Electric Vehicle Market Outlook, 2030

Electric vehicles use one or more electric motors or traction motors for propulsion. Electric vehicles are a battery electric vehicle (BEV) or a plug-in hybrid electric vehicle (PHEV). The BEV segment includes the vehicles that only use chemical energy stored in rechargeable batteries, with no secondary source of propulsion, while the PHEV segment considers whose battery can be recharged by plugging it into an external source of electric power, and by its on-board engine and generator. Factors such as growing demand for low emission commuting and governments supporting long range, zero emission vehicles through subsidies & tax rebates have compelled the manufacturers to provide electric vehicles around the world.

This has led to a growing demand for electric vehicles in the market. Countries around the world have set up targets for emission reductions according to their own capacity. Also, increasing investments by governments across the globe to develop EV charging stations and Hydrogen fueling stations along with incentives offered to buyers will create opportunities for OEMs to expand their revenue stream and geographical presence. For instance, the U.S. Environmental Protection Agency (EPA) announced that they are working on new rules to decrease emissions of nitrogen oxide (NOx) and other pollutants from heavy-duty trucks. In addition, the California Air Resources Board (CARB) is adopting heavy-duty Low NOx Omnibus Regulation, aims to achieve a 90% reduction from current NOx emissions limits by 2027. Moreover, in Europe, European Union (EU) committed within the Paris agreement (COP21) to achieve its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol. The EU has also set the target to achieve 40% greenhouse gas reduction by 2040 and net-zero by 2050.

According to the research report 'Global Electric Vehicle Market Outlook, 2030,', the Global Electric Vehicle market was valued at more than USD 896.45 Billion in 2024, and expected to reach a market size of more than USD 2.82 trillion by 2030 with the CAGR of 21.51% from 2025-2030. The governments of various countries have formulated stringent CO2 emission norms that have increased the demand for electric vehicles. Besides, the governments are providing incentives and subsidies to encourage EV sales. Even though electric vehicles are a need of the hour, the market is hurdled highly because of the lack of infrastructure and the high manufacturing cost.

The gap between the existing infrastructure and the required one for the electric vehicle to overtake the conventional vehicles is huge, becoming a major fuel for the range anxiety among the drivers. The lack of standardization in the charging load is also a major drawback for the global market. The standards differentiate even among the region such as China have GB/T while Japan follows CHAdeMO. The other smaller and local players also play an important role with the mergers amend acquisitions around the industry. The cost of EV batteries has been decreasing during the past decade due to technological advancements and the production of EV batteries on a mass scale in large volumes. This has led to a decrease in the cost of electric vehicles as EV batteries are one of the most expensive components of the vehicle. In 2010, the price of an EV battery was approximately USD 1,100 per kWh. However, by 2020, the price fell to approximately USD 137 per kWh, and it reached as low as USD 120 per kWh in 2021. The price of these batteries is as low as USD 100 per kWh in China. This is because of the reducing manufacturing costs of these batteries, reduced cathode material prices, higher production, etc. The prices of EV batteries are expected to fall to approximately USD 60 per kWh by 2030, which is expected to significantly reduce the prices of EVs, making them cheaper than conventional ICE vehicles.

Factors such as increase in demand for fuel-efficient, high-performance, & low-emission vehicles, stringent government rules & regulations toward vehicle emission along with reduction in cost of electric vehicle batteries and increasing fuel costs supplement growth of the electric vehicle market. Moreover, factors such as lack of charging infrastructure, high manufacturing cost, and range anxiety and serviceability are the factors expected to hamper growth of the EV market. Furthermore, factors such as technological advancements, proactive government initiatives and development of self-driving electric vehicle technology are expected to create ample opportunities for the key players operating in the electric vehicle market.

Gasoline being a fossil fuel is not a renewable source of energy, and is anticipated to get exhausted in the future. To support sustainable development, it is important to develop and use alternative sources of fuel. This involves use of electric vehicles, which do not use gas and are more economical than conventional vehicles. An electric vehicle converts over 50% of the electrical energy from the grid to power at the wheels, whereas the gas-powered vehicle only manages to convert about 17%-21% of the energy stored in gasoline. The demand for fuel-efficient vehicles has increased recently, owing to rise in price of petrol and diesel. This is attributed to depleting fossil fuel reserves and growth in tendency of companies to gain maximum profit from these oil reserves. Thus, these factors give rise to the need for advanced fuel-efficient technologies, leading to surge in demand for electrically powered vehicles for travel.

Market Drivers

Environmental and Regulatory Pressures: The urgency to combat climate change has led to stricter emissions regulations globally. Governments are implementing regulations to reduce carbon footprints, including bans on the sale of new internal combustion engine vehicles in the coming decades. These regulatory measures are compelling automakers to accelerate their transition to EVs.

Technological Advancements in Batteries: Advances in battery technology are making EVs more viable for a broader range of consumers. Improved energy density, reduced costs, and faster charging times are critical innovations. For instance, solid-state batteries are anticipated to revolutionize the market by offering greater energy density and safety compared to current lithium-ion batteries.

Market Challenges

Supply Chain Constraints: The EV industry faces significant supply chain challenges, including the sourcing of critical raw materials like lithium, cobalt, and nickel. The mining and processing of these materials are often environmentally taxing and raise ethical concerns. Ensuring a sustainable and ethical supply chain is a major hurdle.

Consumer Acceptance and Perception: While awareness of EVs is growing, many consumers still harbor misconceptions about their practicality, range, and performance. Overcoming these perceptions and convincing a broader audience to make the switch is crucial. Marketing efforts and real-world testimonials from EV owners can play a significant role in changing minds.

Market Diversification: While the majority of EV sales are concentrated in a few regions, efforts are underway to diversify the market. Emerging economies in Asia, Africa, and South America represent significant untapped potential for EV growth. Developing affordable EV models and expanding charging infrastructure in these regions are key strategies for market expansion.

Market Trends

Integration with Renewable Energy: The synergy between EVs and renewable energy sources is gaining traction. Many EV owners are pairing their vehicles with solar panels to create a sustainable energy ecosystem. Additionally, vehicle-to-grid (V2G) technology allows EVs to feed electricity back into the grid, supporting energy stability and efficiency.

Rise of Electric Commercial Fleets: The commercial sector is increasingly adopting electric vehicles for fleets. Companies like DHL, Amazon, and UPS are integrating electric delivery vans and trucks into their operations. The push towards green logistics is not only driven by regulatory pressures but also by cost savings in fuel and maintenance.

Battery Electric Vehicles (BEVs) are powered entirely by electricity stored in batteries and do not have an internal combustion engine. They are the most popular segment in the EV market, accounting for around 70% of the global electric car stock in 2023. BEVs have seen significant growth due to advancements in battery technology, which have improved range, performance, and affordability. In 2023, nearly 14 million new electric cars were registered globally, with BEVs leading the charge. Fuel Cell Electric Vehicles (FCEVs) use hydrogen to generate electricity through a fuel cell, producing only water vapor as a byproduct. While FCEVs are less common than BEVs, they are gaining traction in markets with strong hydrogen infrastructure.

FCEVs offer the advantage of quick refueling times and longer ranges compared to battery-powered vehicles. Plug-In Hybrid Electric Vehicles (PHEVs) combine an internal combustion engine with an electric motor and a rechargeable battery. PHEVs can run on electricity for short distances and switch to gasoline for longer trips. They provide the flexibility of both electric and conventional fuel options, making them appealing to consumers who are not yet ready to fully transition to electric vehicles. Hybrid Electric Vehicles (HEVs) also combine an internal combustion engine with an electric motor, but unlike PHEVs, they cannot be plugged in to recharge. The electric motor assists the combustion engine, improving fuel efficiency and reducing emissions. HEVs are a popular choice for consumers looking to reduce their environmental impact without the need for charging infrastructure.

Passenger EVs are the most prominent segment, encompassing electric cars and SUVs designed for personal use. This segment has seen substantial growth due to increasing consumer awareness of environmental benefits, government incentives, and advancements in battery technology. In 2023, nearly 14 million new electric cars were registered globally, with a significant portion being passenger EVs. The rise of electric cars in major markets like China, Europe, and the United States has been a driving force behind this growth. Commercial EVs include electric trucks, vans, and buses used for goods transportation and public transit.

The demand for commercial EVs has been rising, driven by the need for sustainable logistics solutions and stricter emission regulations. Companies like Amazon have started deploying electric trucks for freight operations, contributing to the decarbonization of the transportation sector. The expansion of EV charging infrastructure and government support for electrifying commercial fleets has further boosted this segment. Two-wheelers cover electric scooters, motorcycles, and three-wheelers, primarily used for short-distance travel and last-mile connectivity. This segment has gained popularity in densely populated urban areas where traffic congestion and air pollution are significant concerns. Governments in countries like India and China have introduced policies to promote the adoption of electric two-wheelers, leading to a surge in sales. The affordability and convenience of electric two-wheelers make them an attractive option for consumers looking to reduce their carbon footprint.

Up to 150 Miles segment includes EVs with a shorter range, typically suitable for city commuting and short-distance travel. These vehicles are popular in urban areas where charging infrastructure is readily available. The affordability and convenience of these EVs make them attractive to consumers looking for economical and eco-friendly transportation options. 151-300 Miles, EVs in this range are designed for longer commutes and regional travel. They offer a balance between affordability and range, making them suitable for a broader audience. This segment has seen significant growth as battery technology improves, allowing for longer ranges without compromising on cost.

Above 300 Miles segment caters to long-distance travelers and those who require extended range capabilities. These EVs are often more expensive due to the advanced battery technology required to achieve such ranges. However, they are essential for reducing range anxiety and making EVs viable for all types of travel. Fast chargers provide a quick way to recharge EV batteries, significantly reducing the time needed to get back on the road. This type of charging is crucial for long-distance travel and commercial applications where downtime needs to be minimized. The development of fast charging infrastructure has been a key focus for governments and private companies to support the widespread adoption of EVs. Normal or slow charging is typically done at home or at public charging stations with lower power levels. While it takes longer to charge an EV, it is more cost-effective and easier to install. This type of charging is ideal for daily commuting and residential use, where the vehicle can be charged overnight.

The Asia Pacific region has emerged as the frontrunner in the global electric vehicle (EV) industry, primarily driven by robust government support and incentives. Countries like China, India, Japan, and South Korea have implemented aggressive policies to promote the adoption of EVs, including subsidies, tax breaks, and investments in charging infrastructure. For instance, China has been offering substantial subsidies for EV purchases and has set ambitious targets for EV sales and production. Similarly, India has introduced various incentives to encourage the adoption of electric vehicles, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.

These government initiatives have created a favorable environment for EV manufacturers and consumers, leading to rapid growth in the region. Additionally, the Asia Pacific region benefits from a strong manufacturing base and technological advancements, which have further accelerated the development and deployment of EVs. The presence of major automakers and battery manufacturers in the region has also contributed to the growth of the EV market.

COVID-19 Impact

Globally, the COVID-19 pandemic has a savage effect on all types of markets. Especially, in the automotive sector, due to the restrictions on production and contraction of automobile sales, the market growth has reduced. But gradually after lockdowns, the market growth is increasing day-by-day for its advanced features. The electric vehicle market growth is raised by the adoption of EVs in the US, China, and European countries and demand for battery-operated vehicles. Globally, all the government’s goal is to have zero-emission vehicles and to reduce dependence on oil imports which are provided by electric vehicle market. Some factors to increase the demand for electric vehicles market value are establishing of charging infrastructure, the rise of residential units, lowering the price of batteries.

Companies Mentioned

Aiways Automobile Europe GmbH, Arrival Limited, Ashok Leyland, Beijing Automobiles Industry Holding Corporative limited, Bentley Motors Limited, Blue Bird Corporation, BMW Group, BYD Company Motors, Changsha Sunda New Energy Technology Limited, Citroen, Daimler AG, Ford Motors, General Motors, Hyundai, Irizar, Lightening GT, Micro Mobility, MW Motors, NFI Group, Nikola Motor Company, Nio, Nissan Motor, PoleStar, Proterra, Rimac Automobiles, SAIC, Tata Motors, Tesla, Toyota Motor Corporation, VDL Groep, Volkswagen, Workhorse Group, Yutong, Zacua, Zhejiang Geely Holding Group.

Considered In the Report

• Geography: Global
• Base year: 2024
• Historical year: 2019
• Estimated Year: 2025
• Forecasted year: 2030

Countries covered

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Spain, Italy, Russia, Norway, Netherlands)
• Asia-Pacific (India, Japan, Australia, China, Korea)
• South America (Brazil, Argentina, Columbia, Chile)
• Middle East & Africa (UAE, Qatar, Saudi Arabia, South Africa)

Aspects Covered In the Report

• Market Size By Value for the time period (2019-2030F)
• Market Size By Volume for the time period (2019-2030F)
• Market Share by Vehicle Type (Passenger & Light Commercial)
• Market Share by Propulsion Type (BEV & PHEV)
• Market Share by Sales Channel
• Market Share by Charging Type (Normal & Fast)
• Market Share by Region
• Market Share by Country

By Propulsion

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

By Vehicle Type

• Passenger
• Commercial
• Two Wheelers

By Range

• Up to 150 Miles
• 151-300 Miles
• Above 300 Miles

By charging type

• Fast
• Normals

The approach of the report

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users.

Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the electric vehicle industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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