Global EV (Electric Vehicle) Market Size Was Worth USD 162.34 billion in 2019 and Is Projected to Grow to USD 802.81 billion by 2027

October 12, 2021, New York, USA -

The Global EV (Electric Vehicle) Market Forecast: 

Factors like the growing demand for commuting that is low in emissions and the Government's support for long-range and zero-emission vehicles via tax rebates and subsidies have driven companies to produce electric vehicles across the globe. This has resulted in an increase in the need for electric cars in the marketplace. All over the world, countries have set targets for reducing emissions based on their capacities.

The global electric vehicle (EV) industry was worth $162.34 billion in the year 2019 and is expected to grow to $802.81 billion by 2027, at a CAGR of 22.6%.

Governments are investing more money across the world to build Hydrogen and EV charging stations fueling stations, as well as incentives for buyers that could provide OEMs with the opportunity to grow their revenue stream and geographic presence. The market of Asia Pacific is projected to grow steadily due to the demand for cost-effective and emission-free vehicles. Meanwhile, it is the North American and European market is rapidly growing due to government initiatives and the growing passenger vehicle segments that are high-performance. But, the absence in the form of EV chargers and fueling stations for hydrogen, as well as the high cost of initial investment as well as performance restrictions, can hinder the expansion of the electric vehicle marketplace.

Market Trend, Dynamics, and Restraints of the Global EV (Electric Vehicle) Market:

Driver: Lowering the Costs of EV Batteries:

EV batteries have been produced on a mass scale in large volumes due to technological advancement. Resultantly, the cost of EV batteries has been dropped down over the past decade. This has resulted in an increase in the cost of electric vehicles, as EV batteries are among the most expensive components of electric vehicles.

In 2010, the cost for the EV battery was about USD 1,100 / kWh. In 2020, however, their cost dropped to USD 137/kWh, while prices were as low as USD 100 per kWh in China.

This is due to the reduction of the manufacturing costs for these batteries, a reduction in prices for cathode materials, and larger quantities of production. The cost is of EV batteries is predicted to decrease to approximately USD 60/kWh in 2030. This will significantly reduce the cost of electric vehicles, making them more affordable than traditional ICE vehicles.

Opportunities: Government Initiatives Related The EV's.

The world's nations have set targets for about 2050 for reducing the emissions of vehicles. They are now promoting the development and selling of electric vehicles and associated charging infrastructure. For example, the US government poured in USD 5 billion to help promote electric vehicle infrastructure like charging stations. Different governments offer different types of incentives, including minimal or no registration costs and exemptions from tax on imports or purchase tax as well as road tax.

In addition, nations like Norway and Germany are investing heavily in the promotion of sales of electric vehicles. This is because of the huge incentives and subsidies that are being offered in Europe; therefore, a high increase in the sales of electric vehicles is being observed. This has resulted in a rise in the demand for the components and equipment related to charging operations for electric vehicles, including charging cables, connectors, and adapters along with portable chargers.

Additionally, as part of an agreement with both the US departments of transportation and energy, the 2020 vision of an entire national fast-charging network is anticipated to be created along with future developments, which could comprise up to 350 kW direct current charging. The strict CO2 emission standards have increased the demand for electric vehicles.

Governments are investing heavily in offering incentives and subventions to boost sales of electric vehicles. The steps implemented by governments across the world will assist in boosting demand for electric vehicles over the next ten years.

Restraint: Insufficient Infrastructure To Charge EVs.

There are a few EV charging stations in a variety of countries across the globe. This makes the chance of public access to EV charging less likely, which reduces demands for electric cars. While a lot of countries are working to develop EV charging infrastructure, the majority of nations haven't managed to build enough EV charging stations, except for certain states.

The demand for electric vehicles will rise as soon as there is functioning EV charging networks all over the world. The majority of countries are still waiting to establish charging networks throughout their territory. The Netherlands has the highest EV charger density per 100 kms.

The Key Market Segmentation of the Global EV (Electric Vehicle) Market: 

Global EV (Electric Vehicle) Market can be divided into Components, Vehicle Types, Vehicle Class, Top Speed, Vehicle Drive Type, EV Charging Type Point, V2G, Propulsion, and Geographical landscapes, etc. 

EV (Electric Vehicle) Market Segmentation By Components:

Battery Cells & Packs

On-Board Charger

Motor

Reducer

Fuel Stack

Power Control Unit

Battery Management System

Fuel Processor

Power Conditioner

Air Compressor

Humidifier

EV (Electric Vehicle) Market Segmentation By Vehicle Type:

Passenger Cars

Commercial Vehicles

EV (Electric Vehicle) Market Segmentation By Vehicle Class:

Mid-priced

Luxury

EV (Electric Vehicle) Market Segmentation By Top Speed:

<125 MPH

>125 MPH

EV (Electric Vehicle) Market Segmentation By Vehicle Drive Type :

Front-Wheel Drive

Rear Wheel Drive

All Wheel Drive

EV (Electric Vehicle) Market Segmentation By EV Charging Type Point:

Normal Charging

Super Charging

EV (Electric Vehicle) Market Segmentation By V2G:

V2B or V2H

V2G

V2V

V2X

EV (Electric Vehicle) Market Segmentation By Propulsion:

BEV

PHEV

FCEV

EV (Electric Vehicle) Market Segmentation By Geographical Landscape:

North America

Europe

Asia Pacific

South America

The Middle East and Africa

Major Key Players in the Global EV (Electric Vehicle) Market Are:

Tesla (US)

BYD (China)

Volkswagen AG(Germany)

BMW Group (Germany)

Nissan Motors (Japan)

The Covid-19 Impact Analysis:

Due to the COVID-19 pandemic, the world was forced to impose an entire lockdown for more than two months which in turn has had an impact on the production of vehicles. Manufacturing facilities across the globe were shut down, and sales of vehicles have taken an enormous hit. But, the majority of automakers resumed production, with a limited amount of production and other measures.

The situation has been improved in the latter months. Overall, Electric Vehicle manufacturers didn't suffer that much, as there was an increase in demand for zero-emission vehicles in the latter months. This has given an overall boost to the Electric Vehicles in the market.

However, electric vehicles saw increased demand in the covid-19 time frame. This led to an increase in the market for EV production across the globe. The initial few months, the production of the majority of businesses was affected by delays in logistics and lockdowns. However, after the lockdown, Government across the globe has started encouraging people for using low emission fuel vehicles. Resultantly, demand for electric vehicles has been increased.

Many countries also added hydrogen fueling stations and EV charging stations in their states. This resulted in a rising demand for PHEVs, BEVs, and FCEVs between June and December 2020 and early 2021. In the end, there was not much loss for the market for electric vehicles in the midst of the pandemic because of its increased demand.