Report Overview

Global Electric Vehicle Market Size – Industry Trends & Forecast Report 2027

The global electric vehicle market is estimated to have reached USD 121.8 billion in 2020 and is further projected to reach USD 236.3 billion by 2027, growing at a CAGR of 10.6% during the forecast period. The electric vehicle market has witnessed rapid evolution with the ongoing developments in the automotive sector. Favorable government policies and support in terms of subsidies and grants, tax rebates, and other non-financial benefits in the form of carpool lane access, and new car registration (specifically in China where ICE engine new car registration are banned in some urban areas) the increasing vehicle range, better availability of charging infrastructure and proactive participation by automotive OEMs would drive the global electric vehicle sales.

Source: BlueWeave Consulting

Global Electric Vehicle Market Overview:

An electric vehicle (EV) is one that operates on an electric motor, instead of an internal-combustion engine that generates power by burning a mix of fuel and gases. Therefore, such a vehicle is seen as a possible replacement for current-generation automobile, to address the issue of rising pollution, global warming, depleting natural resources, etc. Though the concept of electric vehicles has been around for a long time, it has drawn a considerable amount of interest in the past decade amid a rising carbon footprint and other environmental impacts of fuel-based vehicles. Applications of electric vehicles are growing, owing to an increase in the battery storage capacity of these vehicles. 

Global Electric Vehicle Market Forecast and Trends

Growth Drivers 

Stringent Vehicular Emission Rules and Regulations

There are several laws and regulations set up by the government across the globe in countries to monitor vehicular emissions. The countries have adopted strict versions of European and United Nations Economic Commission for Europe (UN-ECE) emission regulations. These rules and regulations that had been made to control the emission in the environment would likely to drive the demand for electric vehicles. Even some countries have adopted more than advanced regulations based on the most recent version of European and U.S. regulations. For instance, in Germany, more than half of Germany's electricity is generated from coal and gas. For instance, China adopted emission regulations for large cities based on European Stage V emission standards. 

Benefits associated with commercial electric vehicles

There are various advantages associated with electric vehicles that are driving their demand in the market. For instance, less pollution: The Commercial electric vehicle helps to reduce harmful air pollution from exhaust emissions. An EV has zero exhaust emissions. According to the International Energy Agency (EA), more than 20% of the CO2 global emissions can be reduced through the adoption of sustainable transportation systems. To achieve this goal, a crucial role is played by the Electric Vehicles (EVs)- based mobility, that has the merits of declining the dependence from the petroleum industry, and at the same time enables alternative energy market scenarios, leveraging the synergy with the Smart Grid. Renewable energy: Commercial Electric vehicle helps to reduce greenhouse gas emissions. 

Restraints

Limitations associated with electrical commercial vehicles

Electric vehicles own specific limitations that can hamper the market growth. These limitations include the limited Range, charging, and limited availability of vehicles for the buyers. Currently, the average electric vehicle range is around 100 km for passenger cars, while the desired range is around 200 km. The High ambient temperatures, especially around the afternoon, further reduced the range to 85-90 km per charge. Charging which is another demerit of an electric vehicle, the power cuts, and fluctuations posed challenges. The Grid condition needs to be improved for better and continuous charging. Limited vehicle options for buyers in the market. Currently, there are very limited products available in the market. 

Recharging the electric vehicle's Battery Takes Time

Fueling up a gas tank of the electric vehicles may take as long as three minutes at the service station while reviving the battery of an electric vehicle takes much longer. Contingent upon the model, an electric vehicle can at times take as long as 20 hours to completely charge. More up to date and more costly models can charge in as fast as four hours. Be that as it may, having a charging station in the carport helps make this more reasonable and packs are accessible to assist cut with bringing down the charging time. Thus, the long duration taken by the electric vehicles to charge upholds another major restraint for the market. 

Impact of COVID-19 in the industry

The COVID-19 pandemic caused a devastating effect on the EV market owing to restrictions on production and contraction of automobile sales globally. But the adoption of EVs in China, the U.S., and European countries and large sales of battery-operated vehicles can bode well for the market. The global goal of reducing dependence on oil imports and shifting the focus on zero-emission vehicles can dwell favorably for the global electric vehicle (EV) market. The increasing number of residential units and the establishment of charging infrastructure and falling prices of batteries are expected to change consumer attitudes and bolster the market demand significantly. The successful launch of Tesla’s Cybertruck is an indicator of the latent potential of the market.

Global Electric Vehicle Market: By Propulsion Type 

The propulsion type is bifurcated into battery electric vehicles (BEV), hybrid electric, fuel cell hybrid, plug-in hybrid electric vehicles (PHEV). The BEV segment is expected to witness a major share during the forecast timeframe. This is attributed to the increasing environmental awareness and benefits of BEV among people. Meanwhile, the plug-in hybrid electric vehicles (PHEV) segment is projected to register the highest CAGR of over 10.5% in terms of revenue during the forecast timeframe. This upsurge is due to the initiatives taken by the government of developing countries such as India and China to promote the usage of electric vehicles. Furthermore, companies such as Volkswagen Group are focusing on increasing their plug-in electric car sales. 

Source: BlueWeave Consulting

Global Electric VehicleMarket: By Vehicle Type

Based on vehicle type, the market has been divided into passenger cars, commercial vehicles, and two-wheelers. In 2020, the passenger cars segment held the largest share in the global electric vehicle market, followed by commercial vehicles and two-wheelers. However, the passenger cars segment has registered the fastest-growing segment during the forecast period due to the rapidly increasing sales of electric cars across the globe. The commercial segment is estimated to lead the segment during the forecasting period owing to the initiatives and allocation of funding by the governments and automobile manufacture for expanding public EVCI infrastructure. 

Global Electric Vehicle Market: Regional insights

Based on the region the global electric vehicle market segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Amidst the segmentation, North America held a substantial market share in 2020. This share is attributed to the increasing demand for electric vehicles in U.S. Furthermore, new initiatives are being taken up by automotive manufacturers, policymakers, non-profit organizations, and charging network companies, and have launched a new non-profit organization named “Veloz”. This new organization aims at attracting investments, innovation, marketing, and growth of electric vehicles in North America. Thus, the demand for electric vehicles in North America is bound to rise over the forecast period.

Source: BlueWeave Consulting

Recent Development

·         In March 2019, Tesla launched its fully electric Model Y, which can carry 7 passengers and their cargo. It has two ultra-responsive, independent electric motors that digitally control torque to the front and rear wheels—for better handling, traction, and stability control.

·         In July 2018, Tesla landed a deal with Chinese authorities to build a new auto plant in Shanghai, its first factory outside the US that would double the size of the electric car maker’s global manufacturing.

·         In April 2019, Nissan announced that the new Nissan Leaf would go on sale in Indonesia and the Philippines by 2020, underscoring Nissan's commitment to driving electrification in the region.

Competitive landscape

The market is consolidated and characterized by high competition owing to the presence of major players such as Tesla, BYD, BMW, Volvo, Mercedez, FREIGHTLINER, Piaggio & C. SpA, Addax Motors, Balkancar Record, Hero Electric Vehicles Pvt. Ltd., Terra Motors Corporation & other prominent players.These companies have strong distribution networks at a global level. In addition, these companies offer an extensive product range in this market. These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position.

Scope of the Report

Scope of the Report

By Propulsion Type

Ø  Battery electric vehicle

Ø  Hybrid electric vehicle

Ø  Plug-in hybrid electric vehicle

Ø  Fuel-cell electric vehicle

By Vehicle Type

Ø  Passenger vehicles

Ø  Commercial vehicles

Ø  Two-wheelers

By Charging Type

Ø  Normal charging

Ø  Super charging

By Region:

Ø  Asia Pacific

Ø  North America

Ø  Europe

Ø  Middle East & Africa

Ø  Latin America