The global small electric vehicle market was worth around $164 billion in 2021 and is predicted to grow to around $750 billion by 2028 at a CAGR rate of 12% over the forecast period.
Key Industry Insights & Finding of the Small Electric Vehicle Market Reports:
- As per the analysis shared by our research analyst, the Small Electric Vehicle Market is expected to grow annually at a CAGR of around 12 % (2022-2028).
- Through the primary research, it was established that the Small Electric Vehicle Market was valued at approximately USD 164 Billion in 2021 and is projected to reach to roughly USD 750 Billion by 2028.
- Growing demand for affordable EVs, Government endorsing fuel-efficient vehicles, and improving infrastructures for the leverage of EVs have contributed to the excessive demand for electric vehicles in the Asia-Pacific region.
- The fast-rising economy in this region also instigates expansion of advanced technology and large-scale electrification thereby triggering market growth here.
- North America is expected to contribute as a revenue factor to the EV market in the future owing to the recent Government regulations on emissions, acceptance of EVs, and rising product innovations here.
- The emanating pollution and emissions from conventional vehicles have resulted in global warming and environmental hazards.
Small electric vehicles are a fitting solution to future urban traffic problems. They run on electric motors that require battery power to operate. The batteries range from lithium-ion, molten salt to zinc-air and nickel-based designs. They also evade and reduce environmental pollution by replacing conventional vehicles.
There have been multiple innovations in this arena which has catapulted it to fame all over the world. It gives higher mileage, provides fuel economy, and radiates lesser carbon emissions. Home-charging facility and smoother driving instances are additional advantages of the same.
The benefits of small electric vehicles over conventional vehicles lie in their operational cost and fuel power. The cost associated with its routine maintenance is much cheaper and it relies on electric power rather than fuel power which is economical relatively. These vehicles are also small in structure and petite for easy leverage. Small electric vehicles are smaller and lighter than normal conventional vehicles and are suited for city driving amidst heavy traffic. These vehicles don’t run the risk of sudden oil depletion as they are charged prior to use and can go on for miles depending on the battery power.
Advantages of electric vehicles like fuel efficiency, high performance, and low emission drive market growth exclusively. People’s higher accommodation towards electric vehicle models aids the global small electric vehicle market promptly. Apart from this, Government’s regulation and zero tolerance on emission vehicles trigger higher demand for electric vehicles to a larger extent. The government is also keen on launching charging stations and developing infrastructures conducive to the usage of electric vehicles in the near future. This has instigated a global demand along with catapulting the values of the market.
The emanating pollution and emissions from conventional vehicles have resulted in global warming and environmental hazards. The automotive industry has come up with an effective solution by bringing forth battery-dependent vehicles as an alternative to fuel vehicles. This factor has improved the supply rate of electric vehicles by augmenting growth in the global market.
Apart from all this, government subsidies for purchasing electric cars have influenced people to a large extent to leverage EV cars more than conventional vehicles. Hence there is a growing trend of electric cars across the world which aids market growth during the forecast period.
The expense that will be associated with the implementation of infrastructures to aid the leverage of electric vehicles along with its maintenance cost hamper market growth. The poor durability of charge in batteries causes frequent charging of the vehicles which require amenities and equipment needed for it. The cost of batteries, equipment, and installation of infrastructure needed for EV vehicles impacts the growth of the market negatively.
The technological advancement and the implementation of communication technologies in charging stations would provide excellent opportunities for market growth. Apart from this, Government initiatives to curtail the CO2 emission from conventional vehicles will turn the focus of the people towards electric vehicles which will trigger opportunities for the market. A potential innovation of self-driving electric vehicle technology will provide a lucrative opportunity for the global electric vehicle market expansion.
Government policies to launch charging stations and build infrastructure conducive to the leverage of EVs leads to a massive demand for these vehicles. The charging wires and equipment would be needed in abundance to provide for all the EV consumers. The depletion of conventional fuels has led to a drift toward fuel-efficient vehicles surging the demand for electric vehicles. Installation of infrastructures and providing sufficient equipment to satisfy these excessive demands would be a challenge.
The logistic expense associated with building infrastructures and providing equipment for charging is on the higher side. This factor affects affordability while also bringing down the supply rate to some extent. This poses a challenge for the market as its effective leverage would also be affected because of this.
The vehicle type is classified as 2 or 3-wheeler, passenger cars, and light commercial vehicles. The technology includes hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles. The vehicle class comprises luxury and mid-priced. The vehicle drive type is divided into front-wheel drive, rear-wheel drive, and all-wheel drive.
The Asia-Pacific region dominates the global electric vehicle market driven by the largest growth of EV charging vehicles. Growing demand for affordable EVs, Government endorsing fuel-efficient vehicles, and improving infrastructures for the leverage of EVs have contributed to the excessive demand for electric vehicles in this region. The fast-rising economy in this region also instigates expansion of advanced technology and large-scale electrification thereby triggering market growth here. Europe trails as the second-largest producer of EVs because of the extensive existence and emergence of key players in this region. The adoption rate of EVs and fuel-efficient vehicles here is high which fuels market expansion excessively. North America is expected to contribute as a revenue factor to the EV market in the future owing to the recent Government regulations on emissions, acceptance of EVs, and rising product innovations here.