Electric Car Market Analysis - Market Size, Growth, Trends, and Forecast
Electric Car Market Forecast
Global electric car market size is expected to continue growing over the next few years primarily driven by technological innovations in batteries and the reduced price of lithium-ion (Li-ion) batteries. An increase in production volume is a major factor leading to the decreased costs of Li-ion battery prices, along with the relocation of manufacturing units from Japan to China. This relocation is allowing manufacturers to benefit from an ample supply of rare earth materials such as dysprosium and terbium for electric vehicle battery production. Additionally, car manufacturers are currently targeting higher battery capacities that increase the range of electric vehicles (EVs) up to 200 miles on a single charge. Due to these factors, we expect the global electric car market to grow 5.78 million units between 2018-2023 at a CAGR of almost 39%.
In addition to China, Japan is also one of the leading contributors to the sales of HEVs and electric vehicles across the globe. The implementation of stringent policies that support infrastructural development will drive market growth in Japan. The electric market analysis highlights that with the implementation of policies that promote the sales of electric cars, India will also contribute significantly to the growth of the EV market. As a result of these factors, the growth of the electric car market in APAC will be faster than the overall market growth.
Electric Car Market Insights
- 76% of electric car market growth between 2019-2023 will come from the Asia-Pacific region. China, Japan, South Korea, Singapore, and Australia are the major revenue contributors in this region.
- The electric car market year-over-year growth rate for 2019 is expected to be nearly 49%.
- The global electric car rental market will grow at a CAGR of 11% between 2017-2021. This market is highly competitive which is encouraging electric car rental companies to invest immensely in setting up charging infrastructure to make it easy to rent electric vehicles.
- Some of the major electric car market trends that will gain traction in the next five years include an increase in the number of new electric car launches across the globe, the emergence of wireless charging systems for EVs, and the growing production of in-house electric motors by OEMs.
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Electric Car Market Segmentation
Within our electric car industry research, we provide deep insights into the market landscape, its segments, and their market share. Our research experts segment this market into four main electric vehicle types being hybrid electric vehicles (HEV), battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles (FCEV). In addition, we offer geographical market segmentation of all major regions and top countries including United States, China, and more.
Electric Vehicle Market in US
The electric vehicle market in the US has been enjoying very fast growth since 2014 owing to their environmentally friendly and energy efficient advantages. We forecast this positive growth to continue into 2022 due to state-led state governments providing incentives for the adoption of electric vehicles to prevent increasing greenhouse gas emissions.
Electric Vehicle Market in China
China’s stringent emission standards for passenger and commercial vehicles is encouraging several customers to purchase EVs to reduce their emission levels. China recently launched new fuel consumption regulations that require new passenger vehicles to achieve an average fuel consumption of 5 L/100 km by 2020. Reaching this target would reduce emissions by roughly 25%. We forecast that factors such as the increasing concerns over fuel efficiency and emission reductions are expected to drive electric vehicle market growth in China through 2022.
Our electric car market segmentation research offerings include:
- Electric Car Market by Type
- Hybrid Electric Vehicle (HEV) Market
- Battery Electric Vehicle (BEV) Market
- Plug-In Hybrid Electric Vehicle (PHEV) Market
- Fuel Cell Electric Vehicle (FCEV) Market
- Electric Car Battery Market
- Nickel-Metal Hydride (NI-MH) Battery Market
- Lithium-ion Battery Market
- Fuel Cell Battery Market
- Electric Car Market by Powertrain
- Parallel Hybrid Vehicle Market
- Series Hybrid Vehicle Market
- Power Split Hybrid Vehicle Market
We at Technavio, with our comprehensive understanding of the electric car market, have been monitoring the latest industry trends and developments to create an in-depth portfolio of market research reports. These reports help our clients identify opportunities within the market and develop effective strategies to optimize their market positions. Our electric car market reports offer the following insights:
- Electric car market size
- Electric car market forecast
- Electric car market trends
- Electric car market growth
- Electric car market share
- Electric car market vendor landscape
- Electric car industry statistics
