Electric Mobility Market Analysis by Product (Electric Car, Electric Motorcycle, Electric Scooter, Electric Bike, and Others); by Voltage (Less than 24V, 24V, 36V, 48V, and Greater than 48V); and by Battery (Sealed Lead Acid, NiMH, and Li-ion) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 4626 | Published Date: Feb 27, 2023
The global electric mobility market is estimated to garner a revenue of ~USD 1450 Billion by the end of 2033 by growing at a CAGR of ~27% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 355 Billion in the year 2022. The growth of the market can be attributed to the rising popularity of electric mobility as well as the demand for services such as E-scooter sharing, E-bicycle, and E-motorcycle sharing is expected to propel the market. In 2021, more than 85000 electric vehicles were registered in India. The increasing concern of people regarding air pollution as the traffic increases day by day with more people using personal vehicles. Electric vehicles are ruling the market owing to raised fuel prices and scarcity across the world. Also, people stopped using public transport as it is not as convenient as personal vehicles.
Battery electric vehicles (BEV) have growth potential, with the development of smart grids, and intelligent electricity distribution systems. Electrical energy is stored in a rechargeable battery, which includes purely electric vehicles, and vehicles with a combination of electric motors and combustion engines. There has been a growing demand for low-emission vehicles and rising government policies supporting zero-emission vehicles are expected to boost the electric mobility market in the upcoming years. Global warming is harming the ozone layer which causes great harm to people owing to the penetration of UV radiation. UV radiations are one of the main reasons for cancer occurrence. Additionally, the pollution from fuel combustion can lead to many respiratory disorders among people. According to the United States Environmental Protection Agency, out of 100%, nearly 27% of greenhouse gas emissions in the U.S. are released from the transportation sector.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~27% |
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Base Year Market Size (2022) |
~USD 355 Billion |
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Forecast Year Market Size (2033) |
~USD 1450 Billion |
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Regional Scope |
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Growth Drivers
Rising Price of Fossil Fuels with Growing Number of Fuel Vehicles - The increasing price of oil including diesel and petrol is anticipated to propel the demand for electric vehicles. The surge in the demand for electric vehicles is expected to escalate the electric mobility market in the forecasted period. As per the report by the International Energy Agency, in 2021, ~16.5 million electric cars were on road across the world.
Rising Concerns of Carbon Dioxide Emission with Rising Global Warming – As per the International Organization of Motor Vehicle Manufacturers, global road transport is responsible for about 16% of manmade carbon dioxide emissions.
Increasing Sales of Electric Two-Wheelers Owing to Rising Disposable Income – In India, the count of electric two-wheelers was found to be more than 2,30,000 units in 2021 as against ~1,00,000 units that were sold in 2020.
Growing Automotive Stimulation and Rise in the Adoption of Electric Vehicles – According to the International Energy Agency (IEA), in 2020, the number of new EVs registered globally increased by 41% as compared to 2019.
Challenges
The global electric mobility market is segmented and analyzed for demand and supply by product into electric cars, electric motorcycles, electric scooters, electric bikes, and others. Out of these, the electric car segment is expected to garner the highest market share by 2033, owing to the high demand for electric vehicles by the populace and the rising trend of connected mobility. According to the International Energy Agency, electric cars are surging in popularity worldwide, and it is estimated that 13% of new cars sold in 2022 will be electric. Furthermore, an upsurge in the huge utilization of vehicle telematics is also a significant factor that is estimated to provide lucrative opportunities for the growth of the segment over the coming years. Electric vehicles are more popular owing to their battery efficiency and prevention of combustion of fuel gas. Electric cycles or bicycles are used by many students and high school children to go to school. Also, these are not high-speed vehicles that prevent unwanted accidents. The increasing adoption of self-driven vehicles is also estimated to have a positive impact on the growth of the market segment in the coming years.
The global electric mobility market is also segmented and analyzed for demand and supply by battery into sealed lead acid, NiMH, and Li-ion. Amongst these segments, the Li-ion segment is expected to garner a significant share. The rising preference for lithium-ion batteries in the automobile sector electric vehicles owing to their efficiency, and lightweight is estimated to drive the market growth during the forecast period. Also, lithium-ion batteries are rechargeable and are used in consumer electronics which are portable. Some of the portable electronics used in daily life are smartphones, vacuum cleaners, electric vehicles, cameras, and laptops. These are the smallest and high-capacity batteries with wireless charging support. The deterioration process during charging and discharging is less in these batteries compared to other lithium-ion batteries. These Li-ion batteries can even withstand the problem of self-discharge issues. The increasing use of smartphones and digitalized devices is estimated to boost the market segment growth during the forecast period. The global mobile sales in e-commerce in the year 2021 as per the estimations was approximately USD 4 trillion.
Our in-depth analysis of the global electric mobility market includes the following segments:
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By Product |
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By Voltage |
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By Battery |
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The Asia Pacific electric mobility market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the large population in the region, growing production of electric vehicles with the rising concern for global warming. Also, pollution has encouraged the governments to promote the adoption of electric vehicles. According to the report of the World Bank in 2021, the population of East Asia and the Pacific was ~2.37 billion, and as per International Energy Agency, China is the top producer of electric vehicles. The government initiatives to reduce fuel consumption and increase the efficiency of public transportation. In addition to this, the proliferating adoption of electric bikes in some countries such as China, Japan, and so on is also projected to boost market growth further over the forecast period in the region. Further, the increasing construction of mass rapid transit systems that run on electric power is estimated to increase the demand of the market in the coming years. The adoption of these transport by many people in developed countries reduces the time of waiting and avoids heavy crowded traffic on roads. Electric vehicles utilize very less energy compared to fuel vehicles and also reduce the cost of maintenance. These factors are boosting the market growth in the region.
Tesla Inc. is closing in on an agreement to make electric vehicles in India for the first time, after setting up production in the U.S. and China.
Honda Motor Company Ltd. launches India’s first mainstream strong hybrid electric vehicle, with EV drive mode, Hybrid drive mode, and engine drive mode.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Harshita Srivastava, Saima Khursheed
Ans: The growing automotive electrification, the rise in the adoption of electric vehicles and the rising prices of fossil fuels, and the declining cost of batteries are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~27% over the forecast period, i.e., 2023 – 2033.
Ans: Low adoption of electric vehicles in developing economies and nonpresence of standardization among nations are estimated to be the growth hindering factors for market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Tesla Inc., Honda Motor Company Ltd., Bayerische Motoren Werke Aktiengesellschaft, General Motors Company, Nissan Motor Corporation, Suzuki Motor Corporation, Terra Motors Corporation, Vmoto Limited, Yamaha Motor Company Limited, Mahindra Electric Mobility Limited
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, voltage, battery, and by region.
Ans: The electric car segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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