Global Electric Vehicle Market Size, Share, Opportunities, And Trends By Type (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV)), By End-User (Public, Private, Commercial), By Charging Point (AC Charging, DC Charging), And By Geography - Forecasts From 2024 To 2029

The global electric vehicle market is anticipated to reach a market size worth US$1,671.126 billion by 2029, growing at a compound annual growth rate of 20.47%. The market is valued at US$453.869 billion in 2022. 

In recent years, the electric vehicle market (EVs) has undergone significant growth and change, fueled by various factors such as increased environmental awareness, advancements in battery technology, and national drives toward emission reduction. Major auto manufacturers are investing heavily in developing and producing electric vehicles to meet the increasing demand of consumers. The reason why they are rolling out a variety of models confirms that compared to traditional internal combustion engine vehicles, EVs are greener and more eco-friendly, thereby helping to mitigate global warming impacts and improve air quality.

In addition, as more charging points are availed coupled with improved battery technology for extended range, there is greater interest by users to use EVs more frequently because they have become cost-effective for them over other fuel-based alternatives and convenient compared to other means of public transport. As a result, future predictions indicate that there will be a dramatic increase within a few decades from now when it comes to the total number of economies around different parts.”

Global Electric Vehicle Market Drivers

• The rising cost of diesel and gasoline pushes consumers towards buying electric vehicles.

One major factor driving the market for electric vehicles is the increasing cost of gasoline. In an effort to reduce their growing fuel expenses, consumers are looking for alternative forms of transportation as the price of gasoline rises. The price of regular motor gasoline rose by 49% between January and June of 2022, while the cost of diesel fuel increased by a slightly greater 55%. Even though fuel prices dropped in June and July of 2022, they are still more than twice as high as they were at the beginning of 2020. EVs are considered an attractive option since they tend to be cheaper and more reliable than gasoline. Additionally, when compared to petrol-run vehicles, environmental concerns prefer them more because of their low emission of CO2 and limited combustion particles related to fog. Therefore, when oil prices go up, people are pushed to turn to electric automobiles for more affordable and environmentally friendly transportation, fueling the EV market's expansion.

• Rising government initiatives

The PLI Scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage was launched to enhance India’s manufacturing facilities on ACC production. Launched seven years back, with a two-year incubation period, it will draw INR 18,100 Crores or $2.1 Billion at INR 85/ Dollar.” Following the gestation period, five-year incentives will be provided based on the sale of domestically manufactured batteries. Currently, three companies have been chosen, collectively possessing a manufacturing capacity of 30 GWh.

The EVI Zero Emission Government Fleet Declaration was unveiled during the Global Clean Energy Action Forum, held in Pittsburgh on September 2022. Governments pledging their support have agreed to significantly decrease carbon and air pollutant emissions originating from cars and, at the same time, facilitate a green transportation sector. They intend to fast-track the incorporation and uptake of zero-emission automobiles in every class of their vehicles. The main aim here is for all light-duty zero-emission vehicles procurement to be made by the whole of the civilian government fleets/captured while at this, they express a desire/aim to be able to realize this within a short time for medium- and heavy-duty vehicles by 2035.

• Strict government regulations on vehicle emissions to boost market growth

There are various stringent automobile emission legislation worldwide aimed at reducing greenhouse gas concentrations in the air. For instance, the European Union set a regulation in 2022 that mandated a 15% reduction in CO2 emissions from light and medium commercial vehicles by 2025.' The Indian Petroleum Ministry requires all automakers to begin producing BS-VI vehicles after April 1, 2020. Reducing the nation's air pollution was the goal of the decision. The strict actions taken by several regulatory agencies to reduce air pollution are anticipated to accelerate the growth of this industry in the upcoming years.

• Increased solar installations are expected to upsurge the market expansion.

The solar panel recycling market is strongly impacted by the growing installation of solar panels in several noteworthy ways. As more solar systems are installed, the quantity of end-of-life photovoltaic (PV) panels nearing the end of their use rises. As more panels become retired, there is an increasing need for effective and environmentally friendly recycling methods to handle their disposal and recover valuable materials.

Additionally, the growing solar industry encourages infrastructure development and innovation in global electric vehicle technology. Recycling facilities and procedures have been established to efficiently and effectively manage the increasing number of panels.

• A rise in regulatory mandates is anticipated to drive the market.

Regulations that set standards and guidance for the proper end-of-life management of photovoltaic (PV) panels have a substantial influence on the market for global electric vehicles. Extended producer responsibility (EPR) regulations, which forced producers to arrange and fund product collection and recycling, are frequently a part of these mandates.

To satisfy recycling targets, which also aim to keep a specific proportion of end-of-life PV panels out of landfills, investments in recycling infrastructure and procedures are encouraged. Grants, tax credits, and other forms of financial assistance may be offered as incentives to promote recycling initiatives and ease compliance. Regulations may also set criteria and certification requirements for recycling procedures, guaranteeing the sustainability of recycled materials in the environment and their quality.

Global Electric Vehicle Market Geographical Outlook

• Asia Pacific is witnessing exponential growth during the forecast period

The market for electric vehicles is expected to grow fastest in the Asia Pacific region due to several salient reasons. The first factor that necessitates transportation solutions within the region is the significant and rapid population growth. Governments across the Asia-Pacific region are starting to implement favourable policies and incentives to enhance the uptake of electric cars. These comprise tax exemptions, subsidies, and infrastructure provision. Besides, worries over air quality and ecological sustainability are compelling clients towards cleaner modes of transportation, leading to an increased need for electric cars in the region. Another element in support of the electric vehicle industry expansion in the Asia Pacific is a high number of big automakers and ever-advancing battery technologies. As a result of all these factors, you can conclude that this region is set for significant growth in the electric vehicle market. With nearly 60% of all new electric vehicle registrations globally in 2022, China led the global market. Reaching a 20% sales share for new energy vehicles (NEVs) by 2025, well ahead of schedule, the share of electric cars in China's total domestic car sales jumped to 29 percent in 2022 from 16 percent in 2021. With its 7. 1 percent GDP contribution and significant job opportunities, the automotive sector is essential to India's economy. India's domestic electric vehicle market is predicted to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030, reaching 10 million annual sales by that time, according to the Economic Survey 2023. According to projections, the electric vehicle industry may generate roughly 50 million jobs, both direct and indirect, by 2030. 

Global Electric Vehicle Market Key Developments

• In January 2024, Tata Passenger Electric Mobility Ltd (TPEM), a subsidiary of Tata Motors and a leader in India's electric vehicle movement, introduced its inaugural pure EV model – the Punch.ev. As the first product developed on its newly unveiled, advanced Pure EV architecture known as acti.ev, the Punch.ev sets itself apart with state-of-the-art technology, environmental consciousness, and affordability. Offering three distinct variants – Smart, Adventure, and Empowered – the Punch.ev is a versatile and multifaceted electric vehicle with an attractive SUV design. With prices starting at an introductory rate of INR 10.99 Lakh, the Punch.ev will be accessible at all authorized Tata Motors showrooms for EV sales and Tata.ev stores nationwide.
• In February 2023, Renault and Nissan unveiled a new long-term strategy for India: ramping up production and research and development (R&D) endeavours, launching electric vehicles, and shifting towards carbon-neutral manufacturing. The investment, totalling $600 million US$5300 crores INR, backed the production of six new models manufactured in India, including two electric vehicles.

Electric Vehicle Market Scope:

The Global Electric Vehicle Market is segmented and analyzed as follows:

• By Type
  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle
  • Plug-in Hybrid Electric Vehicle (PHEV)
  • Fuel Cell Electric Vehicle (FCEV)
• By End-User
  • Public
  • Private
  • Commercial
• By Charging Point
  • AC charging
  • DC charging
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Isreal
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others