Electric vehicles refer to vehicles that are powered by on-board power and driven by motors to meet the requirements of road traffic and safety regulations. Electric vehicles are equipped with electric motors and batteries that replace engines, on-board chargers, accumulators, control devices, etc., and powered by rechargeable batteries instead of gasoline. It is not equipped with a gasoline engine, so it does not emit exhaust gas during driving. Compared with gasoline, cars, noise, and vibration are lower. The most significant feature and the advantage is that when decelerating, the energy is renewable and reused.
Electric cars can be an AC motor car and a DC electric vehicle. Generally speaking, electric vehicles use batteries as energy sources, through controllers, motors, and other components, to convert electrical energy into mechanical energy movement, to control the size of the current to change the speed of the vehicle.
The global electric vehicle market generated USD 165.76 Billion in 2019 and projected to reach USD 811.82 Billion by 2027, registering a CAGR of 18.61%. The major factors attributed to the shifting of consumer preferences towards electric vehicles due to socio-economic variables, psychological factors, mobility condition, social influence, etc. Moreover, favorable government policies and support in terms of subsidies and grants and growing concern toward environmental pollution will impact the growth of the global electric vehicle market in the upcoming periods. European Climate Foundation stated that EVs’ smaller models have already helped to reduce environmental pollution. Additionally, oil prices will increase over the forecast period, which will accelerate market demand for the global electric vehicles industry.
Furthermore, the growing prevalence of greenhouse gases and carbon emissions across the globe, along with governments taking stringent steps and introduce policies to curb pollution levels significantly, will accelerate the global electric vehicles market size. Further, growing demand for electric vehicles due to its benefits such as no emissions, noise, along with higher efficiency, lower maintenance cost associated with the vehicles along with reduced vibrations, supported by the availability of instant torque and power output, will foster the global electric vehicles market share.
Government policies towards Electric Vehicles are one of the possibilities to overcome the challenges of an emerging market. For instance, the Indian government under the Ministry of Heavy Industries and Public Enterprises has launched the FAME scheme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) in India) in 2015 under the National Electric Mobility Mission Plan 2020 (NEMMP 2020), to promote faster transformation from Internal Combustion Engines (ICE) to EVs.
The US federal government has supported financial terms such as a tax credit for plug-in electric vehicles purchased after December 31, 2009. The tax credit is available until a manufacturer sells 200,000 EVs.
BP Plc. a British multinational oil company has reported that oil prices will increase over the forecast period, which will accelerate market demand for electric vehicles. The company projected that the amount of oil used by cars would remain unchanged until 2040, which was 18.7 million barrels a day in 2016. Due to rising fuel prices, market demand for electric vehicles will accelerate to balance the global demand for car travel.
There are burning fossil fuels like diesel and gasoline releases carbon dioxide, a greenhouse gas, into the atmosphere. The build-up carbon dioxide (CO2) and other greenhouse gases such as nitrous oxide, hydrofluorocarbons, and methane are causing global warming, resulting in climatic changes which are impacting human and environments. Such instances are generating higher demand for environmentally friendly electric vehicles.
European Climate Foundation stated that EVs’ smaller models have already helped to reduce environmental pollution. In the UK, transportation contributes a major portion to greenhouse gas emissions. Further, the committee on climate change has urged government authorities to prohibit diesel and petrol vehicles from 2040.
Based on vehicle type, the global electric vehicle market classified into passenger cars, two-wheeler, three-wheeler, and commercial vehicles. The passenger cars will witness significant growth in the forecast period. It is primarily attributed to the government’s adoption towards more aggressive actions to encourage EV purchases like EVs are exempt from purchase taxes coupled with the rising concerns regarding energy security, fossil fuel emissions, and long-term industrial competitiveness.
Commercial vehicles will be the fastest-growing segment in the estimated period due to the growing adoption of fossil fuel-based public transport fleet with electric buses and the growth of e-commerce, logistics, and shared mobility.
Based on propulsion type, the global electric vehicle market segregated into Battery Electric Vehicle (BEV), Fuel Cell Electric Vehicle (FCEV), Plug-In Hybrid Electric Vehicle (PHEV) and Hybrid Electric Vehicle (HEV). The Hybrid electric vehicle segment held a lucrative share in 2019 and projected to dominate the global electric vehicle market by 2027. It is due to auto manufacturers focusing on developing vehicles in compliance with several regulations to decrease vehicle CO2 emission, and consumers seek to lower fuel expenditure.
The plug-in hybrid electric vehicle will be the fastest-growing segment in the forecast period. It is owing to plug-in cars have several benefits compared to conventional internal combustion engine vehicles, and they have lower maintenance and operating costs produce little or no local air pollution.
Based on Vehicle Class, the global electric vehicle market bifurcated into Mid-priced and Luxury. The Mid-priced segment estimated to lead the market by 2027 due to mid-priced vehicles has a normal price with limited features such as infotainment, instrument cluster, and other expensive features.
The luxury segment will grow with a significant rate during the forecast period owing to luxury vehicles provides better features such as 100kW battery pack, 470 horsepower, and 350kW ultra-fast charging.
Based on power output, the global electric vehicle market categorized into Less Than 100 Kw, 100-250 Kw, and above 250 Kw. Less than 100 kW segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to the dominance of SME players, as most of these players produce low-cost rickshaws with a battery capacity of less than 100 kW. Battery capacity less than 100 kW meets mainly charging requirements for e-bikes, scooters, electric wheelchairs in which it is taking 7-8 hours charging a depleted battery.
Based on the charging station, the global electric vehicle market bifurcated into AC EV Charging Station and DC EV Charging Station. The DC EV Charging Station held higher market potential in 2019. It is attributed to the growing awareness regarding DC charging’s rapid charging feature and other properties, the segment is expected to a prominent market share over the forecast period.
AC EV Charging Station market exhibits a lucrative market share in 2019 and expected to generate significant revenue during 2020-2027. Due to its lower costs than DC EV Charging station, these are the more commonly found chargers. It is much economical to charge at AC chargers, making them more popular for general day to day charging.
Based on geography, the global electric vehicle market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s share in the electric vehicle market by 2027. It is owing to increasing investments in the manufacturing of electric vehicles by automotive manufacturers in the U.S. With favorable government initiatives and incentives such as Federal incentives, include a tax credit for purchase electric drive motor vehicles, and reduced license fees, etc. North America anticipated propelling the electric vehicle market over the forecast period.
The Asia Pacific holds a prominent share of the electric vehicle market and projected to remain dominant by 2027. Rising sales of electric vehicles in these regions and the huge upsurge in electric vehicle networks, especially in China and South Korea, and several programs and initiatives by governments that promote awareness regarding the adoption of electric vehicles.
Companies such as General Motors, Nissan Motor, Tesla Motor, Toyota, BYD, Daimler AG, Mitsubishi Motors Corporation, Renault S.A., Smith Electric Vehicles, Volkswagen, BMW, Toyota, Ford, Volvo, Daimler, Hyundai, Honda, Continental AG, and Energica Motor Company SpA, are the key players in the Global Electric Vehicle Market.
By Vehicle Type
By Vehicle Class
By Propulsion Type
By Power Output
By Charging Station