Electric Mobility Market Growth Drivers and Challenges:
Growth Drivers
- Development of manufacturing operations: The electric mobility market is experiencing exponential growth, driven by the development of manufacturing operations in various countries. Companies are establishing manufacturing bases as a strategic move to expand their operations. In April 2025, VinFast announced that its new manufacturing facilities are likely to start operations in India by June 2025, followed by Indonesian operations by October 2025.
Moreover, VinFast initiated construction of its USD 200 million production plant in Indonesia in July 2024, to generate nearly 50,000 units yearly. This manufacturing expansion demonstrates a shift of industry-wide production toward high-growth regions as it decreases production costs while raising immediate customer service capabilities and enhancing supply chains.
- Growth in electric two and three-wheelers: Automobile manufacturers are integrating technologies such as AI to develop advanced smart transit solutions in the electric vehicle industry. In January 2025, Tata Motors launched Avinya as its next-generation EV platform, in which the company incorporated state-of-the-art AI technologies to optimize vehicle performance while enhancing user experience. Avinya is designed through a modern architecture that seeks to establish new standards worldwide for such vehicles in terms of range and efficiency. These automotive solutions driven by AI technology are gaining substantial enhancements of safety features while boosting energy performance and user satisfaction.
Challenge
- Lack of consumer awareness: Rural areas hold limited knowledge about environmentally friendly vehicles, which is hindering their adoption. Lack of awareness among consumers regarding environmental advantages, the overall cost of ownership, and government incentives for EVs act as restraining factors for the market. Furthermore, a lack of confidence concerning the performance of EVs, including their range and battery durability, hinders adoption and restrains market expansion.
Electric Mobility Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
21.4% |
|
Base Year Market Size (2025) |
USD 527.04 billion |
|
Forecast Year Market Size (2035) |
USD 3.66 trillion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of electric mobility is evaluated at USD 628.55 billion.
The global electric mobility market size exceeded USD 527.04 billion in 2025 and is set to expand at a CAGR of more than 21.4%, surpassing USD 3.66 trillion revenue by 2035.
Asia Pacific electric mobility market is predicted to capture 33% share by 2035, driven by government incentives, regulatory support, and rising EV adoption.
Key players in the market include Tesla Inc., Honda Motor Company Ltd., Bayerische Motoren Werke Aktiengesellschaft, General Motor Company, BYD Limited, Accell Group, Volkswagen AG, Zero Motorcycles Inc., Ford Motor Company, Vmoto Limited.
