Solar Vehicle Market size was valued at USD 434.5 million in 2023 and is likely to reach USD 5.41 billion by 2036, registering around 21.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of solar vehicle is estimated at USD 508.89 million. The growth of the market can be attributed to the rising concerns about environmental pollution, and increasing investments in research and development activities by OEMs for developing zero-emission vehicles around the world. Furthermore, significant reduction in the prices of components utilized in the development and integration of solar vehicles is a crucial factor projected to offer abundant opportunities to the market in the upcoming years.
Along with these, growing initiatives undertaken by governments for providing subsidies, intensifying demand for energy-efficient sources as an alternative to fuel, and surge in production of electric vehicles across the globe, are expected to drive market growth in the near future. According to the International Energy Agency, sales of electric cars topped 2.1 million worldwide in 2019. The same year, electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
21.4% |
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Base Year Market Size (2023) |
USD 434.5 million |
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Forecast Year Market Size (2036) |
USD 5.41 billion |
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Regional Scope |
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segmented by electric vehicle type into battery electric vehicle (BEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV), out of which, the hybrid electric vehicle (HEV) segment is anticipated to hold the largest share in the global solar vehicle market. This can be accounted to the implementation of stringent vehicle emission norms and regulations, and removal custom duties for hybrid and electric vehicles by several countries globally. Additionally, on the basis of battery type, the lithium-ion battery is assessed to acquire the largest share during the forecast period, which can be credited to the high energy density and rapid discharging ability of these batteries. Apart from these, lithium-ion batteries offer maximum efficiency, making them more suitable for solar vehicles, which in turn is predicted to drive the market segment’s growth in the near future.
Our in-depth analysis of the global market includes the following segments:
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By Electric Vehicle Type |
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By Battery Type |
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By Solar Panel |
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On the basis of geographical analysis, the global solar vehicle market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The Asia Pacific industry is predicted to account for largest revenue share by 2036, backed by increasing installation of electric vehicle charging stations, and largescale production of electric vehicles in China. It is calculated that China will account for almost 43 percent of the electric vehicles produced globally by the end of 2027, reaching a value of 13 million automobile units. In addition, rise in the number of government initiatives to reduce greenhouse gas emissions, especially in India and South Korea, is also projected to boost the region’s market growth in the coming years. Moreover, Europe is expected to grab the largest market share by the end of 2030, ascribing to the early adoption of electric vehicles, growing integration of solar panels with electric vehicles, and escalating investments by prominent automobile manufacturers in the region to decrease greenhouse emissions from vehicles.
May 2021- Sono Motors and MAN Trucks announced a partnership for analyzing the technical and economic feasibility of integrating Sono Solar technology into MAN’s eTGE electric transporter.
April 2021- Bridgestone Corporation partnered with Lightyear, a Netherlands based startup, for providing specially developed tires for their upcoming Lightyear One solar car.
Author Credits: Dhruv Bhatia
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