Global Electric Vehicle Market was valued at US $ 500.48 billion in 2023 and is expected to reach US $ 1,579.10 billion by 2032 growing at a CAGR of 17% during the forecast period 2024 – 2032.But the reasons for its growth include rising environmental consciousness, ever increasing levels of technology and consumer demand for sustainable transportation. In addition, the spread of charging infrastructure is conducive to the development of global electric vehicle market.
Environmental considerations as a result of both environmental concerns related to the use of conventional petroleum vehicles and booming fuel prices, alternative fuel cars have made their entry on the market. Another aspect expected to drive the EV market is changing consumers 'views on battery-powered or hybrid vehicles. Because BEVs do not use traditional fuels such as petroleum or diesel, demand for them has grown in recent years due to the needs of consumers and concerns over energy security. Also, EVs are much cheaper to maintain than fuel-powered vehicles--another big plus for their use.
Each model is powered by one or more electric motors. What do they mean by electric vehicles anyway They do not have an internal combustion engine. This surge in the CAGR is due to the intense popularity of alternative fuel vehicles. Fossil-fuelled vehicles are undoubtedly one of the primary reasons for global air pollution. Therefore, this has forced many governing authorities to work hard at tightening emission controls on car manufacturers in an attempt to control vehicle emissions.
The Electric Vehicle Market Trend Analysis
As EV investment grows, the market will expand too.
As investment in electric mobility increases, the market for EVs is sure to grow. PC sales in decline? Industry giants like Daimler AG, Ford Motor Company, BYD and the Renault Group are not only putting money where necessary for EVs. For example, in September of this year (2023), BYD said it plans to begin EV manufacturing operations in Thailand as early as 2019 with a capacity upwards from one annual unit. With the assistance of Thailand's Board of Investment, BYD will continue to roll out its EV technology at WHA Rayong 36 Industrial Estate and produce right-hand drive cars. Other large automakers such as Mercedes Benz and Daimler (parent company of Chrysler) are investing considerable sums to develop electric vehicles. Therefore, it is expected that there will be a great deal of market growth over the entire forecast period.
Segmentation Analysis of the Electric Vehicle Market
By Vehicle Type
It is foreseen that PEVs will steadily gain ground, but passenger vehicles are still expected to make up the majority of sales.
The market is segmented by class of vehicle, into passenger and commercial. Due to increased sales in China, India, Norway and Germany the passenger vehicle segment holds the highest market share. The Asia Pacific region has the highest rate of EV adoption in the world. How is it that so many companies, including automakers (EV manufacturers and OEMs), have gravitated to this sector? The above factors will support this sector's development throughout the forecast period. In addition, it is expected that the fastest growth area over the next few years will be in electric commercial vehicles thanks to constant improvements in battery power which are increasing their capacity for carrying cargo.
By Propulsion Type
Innovations from core operating leaders will help maintain the leading position of BEVs in the market.
Then there's the market divided into Hybrid Electric Vehicles (HEV) and Battery-powered Electric vehicles (BEV). As a result, the inherent advantages of electric vehicles mean that BEVs are expected to hold onto their share and grow over time. This growth has been attributed to the growing production of electric vehicles by original equipment manufacturers. For instance, in April 2023 it introduced a new system designed to improve auto stability on uneven ground, through sharp turns and over shallow water. This shock absorbing technology is to be applied in the group's recently launched high end fashion brand, Yangwang. The HEV (hybrid electric vehicle) segment, which can use fuel and electricity at the same time, is a close second in terms of future dominance. In particular when charging facilities are insufficiently developed an area.
By Drive Type
Effect of inexpensive FWDs on component segment expansion.
The market is categorized into three distinct types: Rear-wheel drive, front-wheel drive and all wheels. The segment with the largest market share in 2023 is front-wheel drive. What's more, this section is expected to show the fastest CAGR over the forecast period. It is owing to cost-effectiveness that the vehicle has been able to expand. Front-wheel drive systems generally are less expensive to manufacture and maintain than rear or all-wheel drives. Nevertheless, the rise in front-wheel drive vehicles is also due to customers being able to afford them. The all-wheel drive segment occupied a sizable share of the market in 2022. The growth is attributed to the universal trend in the global automotive industry toward all-wheel drive systems. Thus you could say that the rear-wheel drive segment held a large market share in 2022. The expansion is due to advances in vehicle system technology.
By Range
Alongside the increasing popularity of passenger vehicles, the 151-300 segment rules.
In terms of range, the market is broken down as follows--300 miles and above; 151-300; up to 15O. The reasons is that most passenger cars have a travel range of 150-320 miles, and this group accounts for the largest share. The expansion of this market is expected to be assisted by passenger EV sales growth. With the move toward light commercial vehicles and electric vans, the 150-Miles class is now number two. Electric vans are at the beginning of a market cycle. Therefore, from 2023 to 2030 the demand for electric vehicles will drive segment growth.
By Component
The battery pack and high-voltage component, which account for the most costs, is still maintaining its leading market position.
The market is segmented by component type as follows: low-tension (electrical), battery packs and high tension components; motors and brakes, bodies, chassis. Last--wheels! The largest proportion goes to the traction battery pack, since it is by far the most expensive item and also provides that greatest source of power for vehicle operation. In years to come, the price of these packs will fall even further. Moreover, the industry's major manufacturers are developing higher-grade high-voltage components and traction batteries, with further reductions in cost expected to spur growth over this period. In addition, the widely popular EV prompting use of the motor is another reason for its second place. The technological breakthroughs of OEM's, when combined with growing demand for electric vehicles in major countries will be a boon to market growth.
Regional Analysis of the Electric Vehicle Market
The market analysis is divided into Europe, Asia Pacific, North America and the Rest of the World.
It is expected that the Asia-Pacific region will grow significantly in this market as developing countries raise their guy's demand for passenger cars. For passenger vehicles and other types of automobiles, China has the largest market share. It is also expected that the largest market growth will occur in North America. Providing incentives The growth in the regional market has been driven by DoE's more vigorous push to develop EV charging infrastructure US-wide, built to meet demand from increasing numbers of new EV owners.
Europe is expected to have a considerable share of the market. The enlarged market in Europe has been fuelled by government efforts to reduce carbon emissions. Major contributors toward the expansion of the region are France, Germany and United Kingdom. Quick adoption of fuel efficient automobiles will also come to the aid of the European market. Because the nations of Rest of the World do not have charging policies, their market share is reduced.
Top Key Players
Key Industry Developments in the Electric Vehicle Market Market
| Report Components | Details |
|---|---|
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Quantitative Units | Revenue in US $ |
| Segments Covered | By Vehicle Type: Passenger Car, Commercial Vehicle; By Propulsion Type: Battery Electric Vehicle (BEV), Hybrid Electric Vehicle ( HEV) By Drive Type, All Wheel Drive, Front Wheel Drive, Rear Wheel Drive; By Range: Up to 150 Miles, 151-300 Miles, Above 300 Miles By Component, Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, Low Voltage Electric Component |
| Countries Covered | U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the APAC, Others include Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA), Brazil, Argentina, Mexico, and Rest of South America as part of South America |
| Market Players Covered | BMW Group (Germany), BYD Company Ltd. (China), Daimler AG (Germany), Ford Motor Company (U.S.), General Motor Company (U.S.), Nissan Motor Corporation (Japan), Tesla (U.S.), Toyota Motor Corporation (Japan), Volkswagen AG (Germany), Group Renault (France), PPG INDUSTRIES, INC. |
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