At a 21.7% CAGR, the global electric vehicle market is expected to grow from 8,151 thousand units in 2022 to 39,208 thousand units in 2030. Manufacturers are now able to offer electric vehicles all over the globe due to factors such as the growing demand for low-emission commuting and government support through tax rebates and subsidies. There is a rising demand for electric cars in the market. Countries all over the globe have established targets to reduce their emissions based on their respective capacities.
OEMs will have the opportunity to increase their revenue streams and geographic presence by increasing investments made worldwide by governments to build EV charging stations and hydrogen fueling stations. Due to the high demand for low-cost efficient and emission vehicles, the Asia Pacific market is expected to grow steadily. North America and Europe are growing rapidly due to government initiatives and the growing high-performance passenger vehicle segment. The growth of the global electric vehicle market could be impeded by the limited number of EV charging stations or hydrogen fuel stations, high initial investment costs, and performance limitations.
The pandemic of early 2020, which was caused by lockdowns, had a moderate effect on the EV charging industry. In 2021, EV charging stations were more popular because of the increased demand for EVs during the pandemic. This was due to incentives provided by governments around the world. The COVID-19 pandemic caused a disruption in the production of steel, copper and aluminum. Copper prices continued to rise. In May 2021, the copper price hit USD 10,000 per tonne for the first time since 2010. However, the top EV manufacturers have seen a rapid increase in EV sales over the past two years. Tesla laid off employees in October 2020 because of its declining sales. Its overall revenue rose due to the earlier expansion to China. The company did well in 2021 and COVID-19 had little impact. Lockdowns in China caused a decline in sales in early 2022. This market was less affected by the pandemic thanks to the strong push of governments around the globe to eliminate ICE vehicles.
The technological advances and mass production of EV batteries in large quantities have led to a decrease in the cost of EVs over the past decade. As EV batteries are the most expensive component of an electric vehicle, this has resulted in a drop in their cost. An EV battery cost approximately USD 1,100 per kWh in 2010. In 2020, the price of an EV battery was USD 1,100 per kWh. It dropped to USD 137 by 2020 and fell to USD 120 per kWh by 2021. These batteries can be purchased for as little as USD 100 per Kilowatt-hour in China. These batteries are cheaper because they have lower manufacturing costs, less cathode materials prices, and higher production. The price of EV batteries is expected to drop to USD 60 per kWh in 2030. This will make them significantly cheaper than conventional ICE cars.
There are very few EV charging stations available in different countries. This results in lower availability of public EV charging, which reduces adoption. While a number of countries are working on EV charging infrastructures, many countries have not been able to install enough EV charging stations to meet their needs. A well-developed EV charging network around the globe will help increase demand for EVs. Many countries have yet to create such charging networks. The Netherlands has the highest EV charging density per 100 km. The Netherlands has around 19-20 charging stations per 100km, which is the highest density. China comes in second with approximately 3-4 charging stations per 100km. With 3-4 charging points per 100km, the UK has about. However, it is expanding rapidly its network of charging stations in line with its 2030 plans to eliminate ICE vehicle sales. Germany, Russia, Japan, South Korea and South Korea have all set up large numbers of charging stations to accelerate the transition to EVs.
All countries have set goals to reduce their vehicle emissions by 2030-2050. They are promoting the sale and development of EVs as well as charging infrastructure. The US government spent USD 5 billion to encourage electric vehicle infrastructure, such as charging stations, in 2017. Several countries offer incentives to encourage EV adoption, including low or no registration fees, exemptions from import and purchase taxes, as well as road taxes.
Norway and Germany have made significant investments in promoting EV sales. Due to high incentives and subsidies in Europe, there is a high rate of growth in electric vehicle sales. This has resulted in a rise in demand for components and equipment related to EV charging. A new vision of a national fast-charging network will be created as part of a partnership between US energy and transportation departments. This could include longer-term innovations such as direct current fast charging of up to 350 kW. Stringent CO2 emission standards have increased the demand for electric cars. To encourage the sale of EVs, governments are making significant investments in incentives and subsidies. The government around the globe is expected to take these steps to increase the demand for EVs over the next decade. China, Canada, and the US have established regulations for EVs. All countries have also set fuel economy standards. They offer incentives and subsidies to EV buyers and manufacturers. For new EVs, the US offers incentives up to USD 7,500. Many of these countries offer incentives to set up EV charging stations. Europe is expected to be the first region to switch to EVs fully. Many countries in the region have already announced plans to end ICE vehicle sales over the next decades. The UK plans to dominate the vehicle market by 2030 with EV sales. Norway will follow the example of the UK and have it completed by 2025. The Netherlands, Israel and Ireland have all announced plans to adopt EVs before 2030. China and Japan plan to end ICE vehicle sales by 2035.
Variation in charging loads has highlighted the need for standardization of electric vehicle charging stations. Some types of voltages may not be compatible with EV charging stations. AC charging stations can charge at 120V AC through level 1, and 208/240V AC through levels 2, while DC charging stations can charge quickly at 480V AC. To create a favorable environment and increase sales of electric vehicles, governments must standardize charging infrastructure. Different countries have different standards for fast charging. Japan uses CHAdeMO, Europe, the US and Korea use CCS, while China uses GB/T. Since India has not achieved standardization in fast charging methods, the Indian government mandated that CHAdeMO/CCS methods be installed. However, this mandate led to an increase in the cost of installing charging stations. In July 2019, the government amended the guidelines to allow charging station developers the freedom to choose the method they prefer. Tesla, a US-based manufacturer of electric cars, uses superchargers that are unique to Tesla. They cannot be used with other EVs. Inadequate standardization in countries could impact the installation of charging stations, and hinder the growth of the market for electric vehicle charging stations. These charging standards vary across the globe, which can hinder the standardization of EV charging stations. Although companies are working towards the standardization of charging points, it is still difficult to standardize all sockets. Standardization of charging points will make it easier to charge EVs in public places and increase EV demand globally.
Asia Pacific is home to the largest electric vehicle market, followed by Europe and North America. The countries that dominate the region’s passenger EV market are South Korea, China, Japan, and Japan. These countries have strong support for passenger electric vehicles. Germany, France and the UK are all top countries with a growing demand for EVs. These are the top European countries with an increasing demand for electric passenger cars. These countries have adopted stringent emission regulations, as well as a range of grants, subsidies and incentives to encourage the switch to EVs. These measures resulted in Europe surpassing China’s EV sales in 2020. However, China sold more EVs than China in 2021 because of the increasing demand for mini-EVs. North America is seeing a rise in EV passenger car sales, with several states in the US and Canada leading this electrifying trend. MEA countries are increasing their EV market and will be the fastest-growing market over the next few years.
RWD EVs are in high demand across all regions, especially the Asia Pacific and Europe. These vehicles are easier to control and have a growing market. North America has also seen a greater demand for these vehicles, with the Tesla Model 3 Standard version and the BMW i3, Volkswagen ID4, Porsche Tycan, and the Tesla Model 3 Standard versions. The market is dominated by the leaders. Due to the newer market, RWD EVs will grow most in MEA and Asia Pacific over the next decade. Popular across Asia and Europe is the Wuling Hongguang Mini EV, which made a splash in 2020 and 2021 in the EV market.
China, Japan, and South Korea are the leaders of the Asia Pacific EV market. China is the largest EV manufacturer and user in the region. They have taken measures including subsidies for EV buyers and compulsory laws that all vehicle manufacturers must follow to produce EVs per unit of production. Large support has been given to EV charging stations being installed in major cities. There are also regulations against polluting cars. South Korea and Japan have been expanding their EV market. Their governments have supported EV demand growth through installing EV charging stations and setting emission norms. They also set deadlines for switching to full- or hybrid EVs from ICE cars. India is also trying to increase its EV market demand. India will be the region’s fastest-growing market for electric vehicles in the future thanks to its new vehicle scrappage policy, which allows old vehicles to be scrapped in order to switch to lower emission models. Thailand, Indonesia and Malaysia have all begun to reduce vehicle emissions and switch to EVs.
Established players like Tesla (US), Volkswagen AG, Germany (Germany), SAIC Motors(China), BYD China (China), and Stellantis (Netherlands) dominate the electric vehicle market. This market ranking was calculated by calculating EV sales and segmental revenue for each company. These companies offer extensive solutions and products for the automotive sector. These companies have extensive distribution networks worldwide and invest heavily in R&D to create new products.
