Electric Vehicle Market Size Worth USD 1,579.10 Billion, Globally, by 2030 at a CAGR of 17.8%
Fortune Business Insights
7 min read
Fortune Business Insights
Global Electric Vehicle Market Size to Be Valued at USD 1,579.10 Billion by 2030; Supportive Government Subsidies and Policies to Boost Market Growth
Pune, India, July 10, 2023 (GLOBE NEWSWIRE) -- The global Electric vehicle market size was valued at USD 384.65 billion in 2022 and is expected to be worth USD 500.48 billion in 2023. The industry is projected to be valued at USD 1,579.10 billion by 2030, recording a CAGR of 17.8% during the forecast period.
Fossil-fueled vehicles are a major reason behind increased air pollution levels. This factor has compelled many governments to pass strict emission laws and regulations on carmakers to reduce vehicle emissions. The demand for BEVs has increased tremendously in recent years as these automobiles do not use fossil fuels, such as diesel or gasoline. The overall maintenance cost of EVs is also quite low, which gives them a significant advantage over fossil-fueled vehicles.
Fortune Business Insights™ provides this information in its report titled, "Global Electric Vehicle Market, 2023-2030".
Supportive Government Subsidies and Policies to Boost Market Growth
Governments are introducing attractive policies and incentives to boost the sales of electric vehicles. Some of these incentives include zero or low registration fees, decreased selling prices, and free charging infrastructure of EVs at different charging stations. Many governments across the world are also exempting road, import, and purchase taxes based on different subsidies. However, high manufacturing and battery costs might restrain market growth.
COVID-19 Impact-
Favourable Initiatives by Governments to Help Market Recover from COVID-19 Aftermath
The COVID-19 pandemic had a severe impact on the functioning of a wide range of industries including aviation and automobile. This period saw a rapid decrease in the production and sales of vehicles. However, the electric vehicle market growth skyrocketed after June 2020 as governments were actively promoting vehicle electrification by launching a wide range of subsidies and programs.
Rising Demand for PEVs to Boost Sales of Passenger Vehicles
Based on vehicle type, the market is segmented into passenger and commercial vehicles. The passenger vehicle segment has captured the largest market share due to the growing presence of EV manufacturers, automakers, and OEMs in Asia Pacific. The rising sales of passenger vehicles in India, China, Norway, and Germany will also boost product demand.
Demand for Traction Battery Pack Rises Due to Wide Usage as a Power Source for EVs
Based on components, the market is divided into battery pack & high voltage components, motor, brake, wheel & suspension, body & chassis, and low voltage electric components. The traction battery pack segment has held the largest market share as it has a significant cost contribution and acts as the main power source that helps an EV run smoothly.
Rising Innovations in EVs to Boost Demand for BEVs
In terms of propulsion type, the market is segmented into Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). The BEV segment is expected to capture a major market share as OEMs are manufacturing electric vehicles on a large scale.
Based on drive type, the market is bifurcated into all-wheel drive, front-wheel drive, and rear-wheel drive. The front-wheel drive segment accounted for the largest market share. This is because these drive systems incur low manufacturing costs and are easy to maintain as well.
Growing Purchase of Passenger Vehicles to Boost Adoption of 151-300 Mile Range
Based on range, the market is segmented into up to 150 miles, 151-300 miles, and above 300 miles. The 151-300-mile range segment captured the largest market share as the sales of passenger cars are rising every year and most of these vehicles deliver a range of 151-300 miles.
Report Coverage-
The market report offers an in-depth analysis of the industry and highlights key aspects, such as top vehicle types, leading market players, and key applications of the product. The report also provides valuable insights into the latest market trends and focuses on key industry developments. Apart from the abovementioned factors, the report covers several factors that have contributed to the market’s growth in recent years.
Regional Insights-
Asia Pacific to Dominate Owing to Rising Electrification
Asia Pacific electric vehicle market share is anticipated to grow at a notable pace as the demand for passenger cars in developing nations has grown considerably in recent years. China has captured the largest share in terms of passenger cars and other automobiles. North America is predicted to record the highest growth rate in the global market. The regional market’s growth can be credited to the rising number of initiatives by the Department of Energy (DoE) to build EV charging infrastructures across the U.S. to support the growing number of EVs in the region.
Companies Focus on Developmentsand Partnerships to Gain Competitive Edge
The market is fragmented with the notable presence of key players, such as General Motors Company, Nissan Motors Co. Ltd., Tesla, Inc., Toyota Motor Corporation, BYD Company Ltd., Daimler AG, and Ford Motor Company, among others.
List of Key Players Covered in Electric vehicle market Report:-
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)
Electric vehicle market Segmentation:-
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
Key Industry Development:
February 2023 – Ford announced plans to build a new battery plant in Michigan worth USD 3.5 billion to diversify its battery offerings by using a Chinese firm’s technology as it tries to enhance its electric vehicle production capacity.
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