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.