Electric Vehicle Market Demand Schedule to Reach 9,031,202 Units by 2025
The global Electric Vehicle Market
is driven by government support in the form of subsidies, grants, and tax rebates. Improving charging infrastructure, increasing vehicle range, and reducing cost of batteries have fueled the demand for EVs across the globe.
Stringent emission norms are anticipated to fuel the growth of market, demand schedule to reach 9,031,202 units by 2025
An electric vehicle (EV) uses one or more electric motors for propulsion. Advancements in battery technology have helped increase the driving range of an electric vehicle. Hence, the popularity of EVs has grown in the recent past. With a view to reduce crude oil consumption, automotive emissions, and air pollution,
The market is projected to grow at a CAGR of 32.57% during the forecast period, to reach 10.79 million units by 2025, from an estimated 1.50 million units in 2018. Government support in the form of subsidies, grants, and tax rebates, improving charging infrastructure, increasing vehicle range, and reducing battery cost has resulted in the sales growth of electric vehicles globally.
Government funding, subsidies, and incentives; growing demand for electric vehicles; increasing concern of environmental pollution, and huge investments by automakers are driving the growth of the market
(BEV)
BEVs are preferred by several governments due to their zero-emission nature. Various governments around the world support the sales of BEVs through their higher subsidy and tax rebate structures in comparison to HEVs and PHEVs. BEVs are also the most preferred vehicles in China. With steadily improving charging infrastructure and reducing charging time, BEVs are expected to register the highest growth rate among all EV propulsion systems. Increased range and reduced cost play an important role in increased sales of BEVs. Cumulative sales of BEVs may soon cross one million units worldwide. BEVs are available in multiple segments including sedan, SUV, and hatchback. Many OEMs are launching electric vehicles to cater to the market demand. BYD (China) and Tesla (US) are the pure electric vehicle companies topping sales while OEMs such as Nissan, Toyota, and GM are also giving tough competition to electric vehicle manufacturers.
(FCEV)
Fuel cell vehicles have better fuel economy and can travel around 300-400 miles with a full fuel tank. The refueling time for fuel cell powered vehicles is around 3 to 5 minutes. This makes fuel cell electric vehicles (FCEVs) an ideal option for transportation on definite or fixed route. However, the availability of infrastructure such as hydrogen refueling stations and hydrogen production facilities, which support fuel cell technology, is very limited worldwide due to the heavy cost of fuel cell stack and system. Moreover, hydrogen is difficult to store and transport, which also adds to the cost of the system. However, governments of various regions are increasingly investing to develop hydrogen-powered vehicles and hydrogen infrastructure. For instance, in January 2018, the Government of Canada announced an investment of USD 120 million to expand the electric vehicle charging and alternative refueling stations including hydrogen refueling stations.
(PHEV)
Increasing number of charging stations in countries such as China, US, and the UK would positively affect the demand for PHEVs. The demand for PHEVs would also rise due to various tax benefits and incentives provided by the governments of different countries. For instance, the Japanese government is providing subsidies up to USD 8,500 for PHEVs. China is leading the market for PHEVs in the Asia Pacific owing to the availability of advanced technology and increased government incentives on purchase of PHEVs.
(HEV)
Globally, many countries are now providing various incentives and tax rebates on the purchase of HEVs, which is ultimately driving the HEV market. Moreover, policies such as exemption from road tax, crowding charge waiver, and free car parks at various places have encouraged consumers to adopt hybrid vehicles. As a result, the adoption of HEVs is increasing, particularly in the Asia Pacific region. China, India, and Japan are investing a huge amount of money to encourage the adoption of HEVs. For example, schemes like National Electric Mobility Mission Plan, 2013 (NEMMP) are expected to drive the hybrid vehicles market in India.
Opportunities
Use of vehicle-to-grid (V2G) EV charging stations for electric vehicles
Electric Vehicle Charging stations powered by solar panels
Challenges
High cost of EVs in comparison with ICE vehicles
Stringent rules for installation of charging stations
Small distance covered by EVs
The major players are Tesla (US), Nissan Motor Corporation (Japan), BYD (China), and BMW (Germany), and Volkswagen (Germany).