Supportive government policies and regulations, rising environmental concerns, decreasing prices of batteries, and advancements in charging technologies boost the revenue for the global Electric Vehicle (EV) market to grow at a CAGR of 20.6% till 2028.
According to the latest report by Reports and Data, the global EV market is expected to reach $ 17.70 billion in 2028.
Technological advancements have brought down the overall cost of EVs, and various battery producers specialise in offering excessive-capacity batteries and lowering battery prices to develop cost-efficient and high-performance electric mobility.
Many governments invest in charging infrastructures through direct investments for public charging stations or by offering subsidies for private charging stations at houses and workplaces.
In addition, offering attractive incentives and policies such as subsidy, lower registration fees, and free EV charging infrastructure at most charging stations to promote sales of EVs are factors expected to support market growth. Besides, exemption of road tax, purchase tax, and import duties, depending on the different subsidies, encourage automobile producers to increase EV production.
The report stated that the automotive manufacturers are responding well to the ever-changing market trends. In addition, manufacturing and capacity at several EV production plants are expected to increase due to supportive government policies. Furthermore, utilities and power companies are also increasing investment in developing EV charging infrastructure, further supporting market growth.
Some of the companies in the global market include BMW, BYD, Daimler, Energica Motor Company, Ford, GM, Nissan, Tesla, Toyota and Volkswagen.
Key Highlights
According to Reports and Data, commercial vehicle segment revenue is expected to register a significantly steady growth rate over the forecast period. Governments worldwide are focusing on the electrification of commercial vehicles to reduce greenhouse gas emissions, which is expected to impact market revenue positively.
Plug-In Hybrid Electric Vehicle (PHEV) segment revenue is expected to expand significantly over the forecast period. This is because PHEVs can be recharged from domestic electric power sources, use roughly 30–40% of petroleum compared to other ICE vehicles, and carbon emissions are substantially lower than regular vehicles.
The EV market in the Asia Pacific is expected to register robust revenue CAGR over the forecast period. Rising disposable income, increasing air pollution rates in countries like China and India, and technological advancements in charging infrastructure are key factors expected to drive demand for EVs in this region. Also, rising investment in R&D by market players to develop and introduce more innovative electric charging technologies is expected to drive market growth, the market research and consulting company noted.
Courtesy: Reports and Data. NB: Photo is representational; courtesy: Ford.