Electric Vehicle Market to Grow at  22%/Year

The electric vehicle was primarily designed to replace conventional ways of travel that cause environmental pollution. Electric vehicles have gained popularity owing to numerous technological advancements. The electric vehicle outperforms the conventional vehicle providing higher fuel economy, low carbon emission and maintenance, convenience of charging at home, smoother drive, and reduced sound from engine.

The passenger car segment is anticipated to dominate the market throughout the analysis period. The Asia Pacific electric vehicle market accounted for approximately 52% share of the global market in 2016, and is anticipated to dominate during the forecast period.

Various commercial and government fleet managers rely on electric vehicles to secure their budgets from unfavorable fluctuations in the fuel costs and reduce emissions of their fleets. In addition, urbanization, rise in congestion, and increase in emissions have propelled the hybridization and electrification of vehicle powertrains.

Volatile oil & gas prices and upcoming shortage in fossil fuel are expected to boost the adoption of fuel-efficient vehicles. Countries, such as China and India, hold a tremendous market potential as, their governments have promoted substantial incentives for purchasing electric vehicles. According to Forbes, Chinese automakers churned out 680,000 all-electric cars, buses, and trucks in 2017, more than the rest of the world combined. China produced more than 200,000 all-electric commercial vehicles last year, amounting to nearly 5% of total output of the world.

KEY FINDINGS OF THE STUDY

• In 2017, the passenger car segment dominated the overall electric vehicle market.
• The commercial vehicle segment is anticipated to grow at the highest CAGR during the forecast period.
• In 2017, the hybrid electric vehicle segment was the highest contributor to the overall market, and is expected to maintain its dominance throughout the forecast period
• The battery electric vehicle segment is anticipated to witness the highest CAGR of 23.4% from 2018 – 2025
• Asia-Pacific dominated the market, with over 50% of the market share