As per MRFR analysis, the South Korea Electric Mobility Market Size was estimated at 4.96 (USD Billion) in 2023. The South Korea Electric Mobility Market Industry is expected to grow from 5.73(USD Billion) in 2024 to 22.6 (USD Billion) by 2035. The South Korea Electric Mobility Market CAGR (growth rate) is expected to be around 13.283% during the forecast period (2025 - 2035).
The South Korea Electric Mobility Market is experiencing significant growth driven by several key factors. The South Korean government has made substantial commitments to reduce carbon emissions and promote eco-friendly transportation solutions. Initiatives such as the "Green New Deal" aim to expand the country's electric vehicle (EV) infrastructure, including widespread charging stations, which is crucial in boosting consumer confidence in electric mobility. In addition, the growing awareness of environmental issues among South Korean consumers is pushing demand for electric vehicles, influencing manufacturers to invest in research and development for superior technology and models.
Recent trends indicate a notable increase in the adoption of electric buses and commercial vehicles. The South Korean government has mandated the transition of public transportation to electric options, presenting a significant opportunity for electric mobility manufacturers. Additionally, the rise of domestic companies focusing on EV production highlights the competitive landscape in the South Korean market. Collaborations between automakers and tech firms are becoming common as they explore innovations such as battery swapping and autonomous driving technology, which can enhance the overall appeal of electric mobility. Moreover, opportunities in battery technology and charging solutions are on the rise as the nation seeks to establish a more comprehensive charging network to facilitate EV growth.With the South Korean government's support and a surge in consumer enthusiasm, the landscape for electric mobility is set to evolve rapidly, fostering a robust ecosystem for innovation and investment in the coming years. This shift opens avenues for startups and established companies to create tailored solutions that meet the unique needs of South Korean consumers, further propelling the electric mobility market forward.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Government Incentives and Policies
The South Korea Electric Mobility Market Industry is significantly driven by government regulations that encourage electric car use. The South Korean government has set an ambitious aim of 1.13 million electric vehicles on the road by 2025. This is part of their comprehensive effort to cut carbon emissions and shift to more environmentally friendly energy sources. The government has also provided major support for the construction of electric car infrastructure, such as charging stations. In 2020, the South Korean government implemented a subsidy scheme that provides up to USD 8,900 to buyers of electric vehicles, increasing customer interest and accelerating industry growth. These incentives reduce the financial burden of acquiring electric vehicles, making electric mobility more accessible to the general population. Several industry groups have shown a clear link between government subsidies and increasing electric car sales. For instance, the Korea Automobile Manufacturers Association reported a 50 percent year-on-year rise in electric car sales following the implementation of these subsidies, demonstrating the favorable influence of government policies on development in the South Korea Electric Mobility Market Industry.
Technological Advancements in Battery Technology
The South Korea Electric Mobility Market Industry has been significantly bolstered by rapid advancements in battery technology. The continuous improvement in battery efficiency, lifespan, and affordability has made electric vehicles more appealing to consumers. Samsung SDI and LG Energy Solution, leading battery manufacturers, are investing heavily in Research and Development (R&D), contributing to the reduction of battery costs by approximately 50 percent over the last five years.Increased energy density and faster charging capabilities are critical factors driving consumer adoption. According to data from the Korean Ministry of Trade, Industry and Energy, the average cost of battery packs fell to around USD 137 per kilowatt-hour in 2022, which has had a profound impact on the market. These developments in battery technology are expected to support the growth trajectory of the South Korea Electric Mobility Market Industry by providing consumers with more affordable and efficient electric vehicle options.
Rising Environmental Awareness
Rising environmental awareness among consumers is a significant driver for the South Korea Electric Mobility Market Industry. As concerns about air quality and climate change deepen, an increasing percentage of the population is seeking greener transportation options. Recent surveys conducted by the South Korean government revealed that over 70 percent of South Koreans view electric vehicles as more environmentally friendly compared to traditional gasoline vehicles.This heightened environmental consciousness aligns with broader national goals to achieve carbon neutrality by 2050. Companies like Hyundai are responding to this shift by expanding their electric vehicle offerings and enhancing their marketing efforts to promote the environmental benefits of electric mobility. Furthermore, the government is actively campaigning for electric vehicles as part of its commitment to greener living. This societal shift fosters greater interest and investment in electric vehicles, catalyzing growth within the South Korea Electric Mobility Market Industry.
Expansion of Charging Infrastructure
The expansion of charging infrastructure is playing a crucial role in supporting the growth of the South Korea Electric Mobility Market Industry. The South Korean government aims to install over 20,000 charging stations by 2025, which would address range anxiety, a significant barrier to electric vehicle adoption. In 2021, the government reported installing approximately 16,300 public charging stations, a 30 percent increase compared to the previous year.Furthermore, initiatives by private firms such as SK Networks and GS Caltex to develop fast-charging networks have greatly enhanced consumer confidence in electric mobility. With plans to increase the number of super-fast charging stations capable of charging vehicles within 20 minutes, the convenience provided by this robust charging infrastructure directly influences consumer buying behavior. This strategic expansion reflects a commitment not only from the government but also from private enterprises, ultimately encouraging the growth of the South Korea Electric Mobility Market Industry.
Electric Mobility Market Product Insights
The South Korea Electric Mobility Market is experiencing significant transformation as it evolves to include innovative products that cater to diverse consumer preferences and urban mobility needs. Within this dynamic environment, electric bikes, electric scooters, electric motorized scooters, and electric motorcycles play a crucial role in shaping sustainable transportation solutions. Electric bikes have gained substantial popularity among urban commuters due to their ability to offer both convenience and eco-friendly characteristics, making them an attractive alternative to traditional gas-powered vehicles. The government's commitment to reducing carbon emissions and promoting green transportation has further enhanced the appeal of electric bikes as viable and efficient means of getting around busy cities like Seoul. Electric scooters are seeing a surge in adoption, driven by their compact design and unique ability to navigate crowded urban spaces conveniently.
The increasing focus on shared mobility services in South Korea has led to a multiplication of electric scooter rental options, not only enhancing accessibility but also playing a part in reducing traffic congestion. Electric motorized scooters are also becoming a popular choice among young adults seeking affordable and environmentally friendly transportation, thereby expanding the demographic that utilizes electric mobility solutions. Meanwhile, electric motorcycles are positioned as a game-changer for longer-distance travel, offering higher speed and performance, which attract a different segment of riders who seek both sustainability and adventure.
This growth in the electric motorcycle sector could be attributed to the shifts in consumer preferences towards versatile transportation solutions that deliver both efficiency and pleasure. In addition to this, the rising fuel prices alongside government incentives to switch to electric vehicles amplify the importance of these products. Overall, the South Korea Electric Mobility Market is experiencing a robust expansion with a variety of electric mobility products that offer unique features and benefits, catering to the evolving transportation needs while contributing to a more sustainable environment. As urbanization grows and the demand for efficient transportation continues to rise, these products are well-positioned to dominate the landscape of future mobility in the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Mobility Market Drive Insights
The Drive segment within the South Korea Electric Mobility Market exhibits significant diversity, characterized primarily by technologies such as Belt Drive, Chain Drive, and Hub Drive. Belt Drive systems are becoming increasingly popular due to their quiet operation and low maintenance requirement, appealing to urban commuters looking for efficient and hassle-free transportation. Conversely, Chain Drives offer robustness and efficiency, making them well-suited for performance-oriented electric bikes and scooters, where power transmission plays a crucial role.Hub Drive technology is gaining traction in the market as well, providing an integrated solution that simplifies vehicle design and enhances aesthetics, which attracts a growing number of consumers seeking both functionality and style. The South Korean government's commitment to sustainable transportation and the rise in demand for electric vehicles are driving growth in these technologies. Overall, the Drive segment plays a pivotal role in shaping the landscape of electric mobility in South Korea, reflecting a shift towards more eco-friendly transportation solutions while addressing consumers' varying preferences and needs.
Electric Mobility Market Battery Insights
The Battery segment of the South Korea Electric Mobility Market plays a crucial role in the overall growth and expansion of the industry. As electric mobility gains momentum, the demand for efficient and reliable battery technologies becomes increasingly important. Among the types of batteries utilized, Lead Acid Batteries remain a common choice due to their established manufacturing processes and cost-effectiveness. They are widely found in conventional vehicles and serve as a transition technology in electrification. Meanwhile, Lithium-Ion Batteries have emerged as the dominant force within the segment, thanks to their high energy density, lightweight nature, and extended lifecycle, which cater to the rising demand for electric vehicles and portable energy storage solutions.Furthermore, other types of batteries represent innovative technologies aimed at diversifying the market and addressing specific usage needs, thereby enriching the overall battery landscape. The continuous advancements in battery technology, along with increasing government support for electric mobility initiatives, contribute to the South Korea Electric Mobility Market’s growth, highlighting its potential for revolutionizing transportation and addressing environmental concerns. The focus on sustainable practices and electrification aligns well with South Korea's vision of becoming a leader in green technology.
Electric Mobility Market End-use Insights
The South Korea Electric Mobility Market is significantly shaped by its end-use segmentation, primarily consisting of Personal and Commercial applications. With an increasing number of consumers prioritizing sustainability, the personal electric vehicle market is witnessing substantial growth, driven by government incentives and the rising awareness of environmental issues. Additionally, the commercial sector is experiencing a transition as businesses recognize the operational efficiencies and cost savings associated with electric mobility solutions.This shift is further encouraged by advancements in charging infrastructure and battery technology in South Korea, which enhance the convenience and appeal of electric vehicles. The Government of South Korea has been actively promoting electric mobility through policy measures, therefore fostering investment and innovation in this market segment. Thus, both personal and commercial segments play a crucial role in the overall growth trajectory of the South Korea Electric Mobility Market, capitalizing on the country's commitment to green energy and reduced carbon emissions.The landscape of electric mobility is becoming increasingly competitive, providing ample opportunities for growth as it aligns with global trends toward sustainable transportation.
The South Korea Electric Mobility Market is on the cusp of rapid evolution, characterized by intense competition fueled by technological advancements and increasing government support for sustainable transportation solutions. With a commitment to reducing carbon emissions and fostering innovation, the market has witnessed the entry of various stakeholders across different segments, including electric vehicles, batteries, charging infrastructure, and related technologies. As consumer preferences shift towards environmentally friendly options, key players are strategizing to gain market share by emphasizing enhanced performance, safety, and convenience. This competitive arena is not only attracting established automotive manufacturers but also new entrants aiming to disrupt traditional market dynamics. Collaborations and partnerships among companies are becoming commonplace, further accelerating growth and development in the sector.Nexen Tire has carved a notable presence in the South Korea Electric Mobility Market through its strategic focus on producing high-performance tires suitable for electric vehicles. The company emphasizes innovation and sustainability in its tire development processes, ensuring that its products improve vehicle efficiency and safety. Nexen Tire's strengths lie in its advanced research and development capabilities, allowing it to tailor its offerings to meet the specific requirements of electric mobility. By leveraging its strong manufacturing capabilities and commitment to quality, Nexen Tire maintains a competitive edge in the market, catering to both domestic and international electric vehicle manufacturers. The company's dedication to expanding its eco-friendly tire options aligns with the broader industry shift toward sustainable practices, positioning it strongly in this growing segment.Doosan Corporation is leveraging its extensive expertise and resources within the South Korea Electric Mobility Market, focusing on key products such as electric vehicle components, batteries, and advanced power systems. The company is well-established and operates a robust supply chain that supports both domestic and international markets. Doosan Corporation's strengths include its innovative technology portfolio and a strong emphasis on research and development, which have enabled it to stay ahead of market trends. The company has also engaged in strategic mergers and acquisitions to bolster its capabilities and market presence, allowing it to offer comprehensive solutions for electric mobility. By creating synergies among its various business units and fostering partnerships with key industry players, Doosan Corporation is well-positioned to capitalize on the burgeoning demand for electric mobility solutions in South Korea.
Recent developments in the South Korea Electric Mobility Market show a strong focus on innovation and sustainability. In September 2023, SK Innovation announced a significant investment to enhance its battery manufacturing capabilities, aiming to meet the growing demand for electric vehicles (EVs). Similarly, Hyundai Motor Company revealed plans to expand its EV lineup and invest heavily in Research and Development for battery technology, anticipating a 20% increase in electric vehicle sales by 2025. In October 2023, LG Chem partnered with Hyundai Mobis to develop next-generation electric powertrains, marking a strategic collaboration to boost efficiency in the electric mobility sector. Additionally, there have been advancements in tire technology, as Hankook Tire and Nexen Tire are working on eco-friendly products designed for electric vehicles. The market valuation of electric mobility companies in South Korea has seen a notable increase over the past few years, propelled by consumer interest in green technologies and government initiatives aimed at reducing carbon emissions. Between 2021 and 2023, the market experienced robust growth, driven by the increased production of electric vehicles and supportive legislation from the South Korean government aimed at fostering a sustainable transportation ecosystem.
Electric Mobility Market Product Outlook
Electric Mobility Market Drive Outlook
Electric Mobility Market Battery Outlook
Electric Mobility Market End-use Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 4.96(USD Billion) |
| MARKET SIZE 2024 | 5.73(USD Billion) |
| MARKET SIZE 2035 | 22.6(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.283% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Nexen Tire, Doosan Corporation, Hyundai Mobis, SK Innovation, Kia Corporation, Electric Vehicle Powertrain, POSCO, LG Chem, Hankook Tire, Samsung SDI, Hanon Systems, Daewoo Engineering & Construction, Hyundai Motor Company |
| SEGMENTS COVERED | Product, Drive, Battery, End-use |
| KEY MARKET OPPORTUNITIES | Government incentives for EV adoption, Expansion of charging infrastructure, Growth in electric public transport, Rise of shared mobility services, Advances in battery technology |
| KEY MARKET DYNAMICS | Government incentives and subsidies, Growing charging infrastructure, Increasing consumer awareness, Technological advancements in batteries, Environmental regulations and policies |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Electric Mobility Market is expected to be valued at USD 5.73 billion in 2024.
By 2035, the market is projected to reach a value of USD 22.6 billion.
The expected CAGR for the South Korea Electric Mobility Market is 13.283% from 2025 to 2035.
Major players include Hyundai Motor Company, Kia Corporation, SK Innovation, and LG Chem, among others.
The market size for electric bikes is valued at USD 1.14 billion in 2024.
The electric scooters segment is expected to be valued at USD 1.45 billion in 2024.
The projected market value of electric motorcycles is USD 9.63 billion by 2035.
There are significant opportunities for growth driven by increasing demand for eco-friendly transportation.
The market faces challenges such as infrastructure development and competition from traditional vehicles.
The current global scenario affects supply chains and investment in electric mobility technologies.
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