According to a new report published by Allied Market Research, titled, Electric Vehicle Market by Type and Vehicle Type: Global Opportunity Analysis and Industry Forecast, 2018-2025, the global electric vehicle market was valued at $118.864.5 million in 2017, and is expected to reach $567,299.8 million by 2025, growing at a CAGR of 22.3% from 2018 to 2025.
The electric vehicle was primarily designed to replace conventional ways of travel that cause environmental pollution. Electric vehicles have gained popularity owing to numerous technological advancements. The electric vehicle outperforms the conventional vehicle providing higher fuel economy, low carbon emission and maintenance, convenience of charging at home, smoother drive, and reduced sound from engine.
The passenger car segment is anticipated to dominate the market throughout the analysis period. The Asia Pacific electric vehicle market accounted for approximately 52% share of the global market in 2016, and is anticipated to dominate during the forecast period.
The electric vehicle industry holds a great potential in future to change the global vehicular emissions scenario. Electric vehicles are witnessing wide adoption globally due to stringent vehicular emission norms to reduce carbon footprint and the change in vehicle architectures.
Various commercial and government fleet managers rely on electric vehicles to secure their budgets from unfavorable fluctuations in the fuel costs and reduce emissions of their fleets. In addition, urbanization, rise in congestion, and increase in emissions have propelled the hybridization and electrification of vehicle powertrains. Moreover, volatile oil & gas prices and upcoming shortage in fossil fuel are expected to boost the adoption of fuel-efficient vehicles. Countries, such as China and India, hold a tremendous market potential as, their governments have promoted substantial incentives for purchasing electric vehicles. According to Forbes, Chinese automakers churned out 680,000 all-electric cars, buses, and trucks in 2017, more than the rest of the world combined. China produced more than 200,000 all-electric commercial vehicles last year, amounting to nearly 5% of total output of the world.
Various companies intend to expand their market penetration in Asia-Pacific for the development of advanced electric vehicles.
The type segment is categorized into battery electric vehicle (BEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV). The hybrid electric vehicle segment accounted for the highest revenue in 2017, owing to its high adoption and availability of wide product portfolio from the key market players. Moreover, the battery electric vehicle segment is anticipated to witness the highest CAGR during the forecast period. By vehicle type, the electric vehicle market is classified into two-wheelers, passenger cars, and commercial vehicles.
The passenger car segment was the highest contributor to the market in 2017, and is anticipated to witness growth owing to the increase in sales of electric passenger cars globally and supportive government initiatives upon purchase of electric vehicles. The commercial vehicle segment is anticipated to witness growth during the forecast period.
Asia-Pacific accounted for the highest revenue in 2017, constituting over 48.41% of the global electric vehicle market revenue. The electric vehicle market in the region is anticipated to witness prominent growth during the forecast period. This is attributed to rise in volumetric sales of electric vehicles in China and Japan, increase in buying power of consumers in emerging markets such as India, Malaysia, and China, and growth in electric vehicle charging infrastructure throughout the region. Moreover, North America is anticipated to witness the highest growth owing to the stringent rules and regulations enforced by government for vehicular emission control.
Key Findings of the Electric Vehicle Market :
- In 2017, the passenger car segment dominated the overall electric vehicle market.
- The commercial vehicle segment is anticipated to grow at the highest CAGR during the forecast period.
- In 2017, the hybrid electric vehicle segment was the highest contributor to the overall market, and is expected to maintain its dominance throughout the forecast period
- The battery electric vehicle segment is anticipated to witness the highest CAGR of 23.4% from 2018 - 2025
- Asia-Pacific dominated the market, with over 50% of the market share
The key players profiled in the electric vehicle market include Tesla, BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.P.A., BYD Company Motors, and Ford Motor Company.