The Global Electric Vehicle Market is Expected to Reach 27 million units by 2030, at a CAGR of 21.1%

Asia Pacific is expected to have the fastest growth

The Electric Vehicle Market is projected to reach 27 million units by 2030 from an estimated 3 million units in 2019, at a CAGR of 21.1%.  

The electric vehicle market has witnessed rapid evolution with ongoing developments in the automotive sector. Favorable government policies & support in terms of subsidies & grants, tax rebates, and other non-financial benefits in the form of carpool lane access and new car registration (specifically in China where ICE vehicle registration are banned in some urban areas) is one of the primary factors driving the growth of the market.The global electric vehicle market is dominated by major players such as Tesla (US), BYD (China), BMW (Germany), Volkswagen (Germany), and Nissan (Japan).  

Ideanomics Inc. (Nasdaq-IDEX ) a EV facilitation service and fintech company reported its 5th  month of consecutive EV sales at it’s EV hub in Qingdao China, selling over 150 units of mainly taxi and rideshare EV.

FCEV segment is expected to grow at the highest CAGR

FCEVs have better fuel economy and can travel around 300-400 miles with a full fuel tank. The refueling time for fuel cell powered vehicles is about 3 to 5 minutes. This makes FCEVs an ideal option for transportation on definite or fixed routes. However, the availability of infrastructure such as hydrogen refueling stations, hydrogen production facilities, and supporting fuel cell technology is minimal worldwide due to the substantial cost of fuel cell stack and system. However, countries like Japan and South Korea are investing in the development of FCEVs.

Increasing adoption of electric buses likely to propel the growth of commercial vehicles during the forecast period

Commercial vehicles are expected to be the fastest growing segment within the market. Increasing adoption of electric buses, particularly in China and India, has contributed to the growth of the electric commercial vehicle segment. Several countries are expected to replace their existing fuel-based bus fleet with electric buses, which will, in turn, drive the growth of commercial electric vehicles during the forecast period. Additionally, the growth of e-commerce, logistics, and shared mobility will drive the growth of commercial electric vehicles during the forecast period.

The supercharging segment is expected to grow at the highest CAGR

Tesla pioneered the installation of supercharging stations across the world. These super-fast charging stations can charge an EV battery in approximately 30 minutes. However, superchargers are exclusive only to Tesla EVs and do not function on other manufacturer’s models. As of January 2019, Tesla had over 1,400 supercharging stations across the world. With the mounting planned production of Tesla EVs that are set to be launched over the next few years, the supercharging segment is expected to grow in tandem.

Besides Tesla, ABB and Tritium have introduced super-fast charging technologies, 350 kW Terra HP and Veefil-PK, respectively. Additionally, JET Charge have installed super-high charging power stations in Australia. Innovations by global as well as some key regional players are expected to open new avenues for the growth of this segment over the next few years.

The Asia Pacific market is expected to register the fastest growth during the forecast period.

The Asia Pacific electric passenger car market is estimated to be the largest and fastest growing market during the forecast period. It comprises some of the fastest developing economies in the world, such as China, and India. Market experts predict EVs are likely to account for around 50% of the market share in China by 2025. The government in these countries have recognized the growth potential of electric vehicles and the advantages of using them. Increasing demand for electric vehicles in Asia Pacific is anticipated to boost infrastructure development and ensure remarkable economic growth. China is also investing heavily in the production of commercial electric 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. All these factors will drive the electric vehicle market in the Asia Pacific region.

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