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Electric vehicle Market Forecast:
Electric vehicle refers to vehicles which run on electricity as a fuel utilizing power stored in batteries to propel electric engine or in the existing form a vehicle which can run on internal combustion engine as well as electric motor working in tandem. Although electric vehicles today contribute to an extremely small share in the automotive industry as the electric vehicle industry is still undergoing transformation but has the potential to make the conventional vehicles obsolete. The global electric vehicle market is expected to have a CAGR of 23.9% during the forecast period 2016-2023. Government initiative to reduce the emission of green-house gasses such as CO2 and other carbon compounds and provide subsidy on electric vehicles to promote their usage is expected to propel huge growth in global electric vehicle market. Conventional vehicles use diesel and petrol as a fuel which upon combustion release carbon dioxide which in-turn pollutes the environment. On 12 December 2015 “Paris agreement” signed by 175 countries aimed at reducing the global CO2 emission by 28% by 2025, which would positively influence the growth of global electric vehicle market. The major factor restricting the growth of global electric vehicle market is the high costs of vehicles and absence of proper infrastructure for proper charging stations. Also the performance of the car also gets affected at high speed as electric engine are not as efficient as diesel or petrol engines.
Increase in production and sales of automobiles is supplementing the growth of global electric vehicle market
The growth of electric vehicles is also attributed to the increase in production and sales of automobiles as vehicles are increasingly becoming an affordable commodity due to rise in disposable income of an individual across the globe. According to OECD, in 2015 disposable income per capita of US, Australia and Canada was $46,509, $ 36,473, $31,086, respectively enabling a promising customer base. Also the growth of the electric vehicle market is influenced by the fluctuations in petrol prices due to monopoly of crude oil reserves in gulf countries and also due higher dependence on petroleum products and growing rate of depletion of crude oil reserves. Global electric vehicle market is also driven by soundless operation and high fuel efficiency of electric vehicles. Supportive Government policies are also pushing the surge of electric vehicle market by offering attractive incentives on electric vehicles aimed at pushing the adoption of electric vehicles. In countries such as China, US, Countries of EU offers benefits to customers such as tax exemption on use of electric vehicles and free charging at charging stations. In 2016 the German government in order to enhance electric vehicle sales introduced as a subsidy of $5,500.
Source: OBRC Analysis.
The report on global electric vehicle market includes segmentation on basis of technology, power source and vehicle.
On the basis of technology, the market is sub-segmented into:
On the basis of power source the market is sub-segmented into:
On the basis of vehicle the market is sub-segmented into:
The report scope is widely categorized on the basis vehicle type which includes passenger cars, commercial vehicles, two wheelers and others. Moreover, the market revenue estimates and forecast includes revenue from electric vehicles only and does not include revenues from charging stations for electric vehicles.
The global electric vehicle market report has been geographically segmented into:
Asia Pacific leading region in electric vehicles market
Asia Pacific accounts for the highest revenue share in 2016 owing to the proactive government policies in the countries such as China, India, and Japan etc. For example the Chinese government provides special subsidy on electric vehicles, according to International energy agency Chinese government exempts electric cars from excise and acquisition taxes worth $6,000 to $10,000 per car. Also government is proactively involved in setting up electric charging station and plans to deploy 100,000 charging stations in 2017 which would give a huge boost to the electric vehicle market. One of the major factors which also influence the growth of electric vehicle in the Asia pacific region is the well-established battery market of China. According to EV outlook in 2016 more than 200 million electric two wheelers and 345 thousand busses were estimated in China. The North America region is also expected to be key area of focus for the electric vehicle market due to supportive government policies in countries such as US and Canada owing to high disposable income in the region.
Global electric vehicle market report covers segmentation analysis on the basis of technology, power source and vehicle type. On the basis of technology the market is further segmented as Hybrid electric vehicles (HEV), Plug-In hybrid electric vehicles (PHEV) and Battery electric vehicles (BEV). Hybrid electric vehicles are expected to show significant growth during the forecast period. According to the Electric Drive Transportation Association (EDTA), total sales of hybrid electric vehicles (HEV) across the world accounted for about 0.346 million units in 2016 and is constantly increasing as a result of favourable government policy. Growing sales of hybrid electric vehicles across the globe is expected to supplement the market growth during the forecast period. Further, on the basis of power source that market is further divided as Stored electricity and On board electric generator. Moreover, on the basis of vehicle type the market is further sub-segmented as Passenger cars, Commercial Vehicles, Two wheelers and Others. In the vehicle type segment passenger cars are expected to grow at the fastest pace owing to increasing sales, high R&D investment by the companies to improve their products and high demand of passenger cars. According to OICA (International Organization of Automobile Manufacturers), the sales of passenger cars have increased by 7.57% to 71 million in 2017 from 66 million in 2015. The increasing sales of passenger cars is expected to have positive impact on the growth of global electric vehicle market. Furthermore, increasing R&D investments from electric passenger car manufacturers is also expected to supplement the market growth during the forecast period. For instance, in year 2017, Toyota invested $9.08 billion in R&D. According to Matthias Müller Chief executive Volkswagen in 2017, the company plans to invest $10 billion on Electric vehicles over the next 5 years. These types of investments is expected to result in launch of novel electric passenger cars during the forecast period thereby supplementing the growth of global electric vehicles market.
The major market players of the global electric vehicle market are:
These companies use various strategies such as merger & acquisition, collaboration, partnership and product launch. And merger & acquisition is the key strategy adopted by the companies in the electric vehicle market.
For Example: In November 2016, Tesla motor, acquired SolarCity. This $2.6 billion acquisition enabled the maker of all-electric cars and manufacturer with the installer of solar roof top panels.
In January 2018, Ford Motor Co. have announced to double its investment on electrification of vehicles to $11 billion. This is expected to result in launch of novel electric vehicles in the market during the forecast period.
Volkswagen AG is also planning to invest a sum of around $40 billion by 2030 to build electrified versions of its 300+ global car models. This investment is expected to result in launch of new electric cars in the market during the forecast period.
The report covers detailed analysis of companies which comprises of overview, SCOT analysis, product portfolio, strategic initiative, strategic analysis, competitive landscape and market share analysis in electric vehicle market.
Key reasons to buy the report:
How we are different from others:
At Occams we provide an extensive portfolio which is comprehensive market analysis along with the market size, market share, and market segmentations. Our report on global electric vehicle market offers detailed analysis of strategic models such as investment vs. adoption model, see saw analysis and others strategic models. Also, the report contains the detailed analysis of application, adoption scenario and decision support for each segment. The report discusses competitive landscape of the electric vehicle market, with giving extensive SCOT analysis of key companies.
Key findings of the global electric vehicle market: