Electric Cars Global Market Report 2024

The electric cars market size has grown exponentially in recent years. It will grow from $365.72 billion in 2023 to $479.83 billion in 2024 at a compound annual growth rate (CAGR) of 31.2%. The growth observed during the historical period can be attributed to various factors, including growing environmental concerns, government incentives aimed at promoting electric vehicles, consumer demand for greater fuel efficiency, the increasing popularity of hybrid powertrains, and the rising demand for vehicles equipped with automated transmissions. These factors have played a significant role in driving the historical growth of electric cars.

The electric cars market size is expected to see exponential growth in the next few years. It will grow to $1348.65 billion in 2028 at a compound annual growth rate (CAGR) of 29.5%. The anticipated growth in the forecast period can be attributed to several factors, including advancements in battery technology, the implementation of stricter emissions regulations, the expansion of charging infrastructure, the development of autonomous electric vehicles, and the increasing demand for connected cars. Prominent trends in the forecast period encompass ongoing improvements in the range of electric vehicles, the electrification of various vehicle segments, enhanced charging convenience, the integration of smart technology in electric cars, and a focus on sustainable materials in vehicle manufacturing. These trends are expected to drive the growth of the electric car market.

The electric car market is experiencing substantial growth due to the increasing demand for electric vehicles. Electric cars are a rapidly expanding segment of the electric vehicle market. According to the International Energy Agency (IEA), electric car sales, including fully electric and plug-in hybrids, doubled in 2021, reaching nearly 6.6 million units. Forbes predicts that electric vehicles (EVs) will constitute more than 50% of global passenger car sales by 2040. Major automobile industry players such as Tesla, BMW, Volkswagen, and others are planning to introduce approximately 200 models of electric vehicles. Electric vehicles offer several advantages, including reduced fuel and maintenance costs, lower carbon emissions, convenient charging, reduced engine noise, and increased fuel efficiency, which is driving the growing demand for electric vehicles.

The primary types in the electric cars market include Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEV). Battery Electric Vehicles exclusively rely on stored electricity as their power source, and their primary components typically include a high-voltage battery, one or more electric motors (which can be either alternating current [AC] or direct current [DC]), and a controller to manage power electronics. Various battery types are used, including lithium-iron-phosphate (LiFePO4), lithium-nickel-manganese cobalt oxide (Li-NMC), lithium-titanate oxide (Li-Titanate), lithium-nickel-cobalt-aluminum oxide (NCA), nickel-metal hydride (NiMH), and lead-acid batteries. These electric cars have applications in both home use and commercial use.

The electric cars market research report is one of a series of new reports that provides electric cars market statistics, including electric cars industry global market size, regional shares, competitors with an electric cars market share, detailed electric cars market segments, market trends and opportunities, and any further data you may need to thrive in the electric cars industry. This electric cars market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The increasing sales of electric vehicles are expected to be a driving force behind the growth of the electric car market. Electric vehicles (EVs) rely on stored electricity from batteries or similar energy storage systems, eliminating the need for internal combustion engines. Driveline systems in electric vehicles transmit power from the electric motor to the wheels, determining the vehicle's performance and efficiency. For example, according to the International Energy Agency, electric vehicle sales nearly doubled in 2021, reaching 6.6 million units, representing approximately 9% of total sales and increasing by 4 percentage points in 2021. This brought the total number of electric vehicles on the road to 16.5 million. Consequently, the increasing sales of electric vehicles are fueling the growth of the electric car market.

The lack of standardized charging infrastructure poses a challenge to the electric car market. Charging infrastructure refers to the availability of charging points for battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and fuel cell electric vehicles (FCEV) in various regions. According to McKinsey's report, there will be an estimated 120 million electric vehicle units on the road by 2030. The growing demand for electric vehicles due to environmental and health concerns has led to an insufficient charging infrastructure in many regions. In countries like India, several international original equipment manufacturers (OEMs) are planning to launch new electric vehicle models by 2021. However, the lack of proper charging infrastructure is hindering the adoption of electric vehicles due to high upfront capital costs, increased operating expenses, and underutilization of electric vehicles.

The development of wireless charging facilities for electric vehicles presents a significant opportunity for both OEMs and end-users. Wireless charging technology allows electric vehicles to charge without the need for a physical cable connector, making charging more convenient and eliminating the need to locate specific charging stations. Wireless charging employs dynamic and inductive technologies, transferring electricity from a charger's magnetic coil to a matching coil in the car. Companies like Qualcomm are actively working on their wireless charging system, such as Qualcomm Halo, which allows electric vehicle charging while driving. This wireless charging system holds immense potential for the widespread adoption of electric vehicles worldwide.

Major companies operating in the electric car market are introducing innovative products to enhance their market position. For example, Volkswagen, a Germany-based car manufacturer, launched the ID.4 GTX fully electric vehicle in January 2022. The ID.4 GTX is part of the ID.4 model series and features dual-motor-based all-wheel drive.

In June 2022, Club Car, an American manufacturer of golf, consumer, and utility vehicles, acquired Garia A/S, a manufacturer of electric street low-speed vehicles, for an undisclosed amount. This acquisition expanded Club Car's portfolio with Garia A/S's street-legal utility and last-mile delivery vehicles, supporting the company's global expansion efforts. Garia A/S also designs and manufactures 100% electric fit-to-task vans and trucks.

Major companies operating in the electric cars market include Toyota Motor Corporation, Bayerische Motoren Werke Aktiengesellschaft, BYD Company Limited, Tesla Inc., Renault Group, Volkswagen AG, General Motors Company, Beijing Automotive Industry Holding Co. Ltd., SAIC Motor Corporation Limited, Daimler AG, Chery Automobile Co. Ltd., Hyundai Motor Company, Ford Motor Company, Changan Automobile Co. Ltd., Volvo Car Corporation, Anhui Jianghuai Automobile Co. Ltd., Renault-Nissan-Mitsubishi Alliance (Renault-Nissan SAS and Mitsubishi Motors Corporation), Jiangling Motors Corporation Group (JMCG), Zotye Automobile Co. Ltd., Mitsubishi Motors Corporation, Zhengzhou Yutong Bus Co. Ltd., Geely Automobile Holdings Limited, Great Wall Motor Company Limited, Audi AG, Jaguar Land Rover Automotive PLC, Mahindra Electric Mobility Limited, Honda Motor Co. Ltd., Energica Motor Company S.p.A., Nissan Motor Co. Ltd., Lightyear BV

Asia-Pacific was the largest region in the electric cars market in 2023. Western Europe was the second largest region in the electric cars market. The regions covered in the electric cars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the electric cars market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The electric cars market consists of sales of fuel cell electric vehicle (FCEV) and all-electric vehicle (AEV). Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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