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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%.
This electric car 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.
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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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 electric car 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 electric car 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 electric car 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 electric car 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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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 shows a gradual increase in the market share of USD 528.16 thousand units in 2017 and continued to grow until 2021. In the global electric cars 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 includes 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 is holding the largest electric car 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 electric cars 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 electric vehicles, 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 electric cars 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 2020, the outbreak of COVID-19 in countries severely affected the economies and caused numerous fatalities in the region. However, in 2021, with the lifting of lockdown restrictions, the reopening of manufacturing units for electric cars, and the resumption of business activities. The electric car market in APAC is growing rapidly, and the number of electric car sales increased in 2021 compared to sales in 2020. In 2022, the highest EV sales have been witnessed in the global EV market. Therefore, the regional electric car market is expected to grow during the forecast period.
Vendors 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 vendor in the market include:
Ford Motor Co.- The company operates under multiple segments including the automotive segment, and mobility segment among others, with a high focus on the automotive segment. The company under this segment?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 vendors, 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 vendors as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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 |
22644.59 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 |
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 inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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