The global electric vehicle market was valued at $190.3 billion in 2021 and it is expected to reach $2300.9 billion at a CAGR of 23% between 2022 and 2032. This expansion is mostly driven by the increased promotion of electric vehicles by various governing bodies. The market is expanding as a result of increased awareness of how conventional vehicles' emissions affect the environment. The world's efforts to promote the use of electric vehicles for public transit are essential to the development of the environment.
In contrast to internal combustion engines, which produce power by burning a mixture of fuel and gases, electric vehicles are propelled by electric motors. To solve issues like growing pollution, global warming, the depletion of natural resources, and other issues, such a vehicle is seen as a potential replacement for the present generation of automobiles. It is obvious that to meet the rising demand for electric vehicles, all aspects of the supply chain for EV batteries from the extraction of raw materials like lithium or nickel to the actual production of EVs would need to develop. The Stated Policies Scenario's predicted demand for 2025, however, should be supplied by the metal supply predictions. Several EV manufacturing facilities intend to boost their capacity for producing electric vehicles as a result of greater regulatory support.
Source: SAI Research
The market for electric vehicles has expanded as a result of awareness campaigns that have been launched to encourage the usage of these vehicles, as well as the rise in the number of factories that make them. Additionally, the government can help to promote EVs and increase their adoption rate. In essence, federal incentives serve as rewards for those who attempt to improve the environment. The optimum site plan for EV charging stations can be determined with the help of local companies and government collaboration. One can ensure that their money and the public's money are being spent properly by ensuring that the proper charging infrastructure is in place, which will facilitate the greater acceptance of EVs. These rising factors would accelerate the market growth during the forecast period from 2022 to 2032.
Manufacturers are looking into prospects in a variety of cars, including electric hybrid and plug-in hybrid models. To improve their position, major automakers are investing extensively in the market. Nissan Motor Corporation Ltd., Ford Motor Company, General Motors Company, and Daimler AG are among the well-known companies profiled in the industry. Electric cars can have other advantages. For instance, low-emission technology used in electric vehicles helps to reduce greenhouse gas emissions and address other environmental problems. To reduce greenhouse gas emissions, several developing economies are choosing sustainable alternatives.
The market for alternative fuel vehicles has become more accessible due to the negative environmental effects of conventional gasoline automobiles and the rise in fuel prices. For propulsion, all models employ one or more electric motors. The primary energy source for EVs is electricity. None of them have internal combustion engines. Traditional fuel cars are one of the major contributors to air pollution worldwide. To reduce vehicle emissions, it pushes various governing bodies to set rigorous emission requirements on automobile market producers.
Based on technology type, the hybrid electric vehicle segment accounted for the largest share of this market and is also anticipated to drive the growth of the market during the forecast period. Hybrid electric vehicles are capable of operating on both electricity and petrol. When there is a lack of adequate charging infrastructure, it is useful. The government and commercial organizations are intending to set up a charging infrastructure all over the world to decrease emissions and maintain a green environment to increase demand for battery electric vehicles. Furthermore, plug-in hybrids reach an electric-only range of 20 to 55 miles with smaller batteries than battery electric vehicles, during which they emit no tailpipe emissions. Therefore, it is predicted that these advantages will spur market expansion.
In terms of vehicle type, the passenger car category has been leading the market with a significant market share. Due to the presence of EV manufacturers, original equipment manufacturers, and other automakers in the region, the adoption rate of EVs is strong there. During the projection period, these elements will aid in promoting the expansion of this segment. In various nations in North America, Asia-Pacific, and Europe, among other places, there is an increase in passenger automobile sales.
Geographically, the Asia-Pacific region has been dominating the market and is also expected to hold its dominant position over the forecast period. Many people are becoming more interested in electric vehicles in many nations, including India, China, and Japan, among others. China dominates the worldwide EV market share area as the largest EV manufacturer and consumer in the world. Their government has taken action, including providing subsidies for EV buyers, enacting laws requiring all automakers to produce EVs in proportion to the number of vehicles they produce, providing significant funding for the installation of EV charging stations throughout major cities, and enacting regulations against excessively polluting vehicles. The EV market has also been expanding in Japan and South Korea.
According to the study, key players such as BMW (Germany), BYD Company (China), Ford Motor Company (U.S), Geely (China), Groupe Renault (France), General Motors (U.S), Hyundai (South Korea), Honda Motor (Japan), Lucid Motors (U.S), Mitsubishi Group (Japan), Mahindra and Mahindra (India), Mercedes Benz Group (Germany), Porsche SE (Germany), Rivian (U.S), SAIC (U.S), Stellantis (Netherlands), Suzuki (Japan), Tata Group (India), Tesla (U.S), Wanxiang Group Corp (China), among others are leading the global electric vehicle market.
|Market Size in 2021||US$ 190.3 Billion|
|Market Volume Projection by 2032||US$ 2300.9 Billion|
|Forecast Period 2022 to 2032 CAGR||23%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Technology Type: Hybrid Vehicle, Battery Electric Vehicle, Fuel Cell Electric Vehicle & Others
By Vehicle Type: Passenger Car, Commercial Car, Two Wheelers & Other
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||BMW (Germany), BYD Company (China), Ford Motor Company (U.S), Geely (China), Groupe Renault (France), General Motors (U.S), Hyundai (South Korea), Honda Motor (Japan), Lucid Motors (U.S), Mitsubishi Group (Japan), Mahindra and Mahindra (India), Mercedes Benz Group (Germany), Porsche SE (Germany), Rivian (U.S), SAIC (U.S), Stellantis (Netherlands), Suzuki (Japan), Tata Group (India), Tesla (U.S), Wanxiang Group Corp (China), among others.|
The Global Electric Vehicle Market – by Technology Type:
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