The e-vehicles market is anticipated to witness a significant growth owing to the need for addressing future energy requirements. The necessity to attain sustainable transportation facility plays a vital role in driving e-vehicle demand. Moreover, favorable government initiatives, coupled with growing environmental concerns are a few key factors driving the market growth. Additionally, the e-vehicles market is one of the key solutions to decrease the emission of greenhouse gasses and other pollutants, hence these are becoming an integral part of the automobile industry. Further, increasing energy costs such as petrol, diesel, and emerging energy-efficient technologies are also anticipated to fuel the electric vehicle market growth.
China-based manufacturer BYD and Google’s Recharge IT program have invested massively in green car technologies which have boosted the growth of the EV market. Further, Extensive adoption of e-vehicles is anticipated to help reduce the dependence on fossil fuels and emissions of CO2 from transportation, which in turn is likely to impact the market favorably.
Since e-vehicle has threats such as electrical malfunction and system falls because of stray power cables, using an e-vehicle remains a crucial decision for several consumers. Furthermore, Lack of recharging infrastructure, limited range of driving range and high initial buying cost are anticipated to hamper the e-vehicles market. E-vehicle development has challenges like, peak load impacts of charging and a high cost of infrastructure which may hinder electric vehicle market growth.
Development of advanced technology in manufacturing batteries having more durability & efficiency paired with an integration of cutting-edge applications and features provide substantial growth opportunities for the e-vehicle market. Use of smart grids enables quick charging by offering electricity with better control over the aspects of operations, such as generation, distribution, and billing paired with increasing adoption of electronic vehicles is anticipated to provide ample opportunities for utility providers, manufacturers, and consumers.
The e-vehicles market is classified into Hybrid Electric Vehicles (HEV), Plug-in Electric Vehicles (PEV) and Battery Electric Vehicles (BEV). The emergence of Plug-in Electric Vehicles across the light-duty segment is projected to impact the PEV market growth favorably. The hybrid EV market is anticipated to witness growth as the automakers emphasizing on developing the vehicles in consent with several guidelines to reduce vehicle’s CO2 emission, and customers also seek to cut down fuel expenditure.
The U.S. is expected to dominate the e-vehicles market, owing to the favorable government incentives & initiatives and presence of major industry players. Incentives include reduced license fees, availability of tax credit on a purchase of new PEV, etc. In Florida, the electric vehicles are excluded from most insurance charges and allowed access to carpool tracks. Moreover, the government in the France, UK, and the U.S. are promoting large-scale initiatives to make these vehicles available to consumers and government agencies, and build an electric vehicle charging infrastructure, thereby fueling the market growth in these regions. The Asian e-vehicles market is anticipated to witness the significant growth owing to the higher fuel price, decreasing oil subsidies, several government initiatives and ongoing promotion and support of electric vehicles. The government initiatives include R&D investments, subsidies for EV buyers, tax incentives and public awareness programs, which are successfully adopted in Korea and Japan.
The global EV market is dominated by key industry players such as Nissan, General Motors, Toyota, and Tesla. Other manufacturers include Mitsubishi Motors, BYD, Daimler AG, Smith Electric Vehicles, Volkswagen and Renault S.A. These companies focus on developing strategic and commercial relationships with each other in order to sustain in the market. In 2014, Tesla dissolved the agreement made with Toyota for developing an electric powertrain for the Toyota RAV4 to focus on their own products and former partners became rivals. The electric vehicle market is considered to be highly competitive as numerous established, and new automobile manufacturers have entered into the market. Honda will be launching the Clarity EV by the end of 2017, and it will face the Nissan LEAF. Also, other key industry players announced the launch of EV like Hyundai would be launching Ioniq EV, Mercedes with EQ, Jaguar, and Audi will be in competition with their I-Pace and eTron respectively.
Electric Vehicles Product Outlook (Volume, Million Units & Revenue, USD Million; 2012 - 2020)
Electric Vehicles Regional Outlook (Volume, Million Units & Revenue, USD Million; 2012 - 2020)
• North America
• Asia Pacific
Research Support Specialist, USA