Electric Vehicle Market Size (2024 – 2030)

The Electric Vehicle Market was valued at USD 493.36 Billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 1504.78 Billion by 2030, growing at a CAGR of 17.27%.

The expansion of the Electric Vehicle Market is projected to be propelled by significant factors including rising fuel costs, governmental efforts, and the extension of international electric car manufacturers into burgeoning markets. Conversely, challenges such as the elevated costs of electric vehicles and the underdeveloped state of aftermarket services are anticipated to impede market advancement. Nonetheless, the escalating uptake in emerging economies presents promising prospects for the Global Electric Vehicle market.

Key Market Insights:

• By 2030, it is anticipated that over a quarter of new passenger car sales will comprise electric vehicles (EVs).
• Numerous prominent vehicle manufacturers worldwide have indicated the conclusion of the internal combustion engine (ICE) era, as the transition to zero-emission vehicles (ZEVs) gains momentum. 
• Despite the expanding array of choices available to EV consumers and the remarkable levels of brand loyalty among repeat EV purchasers, the industry as a whole still confronts the challenge of addressing consumers' range anxiety, particularly among those lacking garage facilities or those undertaking long-distance journeys.

Electric Vehicle Market Drivers:

Increase in Demand for Fuel-Efficient, High-Performance, and Low-Emission Vehicles

As gasoline, a fossil fuel, is non-renewable and projected to diminish in availability over time, there's a pressing need to promote sustainable development by exploring and adopting alternative fuel sources. Embracing electric vehicles (EVs) emerges as a pivotal strategy, as they bypass reliance on gasoline and offer superior cost-effectiveness compared to traditional vehicles.

In contrast to gas-powered vehicles, which typically convert only about 17%–21% of the energy stored in gasoline into usable power, EVs boast a conversion rate of over 50% of electrical energy. Recent surges in the demand for fuel-efficient vehicles can be attributed to escalating petrol and diesel prices, driven by dwindling fossil fuel reserves and the corporate drive to maximize profits from these finite resources.Consequently, the imperative for advanced fuel-efficient technologies has intensified, propelling a notable increase in the demand for electrically powered vehicles as a preferred mode of transportation.

Electric Vehicle Market Restraints and Challenges:

Lack of Charging Infrastructure restrains market growth.

Various governments worldwide are actively promoting the commercial adoption of electric vehicles (EVs) as a means to mitigate greenhouse gas emissions. However, the lack of adequate charging infrastructure presents a significant impediment to the expansion of the EV market. For instance, the Government of India has set ambitious targets to exclusively have electric vehicles on roads by 2030. Yet, the establishment of a robust EV charging network is deemed essential to facilitate widespread EV adoption. Regrettably, the current state of EV charging infrastructure in many developing nations remains insufficient, failing to keep pace with the increasing demand, thereby hindering market growth. Furthermore, while China stands as one of the largest markets for electric vehicles, the nation faces challenges in supporting a comprehensive EV charging infrastructure capable of accommodating the recharging needs of electric fleets. This shortfall is anticipated to adversely affect market progress. Consequently, the lack of adequate charging infrastructure emerges as a critical factor restraining the growth of the EV market globally.Stringent Government Rules and Regulations Toward Vehicle Emission hinders market growth.Amid escalating environmental apprehensions, governments and environmental agencies worldwide are implementing rigorous emission regulations and legislation aimed at curbing vehicle emissions. Key regulatory initiatives encompass stringent targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) emissions into the atmosphere.

Electric Vehicle Market Opportunities:

Self-Driving Electric Vehicle Technology creates opportunities.

The recent emergence of self-driving trucks is poised to impact the electric vehicle market significantly. Leading Original Equipment Manufacturers (OEMs) like Tesla, Volvo, Vera, and Daimler, among others, have embarked on the development of self-driving electric vehicles to cater to this evolving market. Concurrently, startups such as Waymo, Uber, Embark, Einride, TuSimple, and Ike have also entered the arena, intensifying competition and innovation.For example, Tesla has unveiled plans to introduce its self-driving electric truck by the conclusion of 2022, signaling a notable milestone in the convergence of autonomous technology and electric mobility.

ELECTRIC VEHICLE MARKET REPORT COVERAGE:

Electric Vehicle Market Segmentation - By Technology

• Battery Electric Vehicles

• Plug-In Hybrid Electric Vehicles

• Fuel-Cell Electric Vehicles

The Battery Electric Transportation segment predominates, commanding a significant share of approximately ~70.1% in the Electric Vehicle market revenue. Battery electric vehicles (BEVs) rely on a battery pack to store the electrical energy necessary to power the motor. These batteries are replenished by connecting the vehicle to an electric power source. While electricity generation may contribute to air pollution, the U.S. Environmental Protection Agency classifies all-electric transportation as zero-emission vehicles due to their lack of direct exhaust or tailpipe emissions at the local level.

Both heavy-duty and light-duty all-electric transportation options are commercially accessible. BEVs typically entail a higher upfront cost compared to similar conventional and hybrid vehicles, although potential savings on fuel expenses, along with federal tax credits or state incentives, can help offset this initial investment.

Electric Vehicle Market Segmentation - By Top Speed

• <125 MPH

• >125 MPH

The Electric Car Technology Market segmentation encompasses two categories: <125 MPH and >125 MPH. In 2023, the >125 MPH segment dominated, accounting for approximately ~58.8% of the market revenue. Vehicles capable of top speeds exceeding 125 MPH command a slightly larger market share compared to those below 125 MPH. Similarly, vehicles boasting a range greater than 300 miles hold a larger share of the market compared to those with a range below 300 miles.

Electric Vehicle Market Segmentation - By Range

• Less than 300 Miles

• More than 300 Miles

By Range, the more than 300 Miles segment holds the majority market share contributing 59.5% of the market share. Higher range remains a huge selling point for US consumers.

Electric Vehicle Market Segmentation - By Vehicle Drive Type

• Front Wheel Drive

• Rear Wheel Drive

• Four Wheel Drive

• All Wheel Drive

The Front Wheel Drive segment holds the largest market share, contributing 51.0% to the market. In Front Wheel Drive (FWD) vehicles, engine power is transmitted to the front wheels, with the rear wheels not receiving any power. FWD vehicles typically offer better fuel efficiency, as the engine's weight is positioned above the driving wheels, enhancing traction in snowy conditions. However, some enthusiasts argue that FWD vehicles are less engaging to drive.

On the other hand, Rear Wheel Drive (RWD) vehicles channel engine power to the rear wheels, propelling the car forward while the front wheels remain unpowered. RWD vehicles, such as many sports cars like the Corvette and Camaro, offer a more balanced weight distribution, contributing to enhanced handling and driving dynamics. However, RWD vehicles may struggle in adverse weather conditions like rain or snow due to increased traction loss.

Electric Vehicle Market Segmentation - By End Use

• Private

• Commercial Fleets

The Electric Vehicle Market is segmented into Private and Commercial Fleets. In terms of End-use, the Private segment commands the majority market share, contributing 63.0% to the market. Privately owned electric vehicles hold a larger market share compared to commercial fleets. Among vehicle types, Passenger Cars emerge as the most popular, followed by Two & Three Wheelers, Commercial Vehicles, and Off-Highway Vehicles. This surge in demand is propelled by various factors including government incentives, declining battery costs, and growing consumer awareness regarding the environmental advantages of electric vehicles.

Electric Vehicle Market Segmentation - By Vehicle Type

• Passenger Cars

• Commercial Vehicles

• Two & Three Wheelers

• Off-Highway Vehicles

The Passenger Cars segment holds the majority market share, contributing 56.0% to the market. A passenger car is defined as a multi-track vehicle with at least two axles, its driver, and typically four wheels, primarily intended for transporting passengers. Passenger cars are commonly used in public road transport, distinct from commercial vehicles such as buses and trucks. Typically, a passenger car may accommodate up to 9 seats, depending on its design and equipment, with the number of occupants limited by the number of safety belts installed. Additionally, the weight of the passenger car, including its cargo, must not exceed 3.5 tons. Operating a passenger car in public road traffic requires both a valid driver's license and vehicle registration.

Electric Vehicle Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Asia Pacific emerges as the dominant market, boasting the largest revenue share, driven by the surging demand for electric cars in key countries like China, Japan, and India. In August 2022, the Economic and Social Commission for Asia and the Pacific (ESCAP) launched the Asia-Pacific Initiative on Electric Mobility, aimed at accelerating the transition towards electric transportation in public transit systems. The initiative is geared towards reducing greenhouse gas emissions in the transportation sector and supporting the implementation of the Paris Agreement.

Europe is poised for significant growth, expected to advance at a Compound Annual Growth Rate (CAGR) of 18.1% through 2030. This growth trajectory is underpinned by mounting environmental concerns, regulatory incentives, rapid infrastructure development, technological innovations, and evolving consumer preferences. Additionally, the presence of established electric vehicle manufacturers further fuels market expansion in the region.

North America retains a substantial market revenue share, driven by the escalating demand for electric vehicles in economies like the United States. Moreover, the region witnesses the initiation of new endeavors by automotive manufacturers, policymakers, non-profit organizations, and charging network companies. An example initiative includes the establishment of "Veloz," a non-profit organization aimed at attracting investments, fostering innovation, implementing marketing strategies, and propelling the growth of electric vehicles across North America.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic has exerted a negative impact on both the overall automotive industry and, consequently, the electric vehicle sector. According to data released by the Society of Electric Vehicle Manufacturers (SMEV), new registrations of all types of electric vehicles during FY21 experienced a decline of 20 percent compared to the number of new EV registrations in FY20.

Moreover, amidst the pandemic, various entities are exploring innovative approaches to adapt to the prevailing conditions, leveraging electric vehicles for medical supply purposes due to their cost-effectiveness and excellent maneuverability. For example, Omega Seiki Mobility recently introduced the Rage+frost, a refrigerated load carrier three-wheeler specifically tailored for vaccine, pharmaceutical, and food delivery needs during these challenging times.

Latest Trends/ Developments:

In February 2023, the Biden-Harris Administration unveiled new initiatives aimed at establishing an advanced, convenient, and domestically produced electric vehicle charging network. These efforts are geared towards assisting the U.S. in achieving its ambitious climate objectives, which include the development of a national network comprising 500,000 EV chargers spanning highways and communities. In June 2022, the Ministry of Energy and Infrastructure (MoEI) in the United Arab Emirates, in collaboration with Audi Middle East and Siemens, inked an agreement aimed at bolstering electric vehicle (EV) charging infrastructure on federal roads and fostering greater EV adoption nationwide. March 2022 witnessed Audi Middle East's partnership with the Museum of the Future in Dubai, United Arab Emirates. This collaboration serves as a platform for Audi AG to showcase its electrification and sustainability plans, aligning with the forward-looking vision of the UAE. In January 2022, DAIMLER AG subsidiary Mercedes-Benz introduced the all-electric EQB SUV to the market. This launch includes two models tailored for the U.S. market: Exclusive and Pinnacle.

Key Players:

These are the top 10 players in the Electric Vehicle Market:-

1. Tesla

2. BYD Company Ltd.

3. Volkswagen Group

4. Mercedes-Benz Group AG

5. General Motors

6. Ford Motor Company

7. Nissan Motor Co., Ltd.

8. Renault Group

9. Toyota Motor Corporation

10. Mitsubishi Motors Corporation