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Global Electric Vehicle (EV) Market size is estimated to grow by 25,927.15 thousand units between 2022 and 2027 accelerating at a CAGR of 37.45% during the forecast period. The growth of the market depends on several factors, including growing demand for fuel-efficient and low-emission vehicles, stringent rules and regulations, and increasing government support.
This report extensively covers market segmentation by type (BEV and PHEV), charging (normal charging and supercharging), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Electric Vehicle Market shows accelerated growth during the forecast period
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The stringent rules and regulations are notably driving the market growth. Emission regulations are getting stringent, both at the city level and the national level. Several rules and regulations have been enacted by various countries to monitor emissions from vehicles. On a regional basis, the regulations differ depending on the goals set by the government as well as the regulations already in place. The previous versions of European or United Nations Economic Commission for Europe mobile source emission regulations have been adopted by many countries. On the other hand, some countries have adopted more advanced regulations based on the recent revisions in regulations in the US and Europe.
For instance, Norway, a leading country that focuses on adopting EVs, aims to make BEVs (Battery Electric Vehicles) account for 100% of its new car sales by 2025. Other countries such as California, France, and the UK have also claimed to end sales of combustion engine-based vehicles by 2040. These regulations pose a threat as well as provide new opportunities for vendors. Hence, these factors are boosting the growth of the global market.
Charging stations powered by renewable energy is an emerging trend in the market. As the world shifts toward sustainable and energy-efficient modes of transport, EVs are slowly becoming popular. With more fleet operators opting for the electrification of vehicles and more consumers owning EVs, the demand for electricity will significantly rise. Hence, with the growing demand for electricity, utility companies are expected to shift to an alternative source of electricity.
A cost-efficient and practical solution to address the growing electricity demands is to use renewable energy as an alternative. Furthermore, the steady reduction in the cost of renewable power generation will make electricity an attractive low-cost source to fuel the transport sector. The growing adoption of renewable energy will further propel the global EV market as the burden on the power grid will be lesser. Thus, the use of renewable energy to power the EV charging stations is expected to reduce the burden of electricity generation from the power grid and make the electrification technology more environmentally friendly. Charging stations powered through solar panels is one such trend, which can be witnessed in the market in focus. Therefore, these factors will fuel the market growth during the forecast period.
The high manufacturing cost of EVs is a major challenge impeding the market. The cost of manufacturing EVs is higher than gas-powered vehicles, which is a big hindrance to the growth of the global market. The high cost of production restricts automakers from manufacturing more units of EVs. Furthermore, the high price of EVs makes them less affordable for many consumers, especially in countries with low economic growth.
Furthermore, the lack of awareness among consumers about various incentives provided by the government adds up to the anxiety in consumers about buying EVs. The cost factor remains a significant concern and an important factor for consumers while buying vehicles. Hence, the high cost of EVs is potentially a challenge to the growth of the global market during the forecast period.
The market share growth by the BEV segment will be significant during the forecast period. A battery electric vehicle (BEV) is an EV powered by a battery. Unlike the PHEV model, the only source of propulsion is the battery, which generates the power required by the vehicle. Instead of a fuel tank, a large battery is used to store the required energy to run the electric motor.
The BEV segment was valued at 1,343.66 thousand units in 2017 and continued to grow until 2021.
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A BEV is a 100% pure EV. Some of the most popular models of BEV available in the market as of 2019 are Tesla Model 3, Nissan LEAF, and Renault ZOE. Some of the benefits of using BEVs are from the vendor point of view, BEV is one of the most manufactured vehicle types due to its ease of manufacturing, it requires considerably less expertise and capital when compared with PHEV; as BEV contains only one motor and a battery, there are fewer components in this model which makes the maintenance simple when compared with the counterparts; and most importantly BEVs do not produce emissions, and hence, they are called zero-emission vehicles. therefore, such benefits are expected to fuel the demand for BEVs during the forecast period.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
From the automotive industry's point of view, APAC is the most diverse region in the world. It is a major producer as well as consumer of vehicles, with many major vehicle manufacturers, such as BYD, Mahindra, and Nissan, based out in the region. Japan, South Korea, Singapore, Indonesia, Thailand, Malaysia, and the Philippines remain the key markets, with China leading in the EV adoption rate.
Furthermore, various countries in APAC are facing major challenges, such as traffic congestion and deteriorating urban air quality. With the growing urbanization, mobility needs are also rising, which, in turn, is increasing the demand for conventional fuel significantly. Increased import bills of oil and gas have shifted the attention of various governments in the region toward more sustainable and low-emission vehicles such as EVs. EVs enable countries in the region to alleviate mobility issues and also help governments reach emission targets and reduce dependence on oil and gas imports. Therefore, factors like these will fuel the regional market during the forecast period.
In 2020, the market in APAC witnessed certain challenges due to the COVID-19 pandemic. However, operations in various industries resumed with limited capacities while maintaining social distancing norms in 2021. Also, key vendors operating in the market are expanding in the region. For instance, on December 9, 2022, Mercedes committed to manufacturing EVs in Thailand after signing an agreement to import its battery-powered cars. This is expected to stabilize the growth of the market in the region during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electric Vehicle Market Customer Landscape
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 EV market.
Renault SAS - The company operates under one segment. The company under this segment operates in one reportable segment which is further divided into four heads which are automotive excl. AVTOVAZ, AVTOVAZ, sales financing, and mobility services. The key offerings of the company include electric vehicles.
The 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; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The 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.
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Electric Vehicle Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 37.45% |
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Market growth 2023-2027 |
25,927.15 th units |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
35.24 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 46% |
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Key countries |
US, China, Japan, Norway, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aspark Co. Ltd., BMW AG, BYD Electronic Co. Ltd., Canoo Inc., Ford Motor Co., General Motors Co, Hero Ecotech Ltd., Hyundai Motor Co., Mercedes Benz Group AG, Nissan Motor Co. Ltd., Renault SAS, Rivian Automotive Inc., Sinotruk Hong Kong Ltd., Stellantis NV, Tesla Inc., Toyota Motor Corp., Volkswagen AG, AB Volvo, Honda Motor Co. Ltd., and Mahindra and Mahindra Ltd. |
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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, and Market condition analysis for the forecast period. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Charging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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