PUBLISHER: The Business Research Company | PRODUCT CODE: 1712803
PUBLISHER: The Business Research Company | PRODUCT CODE: 1712803
Passenger Electric Vehicles (PEVs) are cars that are powered exclusively by electricity, utilizing rechargeable batteries in place of conventional internal combustion engines. They aim to decrease greenhouse gas emissions, enhance energy efficiency, and provide a sustainable alternative to vehicles powered by fossil fuels.
The primary categories in the passenger electric vehicle market include battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. Battery electric vehicles exclusively operate on stored electricity, with key components comprising a high-voltage battery, one or more electric motors (either alternating current [AC] or direct current [DC]), and a controller to manage power electronics. The vehicle types encompass sedans, hatchbacks, and SUVs. Charging infrastructure involves both normal charging and high-power charging.
The passenger electric vehicles market research report is one of a series of new reports from The Business Research Company that provides passenger electric vehicles market statistics, including passenger electric vehicles industry global market size, regional shares, competitors with a passenger electric vehicles market share, detailed passenger electric vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the passenger electric vehicles industry. This passenger electric vehicles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The passenger electric vehicles market size has grown exponentially in recent years. It will grow from $479.83 billion in 2024 to $629.54 billion in 2025 at a compound annual growth rate (CAGR) of 31.2%. The growth in the historic period can be attributed to research and development investments, consumer perception shift, early government incentives, initial automaker initiatives, regulatory emissions standards.
The passenger electric vehicles market size is expected to see exponential growth in the next few years. It will grow to $1681.09 billion in 2029 at a compound annual growth rate (CAGR) of 27.8%. The growth in the forecast period can be attributed to infrastructure expansion, governmental support, automaker commitment, enhanced range and performance, consumer demand surge. Major trends in the forecast period include rising urbanization, battery technology advancements, expanding charging infrastructure, government incentives and policies, automaker investment.
The increasing concerns about environmental factors, such as global warming and climate change, are driving the demand for electric vehicles, consequently propelling the passenger electric vehicle market. The heightened environmental awareness has led more individuals to shift towards alternative transportation modes with lower pollution levels. This shift has resulted in a substantial uptick in the global purchase of electric vehicles. Electric vehicles are considered highly sustainable as they do not emit greenhouse gases or health-damaging nitrogen oxide. Additionally, they are quieter and easier to operate. For instance, UNICEF data notes that the Intergovernmental Panel on Climate Change (IPCC) aims to reduce carbon dioxide levels in the atmosphere by 45 percent by 2030 to prevent global warming beyond 1.5oC, a threshold critical for averting the worst impacts of climate change. These factors are expected to drive the demand for electric vehicles, influencing the growth of the passenger electric vehicles market.
The expanding charging infrastructure is poised to be a significant driver for the growth of the passenger electric vehicles market. Charging infrastructure encompasses the network of charging stations and related equipment that facilitates the recharging of electric vehicles (EVs). This infrastructure brings the convenience of recharging, contributes to emission reduction and decreased air pollution, lessens reliance on fossil fuels, and supports the widespread adoption of passenger electric vehicles. For instance, a report from Twilio Inc., a US-based cloud communications platform, projects that by 2030, there will be 12.9 million publicly accessible EV charging stations. Therefore, the increasing charging infrastructure plays a pivotal role in propelling the growth of the passenger electric vehicles market.
Companies within the passenger electric vehicles market are concentrating on technological advancements to enhance the range of their vehicles. Automotive manufacturers have successfully increased the battery range of their electric models by an average of 38 miles, reflecting a cumulative annual average increase of 15%. Ongoing developments include fluoride-ion batteries, demonstrating superior performance compared to the currently prevalent lithium-ion batteries. These fluoride-ion batteries exhibit higher energy density and are more environmentally friendly than existing lithium-ion technology. The introduction of this battery technology holds the potential for electric vehicles to cover more distance with the same physical-sized pack or the same distance with a physically smaller battery pack, ultimately enhancing the range of the vehicle. Honda is actively involved in this initiative and collaborates with CalTech and NASA's Jet Propulsion Laboratory to advance this technology.
Major companies operating in the passenger electric vehicles market are strategically emphasizing innovative products, particularly electric vehicle batteries, to boost their market revenues. The electric vehicle battery is a pivotal component responsible for storing and supplying electrical energy to power the electric motor of the vehicle. For example, Gotion High Tech Co Ltd., a China-based battery manufacturing company for electric vehicles, unveiled a groundbreaking AV battery named Astroinno in May 2023. This new battery boasts a 1000 km range and may offer superior energy density compared to typical lithium-iron-phosphate (LFP) batteries. Furthermore, it is expected to be more cost-effective than batteries primarily reliant on nickel and cobalt. The Astroinno battery exhibits an energy density of 240 watt-hours per kilogram (Wh/kg) at the cell level and 190 Wh/kg at the system level.
In June 2022, Club Car, a US-based manufacturer and a global leader in golf, consumer, and utility vehicles, completed the acquisition of Garia A/S for an undisclosed amount. This strategic move enables Club Car to expand into the realm of low-speed electric vehicles. Garia A/S, based in Denmark, is a manufacturer of electric vehicles catering to the utility, consumer, and golf markets.
Major companies operating in the passenger electric vehicles market include BYD Company Limited, Volkswagen AG, Toyota Motor Corporation, Stellantis N.V., Mercedes-Benz, Ford Motor Company, General Motors Company, Bayerische Motoren Werke AG, Honda Motor Co. Ltd., Hyundai Motor Company, Tesla Inc., Nissan Motor Corporation, Kia Corporation, Audi AG, Volvo Group, Renault SA, Dr. Ing. h.c. F. Porsche AG, Jaguar Land Rover Automotive plc, Mitsubishi Motors Corporation, Citroen S.A, Mahindra & Mahindra Ltd., XPeng Inc., Guangzhou Xiaopeng Motors Technology Co. Ltd., Rivian Automotive Inc., Lucid Group Inc., Karma Automotive LLC, SAIC Motor Corp. Ltd., Changan Automobile Co. Ltd., Dongfeng Motor Corporation Ltd., Great Wall Motor Co. Ltd.
Asia-Pacific was the largest region in the passenger electric vehicles market in 2024. This region is expected to remain the largest during the next five years. The regions covered in the passenger electric vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the passenger electric vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The passenger electric vehicles market consists of sales of hybrid electric vehicles (HEVs) and extended-range electric vehicles (E-REVs). Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Passenger Electric Vehicles Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on passenger electric vehicles market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for passenger electric vehicles ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The passenger electric vehicles market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.