CHICAGO — According to the new market research report “Electric Vehicle Market by Component, Vehicle (Passenger Cars, CV), Propulsion (BEV, PHEV, FCEV), Vehicle Drive Type (FWD, RWD, AWD), Vehicle Top Speed (<125 mph, >125 mph), Charging Point, Vehicle Class, V2G, Region”, published by MarketsandMarkets, the Electric Vehicle Market size is projected to grow from 4,093 thousand units in 2021 to reach 34,756 thousand units by 2030, at a CAGR of 26.8%.
Factors such as growing demand for zero emissions commuting and governments supporting low emission vehicles through subsidies & tax rebates have led to automakers adopting EVs and the growth of the Electric Vehicle Market.
Increasing investments by governments across the globe to develop EV charging stations and Hydrogen fueling stations along with incentives offered to buyers will create opportunities for OEMs to expand their revenue stream and geographical presence. The market in Asia Pacific is projected to experience steady growth owing to the high demand for lower cost-efficient and low-emission vehicles, while the North American and European market is fast-growing markets due to the government initiatives and growing high-performance Passenger vehicle segment. However, the low presence of EV charging stations and hydrogen fuel stations, higher costs involved in initial investments, and performance constraints could hamper the growth of the global electric vehicle market.
Rear-wheel Drive EV’s to be higher in demand during the forecast period
The demand for RWD EVs has been on the increase across all regions, particularly across Asia Pacific and Europe. This is due to its easier vehicle control and growing demand for these vehicles. North America also has seen a faster growth in these vehicles with Tesla Model 3 Standard version, BMW i3, Volkswagen ID4, Porsche Tycan, etc. leading the market. In the coming decade, the growth of RWD EV’s will be highest in MEA due to its newer market and mostly across Asia Pacific. The Wuling Hongguang Mini EV which made a big splash in the EV market in 2020 is also an RWD popular across Asia and Europe.
Asia Pacific is expected to be the largest market in the forecast
In this report, Asia Pacific is segmented into China, Japan, South Korea, and India. The region is home to some of the fastest-developing economies of the world such as China and India. The governments of these developing economies have recognized the growth potential of the Electric Vehicle Market and, hence, have taken different initiatives to attract major OEMs to manufacture the electric vehicle in domestic markets. For instance, the Government of India, to increase the adoption of electric vehicles, has announced plans for financial support—a zero-rated goods and services tax (GST) for a window of 3 years for EVs and a scheme called Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME). China is also investing heavily in the production of electric commercial vehicles, with plans for export. OEMs such as BYD plan to open plants in other parts of the world to manufacture electric buses and electric trucks to meet regional demand. The country also supports EV usage by giving a subsidy for buying EVs. the country is also promoting EV manufacturers to develop EV technology in the country. Various cities are setting up Ev charging stations across the country due to the presence of its subsidy for setting up EV infrastructure. Japan has also been developing its EV infrastructure along with various OEMs in the region working to develop BEVs, PHEVs, and FCEVs for their market. It had plans to showcase all FCEV use during the Tokyo Olympics. The country has been developing its EV market at a very fast rate. South Korea is also working to quickly develop EV infrastructure across the country. It also plans to speed up the EV demand in the country. OEMs like Hyundai and Kia are working for introducing high-performance EVs in their market. Various top European and American OEMs are also catering to Asia’s EV market on a growing scale. All these factors will drive the Electric Vehicle Market in the Asia Pacific region.
The Passenger cars segment is expected to be the largest segment in the forecast period
Electric passenger car is the fastest-growing segment in the EV market and is expected to witness significant growth during the forecast period. The availability of a wide range of models, upgraded technology, increasing customer awareness, and availability of subsidies and tax rebates are the major factors driving the market. Major EV manufacturers like Tesla, BYD, BMW, Volkswagen, Nissan, Toyota, Honda, Hyundai, Daimler, Volvo, GM, SAIC, etc. have been strong players in the market. These companies have a strong market for their EV’s around the world. Passenger cars account for the largest share in the Electric Vehicle Market. The demand for passenger cars has increased due to the increase in demand for electric vehicles. Countries such as China have a low waiting period for electric vehicles compared to that for ICE-powered vehicles. Due to the growing stringency of emission norms, European countries are planning to decrease their vehicle emissions by 2050. US and China also follow such an agreement. The fast growth of EV chargers has also led to the growth of the EV passenger car market.
Key Market Players:
The Electric Vehicle Market is dominated by established players such as Tesla (US), BYD (China), Volkswagen AG (Germany), BMW Group (Germany) and Nissan Motors (Japan). The market ranking has been derived by considering a certain percentage of the segmental revenue for each of the companies mentioned above.
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