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. 

The electric vehicles (EVs) market has experienced significant growth and transformation in recent years, driven by factors such as increasing environmental awareness, advancements in battery technology, and government incentives to reduce emissions.  

EVs offer a cleaner and more sustainable alternative to traditional internal combustion engine vehicles, contributing to efforts to mitigate climate change and improve air quality. Major automotive manufacturers are investing heavily in electric vehicle development and production, introducing a wide range of EV models to meet growing consumer demand.

Additionally, the expansion of charging infrastructure and improvements in battery range and performance have enhanced the appeal and practicality of electric vehicles for consumers. As a result, the electric vehicles market is poised for continued expansion, with projections indicating substantial growth in the coming years as the global transportation sector transitions towards electrification.

Market Drivers 

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

The rising price of gasoline is a significant factor driving the market for electric vehicles (EVs). As the cost of gasoline increases, consumers become more conscious of their fuel expenses and seek alternative transportation options to mitigate rising fuel costs.  

Between January and June of 2022, the cost of regular motor gasoline increased by 49%, while diesel fuel saw a slightly higher rise of 55%. These increases come after a period of decline in fuel prices that began in early 2020 during the economic downturn caused by the COVID-19 pandemic when many states implemented stay-at-home orders. Although fuel prices decreased from June to July 2022, they remain more than double their levels from early 2020. Electric vehicles offer a compelling solution as they are powered by electricity, which tends to be more affordable and stable than gasoline. 

Additionally, the environmental benefits of EVs, such as reduced greenhouse gas emissions and lower air pollution, appeal to environmentally conscious consumers seeking to reduce their carbon footprint. As a result, the increasing price of gasoline incentivizes consumers to switch to electric vehicles as a cost-effective and sustainable mode of transportation, thereby driving the growth of the EV market. 

• Favorable government initiatives to further drive the market growth

The PLI Scheme for the National Programme on Advanced Chemistry Cell (ACC) Battery Storage was introduced in 2021 to boost India's manufacturing capacity for ACC production within the country. With a total outlay of INR 18,100 Crores (equivalent to $2.1 Billion) over seven years, including a two-year gestation period, the scheme aims to incentivize the production of batteries in India.

Following the gestation period, incentives will be provided for five years 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 23, 2022. Governments pledging their support commit to substantially reducing carbon and air pollutant emissions from vehicles while promoting a clean transportation economy.  

They pledge to accelerate the integration and adoption of zero-emission vehicles across all vehicle categories within their own fleets. The goal is to achieve 100% acquisition of zero-emission light-duty vehicles for civil government fleets, with an aspiration to reach the same milestone for medium- and heavy-duty vehicles by the year 2035.

Asia Pacific is anticipated to hold a significant share of the market-

The Asia Pacific region is expected to grow the fastest in the electric vehicles market due to several key factors. Firstly, the region has a large and rapidly growing population, which contributes to increasing urbanization and the demand for transportation solutions.  

Secondly, governments in many Asia Pacific countries are implementing favourable policies and incentives to promote the adoption of electric vehicles, such as subsidies, tax breaks, and infrastructure development. Additionally, concerns about air pollution and environmental sustainability are driving consumer interest in cleaner transportation options, further boosting the demand for electric vehicles in the region.

Moreover, the presence of major automotive manufacturers and the ongoing advancements in battery technology are facilitating the growth of the electric vehicle market in Asia Pacific. Overall, these factors combined make the region poised for significant growth in the electric vehicles market.  

In 2022, China dominated the global market for new electric car registrations, representing nearly 60% of all registrations worldwide. The proportion of electric cars in China's total domestic car sales increased to 29% in 2022 from 16% in 2021, surpassing the national target of achieving a 20% sales share for new energy vehicles (NEVs) by 2025 well ahead of schedule. The automotive industry plays a vital role in India's economy, contributing 7.1 percent to its GDP and generating substantial employment opportunities. According to the Economic Survey 2023, India's domestic electric vehicle market is expected to experience a compound annual growth rate (CAGR) of 49 percent from 2022 to 2030, with annual sales reaching 10 million by 2030. Furthermore, projections suggest that the electric vehicle sector could create approximately 50 million direct and indirect jobs by 2030. 

Market Developments

• In January 2024, Tata Passenger Electric Mobility Ltd (TPEM), a subsidiary of Tata Motors and a leader in India's electric vehicle (EV) 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, presented in 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, which entailed ramping up production and research and development (R&D) endeavours, launching electric vehicles, and shifting towards carbon-neutral manufacturing. The investment, totalling $600 million USD/?5300 crores INR, backed the production of six new models to be manufactured in India, including two electric vehicles.

Global Electric Vehicle Market Scope:

Segmentation:

• 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
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Isreal
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others