Zero Emission Vehicle Market Size - By Vehicle Class (Passenger Cars, Commercial Vehicles, Two-Wheeler), By Drive (Front Wheel, Rear Wheel, All-Wheel), By Top Speed (Less than 100 Mph, 100 to 125 Mph, more than 125 Mph), By Vehicle Type & Forecast, 2024 -

Zero Emission Vehicle Market Size - By Vehicle Class (Passenger Cars, Commercial Vehicles, Two-Wheeler), By Drive (Front Wheel, Rear Wheel, All-Wheel), By Top Speed (Less than 100 Mph, 100 to 125 Mph, more than 125 Mph), By Vehicle Type & Forecast, 2024 - 2032

Global Zero Emission Vehicle Market will observe a CAGR of over 15% from 2024 to 2032, driven by the collaborative efforts of companies dedicated to providing sustainable transportation solutions. Collaborative efforts between automakers, technology companies, and component suppliers drive innovation and expand ZEV options. For instance, in December 2023, following the historic announcement of India’s e-truck requirements at the G-20, more than 30 leading companies collaborated on the Zero Emission Vehicles in Emerging Markets (ZEV-EMI) by the World Trade Council for Continuous Growth.

Companies are investing in research and development to advance battery technology, leading to an increased number of cars and improved the rental car market. In addition, partnerships for joint ventures, intersectoral collaboration, and standardization partnerships for ZEVs are accelerating global adoption. These joint efforts are built on a shared commitment to climate change mitigation and dependency reduction, focusing on fossil fuels to feed the growing market for zero-emission vehicles.

Overall Zero Emission Vehicle industry size is classified based on vehicle class, drive, top speed, vehicle type, and region.

The two wheeler segment will witness an appreciable growth from 2024 to 2032. As concerns about environmental sustainability and air quality grow, consumers are increasingly turning to electric motorcycles and scooters as transportation options. These bikes offer zero-emissions usage, reduced noise pollution, and have lower operating costs compared to conventional gasoline vehicles. Improvements in technology and expansion of charging infrastructure make ZEVs and two-wheelers more attractive. Consequently, manufacturers are increasing productivity and introducing new electric models to meet the growing demand for eco-friendly modes of transport in vehicles.

The zero emission vehicle market share from the fuel cell electric vehicles segment will register a commendable CAGR from 2024 to 2032. Unlike battery-powered vehicles, FCEVs generate electricity through a chemical reaction between hydrogen and oxygen, producing only steam as a by-product. This clean-energy technology allows longer driving ranges and faster refueling than battery-powered counterparts. Thanks to advances in hydrogen infrastructure and government support for hydrogen fueling stations, FCEVs are gaining popularity worldwide. Their zero-emission operations and ability to adjust long-distance travel make them key players in achieving sustainability goals and reducing greenhouse gas emissions.

Europe zero emission vehicle market will exhibit a notable CAGR from 2024 to 2032. Federal regulations encourage the use of ZEVs and investments in electric vehicle systems and charging cables. In addition, consumer awareness of environmental issues and the availability of government incentives are further driving ZEV sales. With the rise of electric vehicles from automakers and increasing public support for sustainable mobility, Europe is emerging as an important market for ZEVs, shaping the future of mobility transportation with cleaner and more efficient solutions.