Electric Vehicle Market size is expected to cross USD 1 Trillion by the end of 2033, growing at a CAGR of 20% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of electric vehicle was USD 170 Billion.The primary factor attributed to the market growth is the increased production of electric vehicles across the world. As per the reports by the International Energy Agency, the number of electric vehicles sales in 2021 surpassed sales of year 2020, with nearly doubling to 6.6 million.
Recently, there has been growing demand for low emission vehicles and rising government policies supporting long range, zero emission vehicles through subsidies & tax rebates. This trend is expected to compel the manufacturers to produce more electric vehicles. This has led to an employment generation in the automotive sector. The growing employment rate is thus anticipated to increase the sales of electric vehicles in the forecast period. The calculation of total employees in the Indian automotive industry approximately stood at 2 million in 2018.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~20% |
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Base Year Market Size (2022) |
~USD 170 Billion |
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Forecast Year Market Size (2033) |
~USD 1 Trillion |
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Regional Scope |
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Vehicle Type (Passenger Cars, Commercial Vehicles)
The EV market is segmented and analyzed for demand and supply by vehicle type into passenger cars and commercial vehicles. Out of these, the passenger cars segment is expected to garner the highest market share by 2033, owing to the high demand of personal vehicles by the burgeoning population. The International Organization of Motor Vehicle Manufacturers (OICA) stated that the global passenger vehicles sales was 56 million in 2021, whereas, the production was 57 million in 2021. Also, the increased preference of electric vehicles over traditional cars by people owing to its advantages is expected to gather highest revenue. The International Energy Agency stated that passenger electric cars are surging in popularity and is estimated that 13% of new car sold in 2022 will be electric.
Our in-depth analysis of the global market includes the following segments:
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By Propulsion |
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By Components |
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By Vehicle Class |
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By Speed |
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By Drive Type |
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By Vehicle Type |
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Regionally, the global EV market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033, owing to the large production of electric vehicles in the region. China is the top producer of electric vehicles as per International Energy Agency. The electric car registration rose from year 2019 with almost 1000 thousand units to year 2020 with around 1300 thousand units. Further, the large population in the region is expected to increase the demand of electric vehicle in the assessment period. The population in East Asia and Pacific as per World Bank was 2.37 billion in 2021. Additionally, technological advancements, growth in Gross Domestic Level (GDP) along with rise in disposable income are another factors that are anticipated to fuel the market size.
BYD Motors Inc. along with Hino Motors, Ltd. has entered into an agreement to set up a new company for commercial battery electric vehicles (BEVs) development.
Toyota Motor Corporation has launched Toyota Bz in newly established series of battery electric vehicles (BEVs), following the establishment of electrified vehicles.
Author Credits: Harshita Srivastava, Saima Khursheed
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