Electric Vehicle Market Size, Share, Trends & Analysis by 2030

 The global electric vehicle market size was valued at USD 388.1 billion in 2023 and is expected to reach USD 951.9 billion by 2030 at a CAGR of 13.7% during the forecast period 2023-2030. With advancements in technology, increasing environmental consciousness, and supportive government policies, EVs have gained significant traction as a viable and sustainable transportation option. As concerns over climate change and air pollution intensify, consumers and industries are increasingly turning to electric vehicles to reduce their carbon footprint and contribute to a greener future. This growing global momentum has propelled the electric vehicle market into a transformative phase, with innovations and investments driving the expansion of EV adoption across the world.

Electric Vehicle Market Growth Dynamics:

Driver: Reducing prices of EV batteries will increase demand for EVs by making them cost effective

Due to technological advancements and the production of EV batteries on a mass scale in large volumes, the cost of EV batteries has been decreasing during the past decade. This has led to a decrease in the cost of electric vehicles as EV batteries are one of the most expensive components of an electric vehicle. The prices of EV batteries fell significantly in the last decade, from USD 1,200/kWh in 2010 to USD 160/kWh in 2023 and is expected to decrease in the coming years. Meanwhile the price is as low as USD 100 per kWh in China. This is because of the reducing manufacturing costs of these batteries, reduced cathode material prices, higher production, etc. The prices of EV batteries are expected to fall to approximately USD 60 per kWh by 2030, which is expected to significantly reduce the prices of EVs, making them cheaper than conventional ICE vehicles. The price of EV batteries is expected to reach around USD 80 per kWh by 2025. This will bring the price of EVs to the same level as that of ICE vehicles in the market and start a big shift to EVs. From 2025, we can expect EVs to get cheaper than some ICE vehicles. The improvement in battery technology is the main reason for this fall in battery prices. Once Solid-State Batteries enter the electric vehicle market, we can expect another price fall (per kWh) by the end of this decade.

Download Report @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=209371461

Opportunity: Rising demand for electric vehicles in the automotive and transportation sectors

Increase in the adoption and demand for electric vehicles has accentuated the need to develop charging infrastructure and the electric vehicle market. Leading markets for electric vehicles such as China, US, and Germany are investing significantly in electric vehicles and EV charging infrastructure along with research & development for faster and efficient charging methods, longer range EVs, and lower cost batteries. Significant investments by automakers are expected to cater to the rising demand for EVs. Countries across North America and Europe along with many Asian countries have adopted measures to reduce emissions during the coming decades and replace their vehicle fleets for lower emissions by varying numbers by 2035. This is expected to lead to a significantly high demand for electric vehicles. OEMs offer a wide range of vehicles, from small hatchbacks such as Leaf to high-end sedans such as Tesla model 3. The wide range of product offerings has attracted a high number of consumers, resulting in an increased market for electric vehicles.

Commercial vehicles to be the fastest growing market by volume during forecast period

The commercial vehicle segment includes LCVs and HCVs. HCVs combine two categories of vehicles − heavy trucks and buses & coaches. The nature of these vehicles limits their production volumes and growth rates as they are used in specific applications such as logistics, construction, and mining industries. On the other hand, LCVs have come a long way from having bare-essential features to full-blown utility vehicles that can be used for passengers as well as commercial purposes. The majority of used LCVs and HCV’s include vans, mini-buses, pickups, trucks etc. Various companies such as Volvo Group, Daimler AG, Traton Group, BYD, Nikola Motor, Tesla, DAF Trucks, etc. already have EV models available or are currently under development. For instance, in May 2022, Stellantis and Toyota Motor partnered to develop a new large-size commercial van, including a battery electric version. This collaboration completes a full lineup of light commercial vehicles (LCV), consisting of compact, mid-size, and now a large-size LCV. Similarly, ZF's Commercial Vehicle Solutions (CVS) department unveiled 'AxTrax 2' and 'AxTrax 2 dual’ electric central drive system designed for various types of vehicles, ranging from light delivery vans to heavy-duty trucks and trailers. Increasing sales of electric buses, particularly in China, has contributed to the growth of the electric bus segment.

“Middle East and Africa is expected to be the fastest growing market in the EV market”

The Middle East & Africa region has started giving importance to the electric vehicle market in the recent past. Governments of countries such as the UAE, Egypt, South Africa, and Cyprus have been working on growing their EV demand and EV charging stations across the region. These countries have provided incentives for EV buyers. Companies such as Tesla, Geely, Toyota, Volkswagen, and Nissan are leading this market. A large share of the EVs sold in this region are bought from China and Europe. Due to the low power prices in these regions, the cost of fuel for EVs reduces significantly, but the vehicle ownership costs make up for much of the difference. There is an advantage for the use of EVs in the Middle East: the urban areas are closer together and an 80% charge on a decent EV enables travel wherever needed within the states. The rising disposable incomes of people in this region along with the need for emission reductions has led to an increase in the demand for EVs in the last few years. The UAE for instance, plans to add over 42,000 EVs in Dubai by 2030. The country also plans to be among the world leaders in developing charging stations. It plans to provide free EV charging till 2025 to promote the EV market. The EV market in the Middle East & Africa is led by countries such as South Africa and the UAE while Egypt is a newly growing market. These countries are working towards developing demand and the adoption of EVs to reduce dependence on petrol in the coming years. These countries are also developing EV charging stations across their regions to cater to the upcoming demand for EVs.

Key Players

The EV market is dominated by established players such as BYD (China), Tesla (US), Volkswagen AG (Germany), SAIC Motors (China), and Stellantis (Netherlands), among others.

Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=209371461