Once mocked as toys, electric vehicles have become an inevitable step for the global auto market. The fact that electric vehicle sales are on pace to reach over 1.6 million this year, up from just a few hundred thousand in 2014 is enough to portray the future of this exuberant industry. The government support across various countries in the form of grants, subsidies, and tax rebates is proving to be major driving factor for electric vehicle market. Improving charging infrastructure, increasing vehicle range, and reducing cost of batteries have fuelled the demand for EVs across the globe. The major restraints considered in the study include the poor charging infrastructure, limited vehicle range, and the short lifespan of the EV battery, which restricts the sales of electric vehicles.
The Lithium-ion battery prices have tumbled by 80% in this decade. The prices are supposed to fall in coming years too. Policy support is another boosting factor. Governments around the world have offered generous EV purchase incentives to help get the market rolling. At the same time, tightening fuel economy standards will require significant electrification of the vehicle fleet, and China’s ‘New Energy Vehicle’ quota is forcing automakers into EVs faster than most of them would like. Increasing concern of environmental pollution, government level initiatives, and huge investments by automakers are propelling the growth of the electric vehicles market. The share that EVs have of global auto sales is still small – under 2% in most regions – but some countries are jumping ahead, and the next 20 years will bring major changes. Still, there are challenges. Charging infrastructure remains a barrier in many countries and supply of raw materials like Cobalt could create some bumps in the road to cheaper batteries.
Globally, many countries are now providing various incentives and tax rebates on the purchase of HEVs, which is ultimately driving the HEV market. Moreover, policies such as exemption from road tax, crowding charge waiver, and free car parks at various places have encouraged consumers to adopt hybrid vehicles. As a result, the adoption of HEVs is increasing, particularly in the Asia Pacific region. China, India, and Japan are investing a huge amount of money to encourage the adoption of HEVs. For example, schemes like National Electric Mobility Mission Plan, 2013 (NEMMP) are expected to drive the hybrid vehicles market in India.
The global electric vehicle market is dominated by major players such as Tesla (US), BYD (China), BMW (Germany), Nissan Motor Corporation (Japan), Volkswagen (Germany). Electric vehicle components manufacturers such as LG Chem. (South Korea), Panasonic Corporation (Japan), Delphi Automotive (UK), Samsung SDI (South Korea), Automotive Energy Supply Corporation (Japan), and EV infrastructure providers such as Car Charging Group (US) and Charge Point, Inc. (US) have the dominant influence on the market. Daimler, Nissan, Volvo and other global automakers have all made aggressive plans to electrify their vehicles over the next 10 years. Chinese automakers are going further, with companies like Chang’an committing to sell only electric vehicles after 2025.
Looking at the current pace, it can be confidently concluded that by 2040 around 55% of all new car sales and 33% of the global fleet will be electric. By the time, the cost ineffectiveness will be considerably rectified with falling battery prices and improving charging infrastructure. The depleting fossil fuel resources and the growing awareness regarding greenhouse gas emissions are compelling governments to formulate the regulations in line with the green energy. Electrified busses and cars will displace more than 7 million barrels of transportation fuel per day in 2040. China is and will be the largest electric vehicle market for future years. China will account around 50% of global electric vehicle market in 2025. Europe and US are next in line with around 14% and 11% current market share respectively.
To get a detailed analysis visit our report here: Global Electric Vehicle Market