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  • 9 September 2019 20:10

Electric Vehicle Market Set to be Fastest-Growing

Electric vehicle market is expected to grow at CAGR 25.6% during the forecast period, 2019-2026 and will reach over USD 567.2 billion by 2026.

Heavy investments from automakers in EVs and encouraging government policies and subsidies are significant factors for the growth of the electric vehicle market globally. Increased emphasis on reduction in carbon emissions is expected to boost the market. However, lack of availability of charging stations and initial high costs can create a hurdle for its growth.

The present age is considered as the age of electromobility. Growing emission levels and stringent government regulations have compelled automakers to develop cost-efficient and environment-friendly modes of transport. Increasing the volume of toxic gases emitted by vehicles has created an alarming situation and made it imperative for various governments to take preventive steps to reduce pollution. Thus, the governments of various countries have taken stringent measures to increase the adoption of electric vehicles. Electric vehicles produce zero or very low emission of local air pollutants. In addition, battery electric vehicles produce lower noise due to the absence of IC engine.

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The adoption rate of electric vehicles is increasing, and many countries across the globe are investing heavily in research and development. Countries such as Canada, France, India, Netherlands, and France have introduced various campaigns to boost the adoption of electric vehicles. In 2017, the Clean Energy Ministerial launched EV30@30, which is an ambitious plan to reach 30% sales share for electric vehicles by 2030. In May 2018, the French Government partnered with the country's automotive sector to achieve this target.

In addition, France continues to support the installation of charging points available to the public. Canada outlined a vision for future EV uptake accompanied by ambitious policies in some provinces, such as the zero-emissions vehicles (ZEVs) mandate in Quebec. British Columbia announced legislation for the most stringent ZEV mandate worldwide: 30% ZEV sales by 2030 and 100% by 2040.

Leading private automakers such as Tesla, Volkswagen, Nissan, Toyota, and Honda have gradually shifted focus toward electric vehicles. For instance, leading German vehicle manufacturer Volkswagen announced its plan to launch 70 new electric models by 2028 instead of the 50 planned previously. The reducing price of the battery has significantly lowered the cost of an electric vehicle, which in turn allows it to target a larger customer base. Hence, the popularity of EVs has grown in the recent past.

The Electric Vehicles Initiative (EVI), which is a multi-government policy forum to accelerate the introduction and adoption of electric vehicles worldwide, has set a target of reaching an electric car fleet of 20 million by 2020 globally. The Paris Declaration on Electro-Mobility and Climate Change has also set a similar global deployment target of 100 million electric cars by 2030. In 2018, the global electric vehicle sales, which include BEVs, PHEVs, and FCEVs, reached near 2 million units, with a final figure of 1,934,225 units.

The increasing popularity of electric vehicles is driven by increased EV range, decreasing battery price, and an increased number of EV models. Leading EV manufacturer Tesla plans to expand the sales globally. In July 2018, Tesla announced a deal with Chinese authorities to build a new auto plant in Shanghai, China. Tesla plans to produce affordable versions of the Model 3 sedan and the Model Y SUV in the Shanghai-based facility, which will allow the company to offer these vehicles in the Chinese market without bearing import costs.

Some of the major players in the global Electric Vehicle market are, Tesla, BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.P.A., BYD Company Motors, and Ford Motor Company..

Segmentation:

Global Electric Vehicle Charging Stations market is segmented into Type, Application, and region.

Based on Type, the global electric vehicle market is segmented into battery electric vehicle, hybrid electric vehicle, and plug-in hybrid electric vehicle. Hybrid electric vehicle is the largest segment for electric vehicle by type which is most likely to be the largest one of by the end of forecast period. One of the major advantages associated with hybrid electric vehicle is combining conventional internal combustion engine system with an electric propulsion system. Moreover, the presence of electric power train is directed to achieve better fuel efficiency than a conventional vehicle. This has led hybrid vehicle to attain highest market share over other segments, on the spit side, battery electric vehicle segment expected to progress in terms of market share and exhibit largest market share by the end of assessment period. Based on application, the global Electric Vehicle market is segregated into two-wheeler, passenger cars, and commercial cars. Passenger car segment emerged as the global leader in electric vehicle market due to growing in adoption of electric passenger cars as compared to two wheelers and commercial vehicles. Over the next five years, commercial vehicle expected to grow at highest CAGR benefits associate with electric motor engines as compared internal combustion one.

Geographically, the Electric Vehicle market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).

North America dominates the global Electric Vehicle market owing to the adoption of the advanced technology, presence of major players and high spending power of the people. U.S. holds the major share in the global market. High spending power, innovative technology and presence of the major players will support the growth of the market. Europe holds the second leading position in the market followed by Asia Pacific. Germany, France and U.K. are the major shareholders in the market. Asia Pacific is expected to have a huge opportunity in the market. Presence of the developing economy, rapid development in the technology, development in the infrastructure and increasing spending power of the people have driven the growth of the electric vehicle market.

LAMEA holds the least share in the market. Middle East holds the major share in the market whereas, African region holds the developing market.

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