Electric Vehicle Market Research Report — Global Forecast till 2032

Electric Vehicle Market Research Report Information By Technology (Battery Electric Vehicles, Plug-In Hybrid Electric Vehicles, Fuel-Cell Electric Vehicles) By Top Speed (<125 MPH, >125 MPH) By Range (Less than 300 Miles, More than 300 Miles) By Vehicle Drive Type (Front Wheel Drive, Rear Wheel Drive, Four Wheel Drive, All Wheel Drive) By End Use (Private, Commercial Fleets) By Vehicle Type (Passenger Cars, Commercial Vehicles, Two & Three Wheelers, Off-Highway Vehicles), And By Region –Market Forecast Till 2032

ID: MRFR/AM/1261-CR | 128 Pages | Author: Swapnil Palwe | January 2024         

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Electric Vehicle (EV) Market Overview

Electric Vehicle Market Size was valued at USD 368.2 Billion in 2022. The Global EV industry is projected to grow from USD 493.36 Billion in 2023 to USD 2071.02 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.3% during the forecast period (2023 - 2032). The Electric Vehicle Market is expected to grow significantly over the forecast period due to several factors. The growth of the Electric Vehicle Market is expected to be driven by key factors such as increasing fuel prices, government initiatives and expansion of global electric cars manufacturers into emerging market. However, factors such as high prices of EV and underdeveloped aftermarket services are expected to restrict market growth. On the other hand, the increasing adoption in emerging economies pose lucrative opportunities for the Global Electric Vehicle market.

As per Analyst at MRFR, “Persistent increase in fuel prices, prompting consumers to explore sustainable alternatives. Government initiatives worldwide, offering incentives and favorable policies, are fostering an environment conducive to EV adoption.”

Figure1: Electric Vehicle Market, 2018 - 2032 (USD Billion)

Electric Vehicle Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Vehicle Market Opportunity

  • Increasing Fuel Prices

The decrease in supply and availability of crude oil is fluctuating the pricing strategies owing to the geopolitical tensions. Furthermore, the uneven taxation policies that differ from country to country and region to region affect the pricing policies. Due to these factors, a large segment of the population is shifting their preference towards electric transportation. In the last few years, the demand for electric cars in the US has been rapidly increasing and has witnessed a 70% year-over-year growth in sales. Furthermore, along with the US, Norway has also put a step ahead and has shifted more focus towards electric transportation. Thus, the increasing fuel prices and growing popularity of electric transportation are expected to drive the growth of the Electric Vehicle Market during the forecast period.

As per the International Energy Agency (IEA), the share of electric cars in total sales has more than tripled in three years, from around 4% in 2020 to 14% in 2022. The cost of fuel is a significant factor in the decision-making process of consumers when purchasing a vehicle. As fuel prices continue to rise, consumers are looking for alternatives to traditional gasoline-powered vehicles, and EVs are becoming a more attractive option. In addition, government policies, the Tesla effect, lower battery costs, 5G rollouts, and the launch of the EV charging infrastructure are other drivers of the Electric Vehicle market. China is leading the charge in the market, with new EV sales growing by 82% in 2022, accounting for nearly 60% of global EV purchases. The United States is also expected to see a significant increase in EV sales, with S&P Global Mobility forecasting that electric transportation sales in the United States could reach 40% of total passenger car sales by 2030. According to a study by the International Energy Agency (IEA), as of 2021, the global average gasoline price was approximately $1.20 per liter, and the average diesel price was around $1.28 per liter. These prices can significantly impact the running costs of traditional vehicles. In regions with high fuel prices, there has been a noticeable surge in electric transportation sales. For example, in countries like Norway, where fuel prices are comparatively high, electric cars account for a significant share of new car sales.

Electric Vehicle Market Technology Segment Insights

Electric Vehicle Technology Insights

Based on Technology, the Electric Vehicle Market segmentation includes Battery electric transportation, Plug-In Hybrid Electric Vehicles and Fuel-Cell Electric Vehicles. The Battery electric transportation segment held the majority share in 2022, contributing around ~70.1% to the Electric Vehicle market revenue. battery electric vehicles (BEVs), use a battery pack to store the electrical energy that powers the motor. The batteries are charged by plugging the vehicle in to an electric power source. Although electricity production may contribute to air pollution, the U.S. Environmental Protection Agency categorizes all-electric transportation as zero-emission vehicles because they produce no direct exhaust or tailpipe emissions locally.

Both heavy-duty and light-duty all-electric transportation are commercially available. BEVs are typically more expensive than similar conventional and hybrid vehicles, although some cost can be recovered through fuel savings, a federal tax credit, or state incentives.

Figure2: Electric Vehicle Market, by Component, 2022 & 2032 (USD Billion)

Electric Vehicle Market, by Component, 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electric Vehicle Market Vehicle Top Speed Segment Insights:

Electric Vehicle Top Speed Insights

Based on Top Speed, the Electric transportation Electric car technology Market segmentation includes <125 MPH and >125 MPH. The >125 MPH segment held the majority share in 2022 contributing around ~58.8% to the market revenue. Vehicles with top speeds exceeding 125 MPH hold a slightly larger market share than those below 125 MPH, and vehicles with a range greater than 300 miles hold a larger share than those below 300 miles.

Electric Vehicle Market Range Segment Insights:

EVs Range Insights

Based on the Range, the Electric Vehicle Market segmentation includes Less than 300 Miles and More than 300 Miles. By Range, more than 300 Miles segment hold the majority market share in 2022 contributing 59.5% of the market share. United States Department of Energy, the number of EVs offering at least 300 miles of range has grown tremendously since 2016 and has tripled in 2022 compared to a year prior. Higher range remains a huge selling point for US consumers.

Electric Vehicle Market Vehicle Drive Type Segment Insights:

Electric Vehicle Drive Type Insights

Based on the Vehicle Drive Type, the Electric Vehicle Market segmentation includes Front Wheel Drive, Rear Wheel Drive, Four Wheel Drive and All Wheel Drive. By Vehicle Drive Type, Front Wheel Drive segment hold the majority market share in 2022 contributing 51.0% of the market share. Front wheel drive (FWD) means that the power from the engine is delivered to the front wheels. With FWD, the front wheels are pulling while the rear wheels don’t receive any power. The pros of a FWD vehicle are that they typically gets better fuel economy. Since the weight of the engine is located above the driving wheels, a FWD vehicle can maintain better traction in the snow. However, performance enthusiasts have claimed FWD vehicles are less fun to drive. Rear wheel drive (RWD) means that engine power is delivered to the rear wheels which in turn push the car forward. The front wheels do not receive any power. Since the weight of a RWD vehicle is more evenly spread than many front wheel drive vehicles, there’s a better balance of weight. This is why most sports cars such as the Corvette and Camaro are RWD – and more exciting to drive. The disadvantage of a RWD vehicle is that they do not perform well in poor weather conditions such as rain or snow because they are more prone to traction-loss.

Electric Vehicle Market End Use Segment Insights:

Electric Cars End Use Insights

Based on the End Use, the Electric Vehicle Market segmentation includes Private and Commercial Fleets. By End use, Private segment hold the majority market share in 2022 contributing 63.0% of the market share. Privately owned hold a larger market share compared to commercial fleets, and Passenger Cars are the most popular vehicle type, followed by Two & Three Wheelers, Commercial Vehicles, and Off-Highway Vehicles. This rapid growth is driven by factors such as government incentives, falling battery costs, and increasing consumer awareness of the environmental benefits of EVs.

Electric Vehicle Market Vertical Segment Insights:

EVs Type Insights

Based on the Type, the Electric Vehicle Market segmentation includes Passenger Cars, Commercial Vehicles, Electric Two Wheelers & Electric Three Wheelers and Off-Highway Vehicles. By Type, Passenger Cars segment hold the majority market share in 2022 contributing 56.0% of the market share. A passenger car is a multi-track vehicle with at least two axles, its own driver and usually four wheels. It is primarily intended for passenger transportation. Most passenger cars are road vehicles used in public road transport. Buses and trucks are not considered passenger cars – they are considered commercial vehicles. Together with the driver’s seat, a passenger car may have a maximum of 9 seats if the design and equipment allow it. The number of persons who may be transported depends on the number of safety belts installed. The passenger car, including the items loaded on it, may not weigh more than 3.5 tons. To be allowed to drive a passenger car in public road traffic, a driver’s license and vehicle registration are required.

Electric Vehicle Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue Asia Pacific held the largest share of 55.8% in the Electric Vehicle market in 2022 and is expected to maintain its dominance during the forecast period. The Asia Pacific is the largest market for Electric car technology. The region is home to some of the fastest-developing economies, such as China and India. The governments of these emerging economies have recognized the growth potential of the electric vehicle market trends and, hence, have taken different initiatives to attract major OEMs to manufacture electric cars in domestic markets. The region is home to 93 of the worlds most polluted cities, and has a high energy demand. As of 2022, transportation sector in the region accounts for around 14% of overall emissions. Thus, countries in the region, are planning to reduce emissions in the coming years. China, the e-mobility leader in the region, had set a target of over 20% EV sales by 2025, which it had already achieved in 2022 and is expected to have around 35% in 2023. Similarly, countries such as South Korea, Japan and India have also announced plans to shift to EVs in coming years. India for instance, plans to have 30% of its passenger car sales to be electric by 2030. South Korea and Japan are also aiming to be among the world top 5 EV producers by 2030. China is also investing significantly in the production of both electric passenger as well as commercial vehicles, with plans for export. OEMs such as BYD plan to open plants in other parts of the world to manufacture electric buses and electric trucks to meet regional demand. The country supports EV usage by offering a subsidy for buying EVs. The country is also encouraging manufacturers to develop better EV technology. Various EV charging stations are set up across the country due to the subsidy for setting up EV infrastructure.

Figure3: Electric Vehicle Market Size By Region 2023 & 2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Electric Cars Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Electric Vehicle market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Electric Vehicle market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Daimler AG, Nissan Motor Corporation, Tesla, Inc., Toyota Motor Corporation, Ford Motor Company, Volkswagen, BMW, General Motors, Hyundai Motor Company, Mitsubishi Motors Corporation, and BYD Motors Inc. Tesla, Inc. is aggressive in manufacturing and broadening its market share in the EV market. It aims to accelerate the world towards sustainable energy and has initiated innovation in the automobile industry as a niche differentiator, offering market-disrupting products in the form of luxury Electric Cars. Additionally, Tesla’s broad differentiation strategy is a long-term play, focusing on electric automobile automation, battery technology, and environmentally friendly products such as solar roof tiles. Furthermore, the company aims to expand its market reach to add more customers. For instance, Tesla has registered their first office in Bengaluru, India and planning to expand its business operations in Delhi, Mumbai, and Bengaluru by opening up showrooms.

The Electric Vehicle Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Electric Vehicle market include.

  • Daimler AG

  • Nissan Motor Corporation

  • Tesla, Inc.

  • Toyota Motor Corporation

  • Ford Motor Company

  • Volkswagen

  • BMW

  • General Motors

  • Hyundai Motor Company

  • Mitsubishi Motors Corporation

  • BYD Motors Inc.

  • Tesla, Inc.

Electric Cars Industry Developments

  • In March 2022, Volkswagen Group and SEAT announced plans to build a new electric cars factory in Spain, as part of a broader electrification and digitalization strategy. The German carmaker aims to produce 3 million small electric vehicles (EVs) in Spain between 2025 and 2030, with SEAT planning to assemble 500,000 electric cars a year at its plant in Martorell, outside Barcelona. The Group also revealed a significant investment in the creation of a European Electric Vehicle Hub, including the construction of a new battery cell factory in Valencia, with a total investment of more than 7 billion euros. The new factory is expected to create more than 3,000 jobs and have a production capacity of 40 GWh annually, with the goal of starting production in 2026.

  • In July 2023, Volkswagen struck a deal with Chinese EV maker Xpeng Inc to boost its EV lineup. The two companies have two new models under development as part of that partnership, targeting mid-level price points, and are set to be rolled out from 2026.

Electric Vehicle Market Segmentation

Global Electric Vehicle Technology Outlook

  • Battery Electric Vehicles

  • Plug-In Hybrid Electric Vehicles

  • Fuel-Cell Electric Vehicles

Electric Vehicle Top Speed Outlook

  • <125 MPH

  • >125 MPH

Electric Vehicle Range Outlook

  • Less than 300 Miles

  • More than 300 Miles

Electric Vehicle Drive Type Outlook

  • Front Wheel Drive

  • Rear Wheel Drive

  • Four Wheel Drive

  • All Wheel Drive

Electric Vehicle End Use Outlook

  • Private

  • Commercial Fleets

Electric Vehicle Type Outlook

  • Passenger Cars

  • Commercial Vehicles

    • LCVs

    • Trucks

    • Buses & Coaches

  • Two & Three Wheelers

  • Off-Highway Vehicles

Electric Vehicle Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Netherlands

    • Sweden

    • Finland

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • South Korea

    • Thailand

    • Taiwan

    • Malaysia

    • Vietnam

    • Rest of Asia-Pacific

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • Jordon

    • Rest of Middle East & Africa

  • South America

    • Brazil

    • Argentina

    • Chile

    • Colombia

    • Rest of South America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 368.2 Billion
Market Size 2023 USD 493.36 Billion
Market Size 2032 USD 2071.02 Billion
Compound Annual Growth Rate (CAGR) 17.3 % (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered technology, top speed, range, vehicle drive type, end-use, and vehicle type and Region
Geographies Covered Europe, North America, Asia-Pacific, Middle East & Africa, and South America
Countries Covered The U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, Brazil, and others.
Key Companies Profiled Daimler AG, Nissan Motor Corporation, Tesla, Inc., Toyota Motor Corporation, Ford Motor Company, Volkswagen, BMW, General Motors, Hyundai Motor Company, Mitsubishi Motors Corporation, and BYD Motors Inc. Tesla, Inc.
Key Market Opportunities ·       Increasing adoption in emerging economies
Key Market Dynamics ·       Increasing fuel prices ·       Government initiatives ·       Expansion of global electric vehicle manufacturers into emerging markets

Frequently Asked Questions (FAQ) :

The Electric Vehicle Market size is expected to be valued at USD 368.2 Billion in 2022.

The global market is projected to grow at a CAGR of 17.3% during the forecast period, 2023-2032.

Asia Pacific had the largest share of the global market.

The key players in the market are Daimler AG, Nissan Motor Corporation, Tesla, Inc., Toyota Motor Corporation, Ford Motor Company, Volkswagen, BMW, General Motors, Hyundai Motor Company, Mitsubishi Motors Corporation, and BYD Motors Inc. Tesla, Inc.

The Battery Electric Vehicles category dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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