Electric Vehicle Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2050

The Global Electric Vehicle Market was valued at US$ 229.8 Bn in 2021 and is estimated to witness a major leap forward in revenue to US$ 72,798 Bn by 2050. The market is registering a CAGR of 21.99% during the forecast period 2022-2050. In terms of volume, the market is registering a CAGR of 21.73% during the forecast period. 

Electric vehicle runs on electricity alone and employs an electric motor instead of a combustion engine. Electric vehicles lead to less air pollution, less noise pollution, higher efficiency, low maintenance cost, and low fuel and operating costs when compared to other conventional vehicles. Moreover, clean and renewable energy sources like solar and wind power are being increasingly integrated into the utility grids used to charge electric vehicles, which further reduces the use of hydrocarbon-based energy sources.

The market is majorly driven by factors such as increasing demand for low-emission vehicles and government initiatives to accelerate EV deployment. The production of gas-powered vehicles is expected to decrease prominently over the next decade as gas is not a renewable source of energy and doesn’t promote sustainable development. However, electric vehicles are fuel-efficient and low emission vehicles as compared to gas-powered vehicles. Countries like the U.S., France, Germany, and China have implemented stringent government laws and regulations regarding vehicular emission, under which it is mandatory for automobile manufacturers to use advanced technologies that help to combat high-emission levels emitted by vehicles. Furthermore, governments across the world are providing incentives to encourage the sale of EVs such as reduced selling prices, zero or low registration fees, and so on. By 2020, more than 20 countries announced the full phase-out of internal combustion engine (ICE) car sales over the next 10‑30 years, including emerging economies such as Costa Rica, Cabo Verde, and Sri Lanka. However, the lack of EV charging infrastructure and the high cost associated with it pose a big challenge to market growth. 

Key Insights of the Report: 

• The latest study published by Astute Analytica analyzes the global electric vehicle market for the study period of 2017-2050; where historical years are 2017-2020, the base year is 2021, and the forecast period is 2022-2050.
• The research report offers a detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with an attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 27 chapters distributed across 656 pages with 327 lists of tables and 442 lists of figures.
• The market estimates are presented in terms of value (US$ Mn) and volume (‘000 Units).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes raw material providers, electric vehicle manufacturers, distributors, and end-users.
• The competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Battery Electric Vehicle (BEV) type segment has the highest share in the Global Electric Vehicle Market in 2021

Based on type, the global electric vehicle market is segmented into battery electric vehicles, fuel cell electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. Battery Electric Vehicle (BEV) is holding maximum market share among all types of electric vehicles in 2021 and is predicted to grow with the fastest CAGR during the forecast period owing to its reduced dependence on fossil fuels and safe operation. Further, BEVs produce almost no exhaust emissions, resulting in significantly lower pollution levels. Even the production of some of the best BEVs is environmentally friendly. Ford Focus Electric and Nissan Leaf, for example, are composed primarily of recycled and bio-based materials such as plastic bags, water bottles, and used auto parts and home appliances.

The passenger car segment leads the Global Electric Vehicle Market in 2021

In terms of vehicle type, the market is segmented into commercial vehicles, passenger cars, and two & three-wheelers. Passenger car is leading the market in 2021 by holding more than half of the market share. Germany, France, Netherlands, the United Kingdom, and other European countries are leading the way in terms of EV passenger vehicle demand, as these countries have enacted emission restriction laws as well as subsidies, grants, and incentives to encourage people to switch to electric vehicles.

The fast charger has the highest CAGR in the Global Electric Vehicle Market during the forecast period

Based on chargers, the Global Electric Vehicle Market is segmented into normal and fast chargers. The fast charger segment is anticipated to grow at the fastest CAGR during the forecast period 2022-2050. Fast charging cuts the charging time by half. Moreover, fast charger technology focuses on DC chargers that can give up to 350 kilowatts or even more, providing quick energy delivery to EV batteries. 

Asia Pacific region dominates the Global Electric Vehicle Market in 2021

The Asia Pacific dominates the Global Electric Vehicle Market in 2021 and is expected to continue its dominance during the forecast period 2022-2050. This is due to the growing demand for passenger cars in the APAC region. China, being the world's top EV producer and the user has a stranglehold on the region's EV market. Furthermore, Japan and South Korea have both seen rapid growth in their electric vehicle market as their governments have aided the increase of EV demand by providing EV charging stations, establishing pollution standards, and establishing deadlines for switching from ICE vehicles to full or hybrid EVs, among other things.

Competitive Landscape

The key players in the Global Electric Vehicle Market are Tesla Motors, BYD Company Motors, BMW Group, Nissan Motor Corporation, Volkswagen AG, Hyundai, KIA Motors, SAIC, and BAIC among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on the emerging markets. 

Segmentation Overview

Following are the different segments of the Global Electric Vehicle Market:

By Type segment of the Global Electric Vehicle Market is sub-segmented into:

• Battery electric vehicle (BEV)
• Fuel cell electric vehicle (FCEV)
• Plug-in hybrid electric vehicle (PHEV)
• Hybrid electric vehicle (HEV)

By Vehicle Type segment of the Global Electric Vehicle Market is sub-segmented into:

• Commercial Vehicle
• Passenger Car
• Two & Three Wheelers

By Charger segment of the Global Electric Vehicle Market is sub-segmented into:

• Normal
• Fast

By Power Output segment of the Global Electric Vehicle Market is sub-segmented into:

• Less than 100 KW
• 100-250 KW
• Above 250 KW

By Region segment of the Global Electric Vehicle Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
    • Eastern Europe
      • Poland
      • Russia
      • Rest of Eastern Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia & New Zealand
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • ASEAN
    • Indonesia
    • Malaysia
    • Philippines
    • Thailand
    • Vietnam
    • Singapore
    • Cambodia
    • Rest of ASEAN
  • Middle East & Africa (MEA)
    • Saudi Arabia
    • South Africa
    • UAE
    • Rest of MEA
  • South America
    • Argentina
    • Brazil
    • Rest of South America