PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1538580
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1538580
The global electric vehicles market is projected to grow from USD 396.4 Billion in 2024 to USD 620.3 Billion by 2030, registering a CAGR of 7.7%. The global electric vehicle (EV) market has well developed over the years due to several factors. Emerging environmental consciousness for air pollution and greenhouse gas emissions, among others, has led the governments across the globe to put supportive policies, which involve subsidies, tax exemptions, and stringent emission standards, in favor of electric transport. There have been recent advances in battery technology, especially high-capacity, fast-charging batteries that make EVs more usable over a reasonable range, thus allowing consumer adoption where they help to manage congestion and pollution. Altogether these factors have led to the growth of a global and active market of EV that has gradually witnessed the growth of consumer demand and provisions for electric vehicles.
Scope of the Report | |
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Years Considered for the Study | 2019-2030 |
Base Year | 2024 |
Forecast Period | 2024-2030 |
Units Considered | Value (USD Billion) |
Segments | Component, Vehicle Type, Vehicle Class, Propulsion (BEV, PHEV, FCEV), E/E Architecture, Vehicle Connectivity, End Use & Region |
Regions covered | Asia Pacific, Europe, North America, and Middle East & Africa |
"Supportive government regulations and subsidies to drive market."
The passenger car segment is the largest by vehicle type and mainly comprises sedans, hatchbacks, station wagons and SUVs/MUVs and other car types. Passenger car segment is ideal for the EVs since it remains the biggest segment of the automotive industry. Thus, it is increasing at a higher growth rate in the emerging economy of the Asia Pacific region because of the increasing GDP and population, the enhancement in people's living standards, enhanced purchasing power of the consumers, and the advancement of the structure in the Asia Pacific region in combination with support from government policies in countries like China, Japan, and South Korea targetting the reduction in zero emission vehicles.
Because of various alternatives, sophisticated technologies, increased client knowledge and government incentives, electric passenger cars are the most preferred division which is also having greatest predicted CAGR. Major players in this area are behemoths such as BYD, Tesla, Volkswagen and more with the best selling models for 2023 being the Tesla Model Y, BYD Song and Wuling HongGuang Mini EV.
Countries like China exhibit a short waiting time for EVs compared to ICE vehicles. Forcing of emission norms is on the rise and therefore EU Member States have put forward the goal of reducing emissions by 2030-2035. The US government has strategies targeting a 50% electricization of its running fleets by the year 2030.
"Rising demand for high-performance electric vehicles to drive market."
The EV markets of Europe and North America are being led by high-end vehicles having the largest battery capacities, longest ranges, quickest acceleration times, and highest top speeds. These are some of the costliest cars on the road today consisting of a plethora of mid-range electric models. Some of the traditional car makers such as Tesla, Volvo, Mercedes Benz, BMW and Volkswagen and specialized EV makers in this segment make to segment vehicles. Some of the global high performance electric vehicles are Mercedes-AMG EQS, Porsche Taycan Turbo S, Audi RS e-tron GT, and among others. Most of these EVs are in the category of luxury EVs and hyper-cars. At the Beijing Auto Show in April 2024, Geely showcased it new PHEV flagship SUV Geely Galaxy Starship with the top speed of around 146 MPH. The >125 mph segment is primarily dominated by the Asia Pacific region which appears to have more demand for premium cars electric vehicles. Some of the world's leading markets for these vehicles are China, Japan Germany and France with many regional Manufacturers. North America also shows an increasing trend for higher speed electric vehicles. Customers are seeking such vehicles as well as their enhanced functions, which consist of improved acceleration. A car that can be leased/acquired from Tesla includes the Tesla Model S Plaid that has a maximum speed of ~ 204 mph.
"Improved range and battery efficiency to drive market."
The mid-power EVs are positioned at an important class within the automotive industry, which is between the affordable products and the improved characteristics. Sitting between Economy and Premium models, mid-range of charging is for those buyers who are not looking for cheap cars but rather a good value car with efficiency, advanced technologies and comfort incorporated to their electric vehicles. These vehicles are available for roughly between $30000 to $45000 for persons seeking better capabilities and refined ride. Another profound feature is that mid-priced EVs have longer ranges and better batteries as compared to the low-priced ones. Manufacturers are incorporating larger batteries and better ways of transfering power to cover more distance in a single charge. This makes them possible to use for daily usage and also for longer road trips and this eliminates the biggest hindrance that a lot of people have about EVs-range anxiety. Also, mid-priced EVs often come with faster charging options, which means less time is spent charging the car and more is spent driving it, which is a big plus for owners. Hyundai, General Motors, Honda, Nissan among other extensively developed car producers are also producing mid-priced EVs to gain better market shares. Other mid-priced EVs are BMW 3 Series PHEV, Zeekr One, Ford Mustang Mach-E, Volvo XC40, Renault Megane EV, Hyundai Ioniq 5, Volkswagen ID-4, Kia Niro EV.
"Stricter emission regulations to drive market."
The market for BEVs has been on the rise following several critical factors that are pushing towards making their use more rife in the society. This is due to growing awareness to environment degradations such as climate change and air pollution in the current society. BEVS do not emit any exhaust pipe pollutants and thus could be seen as an answer to cutting down GHG and enhancing IAQ. Customers globally are forcing governments to set high emission standards while simultaneously promoting EVs through tax credit, rebates and subsidies. Also, more and more communities are implementing low-emission zones and encouraging the adoption of efficient means of transport, which will also spur BEV sales.
Other factors contributing to the growth of the BEV market have also been improvements in battery technology thanks to exploitations in technology. Advancements pertaining to battery improvements, costs, and charging times have made the use of BEVs a more practical and feasible solution for customers. Among the solutions, efforts of various stations for charging the cars and installation of superchargers eliminated the issue of range anxiety and made the car operation more comfortable. Moreover, the automotive industry's transition to electrification with car manufacturers and brands focusing on EV production and launching new appealing BEV models has also broadened the range meeting demand and choice requirements of consumers. Such factors as nature friendliness, increasing customer knowledge and awareness, and desirable perceptions towards BEVs are factors that have contributed to the growth of the BEV market.
Segmented into sedans, SUVs and hatchbacks (to mention but a few), BEVs are available in various segments with OEMs indeed introducing electric models more frequently owing to the growing demand for them. There exists a number of leading global EV manufacturers such as Tesla, BYD, Volkswagen AG, SAIC Motors among others like Geely-Volvo or Stellantis. At the same time, Nissan and others including Toyota and General Motors also remain as close competitors. In April 2024, it was Tesla that introduced its updated Model 3 Performance with maximum speed of 163 mph (263 km/h) with rear-wheel drive transmission system only.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
The electric vehicle market is dominated by global players such as BYD (China), Tesla (US), Volkswagen AG (Germany), Geely-Volvo (China) and SAIC Motors (China). These companies manufacture and develop new technologies in electric vehicle market. For instance, in May 2024, BYD launched the e-Platform 3.0 Evo, an upgraded version of its battery electric vehicle (BEV) model platform, as well as the first model based on the new platform, the Sea Lion 07 EV. Additionally, in May 2024, Volkswagen partnered with SAIC Motor for its premium brand Audi to develop a new China-specific platform for intelligent and electric vehicles. BYD has adopted strategies such as product developments and deals, whereas Volkswagen has expaned in new region to gain traction in the market. In February 2024, BYD, and the Emil Frey Group, have agreed on a partnership to distribute and sell BYD's range of innovative electric vehicles in Switzerland and Liechtenstein. Additionally, in April 2024, Volkswagen announced plans to invest USD 210 million to upgrade and modernize its Kariega, South Africa plant to support the production of a new SUV-type model starting in 2027.
The market study covers the electric vehicle market size and future growth potential across different segments by component, vehicle type, vehicle class, propulsion, vehicle drive type, E/E architecture, top speed, charging point type, vehicle connectivity, end use and region. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of the Report