The electric car market comprises battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that aim to reduce vehicular emissions. Electric cars provide environmental and economic benefits over conventional internal combustion engine vehicles as they produce zero direct emissions. The growing awareness regarding the environmental impact of gasoline and diesel cars is encouraging consumers to switch to electric vehicles. Stringent emission control regulations imposed by regulatory authorities across nations to curb air pollution have accelerated the adoption of electric cars.
The Global electric car market is estimated to be valued at US$ 343.27 Bn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the electric car market are Tesla, Inc., Nissan Motor Corporation, BMW AG, Ford Motor Company, General Motors Company, Volkswagen AG, Hyundai Motor Company, Kia Corporation, Audi AG, Mercedes-Benz AG, BYD Company Limited, Rivian Automotive, Inc., Lucid Motors, Inc., Polestar Automotive Holding AB, and Volvo Cars.
The key opportunities in the Electric Car Market Growth include rising investments by governments to develop charging infrastructure and provide purchase incentives. Additionally, evolving customer preferences toward electric vehicles over conventional vehicles due to growing environmental consciousness will drive market growth.
Globally major automakers are focusing their efforts on expanding their electric vehicle portfolio and production capacities. For instance, Volkswagen plans to increase its global electric vehicle production to around 26 million units per year by 2030. BMW also aims to double its electric vehicle sales annually over the next few years.
Market drivers
Stringent emission norms imposed by governments: Stringent emission control regulations regarding carbon dioxide emissions from vehicles are encouraging automakers to shift toward electric vehicle production. This is a major market driver.
Growing consumer awareness about environmental protection: Increasing environmental consciousness among consumers regarding pollution caused by gasoline and diesel cars is raising the Electric Car Companies for zero-emission electric vehicles.
PEST Analysis
Political: The electric car market is experiencing supportive government policies and regulations across different regions and countries globally. Governments are introducing subsidies, tax rebates and other fiscal incentives to promote adoption of eco-friendly electric vehicles.
Economic: Factors like fluctuating fuel prices and lower total cost of ownership compared to gasoline vehicles is positively impacting the electric car market. However, high initial purchase price of electric vehicles may pose a challenge for widespread adoption.
Social: Increasing awareness about environmental pollution and impact of carbon emissions is driving social change. Many consumers are preferring electric vehicles to fulfill their social responsibility of adopting clean energy solutions.
Technological: Continuous research & development is facilitating improvement in battery technologies like lithium-ion batteries. Advancements are resulting in higher driving range on a single charge and faster charging times. Software technologies are also enhancing driver experience through connectivity features.
Geographical regions of concentration
The electric car market in terms of value is majorly concentrated in the Asia Pacific and European regions currently. China dominates the Asia Pacific electric car market owing to supportive FDI policies and large domestic automobile industry. Presence of major OEMs and consumers' rising disposable income levels are factors behind Europe's prominence.
Fastest growing region
North America is anticipated to witness the fastest growth in the electric car market during the forecast period. Presence of early technology adopters and government measures promoting emission reductions are driving the regional market. The US market, in particular, will experience high demand fueled by strengthening charging infrastructure and production expansions by leading automakers.
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Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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