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2020-2026 global electric vehicle market

2019-12-11 16:37:07

The global electric vehicle market was at 2.5 million units in 2018 and it is projected to reach 24.6 million units by 2026, exhibiting a CAGR of 32.3% during the forecast period.

Increasing fuel prices and the impact of conventional fuel vehicles on the environment have opened doors for alternate fuel vehicles in the market. Rising inclination of consumers towards hybrid or battery-powered vehicles is expected to drive the electric vehicle market share. The electric vehicle uses one or more electric motors for its propulsion. Electric power is the main source of energy in the electric vehicle; no internal combustion engine is present in them. Globally, conventional automobiles are one of the major reasons for air pollution and hence, it is compelling many governing bodies to impose stringent emission regulations on automobile manufacturers to curb the emissions from vehicles. Major developing countries are providing incentives to electric or hybrid car buyers by offering them tax exemption, free charging facilities, and free parking.

Electric vehicles are fragmented based on fuel type by battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV). Battery electric vehicle uses chemical energy stored in the battery for its operation. It is an electric vehicle that uses motors in place of IC engines for its propulsion. A plug-in hybrid electric vehicle uses an internal combustion engine and an electric motor for its propulsion.

Plug-In hybrid electric vehicles are powered by conventional or alternative fuel, such as batteries or gasoline. The more the amount of stored electricity in a PHEV vehicle, the less is the rate of fuel consumption. PHEV uses 40-60% of less fuel than traditional gasoline vehicles. This increases the fuel efficiency of the vehicle and reduces the dependency on traditional fuels. Along with external charging, PHEVs are charged from regenerative braking and power from an internal combustion engine. HEV is a combination of both electrical and mechanical drive trains.

Based on vehicle type, the EV market share is segregated into passenger car and commercial vehicle. The passenger car segment is anticipated to exhibit dominance in the market over the forecast period owing to increasing sales and demand from Asia-Pacific for passenger cars. Asia-Pacific has a high adoption rate of electric vehicles and the presence of electric cars manufacturing OEMs such as BAIC, BYD, Geely, and SAIC, and others in this region is very high. These will help in propeling the growth of passenger car segment in this market over the forecast period.

Europe is anticipated to emerge as a major region in the electric vehicle market during the given forecast period. The major steps taken by the governments in this region to reduce carbon emissions have been the driving factors for the growth of the electric vehicle market. The significant countries contributing to growth in the region are the U.K, Germany, and France.