One of the factors supporting the growth of global electric vehicle market is rising prices of fuel and diesel. An electric vehicle is adopted on a large scale due to high price of fuels.
According to International Energy Agency (IEA), after a decade of tremendous expansion, there were 10 million electric vehicles on roads around the world in 2020. Although 16% reduction in worldwide automobile sales due to the pandemic, electric vehicle registrations surged by 41% in 2020. Roughly 3 million electric vehicles were sold worldwide and Europe for the first-time surpassed China as the world's biggest electric vehicle market. Electric truck and bus registrations also increased in major countries, hitting 31,000 and 600,000 units globally.
An electric vehicle runs on electricity rather than fuel or gasoline. An electric vehicle runs on electric motor instead of internal combustion engine. The wide range of batteries is used to run electric vehicle. An electric vehicle helps in the reduction of pollution, which is driving the growth of global electric vehicle market. The technological advancements are providing growth prospects for electric vehicle market. There are different types of electric vehicles available in the market. Those are battery electric vehicle, plug in hybrid electric vehicle, and hybrid electric vehicle. The hybrid electric vehicle is adopted on a large scale in global market.
According to Precedence Research, the global electric vehicle market size will reach at USD 1103.17 billion by 2030 and growing at a CAGR of 23.1% over the forecast period 2022 to 2030.
What are the key trends in the electric vehicle market?
One of the factors supporting the growth of global electric vehicle market is rising prices of fuel and diesel. An electric vehicle is adopted on a large scale due to high price of fuels. This type of vehicles is fuel efficient and does not emit any kind of toxic gases. This factor is driving the demand for electric vehicles in the market. In addition, government of emerging and established nations is taking initiatives and actions for the development of global electric vehicle market. The expansion of global electric vehicle market is also being driven by reduction in prices of electric vehicle batteries. The stringent government regulations against carbon emissions and greenhouse gases emissions are boosting the growth of global electric vehicle market.
Electric vehicle producers and regulators are increasing their focus and efforts. Electric vehicle technologies such as fully electric and plug in hybrid electric vehicles are appealing solutions for achieving environmental and socioeconomic goals. Electric vehicles can reduce dependency on oil-based fuels and if powered by low carbon energy can achieve considerable reductions in greenhouse gas emissions. Electric vehicles are also ideally adapted to helping alleviate air pollution concerns due to their zero emissions. Furthermore, electric vehicles are pushing advancements in battery technology, which is a critical problem for productivity in the clean energy transition.
What are the challenges in the electric vehicle market?
One of the major challenges for the growth of global electric vehicle market is the high cost of manufacturing. As compared to traditional type of vehicles, electric vehicles are quite expensive. This is due to advanced features embedded in vehicles as well as technological developments. In addition, the manufacturers need high capital investments for manufacturing electric vehicles. This factor is hindering the growth of global electric vehicle market. Moreover, electric vehicles require charging station and infrastructure. Not only have the countries around the world had electric vehicle charging station. This is another challenge that is restricting the expansion of global electric vehicle market. Furthermore, in some of the developing nations, government is not taking proper steps for the promotion of electric vehicles. In addition, proper guidelines are also not imposed for adoption of electric vehicles. This factor is hampering the electric vehicle market growth.
Which regions are driving the electric vehicle trend?
Asia-Pacific region ranks on the top for the adoption of electric vehicles in the global market. The market for electric vehicles is growing in Asia-Pacific region due to the surge in demand for fuel efficient vehicles. In Asia-Pacific region, China accounts for the highest market share in the electric vehicle market. This is attributed to the expansion of automobile sector in the country. In addition, favorable government regulations and guidelines are also contributing towards the growth of electric vehicle market in the region.
After Asia-Pacific, North America region holds highest market share in global electric vehicle market. The U.S. dominates the North America electric vehicle market. The growth of the electric vehicle market is due to the rising government initiatives in favor of developing electric vehicle market as well as to build proper charging infrastructure and stations for electric vehicles. This factor is driving the sales of electric vehicles in the region.
Furthermore, Europe also dominates the global electric vehicle market. The European countries such as Germany, the UK, and France contribute a lot towards the growth and development of electric vehicle market in the region. The factors such as growing environmental concerns and growing government activities for reduction of carbon emissions are boosting the growth of electric vehicle market in the region. In addition, Europe is also adopting fuel efficient vehicles, which is propelling the growth of electric vehicle market.
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