The automobile industry is one of the fastest-growing industries in the manufacturing sector. Intense global competition along with consumer preference driven innovation have been crucial factors driving the industry.
However, the growing demand of and subsequent increase in the number of vehicles have contributed majorly to the depletion of non-renewable resources and deterioration of the earth’s atmosphere. A steep rise in the conventional fuel vehicle sales along with global population and urbanization has brought with it some serious concerns such as global warming and alarming pollution levels. There are innumerable issues that are plaguing the planet and the natural resources (especially fossil fuels) are declining at a rapid pace.
This has consequently led the governments, environmental agencies, and automobile manufacturers to develop modes of transport that run on alternate means. Electric vehicles are considered the most desirable option of all the alternative forms of vehicles. The support of the governments of various nations and revolutionary developments by the automakers can be credited for the growing prominence of Electric Vehicles in the automobile industry.
Several countries have pledged to ban the sale of gasoline-powered vehicles within the next two decades, with many others to follow. The Electric Vehicle Initiative launched in 2010 by some of the major countries across the globe is one of the many initiatives undertaken that are accelerating the growth rate of the market for EVs on a global scale.
The report defines and estimates the market size in terms of volume and the section on electric vehicle components market size has been provided in terms of value. The global electric vehicles market is estimated to reach 10,761.42 thousand units by 2026. The market is driven by a number of factors such as stringent governmental regulations in terms of emissions and fuel economy, growing demand for fuel efficient vehicles, and governmental initiatives such as tax benefits and subsidies to promote the sales of electric vehicles. However, there are certain challenges which are inhibiting the overall growth for the global electric vehicles market such as high initial cost and time required to charge the electric vehicles.
The global electric vehicles market has been fundamentally benefiting from the changing paradigms in governmental regulations and increasing environmental awareness among the consumers. BEVs held the highest market share in 2016 in terms of volume and is expected to grow at a higher growth rate as compared to PHEV.
BEVs produce no pollution when being driven, as there is no gasoline interaction which means tailpipe pollution is zero. Factors such as improved charging infrastructure, governmental initiatives, and increased range are expected to propel the market growth for BEVs.
Battery held the maximum share in the market and accounted for 68.8% share in 2016. Battery is the most important component of an electric vehicle and is used to power the main propulsion system.
While a battery serves as the primary source of power in Battery Electric Vehicles (BEVs), it works in tandem with a combustion engine in PHEVs and other conventional hybrids. The battery makes up substantial cost of an electric vehicle owing to its high price.
The electric passenger cars held the highest share in the market in 2016 in terms of volume and is also expected to grow at a higher rate as compared to commercial vehicles. Factors such as governmental initiatives, urbanization, and increasing disposable income is responsible for such a gigantic share of electric passenger cars. A major factor expected to play the key role in the development of passenger electric vehicles is the development of adequate road infrastructure for easing the adoption of these vehicles.
This report also covers the global electric vehicles market, by geography and consequently provides the volume of the key regions which include North America, Europe, and Asia-Pacific (APAC). APAC dominated the global electric vehicles market by volume in 2016.
The APAC automotive electric vehicles market is mainly dominated by the South Asian countries comprising of some of the biggest automotive producers in the world. The automotive market in the APAC region is growing rapidly, and the development of electric vehicles is gaining attention due to a collective effort from the government and manufacturers to initiate reforms and develop technologies which will promote the sale of these vehicles and make them economically efficient to use.
Some of the key players in the electric vehicles market are Tesla Inc. (U.S.), BYD Company Limited (China), Volkswagen AG (Germany), Nissan Motor Corporation (Japan), and Mitsubishi Motors Corporation (Japan). EV components manufacturers such as Samsung SDI (South Korea), Automotive Energy Supply Corporation (Japan), LG Chem.
(South Korea), Panasonic Corporation (Japan), and Continental AG (Germany). These companies are aiming for an increased number of product launches and collaborations to expand their operations and prevent new companies from becoming potential future competitors.