Electric Vehicle Market

Global Electric Vehicle Market Size (2024 to 2032)

The global electric vehicle market was valued at USD 427.33 billion in 2023 and is anticipated to reach USD 461.09 billion in 2024 from USD 847.14 billion by 2032, growing at a CAGR of 22.6% from 2024 to 2032.

An electric vehicle uses electricity to operate, unlike other vehicles that run on fuel. The electric motor installed supplies constant energy from the batteries and does not have any internal combustion engine. Lithium-ion, zinc-air, molten salt, and other nickel-based design batteries are some varieties of batteries used for electric vehicles. Electric vehicles are specially designed to reduce environmental pollution. With the latest technological advancements in electric vehicles, many people are inclined to adopt these vehicles. The global share of electric vehicles is expected to increase from 2% in 2016 to 30% by the end of 2030. Electric vehicles can be charged through electricity and are environment-friendly vehicles.

Current Scenario of the Electric Vehicle Market 

An electric vehicle is a vehicle that can be powered by an electric motor that draws electricity from a battery and can be charged from an external source. The electric motor is powered by rechargeable batteries, which can be charged by ordinary household electricity. The global electric vehicle market has witnessed moderate growth in the past few years and is anticipated to grow significantly during the forecast period. The rising trend of the green environment is enhancing the adoption of environment-friendly vehicles, escalating disposable incomes, and growing demand for zero carbon emission vehicles, majorly driving the global electric vehicles market. The rising technological advancements in the automotive industry and several advantages offered by electric vehicles compared to casual automotive vehicles will augment the market growth opportunities in the coming years. Manufacturers focus on developing exact electric vehicles that withstand various conditions. These efforts by the manufacturers are gaining consumer attention, which will further accelerate the market growth.  

MARKET DRIVERS 

The rising demand to reduce carbon emissions is a key factor driving the electric vehicle market growth.

Growing awareness over the launch of different electric vehicles with the latest features is enhancing the demand of the market. In many countries, government organizations are investing highly in electric vehicles that leverage the growth rate of the market. In addition, creating awareness through digital platforms is greatly influencing the demand in the electric vehicle market. Rising demand for zero-emission vehicles is likely to fuel the market demand. Also, the launch of various schemes in favor of the end users by companies is increasing the growth rate of the electric vehicle market. The introduction of vehicles with advanced features is anticipated to level up the growth rate of the electric vehicle market growth.

The growing prevalence of reducing air pollution across the world by adopting electric vehicles rather than vehicles running on fuel is a huge factor propelling the growth of the electric vehicle market. In addition, government support for the manufacturing of electric vehicles and the rapid adoption of technological advancements are contributing to the global market growth. In the future, the demand for electric vehicles will increase randomly across the world due to increasing rates of fossil fuel. This attribute is anticipated to bolster the demand of the market to an extent. Decreasing fossil fuel reserves impels the growing prices of petrol and diesel, which is escalating the growth rate of the electric vehicle market. Electric vehicles have the capacity to convert 50% of electrical energy from the grid, which is escalating the demand for the market. E-commerce companies like Amazon and others are adopting electric vehicles to reduce carbon emissions, which is accelerating the demand for the electric vehicle market. The government plans to launch many electric buses as public transport, especially in developed and developing countries, to bolster the demand of the market. Collaborations between the market players to bring an advanced version of electric vehicles with updated features are boosting the demand of the market. Focus on launching lower-cost electric vehicles by automobile companies with the latest technologies to fuel market growth.

MARKET RESTRAINTS

However, electric vehicles are expensive, and common people cannot afford them, which is slowly restricting the demand in the electric vehicle market.

The lack of skilled technicians and high maintenance techniques are hampering the growth rate of the market. Increasing risks of vehicles on long journeys are slightly impeding the demand for electric vehicles. Stringent rules and regulations by the government in approving new technologies are big challenging factors for the market players. The rising cost of the raw materials used to manufacture the electric vehicle is increasing the cost of the end product, which is limiting the demand of this market. The lack of proper charging stations is restraining the growth rate of the market. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Electric Vehicle Market By Vehicle 

The passenger car segment dominated the global electric vehicle market revenue by holding a dominant share. The increasing sales of electric vehicles across various countries like China, India, Germany, and others is majorly boosting the segment growth. The increasing demand for electric vehicles across the Asia Pacific region is due to several advantages like lower running and maintenance costs, better performance compared to traditional cars, no fuel emissions, tax, and financial benefits, accelerating electric vehicle adoption rate, leading to segment growth. 

The two-wheeler segment has recently gained traction due to the increasing adoption of electric two-wheeler vehicles. Various countries, such as North America, Europe, and Asia Pacific, are adopting measures to reduce emissions in the coming years, raising the adoption rate and leading to segment growth. 

Global Electric Vehicle Market By Propulsion 

The battery-electric vehicle segment dominated the global market with a significant share. The presence of several advantages of battery electric vehicles, such as control over greenhouse gas (GHG) emissions, energy security concerns minimizing local pollutants. and continuous advancements compared to others, is boosting the segment growth. For Instance, in 2023, BYD introduced a new technological system for stabilizing car rides, rugged terrain, sharp turns, and even shallow water. 

The Fuel cell electric vehicle segment is expected to grow the fastest during the forecast period. This type uses fuel cells to generate electricity for the vehicle, and these are entirely emission-free, as they emit water or heat. 

Global Electric Vehicle Market By Components

The battery cells and packs segment dominates the global electric vehicle market revenue as it is the main component for the vehicle's functioning and a significant cost contribution. Most manufacturers focus on developing traction batteries and high-voltage components, which enhance performance and reduce cost. The price value of the battery packs is expected to decrease significantly in the coming years, which will drive the segment growth during the forecast period. 

Global Electric Vehicle Market By Charging Station Type 

The normal charging segment held a significant share and is expected to grow steadily in the coming years. However, the increasing technological advancements in the automotive industry are expected to drive the supercharging segment in the coming years, making it dominant. Supercharging will provide various benefits, such as reducing the time and cost of charging, which fuels the market's growth. 

Global Electric Vehicle Market By Vehicle Class

The mid-priced segment held the most significant share and is expected to dominate during the forecast period. This class of vehicles has limited features but is cost-effective, enhancing people's adoption and leading to market growth. China is one of the leading markets for the mid-priced segment. Top automotive manufacturers such as Hyundai, General Motors, Honda, and Nissan manufacture mid-priced electric vehicles, which are estimated to acquire a higher market share. 

REGIONAL ANALYSIS

North America holds the dominant share of the electric vehicle market. Rising per capita income and growing investments in the automobile industries are elevating the demand of the market. Creating awareness to reduce environmental pollution in all countries is greatly promoting the demand of this market in North America. In emerging countries like the US and Canada, the demand for electric vehicles has been very high in the past few years. The rapid adoption of technological advancements in automobile industries is quietly gearing up the growth rate of the electric vehicle market. The government set up a target to increase the production rate of electric vehicles by 2050, which is likely to level up the demand of the market.

Europe is next in holding the largest shares of the electric vehicle market. High disposable income in urban areas and the growing prevalence of electric vehicles with increasing fuel prices are promoting the demand of the market in Europe. Also, support from the government in providing subsidies for electric vehicles is impelling the demand of the market. Countries like Germany and the UK are focusing on introducing new electric vehicles with advanced technologies at a lower cost, which is gaining more traction over the shares of the market.

Asia Pacific is expected to have the highest CAGR in the coming years with increasingly stringent government rules and regulations to promote zero-emission vehicles. India and China are major contributors to the market shares. China's electric vehicle market has the highest growth opportunities. Installing electric charging stations with good infrastructure is a key driving factor for the growth of the Chinese market. India is planning to increase the sales of electric vehicles by introducing electric buses in urban areas. The launch of innovative techniques is accelerating the growth rate of the electric vehicle market.

Latin America is to have a substantial growth rate in the coming period. Middle East and Africa's electric vehicle market revenue is expected to have a slow growth rate during the forecast period 2022 - 2027.

KEY PLAYERS IN THE ELECTRIC VEHICLE MARKET 

Tesla, BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.p.A., BYD Company Motors, Ford Motor Company. Are playing a dominant role in the global electric vehicle market.

 RECENT HAPPENINGS IN THIS MARKET

• In May 2019, Hyundai showcased the new ionic electric version of its vehicle. This vehicle’s battery is increased to 38.3 kWh from 28 kWh.
• In November 2019, BYD launched the e3 electric sedan in China, which has a range of around 252 miles. This was manufactured with battery options 35.2 kWh and 47.3 kWh with a single 70 kW electric motor.
• In March 2020, 2^nd generation vehicles named 330e and 330e xDrive were launched by BMW. The launch of these vehicles leveled up the shares of the company in the market, which expanded the portfolio.
• In November 2020, the Leaf model vehicle with a battery choice between 40kWh and 62kWh was introduced by Nissan in the US.
• In 2021, Volvo showcased a new C40 recharge model that was designed with advanced features. This is a pure electric car with features similar to those of the XC60 model.

DETAILED SEGMENTATION OF THE GLOBAL ELECTRIC VEHICLE MARKET INCLUDED IN THIS REPORT

This market research report on the global electric vehicle market is segmented and sub-segmented based on vehicle, propulsion, component, charging station type, vehicle class, and Region.

By Vehicle

• Passenger Car
• Commercial Vehicle
• Two Wheeler

By Propulsion

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

By Components

• Battery Cells & Packs
• On-Board Charge
• Infotainment
• Electric Motor

By Charging Station Type

• Normal Charging
• Supercharging

By Vehicle Class

• Mid-Priced
• Economy
• Luxury

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa