The global electric car market size was valued at USD 294.6 billion in 2021. The market is projected to grow from USD 294.6 billion in 2021 to USD 1905.6 billion by 2028, exhibiting a CAGR of 36.50% during the forecast period. | SOURCE |
December 15, 2022
Electric cars have several advantages over conventional fuel-powered vehicles,including low operating costs, zero carbon emissions, and others because they are powered by electricity. Consumers’ changing attitudes toward electric cars are boosting market growth as they become more concerned about environmental pollution. One of the major factors driving the growth of the electric car market is the increase in electric car sales worldwide. Due to the rising environmental consciousness, consumer preference is rapidly shifting toward passenger and commercial electric cars.
Additionally, increased production and sales of luxury cars worldwide due to rising disposable income accelerates market growth. The increased demand for these improved vehicles drives up vehicle production.
| Electric Car Investment is Rising, which is a Notable Trend |
Electric car market growth is thought to be fueled by the increasing investment in electric mobility.
For instance, Ford announced its intention to invest USD 300 million in developing a new light commercial vehicle at its Romanian manufacturing facility in 2023. Major corporations like Daimler AG and Mercedes Benz are also investing significantly in producing electric cars. Consequently, it is anticipated that the market will grow steadily over the coming years.
| Inadequate Infrastructure for Charging is Limiting the Market Growth |
Governments from many nations are promoting the use of electric car for commercial purposes to reduce greenhouse gas emissions. However, the electric car market is hampered by a lack of adequate charging infrastructure. In India, for instance, the goal is for all vehicles to be electric by 2030. One of the crucial conditions to guarantee the adoption of electric cars, though, is the development of a strong infrastructure for them. Unfortunately, most developing nations’ EV charging infrastructure is insufficient and has not yet caught up to meet the demand, impeding the expansion of the market for electric cars.
Based on propulsion, the electric car market is segmented into BEV, FCEV, PHEV, and HEV. The HEV category dominated the market in 2021. The HEV offers both the choice of fuel-based and electric driving, especially in areas with a lack of readily available charging infrastructure. As governments and commercial organizations seek to set up a global network of charging infrastructure to facilitate the use of green energy, the demand for battery electric cars is growing. Additionally, the PHEV market is expanding steadily. In the upcoming years, it is anticipated that the demand will increase due to the vehicles’ falling prices.
Asia Pacific is projected to hold the largest electric car market share over the forecast period due to the rise in passenger automobile demand in developing countries. China makes up the largest portion of passenger cars and other vehicles. China is the largest market globally, with nearly half, or 45%, of all-electric car sales worldwide. Other nations like Japan, Korea, and India are also opportunistic markets because their governments are heavily investing in companies to encourage producing and selling of electric cars worldwide.
On the other hand, the Europe electric car market is anticipated to grow significantly over the forecast period. The regional government’s initiatives to cut carbon emissions have been the key driver of the market’s expansion across Europe. The U.K., Germany, and France are the key nations that support the region’s expansion. Additionally, the European automotive market will benefit from the quick adoption of fuel-efficient vehicles. Furthermore, it has been noted that the less developed nations are far behind in terms of estimated market share due to a lack of capital and charging infrastructure.
LIST OF KEY COMPANIES PROFILED :
- Nio Inc. (China)
- Alcraft Motor Company Ltd. (U.K.)
- BMW Group (Germany)
- BYD Company Ltd. (China)
- Daimler AG (Germany)
- Faraday & Future Inc. (U.S.)
- Ford Motor Company (U.S.)
- General Motors Company (U.S.)
- Honda Motor Co., Ltd. (Japan)
- Hyundai Motor Company (South Korea)
- Nissan Motor Co., Ltd. (Japan)
- TATA Motors Limited (India)
- Tesla, Inc. (U.S.)
- Volkswagen AG (Germany)
- Mahindra and Mahindra Ltd. (India)