Global EV Market To Grow By $343 Billion In Next 4 Years: Report

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The global electric vehicle (EV) market size is estimated to grow by USD 343.01 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 13.51% during the forecast period.

The rise in concern over emissions from fossil fuel vehicles has spurred a surge in demand for low-emission and fuel-efficient vehicles worldwide. This shift is primarily driven by escalating fuel prices and geopolitical tensions affecting oil exports. As a result, consumers are increasingly turning towards electric vehicles (EVs) to enhance energy security, cut fuel costs, and mitigate air pollution-related health issues.

The transition to EV is further fueled by governmental policies, technological advancements, and growing awareness among consumers. Notably, BMW witnessed significant sales growth in fully electric vehicles in 2022, reflecting the broader trend towards EV adoption. With zero tailpipe emissions, both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are gaining traction among environmentally conscious consumers. The forecast for the EV market remains optimistic, driven by the collective efforts of governments and consumers to curb emissions and combat climate change.

The Battery Electric Vehicle (BEV) segment is poised for substantial growth in the coming years. BEVs, which run solely on battery power, are gaining traction in the market. Unlike Plug-in Hybrid Electric Vehicles (PHEVs), BEVs rely entirely on their batteries for propulsion. Popular models like the Tesla Model 3, Nissan LEAF, and Renault ZOE are driving this segment’s popularity. In 2018, the BEV segment was valued at USD 152.02 million, making it the largest segment in the electric vehicle market.

The report also delved into challenges that the EV market is currently facing stating that the absence of adequate EV charging infrastructure presents a significant concern for both consumers and governments. With the anticipated rise in EV adoption, collaboration between governments and vendors is imperative to address this gap. In the US, the disparity between vehicles and charging stations is stark, with only 16 stations for EVs compared to 225 for traditional fuel vehicles. As EVs with larger batteries become prevalent, the need for more robust charging systems grows. However, the high costs associated with establishing charging stations pose a significant barrier. Residential AC chargers range from $250 to $1,500, while commercial AC chargers can cost up to $6,000. DC fast chargers are even pricier. Despite government support through funding and tax rebates, the gradual reduction of such incentives negatively impacts the EV charger market. Without substantial support, the growth of the EV market will be constrained by the limited charging infrastructure.

Projections indicate that the Indian EV market, valued at US$2 billion in 2023 could surge to US$7.09 billion by 2025. Industry estimates also forecast the domestic EV market to achieve 10 million annual sales by 2030. By 2030, as per a Bain & Co. report, electric two-wheelers could make up about 40 to 45 percent of all EVs sold in India, and electric passenger vehicles could make up about 15 to 20 percent.