Globally, Latin America and Middle East & Africa held the lowest share, which is expected to grow marginally by the end of the forecasted period, yet not over 3%. The countries in these regions are slowly but surely moving toward the electrification of the transport sector, trying to harness the environmental and economic benefits coupled with a low-carbon electricity-generation portfolio. The Asia Pacific market is expected to witness the fastest growth, contributing to a share of 61.34% by volume in 2019, with countries such as China, Japan, and South Korea is inclined toward innovation, technology, and the development of the advanced electric vehicle.
The report titled ‘Global Electric Vehicle Market Overview, 2020-25‘ published by Actual Market Research identified the 2014 market value of USD 27.85 Billion, which is anticipated to reach a market of over the value USD 400 Billion by the end of the year 2025. Electric vehicles are advantageous over conventional vehicles, but the cost of the former is higher than gas-powered vehicles. This is because these vehicles have not been mass-produced and are yet to witness economies of scale.
The growing sensitivity of various governments toward a cleaner environment has increased the demand for zero-emission vehicles. Developed nations such as the US, Germany, and the UK are actively promoting the use of electric vehicles to reduce emissions, which has resulted in the growth of electric vehicle sales. The market is expected to incline towards the PHEV segment, which is to grow with an anticipated volume CAGR of 36.03%, through the forecasted period. However, the BEV segment leads the market and is expected to reach over 7800 Thousand Units by end of the year 2025.
The global number of publicly accessible chargers reached 539000 in 2018, up 24% from 2017 levels. The growth rate of new installations of public chargers is slowing compared to previous years (30% in 2017, 80% in 2016). In 2018, China remained the country with the largest installed publicly accessible charging infrastructure, accounting for half of the global total. By the end of 2025, commercial electric vehicles are likely to reach a market of over 800 Thousand Units. Even though electric vehicles are a need of the hour, the market is hurdled highly because of the lack of infrastructure and the high manufacturing cost. Companies are manufacturing comparatively less expensive vehicles, however, with the increase in the disposal income and government incentives; the market is likely to get inclined towards the luxury class segment that is expected to account for an approx share of 40% by end of the forecasted period. The mid-priced vehicle class has limited features with less emphasis on expensive features, yet ruled the market with a share of over 70% in 2019.
Strong demand and support are boosting the innovation rate in the industry. This applies for the supporting infrastructure different charging technologies, as well as the components used in the automotive. However, the long recharge times that come with the majority of EVs at an affordable price point and the limited mileage compared to conventional vehicles remain as the biggest barriers for further mass adaption. The lack of standardization in the charging load is also a major drawback for the global market. Electric vehicle manufacturers are focusing on overcoming this by having their charging network. The top 3 leading companies: Tesla, Nissan, and Toyota together accounted for 31.45% of the share in 2019. The other smaller and local players also play an important role with the mergers amend acquisitions around the industry.