The Electric Car Market Is Expected to Reach A Value Of $1.9 Trillion By 2028, At A CAGR of 37.1% During the Forecast Period 2021-2028. In Terms of Volume, This Market Is Expected to Grow at A CAGR of 36.2% From 2021 To Reach 69.3 Million Units By 2028
Supportive government policies and regulations, increasing investments by leading automotive OEMs, rising environmental concerns, and decreasing prices of batteries are the key factors driving the growth of the Electric Car Market. The growing adoption of autonomous driving vehicles provide significant growth opportunities for market players in the coming years.
The Impact of COVID-19 on the Electric Car Market
The COVID-19 pandemic has adversely hit many economies around the globe. To control the spread of this disease and avoid the related consequences, governments across the globe have announced partial or complete lockdowns, majorly impacting many manufacturing and service industries, including electric cars.
The outbreak of COVID-19 has led to disrupted supply chains, limited operations and workforce, and factory closures. This caused a severe decline in vehicle sales in 2020, including electric cars. In Europe, during the lockdowns, manufacturing facilities, supply chains, and consumer demands were paralyzed in the first half of 2020. Major investments in areas such as the development of charging infrastructure have halted since most EVSE (Electric Vehicle Supply Equipment) manufacturers worldwide have been affected due to government restrictions and nationwide lockdowns. This has led to a setback of electric mobility targets of various governments. Such factors have slowed down the growth of the electric cars market during the forecast period.
However, the electric vehicles market is expected to recover quickly due to China’s strong growth. Developed areas of China and Europe are poised to have a strong recovery while the U.S. is estimated to fall behind. Aggressive government initiatives for stabilizing the automobile industry are anticipated as a key factor triggering the adoption rate in coming years. Leading investors have planned to double their investment in autonomous vehicles that can positively impact the electric car market in the forecast period. For instance, in March 2020, Waymo, Google’s self-driving car project, raised USD 2.3 billion from investors, such as Silver Lake, Andreessen Horowitz, and AutoNation.
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Supportive government policies and regulations drive the demand for electric cars.
Governments worldwide are increasingly investing in electric mobility. Increasing government regulations to phase out fossil fuel-powered vehicles, growing investment for improving public EV charging infrastructure, and initiatives in the form of subsidies & tax rebates for the adoption of electric cars are expected to support this market growth.
The COVID-19 outbreak has severely impacted the automotive sector, with major manufacturers either totally shutting down operations or operating with reduced capacities, following the directives issued by their respective governments. However, governments worldwide are aggressively investing in electric vehicle ecosystems, either through direct subsidies as an incentive for purchasing electric vehicles or by investing in developing charging infrastructure for electric vehicles. For instance, in 2020, the German government extended environmental subsidies to purchase electric cars until 2025. The subsidies ranged from EUR 3,000 for battery-electric cars and EUR 2,250 for plug-in hybrid electric cars. To boost electric car demand, the German government mandated fuel filling stations to set up electric car charging stations. The chargers are installed under its economic recovery plan with ~USD 154.9 billion (EUR 130 billion) to help remove the range anxiety of electric cars and boost consumer demand.
Key Findings in the Electric Car Market Study:
The fuel cell electric vehicles market to grow at a significant pace during the forecast period.
The fuel cell electric vehicles segment is projected to grow at the highest CAGR during the forecast period. The high growth of this segment is mainly attributed to several advantages, such as fast refueling, zero tailpipe emissions, lighter and smaller battery pack with increased driving range, increasing government initiatives for setting up hydrogen fuel cell charging stations, and increasing investments by leading automotive OEMs across the world in the research and development of hydrogen fuel cell technology.
The 100kW to 250 kW segment is projected to grow at the highest CAGR during the forecast period.
The 100 kW to 250 kW segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the increasing initiatives by leading automotive OEMs to launch powerful electric cars, increasing regulations to reduce tailpipe emissions, increasing adoption of electric cars in developed economies, and targets of governments across the world to phase out diesel vehicles by 2030.
The commercial use segment to grow at the highest CAGR during the forecast period.
The commercial use segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the increasing regulations to reduce fleet emissions, growing adoption of mobility-as-a-service (MaaS), growing demand for energy-efficient commuting, increasing fuel prices, and encouragement by global and state-level regulatory bodies to deploy policies promoting the adoption of electric cars for mobility services.
Europe to be the fastest-growing regional market by value and Asia-Pacific by volume.
Europe is expected to witness the fastest growth during the forecast period. The factors attributed to the high growth of this region are consistent developments in making stringent emission regulations by the European Union, increasing focus on reducing the number of conventional cars, extensive charging infrastructure network in Europe, and increasing investment for developing sustainable roads transport infrastructure that can charge electric cars on-the-go to minimize range anxiety associated with electric vehicles.
By volume, the Asia-Pacific region is projected to grow at the highest CAGR during the forecast period. Major factors attributed to the high growth of this region are rising consumer interest in purchasing electric cars, increasing adoption of electric cars in developing economies such as India and Southeast Asian countries, and increasing investments by countries such as India, South Korea, and Japan for development of local electric vehicles industry.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the Electric Car Market over the last four years (2018-2021). The key players profiled in the electric cars market are Nio Inc. (China), Alcraft Motor Company Ltd. (U.K.), BMW Group (Germany), BYD Company Ltd. (China), Daimler AG (Germany), Faraday & Future Inc. (U.S.), Ford Motor Company (U.S.), General Motors Company (U.S.), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Nissan Motor Co., Ltd. (Japan), TATA Motors Limited (India), Tesla, Inc. (U.S.), Volkswagen AG (Germany), and Mahindra and Mahindra Ltd. (India).
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Scope of the Report
Electric Car Market, by Propulsion Type
- Hybrid Vehicles
- Pure Hybrid Vehicles
- Plug-in Hybrid Vehicles
- Battery Electric Vehicles
- Fuel Cell Electric Vehicles
Electric Car Market, by Power Output
- Less Than 100 kW
- 100 kW to 250 kW
Electric Car Market, by End Use
- Private Use
- Commercial Use
Electric Car Market, by Geography
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Netherlands
- Sweden
- Switzerland
- Norway
- Denmark
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- China
- Japan
- South Korea
- India
- Thailand
- Singapore
- Rest of Asia-Pacific (RoAPAC)
- Latin America
- Middle East & Africa
Key Questions Answered in the Report-
- Which are the high growth market segments in terms of propulsion type, power output, end use, and geography?
- What is the historical market size for electric cars across the globe?
- What are the market forecasts and estimates for the period 2021-2028?
- What are the major drivers, restraints, opportunities, and challenges in the electric cars market?
- Who are the major players in the market, and what are their market shares?
- How is the competitive landscape for the electric cars market?
- What are the recent developments in the electric cars market?
- What are the different strategies adopted by the major players in the market?
- What are the key geographic trends, and which are the high-growth countries?
- Who are the local emerging players in the electric cars market, and how do they compete with other players?
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