Global Electric Vehicle Market Projected to Reach Over 10.5 million Units by End of 2026

  • 27 Jun 2019

Global Electric Vehicle Market is projected to reach over 10.5 million units by the end of 2026 and is estimated to grow at a CAGR of over 30% during the forecast period of 2019 to 2026.

Vehicle-induced pollution has been a huge concern across the world. In order to tackle this, electric vehicles are introduced which are high-performance automobiles but with zero or low fuel emission thus avoiding pollution. This is the major factor that will assist the electric vehicle market to grow rapidly throughout the world.

Governments all around the world are taking serious actions in curbing down pollution by implementing strict emission norms and that is the major driving factor for the electric vehicle market. European Union (EU) is undertaking a few ambitious targets for environmental safety. For instance, the EU has set a target of reducing 20% carbon dioxide (CO2) emissions by 2020 with reference to the emission reports from the year 1990.

The prices of conventional cars will rise due to these stringent emission norms that are being set by governments worldwide. Automobile manufacturing companies will then slowly start adopting electric cars due to which the consumers will also shift towards this technology which will soon become an industry standard. In order to promote the selling of low-emission vehicles, governments are offering financial incentives for electric cars. Additionally, they are increasing taxes on conventional fuel cars as well. All these are key factors that drive the global electric vehicle market.
Currently, the value chain ecosystem and charging infrastructure is inadequate and these are some major restraining factors that might impede the market growth. For instance, in France, there is only one charging station for every 10,000 registered vehicles while in Germany, the average number of charging points is around 2 per 10,000 registered vehicles. 

Other EV-related sectors like electricity utilities, leasing companies are nor backing this initiative strongly which hampers the market growth even more. The governments across the world must take some important steps towards the direction of an emission-free world by prioritizing the development of charging infrastructure. 

Market Opportunities:
Added concern that restrains customers from buying an electric vehicle is the limited range per single charge that these vehicles offer. Therefore, this factor could be worked upon and by providing high-range electric vehicles will be an enticing opportunity for the EV market to grow. 
Many carmakers like Chevrolet and Tesla have already started offering high-mileage EV’s in the form of Bolt and Model 3 respectively who provide a mileage of more than 200 miles per single charge. Tesla also offers a long-range version vehicle which provides a mileage of around 325 miles.

Insights on Global Electric Vehicle Market:
1.    By Region

•    North America
•    Europe
•    Asia Pacific
•    Latin America
•    Rest of the World

Europe and North America are expected to witness steady market growth during the forecast period owing to a well-developed EV infrastructure in these regions. But the Asia Pacific region is anticipated to be the market space to grow with the highest CAGR during the forecast period as major EV manufacturing OEM’s are mainly present in this region. 
China, in particular, is anticipated to be the largest EV market of the world owing to the presence of key EV manufacturers in the country. The U.S, U.K and China are predicted to comprise around 70% of the global sales by 2023. 

2.    By EV Type
•    Fuel Cell Electric Vehicle (FCEV)
•    Battery Electric Vehicle (BEV)
•    Plug-in Hybrid Electric Vehicle (PHEV)

FCEVs offer a mileage of 300-400 miles with a full fuel cell. Additionally, it takes around 3 to 5 minutes to fill the fuel cell completely. These factors make FCEV a quintessential option for fixed route or definite transportation. But the unavailability of infrastructure such as hydrogen production facilities, hydrogen refuelling stations which might impede the growth of this market segment. 
However, countries like South Korea and Japan are investing heavily for developing a FCEV-favourable infrastructure. Japan, by the end of 2018, launched more than 2,800 FCEVs with the help of Fuel Cell & Hydrogen Energy Association (FCHEA) members Toyota and Honda. Furthermore, Japan is planning to reach the target of 40,000 on-road FCEVs by 2020 and 800,000 FCEVs by 2030. They are also strategizing to reduce hydrogen fuel prices to one-fifth of the current cost by 2050. These factors will be crucial for market growth during the forecast period. 

3.    By Charging Infrastructure
•    Tesla Super Charger (SC)
•    Type-2 AC
•    Combined Charging System (CCS)
•    CHAdeMO
CHAdeMO protocol has a wide consumer base, right from Australia to the U.S. These chargers have been used to charge EVs for more than a decade and companies like Toyota, Honda, Nissan, Subaru, Suzuki are utilizing this technology. This wide outreach of CHAdeMO is the reason for its dominance in the global market. Another reason for this dominance is that CHAdeMO technology is integrated with level-3 chargers i.e. a DC fast charger which reduces charging time thus increasing the demand for this charging technology even more.

4.    By Installation
•    Public
•    Residential
The public installation segment has the potential for market growth considering the vast expanse of deploying public charging stations. Developed countries like the U.S, France, Germany have already taken some vital steps in establishing a systematic public charging infrastructure but for the sake of market expansion on a global scale, it needs to be promoted in developing nations as well. Similarly, the developed countries have good provisions of residential charging stations as the key charger manufacturing vendors are from developed countries. 

5.    By Vehicle Type
•    Two-wheeler
•    Passenger Car
•    Public Vehicle

6.    By Power Output
•    Level 1
•    Level 2
•    Level 3

Competitive Landscape:
•    Tesla
•    BMW
•    Nissan
•    Volkswagen
•    BYD
Tesla made a deal with the Chinese government in July 2018 to build a new plant in Shanghai. They also launched the fully electric Model Y in March 2019 which is a crossover capable of carrying up to 7 passengers along with their cargo.
Nissan announced that its new Nissan Leaf will be out for sale in the Philippines by 2020 accentuating Nissan’s commitment to regularize electrification of transportation in the region.

FutureWise Key Takeaways:
•    Growth prospects
•    SWOT analysis 
•    Key trends 
•    Key data-points affecting market growth 

Objectives of the Study:
•    To provide with an exhaustive analysis on the global electric vehicle market by region, by EV type, by charging infrastructure, by installation, by vehicle type, by power output
•    To cater comprehensive information on factors impacting market growth (drivers, restraints, opportunities, and industry-specific restraints)
•    To evaluate and forecast micro-markets and the overall market 
•    To predict the market size, in key regions (along with countries)— North America, Europe, Asia Pacific, Latin America and rest of the world
•    To record evaluate and competitive landscape mapping- product launches, technological advancements, mergers and expansions
•    Profiling of companies to evaluate their market shares, strategies, financials and core competencies 


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