Electric Vehicle Market – The Rapid Increase in Investment in Electric Cars at a CAGR of 17.5% from 2022 to 2028

Electric Vehicle
  • Electric Vehicle Market

As stated in our extensive report; the Global Electric Vehicle Market accounted for USD 165.1 Billion in the year 2021.

In 2021, Electric car sales reached a record high, regardless of supply chain bottlenecks and the ongoing Covid-19 outbreak. Compared to 2020, sales almost doubled to 6.6 million (a share of nearly 9 percent), leading the total number of electric cars on the road to 16.5 million. In 2021, the sales of electric cars increased by 4 % points.

Electric Vehicle uses one or more electric motors for propulsion and is powered by a collector system with electricity from extravehicular sources, powered separately by a battery and sometimes charged by converting fuel to electricity with the help of fuel cells or a generator or by solar panels.

Factors Influencing Global Electric Vehicle Market Growth

The growth of the Electric Vehicle global market can be attributable to the following:-

  1. The growth of the global Electric Vehicle market can be attributable to significant factors such as the increasing demand for low emission commuting and growing environmental concerns.
  2. The prominent incentives being provided by the government on the production and purchase of Electric Vehicle to support the Electric Vehicle adoption will propel the global market.
  3. Countries all over the globe are setting up targets for emission reductions following their battery capacity. However, the ICCT and the IFO study analysis depend on the exact estimate of emissions from battery manufacturing, the 2017 Swedish Environmental Research Institute (IVL) research. IVL examined studies published between 2010 & 2016 and concluded that battery manufacturing emissions are likely between 150 and 200 kg CO2-equivalent per kWh battery capacity.
  4. The growing investments by important automotive original equipment manufacturers (OEMs), advancements in charging technologies, and decreasing prices of batteries are other growth aspects expected to fuel the global Electric Vehicle market expansion during the forecast period.
  5. The stringent emission norms drafted by the government in developing regions: For instance, the stringent greenhouse gas (GHG) emission norms planned by the government, like the Bharat Stage (BS) VI emission standards introduced by India’s Ministry of Road Transport and Highways (MoRTH), plays an essential part in fuelling the market escalation.However, the rising prices of conventional fuel might hamper the growth of vehicle electrification.

Asia Pacific market is Expected to Dominate the Global Market

Asia Pacific holds the largest share in the Electric Vehicle market and is expected to continue this trend in the forecast period. The increase in demand for lower-cost efficient, low-emission vehicles and the mounting demand for passenger cars drive this region's market growth.

Furthermore, China contributes the largest market share in passenger cars and other automobiles. Also, other countries like India, Korea, and Japan are profitable markets since the governments of these countries are investing a lot in EV startups to promote the EVs manufacturing and sales worldwide.

As per VMR, there has been an exponential growth in the Electric Vehicle sale, supported by government initiatives, rising popularity of passenger electric cars, and growing crude oil prices since people look for alternative sources to reduce their monthly payments.

Some of the key players in the Global Electric Vehicle Market include- BMW Group (Germany), BYD Company Ltd. (China), Daimler AG (Germany), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Kia Corporation (South Korea)Nissan Motor Co., Ltd. (Japan), TATA Motors Limited (India), Mahindra & Mahindra Ltd. (India), Tesla, Inc. (U.S.), Volkswagen AG (Germany), Toyota Motor Company (Japan), Mitsubishi Motors Corporation (Japan), Groupe Renault (France), Beijing Automotive Industry Corp. (BAIC) (China), SAIC Motor Corporation Limited (China), Geely Automobile Holdings Limited (China), Guangzhou Xiaopeng Motors Technology Company Ltd. (China), NIO Inc. (China). and others.