Electric Vehicle Market

Electric Vehicle Market Outlook (2024 to 2034)

Worldwide revenue from the electric vehicle market is estimated at US$ 442.34 billion in 2024 and has been projected to increase at a CAGR of 14% to reach US$ 1,639.84 billion by the end of 2034.

Market expansion is mostly being driven by increasing support being given to electric car manufacturers by governments and regulatory bodies. The market is expanding as a result of rising awareness of how conventional cars' emissions affect the environment. The global push to promote electric vehicles for public transportation is also been seen as essential for the years ahead.

Electric bicycle motors or an internal combustion engine and electric motor operating together can be used to power electric cars, which are self-propelling transportation devices for both people and cargo. Electric cars are thought to be the cars of the future, and they will go on to replace conventional cars, which will be a key electric vehicle market growth factor in the years ahead.

Automakers are looking at possibilities for a variety of cars, such as plug-in hybrid and hybrid electric vehicles. To improve their market position, leading automakers are making significant investments in this space. Among the well-known companies in the industry are Daimler AG, Nissan Motor Corporation Ltd., Ford Motor Company, and General Motors Company, contributing to overall increase in the global electric vehicle market size. In developing countries such as Brazil, China, and India, sales of electric two-wheelers have been picking up pace over the past few years

• In the East Asia region, the South Korean market is estimated to hold a stronger market position with an estimated jump in market share from 19.6% in 2024 to 20.6% by 2034.
• Among all these propulsion types, the FCEV segment is approximated to grow from a value of US$ 60.5 billion in 2019 to 117.22 billion in 2024.

Report Attribute	Detail
Electric Vehicle Market Size (2024E)	US$ 442.34 Billion
Forecasted Market Value (2034F)	US$ 1,639.84 Billion
Global Market Growth Rate (2024 to 2034)	14% CAGR
East Asia Market Value (2034F)	US$ 342.73 Billion
North America Market Share (2034F)	32.8%
HEV Segment Value (2034F)	US$ 129.55 Billion
United States Market Value (2034F)	US$ 425.99 Billion
Key Companies Profiled	ABB Ltd.; Alcraft Motor Company; Baic Motor; BMW; BYD; Canoo; Chery; Continental AG; Daimler; Ford Motor Company; Geely; Tata; General Motors; GWM; Changan; Leap Motor; BAIC; Hozon; Hitachi Automotive Systems, Ltd.; Honda Motor Co., Ltd.; Hyundai; JAC; Kia Motors; Lucid Motors; Nidec Corp.; Nissan Motor Corporation Ltd.; Protean Electric; REE Auto; Rivian; SAIC Motor; SGMW; Tesla Motors; Toyota Motor Corporation; Volkswagen; Volvo; Zotye; Li Auto; NIO; XPeng; Polestar; Yadea; Aima; Tailg; Luyuan; Xinri; Bajaj Auto; Ola; Hero Electric; TVS Motors; Okinawa; Corvus UTV.

What are the Main Reasons Driving Sales of Electric Vehicles Worldwide?

“Prices of EV Batteries Significantly Declining”

Over the last ten years, EV battery prices have been declining. Since EV batteries are among the most costly parts of an electric car, this has resulted in a drop in the price of electric automobiles on the whole. This is a result of lower manufacturing costs for these batteries, lower costs for cathode materials, increased output, etc. The primary cause of this decline in battery pricing is advancements in battery technology. By the end of this decade, a further decrease in price (per kWh) is expected after solid-state batteries have been introduced in the electric car market.

“Transportation Sector Filled With Market Opportunities for EVs”

The necessity to expand the market for electric vehicles and the infrastructure for charging them has been highlighted by the rise in the use and demand of these vehicles. Leading EV markets such as China, the U.S., and Germany are making large investments in EVs and the infrastructure needed to charge them, as well as in R&D to create quicker and more effective charging techniques, longer-range EVs, and more affordable batteries. Automakers are expected to make large investments in several aspects to meet the growing demand for electric vehicles.

Numerous Asian, European, and North American countries have enacted policies to cut emissions over the coming decades and replace their fleets of regular vehicles with lower-emission models in varied proportions. It is anticipated that this would result in a notably elevated demand for electric cars. Manufacturers are providing a vast array of automobiles, ranging from premium sedans such as the Tesla Model 3 to compact hatchbacks like the Leaf. The market for electric cars has grown as a consequence of the large number of customers drawn in by the variety of variants being offered.

• For example, Ford declared in January 2018 that it would double its projected spending on EV development to US$ 11 billion by the end of 2022. In 2022, the business unveiled 40 electric cars (EVs), of which, 16 were electric and 24 were plug-in hybrids.

What has the Potential to Deplete the Market Chances of EV Manufacturers?

“Manufacturers Require Substantial Resources”

EVs are more expensive than regular cars that run on fossil fuels. Since these cars are not mass-produced in the manner of gas-powered vehicles, economies of scale have not yet been attained. Furthermore, lack of infrastructure for EV charging has proven to be a drawback that has hampered market expansion. Additionally, manufacturing companies require substantial resources for their operations, which has impeded market growth to some extent. However, the cost of batteries is expected to drop in the years ahead due to the large-scale manufacturing of EV batteries and technical developments, which is a silver lining on the horizon.

Country-wise Analysis

As the war for fossil fuels increases among Middle Eastern countries, other countries are actively looking to switch to electrical vehicles to decrease their dependency on the Middle East for oil and other fuels. This has significantly sparked the race to switch to electric cars. Key countries contributing to this market include the United States, Canada, China, Japan, and South Korea, accounting for a significant part of the overall electric vehicle market share.

What is Leading to Bullish Electrical Vehicle Market Conditions in the United States?

“Presence of Automotive Giants Such as Tesla Making EVs Popular”

Attribute	United States
Market Value (2024E)	US$ 125.15 Billion
Growth Rate (2024 to 2034)	13% CAGR
Projected Value (2034F)	US$ 425.99 Billion

The U.S. has been always ahead of its time when it comes to technology, and companies such as Tesla are focusing on climate issues and fossil scarcity to increase the popularity of electric vehicles. This awareness of climatic changes and the harmful effects of coal and other traditional fuel options is pushing more people to switch from petrol and diesel cars to electric cars that are more sustainable and not harmful to the environment.

Added to this, the government is also making sure to launch programs to make more people understand the need to switch to electric-based cars, making the overall country a bullish market for electrical vehicle manufacturers.

How is the EV Market Expected to Perform in China?

“Lithium Deposits Becoming Profit-Making Pockets”

Attribute	China
Market Value (2024E)	US$ 45.86 Billion
Growth Rate (2024 to 2034)	13.4% CAGR
Projected Value (2034F)	US$ 161.77 Billion

• According to China Daily, the country has a good amount of lithium deposits, including lithium brines, spodumene, and lepidolite hard-rock reserves. In 2023, the country produced around 33,000 metric tons of lithium, making it the third-largest producer in the world.

Lithium is a crucial metal for electrical vehicle batteries, and the country, with such a large amount of lithium deposits, makes it one of the key areas of growth for the electrical vehicle market. Companies from around the world are looking to reach China to take advantage of the benefits of these deposits, leading to the rising popularity of EV cars in the country.

Category-wise Evaluation

Which Propulsion Type Has Gained More Attention in the EV Business?

“BEV Propulsion Highly Preferred by EV Lovers Worldwide”

Attribute	BEV
Segment Value (2024E)	US$ 230.01 Billion
Growth Rate (2024 to 2034)	13.3% CAGR
Projected Value (2034F)	US$ 803.52 Billion

Battery Electric Vehicle (BEV) propulsion has gained immense popularity among electric vehicle enthusiasts worldwide. With advancements in battery technology and an increasing focus on sustainability, BEVs have garnered significant attention due to their zero-emission operations and the potential to revolutionize the transportation industry. As the infrastructure for charging BEVs continues to expand, more consumers are showing interest in this propulsion type for its environmental benefits and lower long-term operational costs.

Which Application Segment Account for Higher EV Sales?

“Electric Passenger Cars Lead the Charts with High Sales Worldwide”

Attribute	Passengers Cars
Segment Value (2024E)	US$ 296.36 Billion
Growth Rate (2024 to 2034)	12.7% CAGR
Projected Value (2034F)	US$ 983.90 Billion

The convenience, cost savings on fuel, and environmental friendliness of EVs have made them a popular choice for individual commuting and daily transportation needs. Many consumers prefer EVs for their everyday use, such as commuting to work, running errands, and family trips, due to their lower operational costs and the increasing availability of charging stations in urban and suburban areas. Also, the expanding variety of EV models with different features and price points has encouraged more people to integrate EVs into their lifestyles, which is a key electric vehicle market trend that will push sales going forward.

Market Developments

Key players in the electric vehicle market are continuously launching new models to maximize their profits, including electric trucks.

• Moscow and KAMAZ agreed to a deal in March 2023 for 1,000 electric buses. Plans also exist to buy 200 more electric buses from GAZ Group. At the moment, Moscow operates 1,055 electric buses on 79 routes. Moscow intends to add 29 additional electric bus lines, build over 200 ultra-fast charging stations, and create a second electric bus park in the Mitino neighborhood northwest of the city.
• In February 2023, BYD expanded its dealer network in the European Union by adding two new companies. In Ireland, Motor Distributors Ltd. (MDL) will sell BYD models in a few areas, including Cork and Dublin. RSA is a dealer with whom BYD already works in Norway, and it will offer EVs of Chinese-make in Finland and Iceland.
• Feintool inked a deal with a well-known European company in November 2022 (OEM). The business supplied rotors and stator assemblies to make electric drives for electric cars as per the contract. Additionally, the manufacturing process will rely on innovative and inventive adhesive packaging connectors.
• In October 2022, Gehring Technologies GmbH and Daimler Truck AG inked a strategic collaboration agreement to concentrate on developing expertise in the process development and prototype construction of electric motors specifically designed for commercial vehicles.

Fact.MR provides detailed information about the price points of key manufacturers of electric vehicles positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Electric Vehicle Market Research

• By Technology :

  • Hybrid
  • Plug-in Hybrid
  • Battery

• By Power Source :

  • Stored Electricity
  • On Board Electric Generators

• By Vehicle Type :

  • Passenger Cars
  • Commercial Cars
  • Two Wheelers
  • Others

• By Power Train :

  • Series
  • Parallel
  • Combined

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa