By 2030, the global electric vehicle (EV) market size is projected to grow from 3M units to 27M units at a CAGR of 21.1%. The increasing popularity of electric vehicles highlights significant efforts made jointly by various governments and automotive industry associations. Ambitious EV targets and policy support from governments have resulted in the lowering of EV costs. In addition, factors such as extended vehicle range and improvement in charging infrastructure have fueled the growth of the electric vehicle market globally. [1]

The Electric Vehicles Initiative (EVI) is a multi-government policy forum dedicated to accelerating the introduction and adoption of electric vehicles worldwide. It has established a goal of reaching a global electric car fleet of 20M by 2020. The Paris Declaration on Electro-Mobility and Climate Change has also established a similar global deployment target of 100M electric cars by 2030. These initiatives are expected to provide an impetus to the growth of the global electric vehicle market.

Global Electric Vehicle Market

EV sales are increasing globally, especially in countries such as China, France, German, Japan, Netherlands, Norway, the UK, and the US. These countries account for more than 90% of the world’s EV sales. Government funding, subsidies, and incentives increasing concerns regarding environmental pollution and huge investments from automakers in EVs are expected to fuel the growth of the global electric vehicle market over the next two years. The Asia Pacific region, led by China, has the highest sales of electric vehicles.

China is focusing on electric vehicles to deal with rising vehicle emissions in the country. The Chinese government is providing subsidies for the electrification of vehicles, which has increased the sales of electric automobiles in China. The government offers subsidies for pure electric vehicles and hybrids. For instance, the government subsidy includes passenger car purchasing incentives of RMB 55,000 for battery electric vehicles (BEVs) and RMB 30,000 for plug-in hybrid electric vehicles (PHEVs). The cost of an EV battery has been reduced over the years, leading to a positive impact on China’s EV market.

New Elective Vehicle Trends

Improved driving ranges: Electric vehicle manufacturers are trying to reduce the weight of a vehicle to improve its driving range by using lightweight materials. These materials can decrease the vehicle weight, which can help improve the range of a vehicle. The battery accounts for about 70% of the weight of an electric vehicle. Hence, reducing battery weight is essential for electric vehicle manufacturers to enhance the fuel economy or electric vehicle range. A slight change in the weight of a battery can be crucial for the electric vehicle range.

Reduced battery prices: Advancements in technology have helped to decrease the cost of an electric vehicle. The cost of an electric vehicle battery has reduced significantly in the recent past. Reduction in battery price has attracted new consumers, which has increased the sale of electric vehicles. The price of the battery is measured in terms of USD per kilowatt unit. For instance, In 2010, the battery cost was approximately $1,000 per kilowatt-hours (kWh), which has now come down to as low as $100 per kWh. [2]

The limited range of electric vehicles has been one of the biggest challenges for electric vehicle manufacturers. An increase in electric vehicle range per charge is expected to increase the duration between a vehicle’s charging. With increasing battery capacity and reducing vehicle weight, the range of an electric vehicle is set to increase. These crucial advancements are expected to open new avenues for the growth of the global electric vehicle market over the next few years.

Top Electric Vehicle Makers

The global EV market is highly competitive. Various leading automotive players enter the EV market to capitalize on new business opportunities and expand the business. The key players functioning in the market include BMW, Daimler AG, Ford, General Motors, Hyundai Motor, Mitsubishi, Nissan, Tesla, Toyota, and Volkswagen. These companies have launched electric vehicles in different segments to cater to the increased demand. Tesla Model S, Nissan Leaf, and BYD Tang are some of the most successful models that have attracted customers toward electric vehicles. Additionally, Panasonic, Automotive Energy Supply, BYD Auto, and Samsung SDI are some of the largest battery manufacturers that cater to the global demand for EV batteries. [3]

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