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The Electric Car Market size is estimated to grow by 22,644.59 thousand units between 2022 and 2027 accelerating at a CAGR of 28.69%. Global demand for electric vehicles (EVs) is rising, with sales of plug-in hybrid vehicles and battery electric vehicles (BEVs) increasing significantly in 2021. BEVs are expected to continue to grow in sales. In 2021, more than 7 million EVs were sold globally, with over 60% being BEVs. China dominated in terms of EV sales, followed by Europe and the US. Chinese manufacturers like BYD Company and BAIC are seeing increased demand due to the country's growing demand for new energy vehicles, along with government regulations, subsidies, and infrastructure supporting EV use. In Europe, Norway, the Netherlands, Germany, Iceland, and Poland were the top sales countries, while the US led in the Americas. Overall, the global electric car market is growing due to the increasing demand and sales of BEVs in these regions.
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This market forecast report extensively covers market segmentation type (sedan, hatchback, and others), vehicle type (BEV and PHEV), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The market share growth by the sedan segment will be significant during the forecast period. A sedan has a three-box design configuration. Sedans have numerous advantages over smaller, compact cars. The former has improved space, separate compartments for luggage, and other advantages.
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The sedan segment showed a gradual increase in the market share of USD 528.16 thousand units in 2017 and continued to grow until 2021. In the global market, many all-electric cars are available in the sedan body type. Most of the all-electric sedans are available in developed automotive markets in North America, Europe, the Middle East, and APAC. One of the popular all-electric sedans is Tesla's Model S. It is one of the bestselling all-electric sedans in the world. The Model S comes fitted with a 75-kilowatt hour (kWh) or 100 kWh lithium-ion battery (microprocessor controlled) and a three-phase four-pole AC induction motor. The car also features a drive inverter with variable frequency drive along with a regenerative braking system.
Based on vehicle type, BEV holds the largest market share. Sales of pure electric cars are expected to more than double in 2023, owing to soaring demand in Europe, China, and the US. The number of launches in the market for EVs worldwide is rising. In recent years, the market has seen the introduction of new all-EV types. These new versions offer better comfort and convenience when traveling, as well as improved performance and battery life. The newest electric cars are being featured in a number of international auto events. In 2020, there were more than 10 million electric cars on the road worldwide, with battery-electric versions leading the growth. Thus, growing demand for fully battery-based electric cars will boost market growth during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia-Pacific (APAC) region is growing rapidly, mainly due to the high sales of commercial vehicles in the region, especially in China. The Chinese market has been witnessing significant growth in the sales of EVs, owing to various factors such as government initiatives to reduce carbon emissions, strict emission norms, and incentive schemes to promote the adoption of EVs in polluted cities. The increasing number of EV charging stations and the participation of foreign and local automakers in making EV technology more efficient are also contributing to the growth of the market.
The market in the region is primarily dominated by Chinese automakers, although Japan is also home to some prominent EV manufacturers such as Nissan. Japan is a significant contributor to the global sales of hybrid and electric vehicles, and Tesla has established its charging network in the country. The implementation of strict policies by the government to support infrastructural development is expected to further drive the growth of the market, as the country is known for the rapid adoption of vehicles with advanced technologies.
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In the quest for environmental sustainability, the market is at the forefront, offering a paradigm shift from traditional vehicles to eco-friendly alternatives. Electric-powered cars, including Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric vehicle (HEV), lead the charge towards a low carbon emission future. With mid-priced vehicles and luxurious cars dominating the market, options cater to diverse consumer needs, from front wheel drive to rear wheel drive configurations. The automotive landscape is evolving with the emergence of eco-friendly alternatives to traditional cars. Battery electric vehicle (BEV), Hybrid Electric Vehicles (HEVs), and Fuel cell Electric vehicle (FCEV) offer promising solutions to reduce greenhouse gases (GHGs) and environmental pollution. With options like Plug-in Hybrid Electric Vehicle (PHEV) and various drive configurations, such as front-wheel and rear-wheel drive, the future of transportation is greener and more sustainable.
Key to this transformation are energy storage devices and rechargeable batteries powering electric motors for propulsion. These innovations not only enhance energy efficiency but also significantly reduce greenhouse gases and noise pollution, offering near-silent operation. Regenerative braking systems further contribute to fuel economy and environmental sustainability. As the world embraces electric cars, traditional vehicles fueled by gasoline and diesel are gradually being replaced, paving the way for a cleaner, quieter, and greener transportation landscape. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Reducing prices of lithium-ion batteries is one of the prime factors driving the growth of the market share. Batteries are crucial to all-electric vehicles (EVs) since they lack conventional hybrid engines or plug-in hybrids. For an EV to have adequate range and power, it requires a high-capacity battery, which is typically a lithium-ion battery due to its benefits and superior performance. Over the past decade, technological advancements and large-scale production have significantly reduced the prices of lithium-ion batteries. This, along with government subsidies and incentives, has propelled the growth of the global market. Manufacturers are continuously improving lithium-ion batteries, making them lightweight with a longer lifespan compared to lead-acid batteries. Additionally, the shift of battery manufacturing bases from Japan to China has encouraged Chinese manufacturers to develop cost-competitive lithium-ion batteries for EVs. All these factors are contributing to the reduction in battery prices, leading to market growth.
All-electric cars serve as platforms for fully autonomous vehicles which is a major trend. According to industry experts, all-electric cars are expected to become the new wave in the global vehicle transportation industry within five years. Many established and new automakers have committed to producing numerous new models in the coming years, region-specific and globally, to meet the needs of various demographics. While all-electric cars offer several benefits over conventional ICE-driven vehicles, they are also expected to contribute to the future of fully autonomous vehicles.
All-electric cars have great potential to serve as fully autonomous vehicles and improve efficiency in many areas, including environmental sustainability. Technologies like platooning would also be achievable. To make this model commercially viable, stakeholders in the automotive industry are pushing to reduce power requirements through higher penetration of chip integration and other technological breakthroughs.
The lack of BEV charging infrastructure in developing automotive markets may hinder market growth. The global electric car market is witnessing strong growth, driven by high demand from developed automotive markets like North America and Europe. In these regions, all-electric vehicles (BEVs) make up a significant portion of automobile sales due to well-planned and developed charging infrastructure, including EV charging stations in public places, private companies, and government offices. Additionally, the growing availability of charging ports in house premises has further boosted the commercial viability of BEVs in these regions. However, developing automotive markets have been slower to adopt all-electric cars due to a lack of EV charging infrastructure. For instance, India and Latin American economies have a limited number of publicly available EV charging stations, hindering the growth of the global electric cars market.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Electric Car Market. One of the major companies in the market include:
Ford Motor Co.- The company?offers Ford and Lincoln vehicles, service parts, and accessories worldwide. The company's key offerings include?electric cars.
The electric car market analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electric car market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "Thousand Units" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing a seismic shift as consumers increasingly prioritize sustainability and fuel economy. Electric-powered vehicles, including Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), offer low carbon emissions, reducing the carbon footprint. From mid-priced electric cars to luxurious segments, options abound for all consumer segments, driving adoption among the middle class population. With advancements in EV batteries and propulsion technology, electric cars boast near-silent operation, swift acceleration, and smoother rides. Infrastructure development, including fast-charging networks and public EV charging facilities, supports widespread adoption. Government incentives and tax rebates incentivize investment in electric motors and rechargeable batteries, fostering a cleaner, more efficient future in urban mobility solutions and smart cities.
As the world shifts towards sustainable transportation, electric-powered vehicle are spearheading the transition. Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric Vehicles (PHEVs) lead the charge, offering low carbon emissions and adhering to stringent CO2 emissions standards. From mid-priced to luxurious segments, electric cars cater to diverse consumer preferences, with options ranging from front-wheel drive to all-wheel drive configurations. Infrastructure development is key, with fast-charging networks and various charging stations facilitating convenient device-related EV charging. Transportable chargers and adapters ensure flexibility on the go, while regenerative braking systems provide instant torque and a smoother ride.
The environmental benefits are evident, with reduced car emissions and noise pollution compared to traditional vehicles powered by gasoline or diesel. With advancements in battery technology and support from technology firms, the electric vehicle market continues to evolve, driving urbanization and personal mobility solutions like car sharing and ride-hailing services. Embracing digitalization and connected vehicles, the industry attracts foreign direct investment, paving the way for a cleaner, more sustainable future in transportation. In the market, the transition from traditional car models to electric vehicles is enhanced by the use of Automotive Ultracapacitor technology, with All Wheel Drive systems, luxurious segment offerings, and advanced cathode material for improved efficiency, along with robust charging cables and connectors replacing those found in diesel automobiles.
Electric Car Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.69% |
Market growth 2023-2027 |
22,644.59 thousand units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
28.5 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks, Electric Car Market Industry Report |
Key companies profiled |
BAIC Motor Corp. Ltd., BMW AG, BYD Electronic Co. Ltd., Chery Automobile Co. Ltd., Daimler AG, Ford Motor Co., Geely Auto Group, General Motors Co, Kia Motors Corp, Mahindra and Mahindra Ltd., NIO Ltd., Nissan Motor Co. Ltd., Renault SAS, SAIC Motor Corp. Ltd., Stellantis NV, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., and Volkswagen AG |
Market dynamics |
Parent market analysis, market growth and trends, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period, Electric Car Market Growth Analysis |
Customization purview |
If our electric car market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
View Electric Car Market Forecast Report Sample PDF
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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