Post COVID-19, the global electric vehicle and electric vehicle infrastructure market is projected to reach 4.18 million units by 2021 from an estimated 3.42 million units in 2020, at a CAGR of 22.1%. The projection for 2021 is expected to be down by 34% as compared to pre-COVID estimation. Heavy investments from automakers in EVs and encouraging government policies & subsidies are significant factors for the growth of the electric vehicle market globally, according to a recent research study by reportlinker.
The electric vehicle market has witnessed rapid evolution with ongoing developments in the automotive sector. Favorable government policies & support in terms of subsidies & grants, tax rebates, and other non-financial benefits in the form of carpool lane access and new car registration are the primary factors driving the growth of the market.
Increasing adoption of electric buses, particularly in China and India, has contributed to the growth of the electric commercial vehicle segment which is likely to propel the growth of commercial vehicles during 2021 and commercial vehicles are expected to be the fastest-growing segment within the market.
The study states that Several countries are expected to replace their existing fuel-based bus fleet with electric buses, which will, in turn, drive the growth of commercial electric vehicles during the forecast period. Additionally, the growth of e-commerce, logistics, and shared mobility will drive the growth of commercial electric vehicles during the forecast period. Charging station market for electric vehicles to grow at the highest CAGR between 2020 and 2021.
The electric vehicle charging infrastructure sector has had a minimal impact from COVID-19. For instance, the Chinese government has announced stimulation packages toward boosting the development of a network of electric vehicle charging stations.
Increased focus on EV charging infrastructure means the sector could see exponential growth in what is already a hot market.
The COVID-19 outbreak and the draconian measures deployed in China resulted in extensive disruptions to economic activities, which delivered a hard blow to the economy. Thus, most governments from affected regions have resorted to infrastructure rehabilitation as an economic stimulus method.
The research stated that The Asia Pacific market is expected to witness the fastest growth, followed by Europe and North America. The automotive industry in countries such as China, Japan, and South Korea is inclined toward innovation, technology, and the development of advanced electric vehicles.
The increasing demand for reducing carbon emission and the development of more sophisticated and fast charging stations are expected to propel the growth of electric vehicles. BYD, BAIC, Chery, and SAIC, among others, are some of the key players in the Asia Pacific electric vehicle market.