Electric Vehicle Market - Forecast(2023 - 2028)

Electric vehicle market size is valued at USD 171.35 billion in 2020 and is expected to reach a value of USD 726.14 billion by 2026 at a CAGR of 27.19% during the forecast period 2021-2026. Plug-in Hybrid Electric Vehicles is modern electric propulsion, consisting of electric machines, power electronic converters, electric energy sources such as fuel cells and storage devices, and electronic controllers. The automotive Manufacturers have been driven to supply electric Zero Emission vehicles all over the world due to electric vehicle market trends such as rising demand for low-emission and governments encouragement towards long-range, zero-emission vehicles via subsidies and tax refunds which is estimated to boost the electric vehicle market size. Major players such as Tesla, ford, General motor and others are focused on increase of investment towards EV production. For instance Ford is investing $1 billion in an electric vehicle production facility in Cologne, Germany; this investment will transform the existing vehicle assembly operations into the Ford Cologne Electrification Centre for the manufacture of electric vehicles. Moreover Indian government to boost electric mobility over Internal Combustion engine based vehicles in the country announced to support 15.62 lakh electric vehicles through subsidies and have implemented a budgetary support of ₹ 10,000 crores. APAC is expected to hold large share in the electric car industry analysis estimation, with China accounting for half of the vehicle sales. The electric vehicle industry analysis, particularly the global electric commercial vehicle market will be driven by this rising investment.

The report: “Electric Vehicle Market Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Electric Vehicle Market Analysis.

By Vehicle Type – Passenger Cars, Commercial Vehicles

By Components – Motors, Electric Engine, Drivetrain, Power Conditioner, Battery, Controller, Other components

By Vehicle Class - Luxury, Mid-priced

By Vehicle Drive Type - Front-Wheel Drive, Rear Wheel Drive, All-Wheel Drive

By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Belgium, Russia and Others), APAC(China, Japan India, SK, Aus and Others), South America(Brazil, Argentina and others), and RoW (Middle east and Africa)

The EV passenger Vehicle is set to have the largest market share globally. This is owing to the governments' considerable backing for passenger electric vehicles in the countries. EV passenger vehicle is estimated to have the considerable share in APAC market owing to the presence of original equipment manufacturers and other automaker. The adoption of EV passenger car is increasing due the factors such as reduced emission, higher fuel efficiency.   

Rear Wheel Drive EV demand has risen in all regions, particularly in Asia Pacific and Europe. This is due to the fact that it is easier to drive and there is an increasing demand for these vehicles. North America has also experienced a faster increase in these vehicles, with Tesla Model 3 Standard, BMW i3, Volkswagen ID4, Porsche Tycan, and other models. The expansion of RWD electric vehicles is expected to accelerate in the future decade. Moreover the market for AWD is likely to increase as the demand for better ride handling and traction control grows. Continuous development of a three-motor AWD system for EVs is projected to boost the global electric vehicle market.

Asia Pacific has the largest electric vehicle market for passenger automobiles, followed by Europe and North America. China being the world’s largest EV producer, around 90% domestic OEMs currently dominate the Chinese EV market. To encourage residents to change to electric vehicles, the city of Beijing, for example, exclusively offers 10,000 registration licences for combustion-engine vehicles per month. Moreover MEA countries have begun to expand their electric vehicle markets, and they are likely to be the fastest-growing in the future years.

The demand for fuel-efficient automobiles has recently increased as the price of gasoline and diesel has risen. Petrol and diesel are non-renewable sources hence the concern for developing alternative source of fuel is increasing which is further expected to increase the production of electrical energy vehicle. The Stringent CO2 emission norms have increased the demand for electric vehicles; these vehicles are environment friendly which has zero emission technology. The factors such as higher fuel economy, low pollution rate, smoother driving experience, reduced engine sound are driving the market for electric vehicle.      

Government initiatives steps toward investment in Electric Vehicle market for promoting reduction of vehicle emissions is paramount. For instance in 2017, the United States government spent $5 billion to develop electric vehicle infrastructure, such as charging stations. Several governments are offering a variety of incentives, including cheap or no registration fees, as well as exemptions from import tax, sales tax, and road tax. Furthermore, countries such as Germany are heavily investing in EV sales promotion such as an amount of 6.5 billion will be provided by Germany for electric-car charging infrastructure.

One of the major challenges of Zero emission vehicle market is the Inadequate E.V charging infrastructure. The rise of the electric car market, as well as variations in charging loads, have highlighted the need for electric car charging station uniformity. Certain electric vehicle charging stations may only work with a specific voltage. For example, level 1 charging stations provide a voltage of 120V AC, whereas level 2 charging stations provide a voltage of 208/240V AC. DC charging stations, on the other hand, use 480V AC to provide quick charging. Fast charging requirements range from country to country. CHAdeMO is used in Japan, while CCS is used in Europe, United States, and Korea, and GB/T in China. Both CHAdeMO and CCS procedures were required by the Indian government. Hence due lack of uniformity across countries may impact the installation of charging stations and hamper the growth.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Electric vehicle Market. The market of Electric Vehicle has been consolidated by the major players -Tesla, Volkswagen AG, Nissan Motors, BMW Group, BYD Company motors, General Motors, Chevrolet, Toyota Motor Corporation, Ford Motor, and Mercedes.