Electric Vehicle Market: Size, Dynamics, Regional Insights and Market Segment Analysis (2023-2029)

Electric Vehicle Market was valued at 8150 Thousand Units in 2022, and it is expected to reach 32,225 Thousand Units by 2029, exhibiting a CAGR of 21.7 % during the forecast period (2023-2029)

An electric vehicle (EV) is a vehicle that is propelled by one or more electric motors. It can be powered by a collection system, extravehicular sources of electricity, or by a battery on its own (sometimes charged by solar panels, or by converting fuel to electricity using fuel cells or a generator). After a decade of strong development, the global electric car stock reached 10 million in 2020, a 43% increase over 2019 and a 1% stock share. In 2020, battery electric vehicles (BEVs) represented two-thirds of new electric car registrations and two-thirds of the stock.

China had the largest fleet, with 4.5 million electric vehicles, while Europe had the highest yearly rise, reaching 3.2 million in 2020. In 2020, around 3 million new electric vehicles were registered. Europe led the way for the first time, with 1.4 million new registrations. China came in second with 1.2 million registrations, while the United States recorded 295 000 new electric vehicles.

In 2020, consumers spent USD 120 billion on electric vehicle purchases, a 50% increase over 2019, which translates to a 41% increase in sales and a 6% increase in average costs. The increase in average pricing reflects the fact that Europe, where prices are higher on average than in Asia, accounted for a larger share of new electric vehicle registrations. In 2020, the global average BEV price was approximately USD 40 000, while the PHEV price was around USD 50 000. In 2020, governments during the world spent USD 14 billion on direct purchase incentives and tax breaks for electric vehicles, a 25% increase year on year.

Despite this, the percentage of government incentives in overall EV investment has been declining, from around 20% in 2015 to 10% in 2020. The SUV class had the most models and the greatest increase in 2020. SUVs and pickup trucks account for more than 55% of all new models released globally. SUVs are the fastest growing market category in Europe and China, and they account for the vast majority of market share in the United States.
Research Methodology
The research report highly depends on both primary and secondary data sources. The research process involves the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges.

All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

This data is combined and added with detailed inputs and analysis, and presented in the report. Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics; market size estimations; the market forecasts; breakdown; and data triangulation. Bottom-up technique is widely employed in the whole market engineering process, along with multiple data triangulation methodologies, to perform market estimation and forecasting for the overall market segments and sub-segments covered in this research.

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Electric Vehicle Market Dynamics
EV battery cost reduction to promote demand for low-priced EVs: The cost of EV batteries has decreased over the last decade as a result of technological improvements and the mass manufacture of EV batteries in enormous quantities. As EV batteries are one of the most expensive components of the car, this has resulted in a fall in the cost of electric vehicles. In 2010, the cost of an EV battery was around USD 1,100 per kWh. However, by 2020, the price had dropped to around USD 137 per kWh, and it was as low as USD 120 per kWh in 2022.

In China, the price of these batteries may be as low as USD 100 per kWh. This is due to lower manufacturing costs for these batteries, lower cathode material prices, increased output, and so on. The prices of EV batteries are expected to decline to around USD 60 per kWh by 2030, considerably lowering the prices of EVs and making them cheaper than traditional ICE vehicles.

Government EV initiatives: Countries during the world have set objectives to reduce automobile emissions between 2030 and 2050. They have begun to promote the development and selling of the EV market as well as the associated charging infrastructure. For example, the United States government spent $5 billion in 2017 to encourage electric car infrastructure such as charging stations. Several governments are offering different incentives to adopt EVs, such as reduced or no registration costs and exemptions from import taxes, sales taxes, and road charges. Norway and Germany are making big investments to promote EV sales. As a result of the strong incentives and subsidies in Europe, there is a rapid increase in the sale of electric vehicles.

This has resulted in an increase in demand for EV charging components and equipment such as charging cables, connectors, adapters, and portable chargers. A new concept for a national fast-charging network is planned to be established as part of a collaboration between the US energy and transportation ministries, with potential longer-term advancements including up to 350 kW of direct current fast charging. Stringent CO2 pollution standards have boosted demand for electric automobiles. Governments are investing heavily in offering incentives and subsidies to boost the sale of electric vehicles. These initiatives by governments during the world are estimated to boost demand for EVs over the next decade.

China, Canada, and the United States have established EV laws, while all nations have established fuel economy criteria. Incentives and subsidies are also provided to EV makers and customers. The United States offers incentives of up to USD 7,500 for the purchase of new electric vehicles. Most of these nations also offer incentives for the installation of EV charging stations. Europe is expected to be the first area to fully transition to EVs.

Most governments in the area have declared plans to phase down ICE car sales over the next several decades. With EV sales, the UK wants to dominate the total car market by 2030. Norway intends to launch a similar effort and finish it by 2025. The Netherlands, Israel, Ireland, Iceland, and Denmark have made plans to adopt EVs by 2030. China and Japan also plan to stop ICE vehicle sales by 2035.

EV charging infrastructure standardisation: Variations in charging demands have highlighted the necessity to standardise electric car charging stations. Certain voltages may be incompatible with EV charging stations. AC charging stations, for example, give a voltage of 120V AC via level 1 charging stations and 208/240V AC via level 2 charging stations, whilst DC charging stations allow rapid charging via 480V AC. Governments must standardise charging infrastructure in order to create a favourable ecology and encourage EV sales. Distinct nations have different quick charging requirements. Japan employs CHAdeMO; Europe, the United States, and Korea employ CCS; while China employs GB/T. Since the country has not attained standardisation in rapid charging technologies, the Indian government has enforced the installation of CHAdeMO and CCS systems. However, this regulation raised the cost of installing charging stations.

As a result, the government revised the requirements in July 2019 and permitted charging station developers to choose their chosen technique. Tesla, located in the United States, employs high-performance superchargers that are exclusive to Tesla and cannot be utilised by other EVs. The lack of uniformity between nations may have an influence on charging station installation and stifle the growth of the electric car charging station industry. The usage of diverse charging standards during the world is a hurdle to EV charging station harmonisation. While firms are working toward the adoption of a common plug or various types of connectors in charging stations, standardisation of all charging points remains a long way off. Standardization of charging stations would make charging EVs in public easier and result in quicker increase of EV demand globally.

Insufficient EV charging infrastructure: EV charging facilities are few in several areas across the world. As a result, the availability of public EV charging for electric vehicles decreases, lowering adoption. Despite the fact that several nations are in the process of establishing EV charging infrastructure, most countries, with the exception of a few states, have not been able to install the needed number of EV charging stations.

With a well-developed global EV charging network, demand for EVs is likely to rise. The majority of countries have yet to create such charging networks. The Netherlands has the highest density of EV chargers per 100 km. The Netherlands has the greatest charging station density, with around 19-20 charging stations per 100 km. China comes in second, with around 3-4 charging stations per 100 kilometres. The UK has around 3 charge outlets per 100 km, however the government is aggressively expanding its charging stations in order to phase out ICE car sales by 2030. Germany, the United Arab Emirates, Japan, Singapore, South Korea, Sweden, France, the United States, and Russia have also accelerated the transition to EVs by installing a huge number of charging stations.
Segment Analysis
Based on Propulsion, the market is segmented into BEV, PHEV, and FCEV. In 2020, the HEV segment dominated the market, accounting for more than 65% of total sales. The HEV offers both fuel-based and electric driving options, which is especially useful in areas with limited charging infrastructure. The demand for battery electric cars is increasing as private companies and governments intend to build a global network of charging infrastructure to encourage the use of green energy. Furthermore, the PHEV category is growing at a steady rate. Prices for these cars are expected to fall, increasing demand in the coming years.



Based on Vehicle Type, the market is segmented into Passenger Car and Commercial V2ehicles. Asia Pacific has the largest electric vehicle market for passenger automobiles, followed by Europe and North America. China, Japan, and South Korea are the region's leaders in the passenger EV market. This is owing to these countries' considerable government backing for passenger EVs. Germany, France, the Netherlands, Norway, Sweden, the United Kingdom, and other European nations are leading the way in terms of EV passenger vehicle demand.

These nations have enacted strict pollution restrictions as well as a range of subsidies, grants, and incentives to encourage people to switch to electric vehicles. Due to these efforts, Europe's EV sales surpassed China's in 2020, but China sold more EVs in 2022 due to increased demand for mini-EVs. North America is also increasing EV passenger car demand with various states in US and Canada leading the electrifying trend. MEA countries have started to increase their EV market and are expected to be the fastest growing market in the coming years.

Based on Vehicle Drive Type, the market is segmented into Front Wheel Drive, Rear Wheel Drive, and All Wheel Drive. Demand for RWD EVs is increasing across all areas, notably in Asia Pacific and Europe. This is because it is easy to manage and there is an increasing demand for these cars. North America has also experienced a quicker increase in these vehicles, with Tesla Model 3 Standard, BMW i3, Volkswagen ID4, Porsche Tycan, and others topping the market. Because of its younger market, MEA will see the biggest increase in RWD EVs over the next decade, followed by Asia Pacific. The Wuling Hongguang Mini EV, which made a huge impression in the EV market in 2020 and 2022, is also a RWD that is popular in Asia and Europe.
Regional Insights
China, Japan, and South Korea dominate the Asia Pacific electric car market. China, being the world's largest EV manufacturer and consumer, dominates the region's EV market. Their government has taken steps such as providing subsidies to EV buyers, requiring all vehicle manufacturers to produce EVs based on the number of vehicles produced, providing significant support for the installation of EV charging stations in major cities, and enacting regulations against excessively polluting vehicles. Japan and South Korea have been expanding their EV markets as well. Their governments have aided the increase of EV demand by providing EV charging stations, establishing pollution standards, establishing deadlines for switching from ICE cars to full or hybrid EVs, and so on.

The new car scrappage policy, which allows old vehicles to be scrapped in order to replace them with low-emission vehicles, as well as other planned policies, will help the country become the region's fastest growing market for EVs in the next years. Thailand, Indonesia, Malaysia, and Vietnam have also begun to strive to cut car emissions and convert to the usage of electric vehicles. India has been identified as one of the most important regions in the global automotive industry. Several firms are constructing manufacturing sites in India aggressively.

Dana TM4 Inc., for example, announced intentions to open a manufacturing facility in Pune, India, in September 2020. Dana TM4 low- to high-voltage inverters, electric motors, and vehicle control units would be manufactured in the new 4,600 square-meter plant. Meanwhile, Phase II of the Indian government's Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative aims to expand the use of electric vehicles while also developing the manufacturing eco-system.

Increased investments from public and private entities in electric charging infrastructure, such as Tesla superchargers, Volkswagen Electrify America, and others, as well as an increase in the number of electric charging stations across the United States, are helping to build customer trust and alleviate range anxiety (range anxiety is the fear of driving an electric vehicle and running out of power, without being able to find a charging station in time to replenish the battery). North America is estimated to have the largest market growth. The geographical expansion may be linked to the Department of Energy's (DOE) expanding initiatives to create charging infrastructure across the United States to serve the region's growing number of EVs.

Europe is also likely to become the dominant area. The regional government's efforts to minimise carbon emissions have been a driving element in the market's growth across Europe. The United Kingdom, Germany, and France are key contributors to the region's growth. Furthermore, the rising adoption of fuel-efficient automobiles bodes well for the European market. Furthermore, it has been found that nations in the rest of the globe are obviously far behind in terms of expected market share due to a lack of charging infrastructure and finance in less developed countries.
Report Scope:
The Electric Vehicle Market research report includes product categorization, product Vehicle Connectivity, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The study discusses the global market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and constraints on market demand during the forecast period. The research also outlines market potential on a global scale.

The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of significant Electric Vehicle Market firms in terms of production bases and technologies. The more precise research also contains the key Vehicle Connectivity areas of market and consumption, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an analysis of the industry chain relationship. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and Vehicle Connectivity.
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Electric Vehicle Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
8150 Thousand Units.


Forecast Period 2023 to 2029 CAGR:
21.7%
Market Size in 2029:
32,225 Thousand Units.


 Segments Covered:
by Components
Battery Cells & Packs
On-Board Charge
Motor
Reducer
Fuel Stack
Power Control Unit
Battery Management System
Fuel Processor
Power Conditioner
Air Compressor
Humidifier


by Vehicle Type
Passenger Cars
Commercial Vehicles


by Vehicle Class
Low-priced
Mid-priced
Luxury


by Vehicle Drive Type
Front Wheel Drive
Rear Wheel Drive
All Wheel Drive


by EV Charging Point Type
Normal Charging
Super Charging


byVehicle Connectivity
V2B or V2H
V2G
V2V
V2X


by End Use
Private
Commercial Fleets


by Propulsion
BEV
PHEV
FCEV



Key Players are:
1.Tesla
2.NIO
3.BMW
4.Li Auto
5.Nissan
6.Rivian
7.Chevrolet
8.LucidMotors
9.Ford
10.XPeng
11.Toyota
12.Volkswagen
13.Polestar
14.Kia
15.Fisker
16.Nikola
17.Proterra
18.Gogoro
19.Canoo
20.Lion Electric
21.Arrival
22.Hyliion
23.Hyzon Motors
24.NIU
25. Stellantas
26.BYD
27.SAIC Motors
28.Faraday Future
29.Lordstown Motors

Frequently Asked Questions:

1] What segments are covered in the Global Electric Vehicle Market report?
Ans. The segments covered in the Electric Vehicle Market report are based on Components, Vehicle Type, Vehicle Class, Vehicle Drive Type, EV Charging Point Type, Vehicle Connectivity, End Use, and Propulsion.

2] Which region is expected to hold the highest share in the Global Electric Vehicle Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Electric Vehicle Market.

3] What is the market size of the Global Electric Vehicle Market by 2029?
Ans. The market size of the Electric Vehicle Market by 2029 is expected to reach 32,225 Thousand Units.

4] What is the forecast period for the Global Electric Vehicle Market?
Ans. The forecast period for the Electric Vehicle Market is 2023-2029.

5] What was the market size of the Global Electric Vehicle Market in 2022?
Ans. The market size of the Electric Vehicle Market in 2022 was valued at 8150 Thousand Units.