Global Electric Vehicle Market Value Projected to Surpass USD 1,203 billion by 2028, Registering a Strong Year on Year Growth of 21.4% - Report by ReAnIn
HYDERABAD, India, March 2, 2022 /PRNewswire/ -- The global electric vehicle market was valued at USD 309.38 billion in the year 2021 and is projected to reach USD 1,203.01 billion by the year 2028, registering a CAGR of 21.4%. Increasing demand for a safe, cost-effective, and environment-friendly alternative to traditional vehicles, and government support through subsidies and tax rebates are driving the electric vehicle market growth.
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There were 10 million electric cars globally at the end of 2020. Despite the global pandemic, electric car registrations increased by 41% in 2020, according to International Energy Agency (IEA). Major driving forces for the electric vehicle market are regulatory support, such as a ban on the sale of traditional cars; incentives to promote electric vehicle sale, and a decrease in battery cost. Currently, 17 European Union (EU) states offer incentives for the purchase of electric vehicles while 10 countries grant tax reductions or exemptions. Similarly, in the United States, electric car buyers are eligible for a federal tax credit of up to USD 7,000 and are exempted from all fuel consumption-related federal taxes. These incentives were the primary reason for the high adoption of electric vehicles in China but the country is now planning to reduce tax incentives. In December 2021, the Chinese government announced that purchase incentives would be cut by 30% beginning January 1, 2022.
However, a lack of charging infrastructure is expected to limit the growth of the electric vehicle market. Battery swapping could be an interesting solution but charging infrastructure need to be strengthened in the long run. The high price of electric vehicles is another leading barrier, especially in developing economies such as India.
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Asia Pacific is Expected to Hold Dominant Market Share
Among the countries, China accounted for the largest share in the global electric vehicle market. However, in 2020, Europe overtook China in terms of the number of units sold. In addition to purchasing incentives and tax benefits, 95 g CO2/km for car and 147 g CO2/km mandate has contributed to the higher adoption of electric vehicle in Europe. The United States is expected to witness the highest growth over the forecast period owing to favourable government policies in terms of the regulatory framework and monetary incentives/support.
Key Highlights of the Report
- Among vehicle type, passenger car accounted for more than 90% of the market share in 2021 and is expected to retain dominant market share by 2028. The need for a cost-effective and environment-friendly alternative to traditional cars has enabled this shift in consumer behaviour and led to higher adoption of the electric vehicle.
- Currently, Battery electric vehicle (BEV) accounts for the majority of the market share, while Plug-in hybrid electric vehicle (PHEV) is expected to witness the highest growth rate or CAGR over the forecast period.
- Consumer spending on electric vehicles has increased significantly in the last few years and this trend is expected to continue where government spending may remain stagnant or decline.
- Electric vehicle market is expected to get crowded as leading combustion engine makers such as General Motors Company (GM), Ford Motor Company and others try to strengthen their position. According to an estimate, global automakers are planning to spend more than USD 500 billion on electric vehicles by 2030.
Market Segmentation
ReAnIn has segmented the global electric vehicle market by:
- Vehicle Type
- Passenger Car
- Commercial Vehicle
- Two-Wheeler
- Propulsion Type
- Battery Electric Vehicle (BEV)
- Fuel Cell Electric Vehicle (FCEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Hybrid Electric Vehicle (HEV)
- Component Type
- Battery Cells & Packs
- On-Board Charger
- Infotainment
- Electric Motor
- Charging Station Type
- Normal Charging
- Super Charging
- Power Output
- Less Than 100 kW
- 100-250 kW
- Above 250 kW
- Geography
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
The electric vehicle market is highly competitive and dominated by established players such as Tesla, Inc., BYD Co Ltd, Volkswagen AG, General Motors, Stellantis N.V., and BMW Group. Some of the other leading players in this market are Hyundai Motor, Mercedes-Benz Group AG (former Daimler AG), Nissan Motor Co., Ltd., Volvo Group, SAIC Motor, Toyota Motor Corporation, Ford Motor, Honda Motor, Continental AG, and Tata Motors.
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SOURCE Reanin Research & Consulting Private Limited
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