Pune, India, Oct. 10, 2023 (GLOBE NEWSWIRE) -- The adoption of electric vehicles is high in developed countries, including the United States, Canada, Germany, France, Italy, Spain, and others. Electric vehicle sales are driven by several factors, including growing consumer adoption of EVs and increasing demand for sustainable transportation to curb carbon dioxide emissions. Several country's governments have adopted sustainable transportation policies with rising government spending for clean transportation development around the globe. According to the International Energy Agency report in 2021, the government's public spending on private and public companies provided incentives and subsidies of approximately US$ 30 billion. Increasing sales of the EVs around the globe is expected to drive the market growth. According to the above-stated organization, electric vehicle sales in 2022 reached 10.0 million and are expected to reach 14.0 million.
According to The Insight Partners, “Electric Vehicle Market Forecast to 2030 – Global Analysis – By Component (Battery Pack & High Voltage Components, Motor, Brake, Wheel and suspension, Body and chassis, Low Voltage Electric, and Others), By Vehicle Type (Passenger Cars, and Commercial Vehicles), By Propulsion Type (Battery Electric Vehicle, and Hybrid Electric Vehicle), By Drive Type (All Wheel Drive, Front Wheel Drive, and Rear Wheel Drive), and Geography,” the market size is expected to grow from US$ 385.25 billion in 2022 to US$ 1,376.09 billion by 2030, estimated to grow at a CAGR of 17.3% from 2022 to 2030. The increased demand for eco-friendly transportation drives market growth, with government support and initiatives to promote e-mobility. However, the lack of charging infrastructure facilities and high manufacturing investments is expected to hinder the market's growth.
China has the largest share in 2022 across the Asia Pacific region, owing to the fastest adoption in the country and government incentives for vehicles. In China, electric vehicles are smaller than in developed countries. This is primarily owing to the low cost of manufacturing in this country. The continuous development of low-cost batteries has contributed to the growth of the electric vehicles market. In 2021, the median price for electric vehicles in China was only 10.0% higher than that of other conventional cars. China accounted for more than 90% of new electric two and three-wheeler registrations and around 90% of new electric trucks and buses sold in China.
Growing investment towards building charging infrastructure for EVs and increased consumer preference towards clean transportation is a driving factor for the market growth. The EV charging-based electricity market value is expected to reach US$ 190 billion by 2030. Also, the public charging infrastructure investment is growing significantly, increasing the global EV market growth. For instance, in 2021, more than US$ 21.5 billion investment in the United States was announced for building the public charging infrastructure, and more than 800,000 new charging ports are expected to be deployed by 2030. United States President invested in building charging infrastructure with goals to combat the climate crisis, by building more than 500,000 electric vehicle chargers in North America’s highways and communities. The government’s path for net-zero carbon emissions by 2050 is creating ample opportunity for the electric vehicles market growth.
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Electric Vehicle Market Analysis: Competitive Landscape and Key Developments
BMW Group, Volkswagen AG, Group Renault, Daimler AG, General Motor Company, SAIC Motors, BYD Company Ltd., Nissan Motor Corporation, Tesla, and Toyota Motor Corporation are a few of the key companies operating in the global electric vehicle market. The major players are focusing on expanding the EV battery plants by adopting several strategies such as mergers, acquisitions, collaborations and partnerships that allow them to remain competitive.
In September 2023, Paccar Inc., Cummins, Inc., and Daimler Truck Holding AG partnered to invest more than US$ 2 to US$ 3 billion in making EV factories. These three firms contributed around 30% share in their ventures, while EVE Energy holds around 10% as their technology partner.
In July 2023, LG Energy and General Motors Company collaboratively invested US$ 7 billion for building more than 600,000 electric trucks. This facility was built in Michigan to produce electric vehicle batteries.
Increased Investment towards Building Low-Cost Electric Batteries is Projected to Create Lucrative Opportunities for the Electric Vehicle Market:
The increasing investments by the key players to expand the battery production capabilities and develop the batteries with low cost is driving the market growth. In the last four years from 2018 to 2022, the leading players announced the investment of more than US$ 400 billion around the globe, which is increasing rapidly. The leading battery manufacturers continuously develop batteries with high charging capacity and charge in less time. Lithium-ion batteries are most commonly used in the manufacturing of electric vehicles. These batteries have a high power-to-weight ratio, the highest energy efficiency, high-temperature resistance capacities, and low self-discharging capabilities. Also, the components of the lithium-ion batteries are being recycled and reused for further manufacturing of these batteries. The U.S. Department of Energy supports building this Battery Recycling plant and announces prizes for developing and demonstrating profitable recycling solutions. Most of the all-electric vehicles use lithium-ion batteries to deliver higher performance of the electric vehicles. Furthermore, the rising global shift towards electric mobility, driven by rising demand for improved air quality, combat climate action, and de-carbonization of automotive sectors, drives the market growth.
Electric vehicles help to combat climate change and create sustainable development by making clean transportation. In developing countries such as Mexico, India, and Brazil, the demand for electric vehicles is increasing rapidly due to rising investment in e-mobility. India’s automotive sector accounted for around 7-8% of the country’s annual GDP. Consumers' preference for electric vehicles further accelerated this electric vehicle sale. In 2020, more than 0.5 million electric vehicles were sold in India, according to the India Brand Equity Foundation. Several parameters, such as high upfront costs and increasing investment in the public charging infrastructure, are expected to drive India's market growth.
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Electric Vehicle Market: Segmental Overview
The market is segmented into passenger cars and commercial vehicles based on vehicle type. The passenger cars segment held the largest market share in 2022, whereas the commercial vehicles segment is anticipated to grow with the highest CAGR during the forecast period. Based on component, the electric vehicle market is bifurcated into battery pack & high voltage components, motor, brake, wheel & suspension, body & chassis, low voltage electric, and others. The battery pack & high voltage components segment held the largest share of the global electric vehicle market in 2022 and is expected to grow with the highest CAGR during the forecast period. Based on propulsion type, the market is bifurcated into battery and hybrid electric vehicles. The battery electric vehicle segment held the largest share of the market in 2022 and is expected to grow with the highest CAGR during the forecast period. Based on the drive type, the market is bifurcated into all-wheel, front, and rear-wheel drive. Among these, front-wheel drive is expected to hold the largest share in 2022. This is due to the rising launch of new electric vehicle models with front-wheel drives.
Go through further research published by The Insight Partners:
Off-Highway Electric Vehicle Market - Global Analysis and Forecast to 2030
Electric Vehicle Charging Stations Market - Global Analysis and Forecast to 2030
Low Speed Electric Vehicle Market - Global Analysis and Forecast to 2030
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