Global market for electric vehicles is anticipated to reach US$ 596.56 Billion by 2030, expanding at over 15 percent CAGR between 2016 and 2030, says a new report by Persistence Market Research.
By the end of 2016, the market is projected to stand at US$ 99.88 billion.
Higher emphasis on eco-friendly alternatives for transportation is driving the market growth of electronic vehicles during the forecast period.
The world’s continuous struggle against rising levels of air pollution and environmental degradation are compelling the common masses to opt for greener transport solutions.
Currently, most transport and communication systems are heavily dependent on fossil fuel energy that causes severe depletion of air quality and further damages the structure of the eco-system.
Moreover, the natural crude oil reservoirs across the globe are likely to get exhausted within the next couple of decades. Hence, electric powered vehicles are considered as the best possible solution for the aforementioned crisis.
Due to growing concerns over dissipation of greenhouse gases and global warming government authorities in various countries are taking strict measures to control carbon emissions. Authorities are reevaluation the transportation networks and are introducing low emission transport systems. Thus, such conditions are expected to encourage the use of low decibel electric vehicles.
Some of the strongest economies of the world such as the US and China have launched several eco-friendly projects to promote the use of electronic vehicles. Attractive grants such as free number plate registrations for electric vehicles are permitted to encourage the use of such vehicles.
Challenges facing the global market for electric vehicles include performance limitations, the low adoption rate of electric vehicles, especially in developing countries and lack of infrastructure to support the market growth in developing regions.
Thus, the aforementioned factors are creating stalemate conditions in the global market. Moreover, electric backed or hybrid vehicles are relatively more expensive than gasoline-based vehicles and are mostly designed for large commercial use.
By technology, the plug-in hybrid electric vehicles segment is set to witness a robust demand in the coming years. Currently, plug-in hybrid electric vehicles are the least popular segment of the market, however, it is expected to witness the highest growth, expanding at over 17 percent CAGR over the assessment period due to higher flexibility in usage.
On the basis of product type, demand for two-wheelers is expected to gain traction in the near future due to their robust sales in China. On the other hand, passenger cars segment is set to witness a CAGR of over 15 percent during the forecast period.
The markets in Europe, Asia Pacific and Europe are expected to witness a healthy growth over the next couple of years. This is primarily due to the advancement of recharging infrastructure and increasing government initiatives to promote the use of electric vehicles in these regions.
Some of the bigwigs of the market include Ford Motor, Nissan Motor Corporation, Toyota Motor Corporation, Honda Motor, and Bayerische Motoren Werke.
Key players operating in the global market are articulating market strategies that involve further advancement in technology to stamp out core limitations that are stalling the overall market growth.
Over the years, investments in electric car manufacturing have grown manifold primarily to overcome the technological barriers associated with performance issues.
Latin America and Middle East & Africa are expected to witness a sluggish growth of the electric vehicle market during the forecast period.