Electric Vehicles (EVs) Market Forecasts to 2030 – Global Analysis By Vehicle Type (Passenger Vehicles, Plug-in Hybrid Electric Vehicle (PHEV), Commercial Vehicles and Battery Electric Vehicle (BEV)), Motor Type (Direct Current (DC) Motor and Alternating

Electric Vehicles (EVs) Market Forecasts to 2030 – Global Analysis By Vehicle Type (Passenger Vehicles, Plug-in Hybrid Electric Vehicle (PHEV), Commercial Vehicles and Battery Electric Vehicle (BEV)), Motor Type (Direct Current (DC) Motor and Alternating Current (AC) Motor), Drive Type (Rear Wheel Drive and Front Wheel Drive), Application and By Geography

According to Stratistics MRC, the Global Electric Vehicles (EVs) Market is accounted for $511.13 billion in 2024 and is expected to reach $2,667.13 billion by 2030 growing at a CAGR of 31.7% during the forecast period. Electric Vehicles (EVs) are automobiles powered primarily by electricity stored in rechargeable batteries. Unlike conventional internal combustion engine vehicles that rely on fossil fuels, EVs use electric motors for propulsion, converting electrical energy into mechanical energy. EVs typically have lower operating costs than their gasoline counterparts due to the efficiency of electric motors and the relatively stable prices of electricity compared to fluctuating fossil fuel prices.

According to VAHAN, the electric two-wheeler market has seen a significant sales increase of 34.42% in the third quarter of Fiscal Year 2024 (Q3 FY 24) compared to the preceding quarter (Q2 FY 24), indicating a strong growth in the EV sector.

Market Dynamics:

Driver:

Infrastructure development

Infrastructure development plays a crucial role in enhancing the adoption and usability of Electric Vehicles (EVs). The expansion of charging stations, both in number and technology, addresses one of the primary concerns of EV drivers: range anxiety. Improved infrastructure includes fast-charging stations strategically placed along highways and in urban areas, enabling EV owners to charge their vehicles quickly and conveniently during long journeys or daily commutes. Moreover, advancements in charging technology, such as ultra-fast chargers and wireless charging options, further streamline the charging process, making it more accessible and efficient.

Restraint:

Lack of model variety

The lack of model variety in Electric Vehicles (EVs) presents a significant hindrance to their widespread adoption. Unlike the traditional automotive market, where consumers can choose from a wide array of models that cater to diverse preferences and needs, the EV market often offers a limited selection. This limitation stems from several factors, including the relatively recent surge in EV popularity, which has yet to fully encourage manufacturers to diversify their offerings. As a result, potential EV buyers may find their options limited in terms of vehicle type, range, performance, and price point, inhibiting their ability to find an EV that fits their specific requirements and preferences.

Opportunity:

Growing concerns about air quality

Growing concerns about air quality have spurred increased interest in Electric Vehicles (EVs) as a sustainable alternative to traditional combustion engine vehicles. EVs produce zero tailpipe emissions, thereby significantly reducing air pollution in urban areas where poor air quality poses health risks. This shift is particularly crucial in combating climate change and meeting global environmental goals, as transportation is a major contributor to greenhouse gas emissions. Governments worldwide are incentivizing the adoption of EVs through subsidies, tax breaks, and infrastructure investments such as charging stations.

Threat:

Battery Cost and range anxiety

The adoption of Electric Vehicles (EVs) is impeded by two primary concerns: battery cost and range anxiety. Battery packs constitute a significant portion of an EV's total cost, making these vehicles more expensive upfront compared to traditional internal combustion engine cars. Despite advancements in battery technology, reducing manufacturing costs remains a challenge, limiting affordability for many consumers. However, range anxiety the fear of running out of battery power before reaching a charging station persists among potential buyers. While the average EV range has increased, the infrastructure for charging stations still lags behind that of gasoline stations in terms of availability and convenience.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the electric vehicles (EVs) market. Initially, the global lockdowns disrupted manufacturing supply chains, causing delays in EV production and delivery schedules. Reduced consumer spending and economic uncertainty also dampened demand for high-cost items like EVs, leading to decreased sales volumes. Fluctuations in oil prices due to reduced travel and economic slowdown affected the comparative attractiveness of electric vehicles versus traditional internal combustion engine vehicles. The pandemic underscored the environmental benefits of EVs, prompting governments to incentivize their adoption as part of economic recovery plans and climate change mitigation strategies.

The Passenger Vehicles segment is expected to be the largest during the forecast period

Passenger Vehicles segment is expected to be the largest during the forecast period. Increasing environmental consciousness and stringent emission regulations are compelling automakers to invest heavily in electric mobility solutions. Consumers are also increasingly inclined towards EVs due to their lower operational costs and the availability of government incentives promoting sustainable transportation. Technological advancements have improved EV performance, range, and charging infrastructure, reducing barriers to adoption.

The Rear Wheel Drive segment is expected to have the highest CAGR during the forecast period

Rear Wheel Drive segment is expected to have the highest CAGR during the forecast period. RWD layouts in EVs can enhance performance by optimizing weight distribution, improving traction control, and maximizing power delivery efficiency from the electric motor to the wheels. This configuration often results in better handling dynamics, especially in terms of stability and cornering, which are critical for enhancing driving pleasure and safety in EVs. Additionally, rear wheel drive EVs typically offer a more engaging driving experience compared to front-wheel-drive counterparts, appealing to enthusiasts and those seeking a sportier feel from their electric vehicles.

Region with largest share:

Asia Pacific region commanded the largest share of the market over the projected period. Major companies are investing heavily in EV infrastructure, manufacturing, and innovation across Asia Pacific, aiming to accelerate the adoption of electric mobility. These commitments often involve partnerships with local governments and businesses to build charging networks, promote renewable energy integration and develop efficient battery technologies across the region. Corporations not only contribute to reducing carbon emissions but also stimulate economic growth through job creation and technology transfer throughout the region.

Region with highest CAGR:

Europe region is poised to hold profitable growth during the extrapolated period. As disposable incomes grow, consumers are increasingly willing to invest in sustainable transportation options that offer long-term cost savings and environmental benefits across the region. European cities are promoting cleaner air initiatives, incentivizing the shift towards EVs as a means to reduce pollution and combat climate change. This convergence of economic capacity, urban development, supportive policies, and environmental consciousness is fostering a robust market for electric vehicles in Europe, positioning the region as a leader in sustainable mobility solutions.

Key players in the market

Some of the key players in Electric Vehicles (EVs) market include Ampere Vehicle Private Limited, BMW AG, Chevrolet Motor Company, Hero Electric Vehicles Pvt. Ltd, Hyundai Motor India Limited, JBM Auto Limited, Mahindra & Mahindra Limited, MG Motor India Private Limited, Ola Electric Mobility Pvt. Ltd and Tata Motors Limited.

Key Developments:

In March 2023, Moscow signed a contract with KAMAZ for 1,000 electric buses. There are also plans to purchase another 200 electric buses from GAZ Group. Moscow currently runs 1,055 electric buses on 79 routes. Moscow plans to install nearly 200 ultra-fast charging stations for the electric buses, open a second electric bus park in the Mitino district northwest of Moscow, and launch 29 more electric bus routes.

In February 2023, BYD has added two new dealer corporations to its network in the Europe region. Motor Distributors Ltd (MDL) is active in Ireland and will offer BYD models at select locations including Dublin and Cork. RSA is a dealer with whom BYD already works in Norway, and it will offer EVs of Chinese-make in Finland and Iceland. BYD initially launched three EV models in select European countries at the end of 2022. Two more series could follow in 2023.

In October 2022, Daimler Truck AG signed a strategic partnership agreement with Gehring Technologies GmbH to focus on building expertise in process development and prototype construction of commercial vehicle-specific electric motors. The partnership covers the prototypical construction of so-called ""truck-e-fied"" e-motors and further developing and testing innovative production processes.

Vehicle Types Covered:
• Passenger Vehicles
• Plug-in Hybrid Electric Vehicle (PHEV)
• Commercial Vehicles
• Battery Electric Vehicle (BEV)

Motor Types Covered:
• Direct Current (DC) Motor
• Alternating Current (AC) Motor

Drive Types Covered:
• Rear Wheel Drive
• Front Wheel Drive

Applications Covered:
• Powersports Applications
• Last-mile Delivery Vehicles
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements