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Favourable Government Policies and Subsidies to Drive the Demand for Electric Vehicles
Global electric vehicle market is driven by various initiatives taken by governments of many nations to promote the production and sales of electric vehicles (EVs). Governments all over the world are increasing their investments in electric mobility by offering attractive incentives and policies to promote the sales of electric vehicles. For instance, in 2019, the German government and vehicle manufacturers agreed to increase monetary incentives for battery-powered vehicles under the "Environment Bonus" scheme. The total incentive will be USD 6,680 per vehicle, with the vehicle industry covering half of the cost, and the government plans to implement these incentives by 2025. Similarly, the Indian government announced its plans in 2019 to spend USD 1.4 billion to subsidize hybrid and electric vehicle sales by 2022. Any vehicles costing less than USD 21,177 are applicable for these incentives, resulting in increasing demand for electric vehicles over the forecast period.
Increasing government regulations on the emission of greenhouse gases in the atmosphere caused by Internal Combustion Engine (ICE) vehicles have led to the expansion in demand for electric vehicles. For instance, the European Union has set a goal of achieving net-zero greenhouse gas emissions by 2050. Electric vehicles generate lower emissions as compared to traditional vehicles. Governments all over the world too are increasing awareness and promoting the adoption of electric vehicles to reduce oil usage, pollution, and emissions.
The worldwide electric vehicle sales grew by 43% from 2019 and the global electric vehicle market share rose to a new record of 4.6% in 2020 as per the International Energy Agency. Countries such as the United States, China, and many European countries have seen considerable increases in the sale of electric vehicles in recent years, which will contribute to market growth. The market is expected to be driven by increasing electric vehicle usage in the commercial and government sectors. For instance, the UK government approved 200 electric buses in 2020, with the goal of making all buses fully electric by 2025, saving almost 7,400 tonnes of CO2.
Passenger Car Segment to lead the Electric Vehicle Market
The passenger car is expected to be the fastest-growing electric vehicle market segment over the forecast period. The passenger car segment led the market with a market share of more than 90% in 2020 owing to increased demand and sales for passenger electric cars in the Asia Pacific followed by Europe and North America. China, Japan, and South Korea are the countries in Asia that are leading the passenger electric vehicle market. This is attributable to the governments' strong support for passenger electric vehicles in these countries. These countries have implemented strict emission regulations and have a variety of subsidies, grants, and incentives to encourage people to shift to electric vehicles. Europe's EV sales surpassed China's in 2020 because of these efforts, whereas China sold more mini-EVs in 2021.
Growing Popularity of EVs to Drive Growth of Asia Pacific Electric Vehicle Market
The Asia Pacific is the largest user of electric vehicles and is expected to grow at the fastest rate throughout the forecast period. The increasing popularity of electric vehicles is prompting the region's automobile manufacturers to launch electric vehicles. As the market evolves and consumer preferences shift from conventional vehicles to electric vehicles, more conventional vehicle manufacturers are likely to launch electric vehicles in the market, enhancing market growth during the forecast period.
Countries like China, Japan, and South Korea lead the Asia Pacific electric vehicle market. China, being the world's top electric vehicle manufacturer and user, has a hold on the region's electric vehicle market. In 2018, China accounted for 45% of all electric vehicle sales on the road globally, up from 39% in 2017. Moreover, many companies in China are focusing on the production of electric vehicles. Volkswagen Group announced its plan to produce 22 million electric vehicles by 2026, half of which are to be manufactured in China. Tesla, Inc., on the other hand, expects to manufacture around 150 thousand 3s Model automobiles in Shanghai, China. In addition, the Indian government announced tax benefits for the purchase of electric vehicles in 2019. The government intends to deduct interest paid or loans taken for the purchase of an electric vehicle in income tax.
The rapid growth of the electric vehicle market in North America can be ascribed to the growing initiatives by the Department of Energy (DOE) to build charging infrastructures throughout the U.S. to support the increasing number of electric vehicles in the region. For instance, Policymakers, auto manufacturers, and charging network companies in North America have formed a non-profit named Veloz to promote electric vehicles. The organization’s objective is to encourage electric vehicle market innovation, investment, marketing, and expansion. Similarly, Electrify America, a California-based electric vehicle manufacturer, has announced a USD 2 billion investment in zero-emission vehicle (ZEV) infrastructure across the United States over the next ten years, from 2017 to 2027, with USD 800 million invested in California.
Global Electric Vehicle Market: Competitive Landscape
In December 2021, BYD introduced its new second-generation e6 EV for the Indian market. This MPV has a battery pack with a capacity of 71.7 kWh and a range of around 250+ miles on a single charge. The deliveries for this model have already started by February 2022. On the other hand, in October 2020, Hino and BYD signed an agreement to set up a new company for commercial BEVs development.
Few of the players in the Electric Vehicle market include SAIC Motors (China), Stellantis (Netherlands), Tesla (US), BYD (China), and Volkswagen AG (Germany).
Regional Classification of the Global Electric Vehicle Market is Described Below:
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
1. Executive Summary
1.1. Global Electric Vehicle Market Snapshot
1.2. Key Market Trends
1.3. Future Projections
1.4. Analyst Recommendations
2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
2.2.1. Drivers
2.2.1.1. Driver A
2.2.1.2. Driver B
2.2.1.3. Driver C
2.2.2. Restraints
2.2.2.1. Restraint 1
2.2.2.2. Restraint 2
2.2.3. Market Opportunities Matrix
2.3. Value Chain Analysis
2.4. Porter’s Five Forces Analysis
2.5. Covid-19 Impact Analysis
2.5.1. Pre-Covid and Post-Covid Scenario
2.5.2. Supply Impact
2.5.3. Demand Impact
2.6. Government Regulations
2.7. Technology Landscape
2.8. Global EV Charger Installations Overview, 2018 - 2022
2.8.1. Slow Chargers
2.8.2. Fast/Super Chargers
2.9. Economic Analysis
2.10. PESTLE
3. Production Output and Trade Statistics, 2018 - 2022
3.1. Regional Production Statistics
3.1.1. North America
3.1.1.1. U.S.
3.1.2. Europe
3.1.3. Asia Pacific
3.1.3.1. China
3.1.4. Latin America
3.1.5. Middle East & Africa
3.2. Trade Statistics
4. Price Trends Analysis and Future Projects, 2018 - 2030
4.1. Key Highlights
4.2. Prominent Factors Affecting Prices
4.3. By Powertrain
4.4. By Region
5. Global Electric Vehicle Market Outlook, 2018 - 2030
5.1. Global Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
5.1.1. Key Highlights
5.1.1.1. BEVs
5.1.1.2. PHEVs
5.1.1.3. HEVs
5.1.1.4. FCEVs
5.2. Global Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
5.2.1. Key Highlights
5.2.1.1. Small Car
5.2.1.2. Medium Car
5.2.1.3. SUVs and Crossover
5.2.1.4. Large Car
5.2.2. BPS/Market Attractiveness Analysis
5.3. Global Electric Vehicle Market Outlook, by Region, Volume (Units) and Value (US$ Mn), 2018 - 2030
5.3.1. Key Highlights
5.3.1.1. North America
5.3.1.2. Europe
5.3.1.3. Asia Pacific
5.3.1.4. Latin America
5.3.1.5. Middle East & Africa
5.3.2. BPS/Market Attractiveness Analysis
6. North America Electric Vehicle Market Outlook, 2018 - 2030
6.1. North America Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
6.1.1. Key Highlights
6.1.1.1. BEVs
6.1.1.2. PHEVs
6.1.1.3. HEVs
6.1.1.4. FCEVs
6.2. North America Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
6.2.1. Key Highlights
6.2.1.1. Small Car
6.2.1.2. Medium Car
6.2.1.3. SUVs and Crossover
6.2.1.4. Large Car
6.3. North America Electric Vehicle Market Outlook, by Country, Volume (Units) and Value (US$ Mn), 2018 - 2030
6.3.1. Key Highlights
6.3.1.1. U.S.
6.3.1.2. Canada
6.3.2. BPS/Market Attractiveness Analysis
7. Europe Electric Vehicle Market Outlook, 2018 - 2030
7.1. Europe Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
7.1.1. Key Highlights
7.1.1.1. BEVs
7.1.1.2. PHEVs
7.1.1.3. HEVs
7.1.1.4. FCEVs
7.2. Europe Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
7.2.1. Key Highlights
7.2.1.1. Small Car
7.2.1.2. Medium Car
7.2.1.3. SUVs and Crossover
7.2.1.4. Large Car
7.3. Europe Electric Vehicle Market Outlook, by Country, Volume (Units) and Value (US$ Mn), 2018 - 2030
7.3.1. Key Highlights
7.3.1.1. Germany
7.3.1.2. France
7.3.1.3. U.K.
7.3.1.4. Sweden
7.3.1.5. Norway
7.3.1.6. Russia
7.3.1.7. Rest of Europe
7.3.2. BPS/Market Attractiveness Analysis
8. Asia Pacific Electric Vehicle Market Outlook, 2018 - 2030
8.1. Asia Pacific Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
8.1.1. Key Highlights
8.1.1.1. BEVs
8.1.1.2. PHEVs
8.1.1.3. HEVs
8.1.1.4. FCEVs
8.2. Asia Pacific Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
8.2.1. Key Highlights
8.2.1.1. Small Car
8.2.1.2. Medium Car
8.2.1.3. SUVs and Crossover
8.2.1.4. Large Car
8.3. Asia Pacific Electric Vehicle Market Outlook, by Country, Volume (Units) and Value (US$ Mn), 2018 - 2030
8.3.1. Key Highlights
8.3.1.1. China
8.3.1.2. Japan
8.3.1.3. South Korea
8.3.1.4. India
8.3.1.5. Southeast Asia
8.3.1.6. Rest of Asia Pacific
8.3.2. BPS/Market Attractiveness Analysis
9. Latin America Electric Vehicle Market Outlook, 2018 - 2030
9.1. Latin America Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
9.1.1. Key Highlights
9.1.1.1. BEVs
9.1.1.2. PHEVs
9.1.1.3. HEVs
9.1.1.4. FCEVs
9.2. Latin America Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
9.2.1. Key Highlights
9.2.1.1. Small Car
9.2.1.2. Medium Car
9.2.1.3. SUVs and Crossover
9.2.1.4. Large Car
9.3. Latin America Electric Vehicle Market Outlook, by Country, Volume (Units) and Value (US$ Mn), 2018 - 2030
9.3.1. Key Highlights
9.3.1.1. Brazil
9.3.1.2. Mexico
9.3.1.3. Rest of Latin America
9.3.2. BPS/Market Attractiveness Analysis
10. Middle East & Africa Electric Vehicle Market Outlook, 2018 - 2030
10.1. Middle East & Africa Electric Vehicle Market Outlook, by Powertrain, Volume (Units) and Value (US$ Mn), 2018 - 2030
10.1.1. Key Highlights
10.1.1.1. BEVs
10.1.1.2. PHEVs
10.1.1.3. HEVs
10.1.1.4. FCEVs
10.2. Middle East & Africa Electric Vehicle Market Outlook, by Vehicle Type, Volume (Units) and Value (US$ Mn), 2018 - 2030
10.2.1. Key Highlights
10.2.1.1. Small Car
10.2.1.2. Medium Car
10.2.1.3. SUVs and Crossover
10.2.1.4. Large Car
10.3. Middle East & Africa Electric Vehicle Market Outlook, by Country, Volume (Units) and Value (US$ Mn), 2018 - 2030
10.3.1. Key Highlights
10.3.1.1. GCC
10.3.1.2. South Africa
10.3.1.3. Rest of Middle East & Africa
10.3.2. BPS/Market Attractiveness Analysis
11. Competitive Landscape
11.1. Company Market Share Analysis, 2021
11.2. Competitive Dashboard
11.3. Company Profiles
11.3.1. Tesla Inc.
11.3.1.1. Company Overview
11.3.1.2. Product Portfolio
11.3.1.3. Financial Overview
11.3.1.4. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
11.3.2. BYD
11.3.3. Toyota
11.3.4. General Motors
11.3.5. Stellantis
11.3.6. VW Group
11.3.7. Hyundai Motor
11.3.8. Nissan
11.3.9. Ford
11.3.10. Geely Auto Group
11.3.11. BMW Group
11.3.12. SAIC Motors
11.3.13. Mercedes-Benz Group
11.3.14. R-N-M Alliance
12. Appendix
12.1. Research Methodology
12.2. Report Assumptions
12.3. Acronyms and Abbreviations
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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