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Size Of Electric Vehicle Market

Electric vehicles or EVs have been gaining traction in recent years, and the market for these vehicles is growing at a rapid pace. This can be attributed to the increasing demand for eco-friendly vehicles, government incentives and regulations that promote the adoption of electric vehicles, and advancements in technology that have made these vehicles more practical and efficient.

According to a report by Allied Market Research, the global electric vehicle market size was valued at $162.34 billion in 2019 and is projected to reach $802.81 billion by 2027, growing at a CAGR of 22.6% from 2020 to 2027. The growth in the market can be attributed to the increasing investment by automakers in the development of electric vehicles and the rising awareness among consumers about the benefits of electric vehicles.

As the electric vehicle market continues to grow, it has the potential to revolutionize the automotive industry, reduce greenhouse gas emissions, and promote a cleaner and more sustainable future. In this blog post, we will explore the size of the electric vehicle market in more detail and discuss the factors driving its growth.

Global electric vehicle market size (2019 and forecast for 2020-2025)

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According to a report by Fortune Business Insights, the global electric vehicle market size was valued at USD 162.34 billion in 2019. With the increasing concerns over environmental pollution and the need for sustainable transportation options, the market is expected to continue its growth trajectory in the coming years. The report forecasts that the market will reach USD 985.72 billion by 2027, expanding at a CAGR of 29.4% during the forecast period from 2020 to 2027. This growth can be attributed to various factors such as government initiatives to encourage the adoption of electric vehicles, the development of energy-efficient batteries, and the increasing demand for electric vehicles in emerging markets. Additionally, the availability of a wide range of electric vehicles with different features and price points has also contributed to the increasing adoption of electric vehicles worldwide. The United States and China are currently the largest markets for electric vehicles, followed by Europe and Japan. The forecast growth of the electric vehicle market presents significant opportunities for stakeholders and players in the industry to capitalize on this trend and develop innovative products and solutions to meet the needs of consumers and businesses worldwide.

Electric vehicle sales by country (2019)

In 2019, Electric vehicle (EV) sales by country recorded an impressive growth. China maintained its position as the leading market for electric vehicles, with a total of 1.2 million units sold. The United States came in second with 331,000 units sold, followed by Norway and Germany with 75,000 and 63,000 units sold, respectively. These four countries alone account for more than 70% of global EV sales. Other notable markets included France, the United Kingdom, the Netherlands, and Canada. The rise in EV sales is driven by the increasing demand for environmentally friendly transportation options, as well as government incentives and policies to support the adoption of EVs. As the technology behind EVs continues to evolve, the electric vehicle market is expected to grow exponentially in the coming years.

Top electric vehicle brands by global market share (2019)

size of electric vehicle market

The global market for electric vehicles (EVs) is growing at an unprecedented pace. In 2019, the total count of EVs on the roads worldwide surpassed 7.2 million, representing a YoY increase of 76%. As we analyze the global market for electric vehicles, we can undoubtedly see that some brands are dominating the market with their offerings.

As per the data from 2019, Tesla was a clear leader in the electric vehicle market, with a global market share of 17.5%. The top-class vehicles, the company’s innovative technology, and their broad global network of charging stations are some of the factors driving the brand’s success in the industry.

Next up, we have Chinese automaker BYD with a 7.9% share of the global EV market. The company has been pushing the limits of electric drive systems for more than a decade now and has established itself as a highly reliable EV manufacturer.

Other popular names include BMW (7.1%), Nissan (5.9%), and Volkswagen (5.7%). It’s worth noting that there are over 400 different EV manufacturers out there, but these companies are dominating the market with their product quality, brand value, and recognition, resulting in more significant sales and market share.

Overall, the future of the EV market looks promising, and these brands will play a pivotal role in shaping the industry.

Electric vehicle market segmentation by vehicle type (BEV, PHEV, FCEV)

size of electric vehicle market

Electric vehicle (EV) market segmentation is an essential aspect of understanding the industry’s growth trajectory. EVs are classified as Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Fuel Cell Electric Vehicles (FCEVs). BEVs are purely electric and rely solely on batteries for propulsion, while PHEVs combine an electric motor with an internal combustion engine. FCEVs, on the other hand, use hydrogen fuel cells to produce electricity to power the car.

The BEV market segment has shown remarkable growth in recent years, with many automakers such as Tesla, Nissan, and General Motors investing heavily in the technology. In comparison, PHEVs have been overshadowed by BEVs, with slow growth in recent years. However, experts believe that PHEVs could become more popular as technology improves.

FCEVs are another segment of the EV market, which use hydrogen fuel cells to produce electricity. However, this segment has seen limited growth due to a lack of infrastructure for hydrogen fuel cells. Nonetheless, many car manufacturers such as Toyota and Honda have continued to invest in the technology, with the hope of increasing adoption rates in the future.

In conclusion, the electric vehicle market is segmented into BEVs, PHEVs, and FCEVs, with BEVs dominating the market. However, with continued investment and improvement in technology, all segments of the market have the potential for growth and a significant impact on the future of transportation.

Reasons for the growth of the electric vehicle market

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One of the key reasons for the growth of the electric vehicle market is the increasing awareness of the urgent need to reduce carbon emissions and combat climate change. Governments across the globe are advocating for electric vehicles as a sustainable mode of transportation, and are providing tax incentives, rebates, and subsidies to encourage their adoption.

Another reason for the growing popularity of electric vehicles is the advancements in battery technology. With the improvement in battery technology, electric vehicles have been able to travel longer distances with a single charge, which has addressed the concern of range anxiety that many potential buyers had. Additionally, the higher cost of gasoline and the lower maintenance costs of electric vehicles have also contributed to their popularity.

Moreover, electric vehicle manufacturers are continuously launching new models with advanced features and enhanced performance, which has helped in attracting a wider range of consumers. The growing demand for luxury electric cars has opened up a new segment in the market, thereby contributing to the growth of the electric vehicle market.

Lastly, the increasing installation of charging infrastructure across cities has made it convenient for electric vehicle owners to charge their cars at public charging stations, thereby addressing the concern of range anxiety and making electric vehicle ownership easier and more practical for consumers.

All in all, these factors have been instrumental in driving the growth of the electric vehicle market, and the trend is expected to continue in the coming years.

Challenges facing the electric vehicle market

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The electric vehicle market is experiencing tremendous growth globally. However, there are still some challenges facing this market. Firstly, the high cost of electric vehicles is a significant obstacle for many potential customers. Additionally, the lack of charging infrastructure is a critical concern as it undermines the convenience of owning an electric vehicle. The long charging time required is also a turn-off for many consumers despite the lower operating costs. Moreover, the limited range of electric vehicles also makes them unsuitable for long distance travel. Finally, the lack of government incentives and policies to promote the adoption of electric vehicles in certain regions slows down the growth of the market. Overall, emerging electric vehicle technologies promise to overcome many of these challenges in the future, but significant efforts must be made to ensure their widespread adoption.

Government incentives and policies promoting the adoption of electric vehicles

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Electric vehicles are seeing a significant boost in demand, which is driven by a combination of increasing environmental concerns and technological advancements. However, many potential buyers are still hesitant due to their perceived high cost and concerns about charging stations. To address these challenges, many governments around the world are introducing incentives and policies that promote the adoption of electric vehicles.

Some of these policies include tax credits, rebates, and exemptions on electric vehicles or charging infrastructure. For example, in the United States, the Federal Government offers tax credits of up to $7,500 for the purchase of an electric car. Similarly, in Norway, electric vehicle owners enjoy exemptions from taxes, tolls, and ferry fees.

Moreover, governments are implementing regulations to reduce greenhouse gas emissions and encourage electrification. Countries like China, France, and the United Kingdom have pledged to phase out sales of gasoline and diesel vehicles in the coming decades. Governments are also investing in the development of charging infrastructure to reduce range anxiety, which is one of the main factors holding back the adoption of electric vehicles.

In conclusion, electric vehicle adoption is gaining momentum, in part thanks to government incentives and policies that aim to promote sustainable and cleaner transportation. The continued global effort to reduce carbon emissions and improve air quality is expected to continue to drive progress in this industry.

Impact of COVID-19 on the electric vehicle market

size of electric vehicle market

The COVID-19 pandemic has significantly impacted the global economy, and the electric vehicle (EV) market is no exception. The sales of electric vehicles have declined since the onset of the pandemic due to reduced demand and supply chain disruptions. Many countries have also delayed their plans to promote the adoption of electric vehicles due to the economic downturn caused by the pandemic. In addition, the closure of factories and dealerships has also affected the sales and production of electric vehicles.

However, the pandemic has also highlighted the importance of sustainable transportation and reduced emissions. As countries make plans for economic recovery, green investments are being prioritized, and the electric vehicle market is expected to rebound in the coming years. Many governments have already announced stimulus packages and financial incentives to promote the adoption of electric vehicles. Moreover, the pandemic has also accelerated the shift towards e-commerce, leading to an increased demand for electric delivery vehicles.

Therefore, while the electric vehicle market has been impacted by the pandemic, the long-term prospects remain positive. The market is expected to witness growth in the coming years, driven by the increasing demand for sustainable transportation and government support.

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