Singapore, Indonesia, Thailand, Malaysia, and the Philippines remain the key markets, with China leading in the EV adoption rate.
Furthermore, various countries in APAC are facing major challenges, such as traffic congestion and deteriorating urban air quality. With the growing urbanization, mobility needs are also rising, which, in turn, is increasing the demand for conventional fuel significantly. Increased import bills of oil and gas have shifted the attention of various governments in the region toward more sustainable and low-emission vehicles such as EVs. EVs enable countries in the region to alleviate mobility issues and also help governments reach emission targets and reduce dependence on oil and gas imports.
The EV market is experiencing rapid growth and innovation, driven by advancements in EV batteries and solid state batteries. These technologies offer improved energy density, longer lifespan, and faster charging times, addressing key concerns for consumers. OEMs are investing heavily in electric cars to meet rising demand and comply with emissions regulations. FCEVs are also gaining traction, especially in heavy-duty and off-highway vehicles, utilizing fuel cells for power. Lower battery costs and EV fast charging infrastructure development are further boosting adoption. The shift toward electric vehicles is supported by factors such as rising crude oil prices, the push for 5G rollouts enabling smarter charging solutions, and the environmental benefits over gasoline powered vehicles and diesel powered vehicles. As EV technology continues to evolve, traditional vehicles are gradually being replaced, with battery electric transport and fuel cell electric vehicles and carbon black leading the way. This transition is evident across various segments, including heavy duty and light duty vehicles, commercial fleets, passenger cars, electric two wheelers, off highway vehicles, and small electric vehicles, each offering unique benefits such as high efficiency, lower operating costs, and reduced emissions. Electric vehicles are not only changing the way we commute but also revolutionizing the transportation industry as a whole.
The market growth is significantly driven by stringent rules and regulations on vehicles, particularly concerning emissions. There is a notable trend toward tightening emission regulations at both city and national levels, with various countries enacting rules to monitor vehicle emissions. Regional regulations vary based on governmental policies and existing regulations, with many countries adopting previous versions of European or United Nations Economic Commission for Europe mobile source emission regulations.
Furthermore, some nations have implemented more advanced regulations based on recent revisions in the US and Europe. For example, Norway, a leader in adopting electric vehicles (EVs), aims to have battery electric vehicles (BEVs) constitute 100% of its new car sales by 2025. Similarly, countries like California, France, and the UK have announced plans to end sales of combustion engine-based vehicles by 2040. While these regulations pose challenges, they also present new opportunities for market players. Thus, these factors are driving EV market growth during the forecast period, with a focus on zero-emission targets and decarbonization.
Charging stations powered by renewable energy is an emerging trend in the market. As the world shifts toward sustainable and energy-efficient modes of transport, EVs are slowly becoming popular. With more electric car fleet operators opting for the electrification of vehicles and more consumers owning EVs, the electricity demand will significantly rise. Hence, with the growing electricity demand, utility companies are expected to shift to an alternative source of electricity. A cost-efficient and practical solution to address the growing electricity demands is to use renewable energy as an alternative.
Furthermore, the growing adoption of renewable energy will further fuel the global EV market as the burden on the power grid will be lesser. Consequently, the use of renewable energy to power EV charging stations is expected to reduce the burden of electricity generation from the power grid and make the electrification technology more environmentally friendly. Charging stations powered through solar panels is one such trend, which can be witnessed in the market. Therefore, such factors will fuel EV market growth during the forecast period.
The high manufacturing cost of EVs is a major challenge impeding EV market expansion. The cost of manufacturing EVs is higher than gas-powered vehicles, which is a big hindrance to the growth of the global market. The high cost of production restricts automakers from manufacturing more units of EVs. Furthermore, the high price of EVs makes them less affordable for many consumers, especially in countries with low economic growth.
Furthermore, the lack of awareness among consumers about various incentives provided by the government adds to the anxiety in consumers about buying EVs. The cost factor remains a significant concern and an important factor for consumers while buying vehicles. Hence, the high cost of EVs is potentially a challenge to the growth of the electric vehicle market during the forecast period.
The EV market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the electric vehicle market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The electric vehicle market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
In this industry analysis report, the qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The EV market is evolving rapidly, driven by factors like expanding EV charging infrastructure and fluctuating gasoline and diesel prices, which influence consumer decisions. Battery electric transport is gaining popularity, offering sustainable mobility solutions. Manufacturers are focusing on enhancing top speed and efficiency, supported by advancements in battery cell factories and BSVI vehicles. As the adoption of electric vehicles increases, the demand for specialized automotive glass designed to enhance energy efficiency and optimize aerodynamics is also growing. Passenger vehicles, including PEVs and hybrid electric vehicles, are seeing significant growth, with a shift towards front wheel drive, rear wheel drive, and all wheel drive configurations. Traction battery packs are crucial components, ensuring optimal performance and range. Other aspects like brake systems, wheel and suspension setups, and body and chassis designs are also being optimized for electric vehicles.
Moreover, the integration of machine learning, artificial intelligence, and internet penetration is enhancing vehicle capabilities, with sensors, software, and hardware playing pivotal roles in ensuring efficient and safe operations. The increasing adoption of electric vehicles is driving the demand for EV charging infrastructure, especially with the rise in gasoline price and diesel price, prompting the establishment of battery cell factory to meet the demand for traction battery pack. The development of battery electric transport is being accelerated by advancements in machine language, which are enhancing efficiency and performance in the sector as predicted in this electric vehicle industry analysis report. The transition from internal combustion engines (ICE) to electric vehicles (EVs) also affects the growth of the ELDs market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.51% |
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Market Growth 2024-2028 |
USD 343.01 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.72 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 47% |
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Key countries |
US, China, Japan, Norway, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bayerische Motoren Werke AG, BYD Co. Ltd., Chery Automobile Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dongfeng Motor Group Co. Ltd., Ford Motor Co., Geely Auto International Corporation, General Motors Co., Guangzhou Automobile Group Co. Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Nissan Motor Co. Ltd., Renault SAS, SAIC Motor Corp. Ltd., Stellantis NV, Tesla Inc., Toyota Motor Corp., and Volkswagen AG |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our electric vehicle market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this EV market forecast report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Charging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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