Recording the revenue of more than US$180 Bn at 2021 end, global zero emission vehicle market is all set for a quantum leap through 2027. The momentous growth of market will go hand in hand with the world sustainability drive.
ICCT Says Used ZEVs Will Become Mainstream in Next 20 Years, Indicating Strong Growth of Zero Emission Vehicle Market
The transition towards zero emission vehicles (ZEVs) has been one of the core elements directed by governments to achieve cleaner air and stable climatic conditions. With favourable government policies to promote new uptake coupled with declining technology cost, the zero emission vehicle market is likely to gain momentum. According to ICCT (International Council on Clean Transportation), most zero emission vehicle sales are concentrated amongst early adopters of new vehicles. However, used zero emission vehicles are expected to offer more opportunities, as per ICCT.
Rampant technological advancements in zero emission vehicles result in faster depreciation as compared to conventional vehicles. Moreover, used zero emission vehicle can facilitate substantial savings apropos to maintenance and fuel costs as compared to their used conventional counterparts. For instance, ICCT shows that in the US, compared to a conventional vehicle, a five year old electric vehicle could save 11-17% of annual ownership costs. Likewise, in the UK, annual ownership savings of around US$3,600-US$4,600 in comparison with traditional vehicles has been observed. As per ICCT analysis, used zero emission vehicles are expected to surpass the first owner zero emission vehicles by end of 2040, with the ZEV count to cross 168 million. In this backdrop, the zero emission vehicle market is likely to witness momentous opportunities from the used vehicle space.
A Preferential Shift away from Conventional Vehicles Bodes Well for Zero Emission Vehicle Market
Automation and technological developments have transformed the transportation and automotive sector. Vehicle manufacturers are now leveraging technology to build efficient low and zero emission vehicles to reduce the environmental burden. Emissions owing to internal combustion engines of conventional vehicles have a profound impact on the environment resulting in an increase in pollution causing harm to humans and environment alike. This triggered the development of zero emission vehicles that use electricity or alternative source such as hydrogen fuel cells that do not emit pollutants. This factor remains crucial in influencing the zero emission vehicle market worldwide.
Government Initiatives Establish a Strong Base for Zero Emission Vehicle Market Growth
Rising environmental concerns have resulted in stringent emission norms and regulations being laid down by government authorities on the global front. Major regulations circle around stringent emission targets to reduce presence of carbon dioxide and nitrogen oxide in the atmosphere. In addition, owing increasing amount of greenhouse gas (GHG) emissions from automobiles, governments have been largely focusing on developing cleaner transportation using zero emission vehicles. For instance, US EPA (Environmental Protection Agency) is working on new norms apropos to reduction in NOx (nitrogen oxide) emissions and pollutants from commercial vehicles and other heavy duty trucks.
Likewise, Minister of Canadian Heritage, Minister of Transport and Minister of Environment and Climate Change announced that the Canadian government is setting mandatory targets for passenger trucks and new light duty cars sales to be nil or zero emission by end of 2035. This initiative is an effort towards Canada’s goal of achieving 100% zero emission sales by 2040. This also led to collaborations between vehicle manufacturers and governments to establish electric vehicle cell plants to promote the cause. For instance, in 2021, a partnership between Government of Indonesia and Hyundai Motor Group and LG Energy Solutions Ltd was signed to build battery cell plant providing cells for more than 150,000 E-GMP electric vehicles. Such initiatives are poised to drive the demand for ZEVs, in turn boosting growth of the zero emission vehicle market.
Sales of BEVs Remain Bullish in Global Zero Emission Vehicle Market
The demand for battery electric vehicles is expected to increase at a predominant rate in the years to follow. This can be attributed towards government subsidies to promote use of electric vehicles to reduce environmental impact caused due to air pollution via vehicle emissions. In addition, reduction in the cost of electric vehicle batteries is another factor propelling its demand, in turn fuelling sales, and contributing toward zero emission vehicle market growth.
Asia Pacific to Remain a Lucrative Revenue Pocket in Zero Emission Vehicle Market
Developing nations in Asia Pacific region have been reflecting an upswing with regards to sales of automobiles since the past few years. For instance, according to International Organization of Motor Vehicle Manufacturers (OICA), number of vehicles manufactured in China touched a count of 1, 82, 42, 588 in quarter three of 2021, accounting for around 31% of the vehicle production worldwide. This is expected to present momentous opportunities for zero emission vehicles owing to stringent government norms apropos to emissions. Moreover, according to analysis of International Energy Agency, around 45% of the share with regards to on road electric vehicles is held by China and the dominance is likely to prevail in the coming years. Growing inclination towards zero emission targets across developing countries is expected to present huge opportunities for zero emission vehicle market in Asia Pacific.
Zero Emission Vehicle Market: Competitive Landscape
A few of the major players in the zero emission vehicle market include Ampere Vehicles, Tata Motors, BMW AG, Hyundai Motor Company, Daimler AG, Tesla Inc., Volkswagen AG, General Motors, and Ford Motor Company.
The Global Zero Emission Vehicle Market Is Segmented As Below:
By Vehicle Type
By Vehicle Class
Key Elements Included In The Study: Global Zero Emission Vehicle Market
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