Electric vehicle market to reach nearly 27 million units by 2030
The electric vehicle (EV) market is projected to grow from 3,269,671 units in 2019 to reach 26,951,318 units by 2030, at a CAGR of 21.1% during the forecast period. According to the new market research report, “Electric Vehicle Market by Vehicle (Passenger Cars & Commercial Vehicles, Vehicle Class (Mid-priced & Luxury), Propulsion (BEV, PHEV & FCEV), EV Sales (OEMs/Models), Charging Station (Normal & Super) & Region - Global Forecast to 2030,” published by MarketsandMarkets, Asia Pacific is expected to be the largest market during the period.
The market growth in the Asia Pacific region can be attributed to the rising demand for greener transportation along with initiatives by private organizations as well as governments. The region is home to some of the fastest-developing economies of the world, such as China and India. The governments of these developing economies have recognized the growth potential of the EV market and have taken different initiatives to attract major OEMs to manufacture electric vehicles in domestic markets. In March 2019, the Indian government announced the second phase of FAME – II, which includes setting up 2700 charging stations in metro cities. In addition, the Indian government plans to make it mandatory for 40% of the fleets of cab-hailing companies Ola and Uber to be electric vehicles. China is also investing heavily in the production of electric commercial vehicles with plans for export. OEMs such as BYD plan to open plants in other parts of the world to manufacture electric buses and electric trucks to meet regional demand. In Japan, in December 2017, Toyota announced its plan to launch 10 new EV models by 2020. As the EV charging infrastructure in Japan is already at an advanced stage, EV sales and the EV charging stations market in Japan are expected to grow significantly in the near future. All these factors will drive the EV market in the Asia Pacific region.
The mid-priced segment is expected to be the fastest growing market. In the Asia Pacific region, China is one of the leading countries for the mid-priced segment. Companies such as BYD, Smart, and Great Wall Motors are manufacturing comparatively less expensive vehicles. In July 2018, Great Wall Motors announced a partnership with BMW Group to produce electric Mini vehicles in China. In December 2018, the company launched its new flagship vehicle under the ORA electric car brand: the ORA R1. The small urban car will cost only $8680 after incentives and provide a range of almost 200 mi (320 km). Established automotive manufactures such as Hyundai, General Motors, Honda, and Nissan are manufacturing mid-priced EVs to acquire a greater market share, and Volkswagen is slated to launch a new lineup of electric vehicles from 2020 on.
The super charging segment is expected to grow at the highest CAGR. Super charging stations are stations with high DC charging units. Super chargers accounted for nearly 28% of the total electric vehicle supply equipment in 2018. In the near future, super chargers are expected to witness a high growth rate because of the increase in demand for electric vehicles. OEMs such as Tesla provide super chargers capable of adding 20 to 30 miles per hour of charge to a vehicle.
The U.S. is expected to lead the North American market, which is anticipated to be the fastest growing market. North America comprises developed economies such as the U.S. and Canada. North America is home to many leading players such as Tesla and Ford and charging infrastructure companies such as ChargePoint, Leviton, and Car Charging Group. Infrastructural developments and industrialization in developed economies have opened new avenues, creating several opportunities for OEMs. The implementation of new technologies and establishment of new government regulations are driving the EV market in this region.