Electric Vehicles Market Assessment, By Component [Battery, Electric Motor, Controller, Power Inverter, Others], By Vehicle [Passenger Vehicles, Commercial Vehicles], By Charging Type [Trickle Charge, AC Charge, DC Charge], By Propulsion [Battery Electric

Electric Vehicles Market Assessment, By Component [Battery, Electric Motor, Controller, Power Inverter, Others], By Vehicle [Passenger Vehicles, Commercial Vehicles], By Charging Type [Trickle Charge, AC Charge, DC Charge], By Propulsion [Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles, Fuel Cell Electric Vehicles], By Region, Opportunities and Forecast, 2017-2031F

Global electric vehicles market is estimated to observe a CAGR of 19.84% during the forecast period 2024-2031, increasing from USD 765.77 billion in 2023 to USD 3257.73 billion in 2031. The market has experienced growth in present years and is projected to maintain a rapid expansion shortly owing to a substantial advancement in electric vehicle technology, supportive government policies and regulations, growing environmental consciousness, and an increase in the per capita income of the middle-class population. The government plans to fund battery manufacturing facilities in emerging countries and different research and development activities. For instance, in November 2023, India prepared to welcome bids for a USD 960 million incentive program for domestic production of electric vehicle batteries. This initiative efficiently aims to offer incentives to companies for five years for the sale of EV batteries produced domestically.

Rising awareness about climate change and air pollution are expected to foster the global electric vehicle market demand. This rapid global push has fostered the EV market into an expansion phase, with investments and advancements raising the adoption rate of electric vehicles globally. In addition, companies in the global electric vehicles market are investing in launching new and advanced electric vehicles to address the rising need for electric vehicles and contribute to zero-carbon emissions. Key participants in the market also plan to collaborate to create innovative solutions for high-voltage batteries and expand their product portfolio.

For instance, in April 2024, BMW AG and Rimac Technology d.o.o. announced a long-term partnership to co-produce and co-develop innovative solutions and introduce advanced solutions for high-voltage battery technology for special battery-electric vehicles.

Rapid Investment in Electric Vehicles Drives Global Electric Vehicle Market Demand

Companies in the global electric vehicles market are investing significantly in electric vehicles due to growing demand for electric vehicles, rising awareness concerning sustainable environment, and favorable government policies and regulations. Governments in emerging and developed countries are offering different subsidies and incentives, compelling companies to increase their investment in the manufacturing of electric vehicles. For instance, in June 2024, the U.S. Department of the Treasury and Internal Revenue Service (IRS) announced that since January 1, 2024, customers have saved over USD 1 billion on the purchase of more than 150,000 clean vehicles. This accomplishment marks a considerable achievement in the Biden-Harris Administration’s efforts to decrease transportation costs for Americans. In addition, key participants in global electric vehicles market are planning to invest in launching new electric vehicles with advanced features to address the growing demand for electric vehicles and expand their product portfolio.

For instance, in March 2022, Ford Motor Company plans to surge its global investment in electric vehicles to USD 50 billion, placing it fourth among vehicle automakers globally and first in the United States. The company also announced plans to introduce EVs in Missouri, Tennessee, Kentucky, and Michigan, coupled with Cologne, Germany.

Advancement in Electric Vehicle Battery Propels Market Growth

Companies in the global market are improving the durability and performance of battery technology significantly, fostering the electric vehicle range across the globe considerably. In the global market, there are a variety of EV batteries accessible, including lithium-ion batteries, solid-state batteries, and others. The demand for battery electric vehicles is rising owing to advancements in batteries, surging the driving range and improving the safety of passengers and drivers. In addition, due to a shortage of charging stations, the demand for batteries is rising, which further fosters the demand for battery electric vehicles. Furthermore, companies in the global market are advancing EV batteries to increase the effectiveness of batteries and electric vehicles.

For instance, in April 2024, BYD Company Ltd. announced the launch of its second-generation blade battery technology featuring a 1,000 km range at lower costs to hit the market.

Government Regulations and Policies Push Market Growth

Governments in emerging countries are spreading awareness concerning zero carbon emissions, which is propelling the global electric vehicles market. Governments globally are offering subsidies and incentives to encourage the production and demand for electric vehicles. International as well as national organizations are striving to encourage the development, production, design, and adoption of electrified vehicles. Governments are compelling companies to produce electric vehicles and invest in establishing manufacturing facilities for producing electric vehicle components. Furthermore, a growing number of initiatives taken by legal authorities of different countries, including subsidies and grants, rebates, taxes, and other non-financial benefits in car purchases, are projected to drive the adoption of electric vehicles in the forecast period.

For instance, the Government of India (GOI) announced the launch of a new initiative to encourage electric vehicles, effective from 1st April 2024. This scheme, overseen by the Ministry of Heavy Industries, replaces the FAME scheme, which terminated on March 31, 2024.

Passenger Vehicle Holds the Largest Market Share

Passenger vehicle is estimated to register the largest market share in the global market due to a significant increase in disposable income of middle-class individuals, growing awareness regarding carbon emissions, rising investment in charging infrastructure, and rapid advancement in electric vehicle batteries. In addition, an increase in supportive government policies and incentives, constant innovations in EV battery technology, and integration of fast-charging capabilities in electric vehicles are fostering the global electric passenger vehicles market growth. Furthermore, automakers are investing in different research and development activities to establish manufacturing facilities for passenger vehicles and reduce the prices of EV batteries. Key participants in the global market are planning to launch new electric vehicles to address the increasing requirement for passenger vehicles.

For instance, in April 2024, Hyundai Motor Company announced the launch of five new electric vehicles by 2030 in India to facilitate the adoption of EVs in the country.

Asia-Pacific Dominates with the Largest Market Size

Asia-Pacific registers the largest market size in the global market due to an increase in the number of EV charging stations, the presence of two highly populated countries, and various automotive giants. In Asia-Pacific, China is projected to have the largest market share in terms of passenger vehicles owing to the increasing requirement for passenger cars in emerging countries and growing initiatives by the government to promote the adoption of electric vehicles. In addition, governments of emerging countries are offering subsidies and incentives for the purchase and sale of electric vehicles, driving the Asia-Pacific electric vehicle market growth. Furthermore, companies in Asia-Pacific are launching new electric vehicles to expand their product portfolio and are planning to open electric vehicle plants across different countries of the region.

For instance, in July 2024, BYD Company Ltd. announced the opening of an electric vehicle plant in Thailand to expand its footprint in the fast-growing regional EV market.

Future Market Scenario (2024-2031F)

Rising momentum across the globe has driven the electric vehicle market growth into a transformative phase, with significant advancements and funding propelling the rate of EV adoption globally.

Innovations in the performance of EV batteries are raising the demand for electric vehicles across the globe in the forecast period.

Emerging countries are actively investing in EV charging infrastructure and advancement of EVs, coupled with R&D for efficient and faster charging methods, lower-cost batteries, and longer-range batteries, propelling global EVs market demand.

Robust support from legal authorities for vehicle electrification and the decline in battery prices by governments across the globe are estimated to keep the market growth rising in the forecast period.

Key Players Landscape and Outlook

Companies in the global electric vehicles market are efficiently investing in different research and development activities to enhance the performance of electric vehicles and contribute to zero carbon emissions. Key participants in the global market are efficiently planning to improve their manufacturing processes by integrating different advanced technologies that improve battery performance and ensure sustainability. In addition, companies are adopting different strategies, including partnerships, collaborations, joint mergers, amalgamations, and others, to expand their product portfolio and footprint.

In May 2024, Stellantis N.V. announced the collaboration with Zhejiang Leapmotor Technology Co., Ltd to launch its first set of cars in the United Kingdom in March 2025.

In November 2023, Nissan Motor Co., LTD announced an investment of USD 1.27 billion to build electric models of two best-selling cars in Sunderland, Northeastern England.