Demand for Electric Vehicles Owing to Ongoing Developments in Automotive Sector Is Anticipated to Boost Electric Vehicle Market

Electric Vehicle Market size is valued at USD 171.35 billion in 2020 and is expected to reach a value of USD 726.14 billion by 2026 at a CAGR of 27.19% during the forecast period 2021-2026. Electric vehicle Market is consolidated with the top 5 players attributing to around 69% of the market in 2019. The market is set to be in its early growth stage and is witnessing a significant entry of new players as startups. These startups are raising funding from various investors to innovate their products and to gain market traction. Owing to the increasing entry of startups with low cost and innovative product portfolio, the degree of competition in the market is set to grow significantly from the mid of the forecast period 2021-2026. The global Electric vehicle Market is set to witness a growth of CAGR 13% during 2021-2026 owing to the increased demand from consumers in the forecast period 2021-2026.

The electric car market has witnessed rapid evolution with the ongoing developments in automotive sector and favourable government policies and support in terms of subsidies and grants, tax rebates. Major manufacturers such as General Motors, Toyota, and BMW plan to release a potential of 400 models and estimated global sales of 25 million by 2025. In 2021, Ford Motor has committed to increase its investments in electric vehicles to $30 billion by 2025, up from a previous spend of $22 billion by 2023. Similarly, in 2020, Volkswagen, Chinese ventures has committed to invest $17.5 billion in electric vehicles by 2025. As electric vehicles use various types of Electric Vehicles, hence the rising demand for electric vehicles globally drives the automotive valves market.

In 2020, New York Governor Cuomo had also announced about the initiative to expand electric vehicles in order to combat climate change. New York public service commission had approved “EV Make Ready” initiative to accelerate the deployment of more than 50,000 charging stations by 2025 and in production and sale of electric vehicles. This set to drive the electric vehicle market during forecast period. Several countries have generous tax subsidies and incentive programs to encourage consumers to purchase electric vehicles. In Spain, Incentive scheme is available for battery, fuel-cell, plug-in hybrid and extended-range electric vehicles up to: €5,500 for cars; €6,000 for vans; €8,000 for medium vehicles; €15,000 for heavy vehicles. Germany has an environmental bonus of €4,000 for battery and fuel-cell electric vehicles and €3,000 for plug-in hybrid and extended-range electric vehicles. In UK, Government grants (through dealers) for Cars provides 35% of purchase price for battery electric vehicles, up to £3,500.and for Vans, 20% of purchase price for battery electric vehicles, up to £8,000. In Sweden, an Incentive scheme up to SEK 60,000 for battery electric vehicles and SEK 10,000 for plug-in hybrid electric vehicles emitting less than 60g CO2/km is available.

Rising investments for the development of charging infrastructure in several countries will provide significant opportunities for Electric vehicle charging services in the forecast period. Governments of several countries have been planning to invest heavily for the development of charging infrastructure. In 2019, U.K. government has committed to invest more than $400 million in electric vehicle (EV) charging infrastructure across the country by 2025. South Korean government has targeted the deployment of 10,000 fast chargers by 2022. Similarly, India has plans to install 2,700 charging stations by 2023 in cities with more than 4 million residents. in the U.S., the California’s Executive Order includes the proposal to invest $900 million for deploying 250,000 charging points by 2025. In addition to the investments made by governments, several companies are also planning to deploy charging stations by 2025. For instance, Tesla is planning to spend about $220 million building out its Supercharger network of over 800 stations. ChargePoint, Inc. has 38,000 chargers and plans to add 2.5 million globally by 2025. Similarly, Electrify America is investing $2 billion in Zero Emission Vehicle infrastructure by 2027. In addition, Volkswagen is driving expansion procedure of electric vehicle charging stations network and will be installing approximately 4,000 charging stations at Germany site by 2025. According to the report given by UK Electric Vehicle Supply Equipment Association U.K. needs about 1.25 million public chargers to fuel 20 million electric vehicles by 2030. Hence rising investments related to charging infrastructure are analysed to provide significant opportunities for charging services in the forecast period 2021-2026.

Major players in Electric Vehicle include Tesla, BYD, BAIC, Renault, BMW, VW, Hyundai, GM, Nissan, SAIC among others. In April 2019, Target partners with Tesla, ChargePoint and Electrify America to install over 600 chargers. They teamed up with Tesla to pilot its Superchargers with shorter-than-normal charging times. They are working toward a goal to be 100-percent renewable overall.