Electric Vehicle Market Anticipated to Generate a Revenue of $812,888.1 Million, Growing at a CAGR of 19.8% from 2021 to 2028Download Sample Reports Overview
The global electric vehicle market is estimated to be valued at $812,888.1 million by 2028, surging from $190,628.7 million in 2020 at a noteworthy CAGR of 19.8%
Impact Analysis of COVID-19 on the Electric vehicle Market
The global market for electric vehicle is estimated to experience a negative impact amid the COVID-19 pandemic. The growth is declining amidst the pandemic times due to supply chain disruptions, closure of manufacturing units, shortage of labors, and import-export restrictions. In addition, the social distancing measures imposed across various countries to curb the pandemic has brought challenges to the electric vehicle distribution channels and it is pushing manufacturers to develop online selling platforms. The falling crude oil prices, economic crisis with more focus on cash saving have reduced the adoption of electric vehicles. China is the leading exporter of electric vehicle components to the world and disrupted supply chain has negatively impact the export due to nation-wide lockdown. In addition, growing trade tensions between China and other countries is causing decline in electric vehicle demand. In addition, shift in consumer preferences towards cash saving many affect the investment and production in electric vehicle industry. All these factors have greatly affected the electric vehicle market.
Various initiatives have been taken by the government, key vendors, and others to support the electric vehicle manufacturers amidst the pandemic. For instance, BMW India has introduced contactless experience in April 2020, that enables customers to explore and buy new BMW cars, book vehicle service, and make secure payments online on a single click using www.bmw-contactless.in. Furthermore, the stimulus packages in Europe have attracted large number of customers towards the purchase of electric vehicles. For instance, Germany provides a subsidy of $11,200 for electric vehicles and France offers a subsidy of $14,170 including $5,900 scrappage scheme for old cars. In addition, in April 2020, Toyota Group, the largest auto maker, has begun the full-scale production of medical face shields and started expanding its production from 500-600 face shield units per week to 40,000 units per month. Also, the company plans to further expand the in-house production to 70,000 units per month. These factors are estimated to create lucrative investment opportunities during the forecast period.
Global Electric Vehicle Market Analysis
The enormous growth of the global electric vehicle market is mainly attributed to stringent government regulations towards vehicle emissions and high demand for fuel-efficient, low-emission, and high-performance vehicles. The electric vehicle reduces the eliminates the fuel cost as the fuel prices are increasing rapidly. The electric vehicles run on electric motor and the cost of electricity can be reduced further by installing rooftop solar installation to charge the electric vehicle. Electric vehicles reduce the car emissions and helps the environment as they do not release harmful greenhouse gases that leads to air pollution. Electric cars provide instant torque that facilitates responsive & high acceleration. In addition, the electric cars feature regenerative braking in which the energy produced by applying brakes is used to charge the electric vehicle. Several countries have imposed strict regulations on the vehicle emission. For instance, the U.S. has imposed US Federal emission standards for engines and vehicles that includes the emission guidelines for greenhouse gas emissions, established by US Environmental Protection Agency (EPA), which is the independent agency of the U.S. that works for the environmental protection. All these aspects are predicted to create a positive impact on the electric vehicle market growth during the forecast period.
The electric vehicles have shorter range compared to the gas-powered cars and auto makers are finding more ways to make electric cars suitable for long distance travel. In addition, filling up gas tank might take up to 3 minutes while electric car can take up to 4 hours to fully charge. This factor is estimated to hamper the market growth during the forecast period.
The technological advancements in electric vehicle market to make electric vehicle batteries more affordable, to reduce the production cost, along with the launch of advanced features are estimated to generate huge opportunities in the market during the upcoming years. For instance, electric vehicles are equipped with smart technology using which you can connect your electric vehicle to the smartphone. In addition, the Nissan Leaf provides remote access to your electric vehicle using your smartphone. With this technology, user can start the car before he is in it as well as the user can change the temperature inside the car. In addition, these cars are also equipped with voice recognition feature. In addition, the motorcycles such as Harley-Davidson & Ducati are already gearing up towards electric motorcycles to enhance the performance and reduce the carbon footprint. In addition, The Hindu, daily newspaper, on May 18, 2021 stated that China has dominated the electric vehicles market and Tesla retained its first position in the sale of electric vehicle market followed by Wuling Hongguang, BYD, and ORA occupied the first 5 spots in China. Such technological advancements are estimated to drive huge growth opportunities in the global electric vehicle market.
Global Electric Vehicle Market, Segmentation
The global electric vehicle market is segmented based on type, vehicle type, vehicle class, and region.
The type segment is further classified into battery electric vehicle, hybrid electric vehicle, and plug-in hybrid electric vehicle. Among these, the hybrid electric vehicle is anticipated to have the dominant market share and surpass $295,602.6 million by 2028, with an increase from $76,321.7 million in 2020. The hybrid electric cars are gaining huge popularity as they are powered using dual engine that use two or more engines, an electric engine and a conventional engine either diesel or petrol. When electric engine powers the car at low speeds and conventional engine powers the car at high speed. In hybrid electric car the battery is charged using regenerative braking mechanism in which the kinetic energy produced by moving car is transformed into electrical energy to charge the batteries. Also, the hybrid cars are made from lighter materials due to which the engine is smaller and lighter that helps in saving the energy. All these factors are predicted to create positive impact on the hybrid electric vehicle sub-segment throughout the forecast period.
The vehicle type segment is further divided into two-wheeler, passenger car, and commercial vehicle. The passenger car sub-segment is anticipated to have a dominating share in the global market and register a revenue of $598,466.0 million during the analysis timeframe. The passenger cars offer numerous benefits, and they are entirely powered by electricity and do not require fuel hence they are highly efficient and minimizes the fuel cost. These cars reduce the emission of harmful greenhouse gases that cause air pollution. In addition, these cars are quieter compared to petrol or diesel cars that helps in reducing the noise pollution. Some of the passenger electric vehicle cars are Jaguar I-Pace, Mercedes-Benz EQC, Tata Nexon EV, and others. These benefits are anticipated to boost the growth of passenger car sub-segment during the analysis timeframe.
The vehicle class segment is further classified into mid-priced and luxury. Among these, the luxury sub-segment is anticipated to have the dominant market share and surpass $438,183.3 million by 2028, with an increase from $100,010.9 million in 2020. Various luxury electric cars are available in the market such as Tesla Model X, BMW iX3, BMW i4, Porsche Taycan, Rivian R1S, and others. The luxury cars have gained huge popularity owing to various innovations and benefits offered by these cars. For instance, Porsche Taycan, the first electric car launched by the company, features excellent acceleration 0-62mph in 2.4 seconds. In addition, this electric car has aggressive power with the use of two -speed transmission and an 800-V system. Also, Porsche Taycan supports faster charging with 5%-80% in just 22 minutes. All these advantages are predicted to create a positive impact on the vehicle class sub-segment of the electric vehicle market throughout the forecast period.
The electric vehicle market for the Asia-Pacific region is projected to witness rapid growth. This region generated a revenue of $96,560.5 million in 2020 and is further projected to reach up to $357,367.2 million by 2028. This region is anticipated to grow rapidly owing to an increase in government initiatives and subsidies for encouraging the use of electric vehicles to reduce the carbon footprint and environmental impact. The government of China has launched new initiative to boost the sale of electric vehicle market in the country. For instance, as stated on January 5, 2021 in Fortune, global media organization, the subsidies for electric vehicles in China has been cut down by 20% for hybrid, plug-in electric vehicles and hydrogen-powered vehicles. Such initiative is anticipated to boost the adoption and growth rate of electric vehicle market in the Asia-Pacific region.
Key Players in the Global Electric Vehicle Market
- Bayerische Motoren Werke Aktiengesellschaft
- BYD Company Limited
- Daimler AG
- Energica Motor Company S.p.A
- Ford Motor Company
- General Motors Company
- Nissan Motor Co., Ltd.
- Tesla, Inc.
- Volkswagen AG
- Toyota Motor Corporation
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Electric Vehicle Market
- Bargaining Power of Suppliers: The suppliers in electric vehicle market have low bargaining power as manufacturing of electric vehicles is costly and recent technological advancements to improve the electric vehicle range and use of full-electric motor technology increases the production cost.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Buyers have low bargaining power, due to presence of fully electric and advanced technical characteristics such as high speed and long milage on single charge. Hence, producing such technically advanced vehicle is challenging and expensive.
Hence, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market has less legal barriers and government norms as electric vehicle production has less environmental impact. Also, the demand is high due to various benefits associated with the consumption of electric vehicle.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: The electric vehicles are already advanced as hybrid electric vehicles, plug-in hybrid electric vehicles use both electric motor engine and the gasoline engine. Hence, there is no substitute product available that provides similar features.
As a result, the threat of the new entrants is low.
- Competitive Rivalry in the Market: The ventures operating in the global electric vehicle market are focusing on strategies such as product launch, technological innovations and advancements along with business expansions to meet the increasing demand for electric vehicle from various countries.
Therefore, competitive rivalry in the market is high.