Electric Vehicles Market Size, Share, Growth, and Industry Analysis, By Type (Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle & Fuel Cell Electric Vehicle), By Downstream industry (Two-wheelers, Passenger Cars & Two-wheelers) and Regional Forecast to 2032

Updated On: 02 September 2024

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ELECTRIC VEHICLES MARKET REPORT OVERVIEW

The global Electric Vehicles Market Size was USD 2.9 million in 2023 and the market is projected to touch USD 43.26 million by 2032, exhibiting a CAGR of 31.03% during the forecast period.

The electric vehicle market is revolutionizing the auto industry as the shift towards more efficient materials and power sources and consumers’ changing needs are boosting the market. Fully battery-powered electric vehicles, plug-in hybrid electric vehicles, and hydrogen fuel cell vehicles are considered better alternatives to conventional internal combustion engine vehicles inasmuch as they have better GHG emissions and a lesser dependence on oil. All the leading players in the market are also focusing on research and development activities for improving the range of vehicles, charging stations, and efficiency. Major drivers for the market include the growing rate of advancement in emission norms in different countries and the availability of incentives for EVs. The further advancement of EVs and charging points is providing the prerequisite for the future transition towards more eco-friendly mobility.

COVID-19 Impact: Market Growth Restrained During Pandemic Due to Increased Awareness

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID-19 pandemic, the electric vehicle market saw certain advancements for the same reason that the crisis popularized the use of sustainable and green solutions around the world. The pandemic stopped or slowed down regular operations of supply chains and manufacturing; however, it shifted consumers’ consciousness toward environmental issues and boosted governmental support for clean energy. This led to an increase in the number of investments and developments in battery-electric vehicles as well as charging stations. As a result, the market has been on the right upward turn based on regaining consumers’ trust and the need to embrace environmental conservation, as seen by cutting down carbon footprints.

LATEST TRENDS

Market growth is driven by advanced battery tech

Trends observed in the electric vehicle market suggest that the market continues to see a high level of innovation regarding battery technology especially solid-state batteries. power density, new-generation solid-state batteries provide four times more energy density than lithium-ion batteries their charging time is also 3 and half times shorter than that of lithium-ion batteries and they have improved safety features compared to lithium-ion batteries. Moreover, focus is being laid on increasing the charging stations and including ADAS features for better driving and safety. Such developments are pushing the market forward and striving for practicality and variety that would attract many buyers to switch to EV.

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SEGMENTATION

By Type

Based on type the market can be categorized into Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle & Fuel Cell Electric Vehicle

Battery Electric Vehicle: Battery electric vehicles are automobiles that are driven by electricity stored in batteries they don’t use gasoline at all. They don’t have exhaust pipes and get replenished by charging stations for their source of energy. The usage of BEVs has risen over the years because of improvements in the battery and standard environmental measures.

Hybrid Electric Vehicle: HEVs use both an internal combustion engine and electric motor within the same vehicle in order to increase overall fuel economy. One is a peripheral helper for the engine at take-off, and recharging is done by regenerative braking. HEVs does not need to be charged externally, which can be very convenient for users.

Plug-in Hybrid Electric Vehicle: The technical characteristics of plug-in hybrid electric vehicles combine the characteristics of both pure electric and hybrid vehicles since they are opted with an internal combustion engine and at the same time a rechargeable electric battery. They can be plugged into external sources of power and usually they offer more electric only miles than previous hybrids. PHEVs exist as a middle ground between traditional and EVs.

Fuel Cell Electric Vehicle: Fuel Cell Electric Vehicles use hydrogen and oxygen to develop electricity through a chemical reaction with water as the emissions. they provide a fast refueling option for vehicles and longer travel distances compared to battery electric vehicles. FCEVs are relatively new with the advancement of hydrogen infrastructure being a factor that strongly determines FCEVS growth..

By Downstream industry

Based on Downstream industry the market can be categorized into Two-wheelers, Passenger Cars & Two-wheelers

Two-wheelers: scooters and motorcycles which are a more environmentally friendly option than conventional gasoline motorcycles. They are used most often in metropolitan areas because they are quicker and cheaper to operate than others. This segment’s growth is occasioned by population growth, especially in urban centers, and the growing need for green mobility.

Passenger Cars: Battery-electric passenger cars are observed to be rapidly growing in use owing to the advantages of zero-tailpipe emissions as well as battery development. It holds that they perform better and have lower running costs than standard or traditional automobiles. The development of stations for charging and subsidies offered by the state authorities are also stimulating the development of this segment.

Commercial Vehicles: Distributed electricity applications are now showing their face in commercial electric vehicle applications like delivery trucks and buses. They assist in cutting down on emissions and operating costs, particularly for fleet operators. The constant addition of charging infrastructure, particularly for specific segments, and progress made in battery systems are some of the opportunities that influence this segment.

DRIVING FACTORS

Global incentives and regulations are accelerating market growth

Federal governments across the globe have followed up on the previous year's stepped-up regulations on emissions and are offering incentives like tax credits and subsidies to electric cars, or what is famously known as EVs. These policies not only aid in the decrease of the overall emissions of gases that are known to be hazardous to the environment but also assist in the optimization of the financial aspects of EVs, which aids in improving the growth of the market at a fast pace resulting Electric vehicle market growth.

Advancements in battery technology are driving market growth

New advancements in battery technology, especially solid-state and fast-charging batteries are greatly increasing the capabilities and desirability of EV. Biomimetic batteries that increase the energy density and decrease the charging time meet two of the largest objections consumers have about EVs thus increasing the demand and the size of the market.

RESTRAINING FACTOR

High initial cost slows market growth despite decline

Persistent challenges to the use of electric vehicles is still the relatively high initial cost as compared to conventional vehicles. The problem is that the cost of EVs is initially higher than that of conventional cars, even though the prices are gradually declining. The higher initial cost reduces the market appeal of EV, thus slowing market growth.

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ELECTRIC VEHICLES MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America leads market growth due to supportive policies

North America holds the largest share of EVs market share because of favorable government policies, impressive EV investments, and high demand. The major players in the implementation of supportive regulations include the U.S. and Canada, especially through offering tax credits and setting hydrocarbon emissions standards that support the takeoff of EVs. Original equipment manufacturers commonly associated with the production of automobiles are also at the helm of EV advancements, which have helped to push up the overall market share and growth of North America.

KEY INDUSTRY PLAYERS

Innovation and investment are driving rapid market growth

Important market players are hitting the key impact of innovation and investment on the market growth of electric vehicles (EVs). Several car producers are working on superior battery systems, providing a large number of new EV models, and improving the charging networks. These strategic associations and compulsions with technology firms and energy providers are leading to the evolution and enhancement of the consumption of EVs, and as a result, the speedy expansion and evolution of the EV market.

List of Market Players Profiled

• Nissan-Renault-Mitsubishi (Japan)
• Tesla (U.S)
• Toyota (Japan)
• Mercedes (Germany)
• BMW (Germany)

INDUSTRIAL DEVELOPMENT

April 2024: Tesla signed a new patent agreement during the shareholder meeting; they disclosed a new development in battery technology. This new tech will cut battery costs and boost the driving range of its electric vehicles, it says. This could be a major shift, renaming EVs cheaper and thus, more accessible to buyers in the market. Tesla is only one of many instances in the changes seen in the ev industry. Current investigation in the development of solid-state batteries presents an opportunity for faster charging and longer driving range, while striving to increase the availability of fast charging infrastructure attacks the problem of range, a major concern to potential EV users.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Electric Vehicles Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose Downstream industry may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.