Electric Vehicle Market Size, Share & Trends Analysis Report 2020-2030
At a 26.8% CAGR, the global electric vehicle market is expected to grow from 4.09 million units in 2021 to 37.4 million units by 2030. Manufacturers are now able to offer electric vehicles all over the globe due to the rising demand for low-emission commuting and government support through tax rebates and subsidies. There is a rising demand for electric cars in the market. Emission reduction targets have been set by countries around the globe based on their respective capacities.
OEMs will have the opportunity to increase their revenue streams and geographic presence by increasing investments made worldwide by governments to build EV charging stations and hydrogen fueling stations. Due to the high demand for low-cost, emission-efficient vehicles in the Asia Pacific, the market will continue to grow. However, North America and Europe are experiencing rapid growth due to government initiatives and the growing Passenger segment. The market for electric vehicles could be hindered by the lack of EV charging stations or hydrogen fuel stations, high initial investment costs, and performance limitations.
After a decade-long period of rapid growth, the global electric vehicle stock reached 10 million in 2020, representing a 43% increase in 2019 and a 1% share. Two-thirds (and two-thirds) of all new electric cars registered in 2020 were powered by battery electric vehicles (BEVs). China has the largest electric car fleet with 4.5 million, but Europe saw the greatest annual growth to reach 3.2 million in 2020.
The economic repercussions from the Covid-19 pandemic had a significant impact on the global car market. New car registrations dropped by one-third in the first half of 2020 compared to the previous year. The second half saw stronger activity, which resulted in a 16% decrease overall year-on-year. Notably, despite declining registrations of conventional and new cars, the global share of electric cars sold rose 70% to 4.6% in 2020. In 2020, about 3 million electric cars were registered. Europe was the leader with 1.4 million registrations. China was next with 1.2million registrations, while the United States registered 295 000 electric cars. There were many factors that contributed to the rise in electric car registrations for 2020. Electric cars are becoming more affordable in certain countries, based on their total cost of ownership. Many governments offered or extended fiscal incentives to offset the decline in car market prices.
Because of the disruption to the entire ecosystem in the initial COVID outbreak, sales and production of new vehicles were halted around the world. To resume production, OEMs had to wait for lockdowns to be lifted. This affected their businesses. Therefore, vehicle manufacturers had the task of adjusting their production volumes. Component manufacturing was also suspended and Tier II and Tier III small manufacturers were faced with liquidity problems. Automotive is capital-intensive and requires frequent financing to keep operations going. In the first months of the pandemic, EV manufacturers suffered unprecedented losses due to the suspension of production and lower demand.
Many countries have imposed a total lockdown lasting more than two years due to the COVID-19 pandemic. This has had an impact on vehicle production. Vehicle sales took a big hit as many manufacturing units were closed around the globe. Nevertheless, most automakers resumed production with minimal production and other necessary measures. Although conditions improved over the last months, overall EV manufacturers didn’t suffer as the demand for zero-emission vehicles rose in the second half of 2020. This resulted in an overall rise in demand for electric cars on the market.
However, EVs have seen a rising demand during the covid-19 period. This resulted in a rising demand for EV production worldwide. However, production was limited by logistics and lockdowns in the initial months. However, after the lockdowns, demand rose for EVs as governments around the world encouraged low-emission fuel vehicles. Many countries have also increased the number of EV charging stations and hydrogen fueling points in their respective states. The market saw a rise in demand for PHEVs, BEVs, and FCEVs from June 2020 to December 2020. This was followed by a surge in demand in the first few months of 2021. Due to the increase in demand, the market for electric vehicles didn’t suffer much during the pandemic.
In 2020, the global government spent USD 14 billion to encourage electric car purchases and deduct taxes. This is a 25% increase year-over-year. Despite this, government incentives have been declining in proportion to total spending on EVs from around 20% in 2015 and 10% in 2020. The majority of the rises in government spending was in Europe. Many countries responded with incentive programs to boost electric car sales. China saw a decrease in government spending as incentive programs became more eligible.
The introduction of price caps in Europe, China, and other countries was a significant innovation in subvention schemes. Vehicles with prices exceeding a certain threshold are not eligible for subsidy. This could be why the average electric car’s price in Europe and China has fallen: In 2020, BEV cars were 3% cheaper than in 2019. PHEV cars were 8% more expensive in Europe. While consumer spending on EVs continues its upward trend, government support is stable.
Passenger cars often get the most credit for the EV revolution but it is important to consider other modes of transportation that are slowly becoming more environmentally friendly. A fascinating EV trend for 2020 is public transportation and the sharing economy. Since its inception in 2017, electric micromobility options have grown rapidly. Because of various initiatives taken to promote mobility electric micromobility has seen a rapid increase in 2020, especially in the second half. The United States saw more than doubling of the number of electric-assist bicycles (e-bikes) sold in 2020. E-scooters are also becoming increasingly popular in Europe. Since July 2020, over a hundred European cities have been using e-scooters.
Asia is home to the largest concentration of private-owned electric 2/3 wheelers, with China responsible for over 99%. Globally, there are currently approximately 290 million two/three-wheelers. This market is growing in Europe as well, with a 30% increase in 2020. Manufacturers are showing their commitment towards electrification when it comes to heavy-duty trucks. Many truck companies are striving for an all-electric future. Globally, HDT registrations rose 10% in 2020.
In 2020, electric buses saw a rise in popularity. In 2020, there were 600 000 electric buses worldwide. China has registered 78,000 electric buses, reducing its market dominance. Chile is a leader in electric bus fleets and Chile is aiming to electrify its entire public transport system by 2040. The Clean Vehicles Directive in the European Union also allows for the procurement of electric buses for public transportation.
There were approximately 1.3 Million public chargers worldwide in 2020. 30% of these are fast chargers. While charging is most common at home, or at work, there will be more charging stations in the future. Fast chargers are becoming increasingly popular in Europe. There were 38 000 public fast chargers in 2020, an increase of 55% over 2019. Fast chargers allow for longer trips and maybe an option for people who don’t have private charging access to purchase an electric car.
In 2020, the number of slow chargers installed has also increased. For example, China has more than 500 000 slow chargers. Europe comes in second with 250 000 slow charging stations. The United States is third, with 82 000 slow charging stations. The smart charging of electric vehicles is another trend that’s growing in the EV market. The use of cloud-connected charging devices. Smart EV charging is a great option for both consumers and business owners. It allows you to have greater control and convenience over your electricity consumption. Lastly, vehicle to grid (V2G), is a topic that cannot be ignored. V2G technology allows electricity to be returned from car batteries in the same manner that stationary storage is connected. V2G services can be purchased commercially and many charger manufacturers are capable of selling V2G chargers. Between 2020-2024, the V2G market will reach more than $ 5 billion. In late 2020, the European standard for V2G charging is expected to be available. Virta is recognized as a global leader in V2G technology.
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