Electric Vehicles Market By Type (Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV)), By Vehicle Class (Mid-Priced, Luxury), By Vehicle Type (Two-wheelers, Passenger Cars, Commercial Vehicles), and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2021 to 2027

Electric Vehicles Market Overview:

The global electric vehicles market is expected to reach USD $ 1,323.0 Bn by 2027, with a growing CAGR of 34.1% during the forecast period (2021-2027).

Energy sources are the backbone of a country’s economy. The conventional source of energy such as coal, crude oil etc are depleting very fasts and users cannot rely on these sources to meet the future demand. Therefore, there is an immense demand to find new sources of energy as a fuel for transportation and with the advent of technology to keep up with the pace of ever-increasing demand for fuel.

Electric Vehicles Market

An electric vehicle (EV) operates on electricity stored in a rechargeable battery, rather than on an ICE (Internal Combustion Engine) which generates power by burning fuels. The different types of batteries used in the vehicles include lithium-ion, molten salt, zinc-air, and various nickel-based designs. Electric vehicles are primarily designed to replace conventional transportation vehicles to avoid emission of harmful gases into the surrounding environment. Therefore, the electric vehicle is seen as a possible replacement for current-generation automobiles.

The supportive government initiatives are expected to drive the market growth to a great extent. For instance, the National Electric Mobility Mission Plan (NEMMP) introduced by Indian Government published in 2020 is a National Mission document that offers the vision and roadmap for the faster adoption of electric vehicles as well as their manufacturing. Under this plan the government has endorsed Phase-II of the FAME Scheme with an expense of US$ 1.3 bn for a time of 3 years beginning from first April 2019. Out of complete budgetary help, around 86% of the asset has been allotted for demand incentive in order to drive interest for EVs. This stage intends to create demand for electric vehicles by supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (counting Strong Hybrid), and 10 lakh e-2 Wheelers.

In addition, the decreasing price of the batteries coupled with technological advancements such as emergence of SSB (Solid-state batteries) could lead to EV with significantly longer ranges and which support faster charging. For instance, In Jan 2021, StoreDot, the pioneer of extreme fast charging (XFC) battery technology announced the availability of its first-generation 5-minute charge battery engineering samples. Therefore, this development will accelerate the growth of the market over the forecast period. Battery electric vehicles significantly incorporate autonomous delivery vehicles, industrial vehicles, and public transport vehicles.

However, the cost and range limitations related to EV batteries are a significant restraining factor for the entire transition to electric mobility. 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 Global Electric Vehicles Industry Segmentation:

By Type

  • Battery Electric Vehicles (BEV)
  • Hybrid Electric Vehicles (HEV)
  • Plug-in Hybrid Electric Vehicles (PHEV)

By Vehicle Class

  • Mid-Priced
  • Luxury

By Vehicle Type

  • Two-wheelers
  • Passenger Cars
  • Commercial Vehicles

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

The key players operating in the Electric Vehicles Market 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
  • Ford Motor Company
  • BMW
  • Cadillac
  • Chevrolet
  • Fiat
  • Honda
  • Kia
  • Mercedes-Benz

Based on type, the battery electric vehicles (BEV) segment is expanding at a growth rate of 35.2% during the period 2020-2027.

The battery-electric vehicles segment is projected to grow at a substantial growth rate during the forecast period. This growth is attributable to increased battery efficiency and decreased cost of the battery. For instance, according to a report published by the International Energy Agency (IEA) in2020, the sales of weighted battery pack costs in 2019 were around USD 156 each kilowatt-hour, down from more than USD 1,100/kWh in 2010.

Based on the vehicle type, the commercial vehicle segment is projected to be the most lucrative segment in the electric vehicles market.

The commercial vehicle segment is projected to grow at the highest CAGR during the forecast period. The growth in this segment is attributed to the increase in the fuel prices for conventional commercial vehicles, stringent regulations by governments, and rising demand for commercial vehicles such as buses and trucks for better connectivity. Moreover, increasing disposable income as well penetration of the e-commerce industry in the developing economy are the major factors to fuel the growth of these segments. For instance, In September 2019, Amazon an e-commerce company ordered 100,000 BEV light-commercial vehicles from start-up company Rivian. Amazon aims to be net-zero emissions by 2040.

Based on regions, the Asia-Pacific region is projected to hold the largest market by 2027.

The Asia-Pacific Electric Vehicles market is led by countries such as China, Japan, and South Korea. China is the world’s largest producer of Electric Vehicles and relevant technologies. The supportive initiatives by government including subsidies for buyers, support to install the charging station, and regulations against excessive polluting vehicles have boosted the sales of EVs in China. According to the report published by the International Energy Agency (IEA) in 2021, China led the global Electric Vehicles market with a reported fleet of 4.5 million EVs, followed by Europe for which the annual fleet for EV was noted to be around 3.2 million units.

Europe Electric Vehicles market size is anticipated to grow at a significant rate and have the second largest market share of Electric Vehicles. The growth in the region is attributed to European Union’s CO2 emission standards and subsidy schemes offered by the governments. For instance, the federal government has supported the adoption of Electric Vehicles with a financial subsidy of up to €3,000, as well as an exemption from the annual circulation tax for BEVs and fuel cell vehicles, and tax benefits for electric company cars. As a response to COVID-19, the government extended the bonus through 2025, with the bonus doubled until the end of 2021. In Europe, BEV registrations accounted for 54% of electric car registrations in 2020 and while the number of registrations for plug-in hybrid vehicles are anticipated to witness increase in coming years.

Leading Players of Electric Vehicles Market:

The major players operating in the global electric vehicles market are Tesla, BMW Group, Nissan Motor Corporation, TOYOTA MOTOR CORPORATION, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.p.A., BYD Motors Inc., and Ford Motor Company among others.

The report also provides an in-depth analysis of electric vehicles market dynamics such as drivers, restraints opportunities and challenges


  • Growing demand for fuel-efficient, high performance, and low-emission vehicles
  • Increasing technological advancements
  • Reducing the cost of batteries


  • High manufacturing cost
  • Lack of infrastructure


  • Demand for energy-efficient vehicles

COVID-19 Impact on the Electric Vehicles Market Analysis

The pandemic has negatively affected a few sectors, including the automobile, with significant producers closing their plants totally or working at decreased limits following the orders given by their respective governments. For instance, according to the Society of Indian Automobile Manufacturers, the COVID-19 wave has impacted the sales of vehicles in the month of April 2021. Sales of Passenger vehicles fell by about (-) 10.07 %, compared to March 2021, due to various restrictions in States which have been experiencing surge in COVID-19 cases. Sales of Two-Wheelers have also plummeted by (-) 33.52 %, while Three-Wheelers witnessed de-growth of (-) 57.01 %, from March 2021 to April 2021. Vulnerability concerning the length of the lockdown and inventory network interruptions made it harder for players to expect the business' recuperation. This emergency caused underlying movements that had critical ramifications available.

In 2019, the worldwide sales of electric vehicles had crossed 2 million. Nonetheless, the COVID-19 emergency prompted upset stockpile chains, restricted tasks, and labour force, and industrial facility terminations. This caused an extreme decrease in vehicle deals, particularly in the portion of the electric vehicle. Be that as it may, the electric vehicles market is required to recuperate rapidly because of China's solid development.

The Electric Vehicles market analysis report covers impact of COVID19 on the demand and supply of Electric Vehicles in detail along with the growth opportunities and revival period.

The report also provides an in-depth analysis of key trends in the electric vehicles market:

  • The increase in the efficiency and reducing cost of the batteries support the electric vehicles. 
  • The investment in the public charging infrastructure.
  • The public and private sector show their intent for the faster adoption of electric vehicles across the globe. For example, The Climate Group’s EV100 Initiative brings together over 100 companies in 80 markets committed to making electric transport the new normal by 2030. This equates to 4.8 million vehicles switched to EVs and chargers installed in 6 500 locations by 2030.

The report also provides an in-depth analysis of recent news developments and investments:

  • In March 2021, Volvo showcased its new C40 Recharge model. The vehicle was designed as a pure electric car and had most features similar to its XC60 model.
  • In April 2021, BYD launched four new electric vehicle models equipped with Blade batteries in Chongqing. The new vehicle models, Tang EV, Qin Plus EV, Song Plus EV and E2 2021 come with advanced battery safety features.

The unique insights provided by this Electric Vehicles Market report also includes the following:

  • In-depth value chain analysis
  • Opportunity mapping
  • Sector snapshot
  • Key Players Positioning Matrix
  • Regulatory scenario
  • Strategies Adopted-Benchmarking Heat Map
  • Market trends
  • Covid-19 impact analysis
  • Product comparison
  • Pre & Post COVID 19 Impact on Electric Vehicles Market
  • Competitive Landscape

Frequently Asked Questions (FAQs)

Yes, the global Electric Vehicles market report provides in-depth analysis for the period 2021-2027.

The North America Electric Vehicles market accounted for around 20% of the total market share in 2021 and is projected to grow at a substantial growth rate during the forecast period.

The global Electric Vehicles market is anticipated to reach US$ 1,323.0 Billion by 2027.

The Electric Vehicles market is estimated to grow at a compound annual growth rate (CAGR) of 34.1% during 2020-2027

In the base year 2020, Europe accounted for 46% share in the electric vehicles market.

A few key players include, but not limited to 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.

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Table of Contents Electric Vehicles Market

Market Introduction

  • Definition
  • Scope Of The Study
  • List Of Assumptions
  • Market Structure
  • Scope of the Study: Segmentation 
  • Timeframe, Currency and Limitations

Research Methodology

  • 3P Research Approach
  • Market Sizing Approach
  • Data Sources
  • Primary Research Coverage

Executive Summary

  • Market Summary
  • Market Snapshot
  • Regional Snapshot
  • Country Snapshot

Premium Insights

  • Key Trend Analysis
  • New revenue Pockets
  • Pain Point Analysis
  • Company Market Share Analysis, by Region
  • Strategies Adopted-Benchmarking Heat Map
  • Regulatory Landscape
  • PESTEL Analysis
  • Regional Lifecycle
  • Competitive Benchmarking

Market Overview & Competitive Landscape

  • Competitive Landscape
  • Investment Scenario by key Players
  • Key Player Overview
  • Product comparison
  • Player Wise Geographic Presence
  • Player Wise Target Customer Segment
  • Recent News
    • Product Launches & upgrades
    • R&D / Innovation
    • Merger & Acquisition
    • JV & Partnership
    • Recognition and others

Market Segmentation (Market Size and Share Analysis)

  • Global Market Size & Historic Growth
  • Market Size by Type
    • Battery Electric Vehicles (BEV)
    • Hybrid Electric Vehicles (HEV)
    • Plug-in Hybrid Electric Vehicles (PHEV)
  • Market Size by Vehicle Class
    • Mid-Priced
    • Luxury
  • Market Size by Vehicle Type
    • Two-wheelers
    • Passenger Cars
    • Commercial Vehicles

Market Dynamics

  • Market Drivers
  • Opportunities
  • Value Chain Analysis
  • Pricing Analysis

COVID – 19 Opportunity Mapping

  • Key Drivers & Anticipated Revival Period
  • Key Trends Analysis
  • Impact on End user Industry
  • Opportunity Analysis

Regional Market Analysis

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • APAC
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Latin America
    • Mexico
    • Brazil
    • Argentina
    • Rest of LATAM
  • Middle East & Africa
    • GCC
    • Rest of MEA

Company Profiles

  • Tesla
    • Company Fundamentals
    • Financial Analysis (Subject to Availability)
    • Product Portfolio
    • SWOT Analysis
  • BMW Group
  • Nissan Motor Corporation
  • Volkswagen AG
  •  General Motors
  • Daimler AG
  • Energica Motor Company S.p.A.
  • BYD Motors Inc.
  • Ford Motor Company

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