Electric Vehicle Market Trends

Growth Drivers

• Rising Population in the World – As the world population is rising in a steady pace, it generates the need of fuel-efficient vehicles. Thus, the increasing demand by the burgeoning population is expected to raise the production rate of electric vehicles in the forecast period. The World Bank calculated the global population to be 7.84 billion in 2021, an increase from 7.09 billion in 2021. This number is anticipated to rise to 9.8 billion in 2050 and 11.2 billion in 2100, as per United Nations, Department of Economic and Social Affairs.

• Expansion of Automotive Industry - The recent statistics reveal that the global automotive industry is expected to reach approximately USD 9 trillion by 2030.  

• Rising Concerns of Carbon Dioxide Emission – A report published recently stated that a passenger vehicle emits about 5 metric tons of carbon dioxide per year. Also, as per International Organization of Motor Vehicle Manufacturers, globally road transport is responsible for about 16% of man-made carbon dioxide emissions.

• Increasing Prevalence of Electric Cars -  A latest report by International Energy Agency stated the number of electric cars on the road was 16.5 million in 2021.

Challenges

• High Costs of End Product
• Increased Need of Investments and Assets
• Non presence of Standardization Among Nations

The electric vehicle market is segmented and analyzed for demand and supply by vehicle type into passenger cars and commercial vehicles. Out of these, the passenger cars segment is expected to garner the highest market share by 2033, owing to the high demand of personal vehicles by the burgeoning population. The International Organization of Motor Vehicle Manufacturers (OICA) stated that the global passenger vehicles sales was 56 million in 2021, whereas, the production was 57 million in 2021. Also, the increased preference of electric vehicles over traditional cars by people owing to its advantages is expected to gather highest revenue. The International Energy Agency stated that passenger electric cars are surging in popularity and is estimated that 13% of new car sold in 2022 will be electric.