The demand for the global EV range extender market is estimated to be worth 494,083 units by 2025, according to a new report by Million Insights, growing at a CAGR of 10.2% from 2018 to 2025. An EV range extender is a system that enables a higher vehicle range to allow long-distance journeys. High growth in the use of commercial and fully electric passenger vehicles to lower CO2 emissions along with superior performance abilities and expandable range is anticipated to stimulate industry growth.
The automotive industry is regarded as the largest oil consumer globally, contributing to increased pollution levels. Governments of several nations have imposed strict regulations on manufacturers to produce zero/low emission vehicles to help lower carbon emission.
On the other hand, governments of emerging nations like India and China are providing incentives to encourage the use of EVs. For example, the Indian government, in August 2018 announced to provide a subsidy of about 20% on the purchase of the latest EVs. However, less mileage range can pose a challenge concerning the consumers since it restricts the total distance covered. To combat this, prominent players like General Motors, Mahle Group, BMW Group, and Volvo Car Corp have introduced extender solutions to enable long-distance journeys by increasing battery capacity.
In order to expand their market position and total profitability, major automobile companies are aiming at combining range extenders with their latest models. For example, BMW Group introduced the BMW i3 electric vehicle combined with an extended range solution, which allows customers to travel longer journeys.
Major industry participants are further investing substantial amount in R&D processes to create advanced range extender products for higher battery efficiency and driving range coupled with reduced battery costs. However, rising attention of OEMs to deploy range extender technology in next generation electric vehicle models along with the rising trade disputes between U.S. and China may pose a challenge to Electric Vehicle Range Extender market growth.