The global electric vehicles market is expected to reach US$ 1,323.0 Bn by 2027, with a growing CAGR of 34.1% during the forecast period (2021-2027). As per the report by IEA, the global sales of electric cars was around 3 million units in 2020 with Europe market at a leading position in terms of number of vehicles sold.
Gasoline is a petroleum derivative which is not a renewable source of energy and is anticipated to induce exhaustion in the future. To support sustainable development, it is important to develop and use alternative sources of fuel. This led to evolution and utilization of electrical vehicles, which do not use gas and are more economical than conventional vehicles. Moreover, the demand for a fuel-efficient vehicle has increased recently due to the increase in the price of petrol and diesel. This is due to depleting fuel reserves and therefore the growth within the tendency of companies to realize maximum take advantage of these oil reserves. Thus, these factors produce the necessity for advanced fuel-efficient technologies, resulting in a surging demand for electrically powered vehicles for travel.
Battery electric vehicles incorporate autonomous delivery vehicles, industrial vehicles, and public transport vehicles. However, the expense and reach impediments related to EV batteries are a significant limiting element for the progress to electric portability. Its capacity determines the value of an electric vehicle battery in kilowatt-hours (kWh), which dictates its range and therefore the power level of the motor that it supplies. Technological advancements have brought down the value of EVs. EV battery manufacturers are focusing on providing high-capacity batteries and reducing battery prices to make sure the overall cost of a vehicle falls under the subsidized range. Government regulations to terminate fossil fuel-powered vehicles, increasing concerns raised over conventional vehicles' environmental impact, improvement in battery capacity, and supporting government policies and regulations are promoting the market growth..
The rising government initiatives across the globe will support the growth of the market to a great extent. Moreover, high spending for the charging infrastructure and increasing subsidies by the regulatory authority will create the lucrative opportunity for the expansion of the electric vehicles market. For instance, In October 2020, the Canadian government announced the Infrastructure Growth Plan and pledged US$ 1.2 billion to procure 5,000 zero-emission public buses, with an additional US$ 2.2 billion over the next five years to electrify transit and school buses across the country.
In terms of region, Europe accounted for the largest market share in 2020 however, Asia Pacific is expected to dominate the market in terms of revenue by 2027. Asia Pacific is led by the countries such as China, Japan, and South Korea. China is the largest producer and has dominance in the EV industry. The supportive regulatory authority for zero emission vehicles and large support to install the charging station is one of the key contributors for the growth of the electric vehicles market in the region.
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