Electric Vehicle Market

EV Market 2022-2030:

The global electric vehicle market was valued at $163.01 billion in 2020, and is projected to reach $823.75 billion by 2030, registering a CAGR of 18.2% from 2021 to 2030.

The COVID-19 pandemic has had an adverse effect on the overall automotive industry and thereby electric vehicle industry as well. As per the data released by Society of Electric Vehicle Manufacturers (SMEV), new EV registration of all types of electric vehicles during FY21 dropped by 20 percent compared with the number of new EV registrations in FY20. In addition, amid pandemic many different players are trying to devise different approaches in order to keep up with the condition by using electric vehicles for medical supplies as it provides affordable transportation with excellent maneuverability. For instance, Omega Seiki Mobility recently launched Rage+frost, a refrigerated load carrier three-wheeler, which is specifically designed for vaccine, pharmaceutical, and food delivery in these hard times.

An electric vehicle operates on electricity unlike its counterpart, which runs on fuel. Instead of internal combustion engine, these vehicles run on an electric motor that requires constant supply of energy from batteries to operate. There are a variety of batteries used in these vehicles. These include lithium ion, molten salt, zinc-air, and various nickel-based designs. The electric vehicle was primarily designed to replace conventional ways of travel as they lead to environmental pollution. It has gained popularity, owing to numerous technological advancements. It outperforms conventional vehicles providing higher fuel economy, low carbon emission & maintenance, convenience of charging at home, smoother drive, and reduced sound from engine. There are three types of electric vehicles batteries, hybrid, and plug-in hybrid electric vehicles. In addition, electric vehicles require no engine oil changes but are slightly expensive than their gasoline equivalents.

Factors such as increase in demand for fuel-efficient, high-performance, & low-emission vehicles, stringent government rules & regulations toward vehicle emission along with reduction in cost of electric vehicle batteries and increasing fuel costs supplement growth of the electric vehicle market. Moreover, factors such as lack of charging infrastructure, high manufacturing cost, and range anxiety and serviceability are the factors expected to hamper growth of the EV market. Furthermore, factors such as technological advancements, proactive government initiatives and development of self-driving electric vehicle technology are expected to create ample opportunities for the key players operating in the electric vehicle market. 

The global electric vehicle market is segmented on the basis of type, vehicle type, vehicle class, top speed, vehicle drive type, and region. By type, it is divided into battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV). By vehicle type, it is classified into two-wheelers, passenger cars, and commercial vehicles. By vehicle class, it is classified into mid-priced and luxury class. On the basis of top speed, it is segmented into less than 100 MPH, 100 to 125 MPH, and more than 125 MPH. By vehicle drive type, it is segmented into front wheel drive, rear wheel drive, and all-wheel drive. By region, the market is analyzed across North, Europe, Asia-Pacific and LAMEA.  

Asia-Pacific held the largest market share of the global electric vehicle industry in 2020. Higher adoption rates of smart mobility services, government regulations, increase in fuel prices, and rise in trend toward adopting non-fossil fuel-based vehicles boost growth of electric vehicles in developing countries such as India, China, and Indonesia, which create lucrative opportunities for the market in this region. Increase in vehicle population and rise in vehicle standards fuel growth of Asia-Pacific. Moreover, various  technological advancements related to electric vehicles are taking place, owing to government initiatives, which further propels the market growth. In addition, countries such as China, India, Australia, and Japan are mainly focusing on environmental awareness and new technologies, which drive growth of high-performance electric vehicles. Moreover, factors such as a significant rise in income levels & an increase in urbanization in emerging countries of Asia-Pacific are reliable engines of growth for the electric vehicle market. In addition, emission regulation & the subsidies for hybrid & electric vehicles in the Asia-Pacific region helped achieve a considerable portion of the overall EV market in Asia-Pacific. Passenger electric vehicles are gaining popularity among consumers by proactive participation of automotive OEMs. According to the IEA Global EV Outlook report, General Motors, Volkswagen, and others are intensifying their efforts in China & will be the leader in the 2030 market with holding shares of around 57%.

Currently, China is the leader in electric vehicle manufacturing and related infrastructures & technologies. The government of China has been implementing strict emission control rules to boost passenger and commercial electric vehicles on roads, therefore, it is expected to fuel demand for electric vehicles in China.

Norway is one of the fastest growing market for electric vehicles in Europe. Significant increasing adoption of electric vehicles in Norway owing to the environmental and growing fuel prices concern primarily driving the growth of EV market in country. For instance, according to report by CleanTechnica, plugin EV market share in October 2021 is at 89.3%, up from 79.1% in 2020. Also, according to Norwegian Road Foundation (OFV), overall new sales in Norway rose by 25% in 2021 to a record 176,276 cars, of which 65% were fully electric. This market share was up from 54% in 2020. Norway’s parliament has set a non-binding goal that by 2025 all the cars sold need to be zero emissions. This in turn, driving the growth of electric vehicle market in Norway.

Companies have adopted product development and product launch as their key development strategies in the electric vehicle market. The key players operating in this market are Ampere Vehicles, Benling India Energy and Technology Pvt Ltd, BMW AG, BYD Company Limited, Chevrolet Motor Company, Daimler AG, Energica Motor Company S.p.A., Ford Motor Company, General Motors, Hero Electric, Hyundai Motor Company, Karma Automotive, Kia Corporation, Lucid Group, Inc., Mahindra Electric Mobility Limited, NIO, Nissan Motors Co., Ltd., Okinawa Autotech Pvt. Ltd., Rivain, Tata Motors, Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, WM Motor, and Xiaopeng Motors. 

Key Developments:

• In November 2021, Hyundai Motor Company revealed SEVEN, the sport utility electric vehicle (SUEV) concept at Automobility LA, which is built upon Hyundai Motor Group’s Electric-Global Modular Platform (E-GMP) with premium lounge-experience that provides greater freedom & comfort for passengers.
• In December 2021, General Motors announced expanding of GM’s technology platforms to provide EV technology beyond its own portfolio & applications to meet the broad range of commercial customers & organizations.
• In September 2021, Mitsubishi Fuso Truck, a subsidiary of Daimler AG, signed an agreement with Bus Corporation MFTBC, to deliver 20 units of the all-electric eCanter truck to Australia Post fleet. The eCanter trucks will run in major cities across Australia to support parcel deliveries.
• In April 2020, BYD Company Limited and Toyota Motor Corporation formed a joint venture to conduct R&D of battery electric vehicles (BEVs). The name of the new company is BYD TOYOTA EV TECHNOLOGY CO., LTD. (BTET). BYD and Toyota will work together to meet the diverse needs of customers by researching and developing BEVs that appeal to customers and promoting their widespread adoption.

COVID-19 Impact on EV Market: 

The COVID-19 pandemic has had an adverse effect on the overall automotive industry and thereby electric vehicle industry as well. As per the data released by Society of Electric Vehicle Manufacturers (SMEV), new EV registration of all types of electric vehicles during FY21 dropped by 20 percent compared with the number of new EV registrations in FY20. 

In addition, amid pandemic many different players are trying to devise different approaches in order to keep up with the condition by using electric vehicles for medical supplies as it provides affordable transportation with excellent maneuverability. For instance, Omega Seiki Mobility recently launched Rage+frost, a refrigerated load carrier three-wheeler, which is specifically designed for vaccine, pharmaceutical, and food delivery in these hard times

Increase in demand for fuel-efficient, high-performance, and low-emission vehicles

Gasoline being a fossil fuel is not a renewable source of energy, and is anticipated to get exhausted in the future. To support sustainable development, it is important to develop and use alternative sources of fuel. This involves use of electric vehicles, which do not use gas and are more economical than conventional vehicles. An electric vehicle converts over 50% of the electrical energy from the grid to power at the wheels, whereas the gas-powered vehicle only manages to convert about 17%–21% of the energy stored in gasoline. The demand for fuel-efficient vehicles has increased recently, owing to rise in price of petrol and diesel. This is attributed to depleting fossil fuel reserves and growth in tendency of companies to gain maximum profit from these oil reserves. Thus, these factors give rise to the need for advanced fuel-efficient technologies, leading to surge in demand for electrically powered vehicles for travel.

Stringent government rules and regulations toward vehicle emission

With the growing environmental concerns, governments and environmental agencies across the world are enacting stringent emission norms and laws to reduce vehicle emission. Major regulatory measures are stringent emissions targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in air. High amounts of greenhouse gases being emitted from vehicles and federal and state governments in the U.S. are stepping up efforts to make transportation cleaner. 

For instance, the U.S. Environmental Protection Agency (EPA) announced that they are working on new rules to decrease emissions of nitrogen oxide (NOx) and other pollutants from heavy-duty trucks. In addition, the California Air Resources Board (CARB) is adopting heavy-duty Low NOx Omnibus Regulation, aims to achieve a 90% reduction from current NOx emissions limits by 2027. Moreover, in Europe, European Union (EU) committed within the Paris agreement (COP21) to achieve its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol. The EU has also set the target to achieve 40% greenhouse gas reduction by 2040 and net-zero by 2050.

Therefore, with enactment of the emission regulations for fossil fuel-powered vehicle, the burden on vehicle manufacturers, especially on commercial vehicle manufacturers, has further increased. This, in turn, is expected to drive the demand for electric vehicles. Thus, stringent emission norms imposed on fossil-fuel powered commercial vehicles significantly driving growth of the electric vehicle market. 

Lack of charging infrastructure

Governments of various countries are promoting adoption of electric vehicles for commercial purpose to reduce emission of greenhouse into environment. However, lack of charging infrastructure for electric vehicles acts as an obstacle for the electric vehicle market. For instance, the Government of India is aiming to have only electric vehicle on roads by 2030. However, creation of robust electric vehicle infrastructure is one of the key requirements to ensure the adoption of electric vehicles. Unfortunately, EV charging infrastructure in most of developing countries is inadequate at present and yet to catch up to meet the requirement, which in turn is hampering the growth of the electric vehicle market. In addition, though China is one of the biggest markets for electric vehicles, the country is struggling to support the sufficient electric vehicle charging infrastructure to recharge electric fleets, which is anticipated to hindering the market. Thus, lack of charging infrastructure is restraining the growth of EV market.

Development of self-driving electric vehicle technology

The electric vehicle market will be affected by the recent trend of self-driving trucks. Top OEMs such as Tesla, Volvo, Vera, Daimler among others have been developing self-driving electric vehicles for the market. Startups such as Waymo, Uber, Embark, Einride, TuSimple, and Ike have also started developing self-driving electric vehicles. For instance, Tesla announced a plan to launch its self-driving electric truck by the end of 2022. 

For instance, Waymo has started testing its self-driving trucks since January 2020. Similarly, TuSimple plans to operate autonomous routes between Pheonix and Tucson in Arizona and some areas in Texas. Further, in May 2019, Einride had started its testing for driver-less trucks. In January 2019, Daimler announced an investment of $570 million for self-driving electric vehicles. Thus, self-driving technology will increase demand for electric vehicles in the long run due to the various advantages such as reduced accident risk, easy use, and presence of value-added features. This technology is expected to mature by the next 5-6 years. Thus, development of self-driving electric vehicle technology is opportunistic for market growth. 

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global electric vehicle market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall electric vehicle market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global electric vehicle market with a detailed impact analysis.
• The current electric vehicle market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Electric Vehicle Market Report Highlights