The global electric vehicle market value will witness a significant growth from just $163.01 billion in 2020 to $823.75 billion by 2030, Allied Market Research forecasts. It will apparently report an 18.2% CAGR (Compounded Annual Growth Rate) in the 2021-2030 period.
The report emphasized that the Asia-Pacific largely drives the growth in the global electric vehicle industry. Europe followed it ahead of North America and LEMEA.
Germany had the largest EV market share globally in 2020, while Norway’s EV market will expand by a substantial margin within the forecast period, the report noted.
Forecasts
Allied Market Research forecasts that the three key factors will present huge prospects for electric automakers, including the following:
- Technological advancements
- Proactive government initiatives
- Self-driving technology development
It further outlined the potential of battery-electric vehicles (BEVs) to dominate the market in 2030, primarily due to a higher growth rate. For reference, it reportedly held the largest share of the market in 2020.
The report further noted that the electric passenger car market would surge by a “double-digit” due to its growing sales worldwide and effective government incentives upon purchase. For context, it also recorded the highest share of the market in 2020.
It further outlined the electric vehicle industry’s key automakers, including the following: “Ampere Vehicles, Benling India Energy and Technology Pvt Ltd, BMW AG, BYD Company Limited, Chevrolet Motor Company, Daimler AG, Energica Motor Company S.p.A., Ford Motor Company, General Motors, Hero Electric, Hyundai Motor Company, Karma Automotive, Kia Corporation, Lucid Group, Inc., Mahindra Electric Mobility Limited, NIO, Nissan Motors Co., Ltd., Okinawa Autotech Pvt. Ltd., Rivain, Tata Motors, Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, WM Motor, and Xiaopeng Motors.”
Growth drivers
Numerous factors have driven the adoption of electric vehicles in many countries across the world. Some of these factors include implementing strict vehicle emission standards to cut the transportation sector’s carbon footprint.
For instance, the US and the EU imposed CAFÉ standards for automakers to lower energy consumption through raising cars and light trucks’ fuel economy.
Apart from that, the declining cost of power batteries and surging fuel prices also contribute to the intensifying prevalence of electric vehicles.
Top barriers
Despite the notable progress of the EV uptake across the world, there are still prevailing challenges that hinder the shift.
As noted in the report, the lack of enormous and reliable charging infrastructures remains among the top barriers to EV adoption. It intensifies “range anxiety” among drivers, discouraging potential new buyers from buying an EV.
Moreover, the increasing production cost results in expensive EV models that also dissuade price-conscious customers. It also puts significant pressure on automakers, especially those who have just started to tap into this emerging industry.
See Also:
- EU’s battery-electric vehicle registrations grew 118.1% in August 2023
- Electric vehicle sales in US crossed critical mark in June
- White House allocates $100M to fix or replace broken electric vehicle chargers in the US
- India to stimulate electric vehicle investments with new policy, minister says
- National Grid beats 1,000 electric vehicle milestone
The wide adoption of electric vehicles continues to progress owing to the global push for clean energy and sustainable transportation. It would be unsurprising if the global industry actually hits the forecasts, considering that many governments have already announced plans to ban new sales of conventional cars by 2035, including the EU and the US.
