Allied Market Research report shows surge in demand for fuel-efficient, high-performance and low-emission vehicles along with stringent government emissions regulations propel the growth of the global electric vehicle market.
Allied Market Research has published a report, titled, “Electric Vehicle Market by Type, which shows that the global electric vehicle industry generated $162.34 billion in 2019, and is estimated to reach $802.81 billion by 2027, growing at a CAGR of 22.6% from 2020 to 2027.
Drivers, Restraints, and Opportunities
Rise in demand for high-performance, fuel-efficient, and low-emission vehicles along with strict government regulations toward vehicle emissions will drive the growth of the global electric vehicle market, according to Allied. However, high cost of manufacturing and less fuel economy and serviceability may hinder the market growth, the firm says. On the other hand, advancements in technologies and supportive government initiatives will create new opportunities in the coming years.
The HEV segment to maintain its dominant share throughout the forecast period
Based on type, the hybrid electric vehicle (HEV) segment accounted for the highest market share in 2019, contributing to nearly half of the global electric vehicle market, and is expected to maintain its dominant share throughout the forecast period. This is due to wide availability of hybrid electric vehicles worldwide with advancements in technology. However, the battery electric vehicle (BEV) segment is estimated to portray the highest CAGR of 23.3% from 2020 to 2027, owing to increase in demand for battery electric vehicles across the globe with stringent government regulations.
The passenger car segment to continue its leadership position during the forecast period
Based on vehicle type, the passenger car segment contributed to nearly three-fourths of the global electric vehicle market in 2019, and is estimated to continue its leadership position during the forecast period. This is due to the emergence of battery-operated vehicles by different automobile manufacturers across the world. However, the commercial vehicle segment would register the largest CAGR of 30.0% from 2020 to 2027, owing to demand for emission free commercial vehicles.
North America to grow at the fastest CAGR
Based on region, North America is expected to contribute the fastest CAGR of 27.5% from 2020 to 2027. This is due to wide adoption of electric operated vehicles in the region for complying with the emission norms. However, Asia-Pacific held more than half of the global electric vehicle market in 2019, and is expected to maintain its lion’s share throughout the forecast period. This is due to the developed automotive industry in the region and the novel developments by different manufacturers.
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