Driven by electric cars that are gradually becoming more competitive in some countries on a total cost of ownership basis, the zero-emission vehicle market is experiencing significant growth. As per the report released recently by UnivDatos Market Insights, the global zero-emission vehicle market is expected to grow at a CAGR of 32.7% from 2021-2027 to exceed 73.5 million vehicles sale by 2027.
The report has been aggregated by collecting informative data from various dynamics such as market drivers, restraints, and opportunities. According to UnivDatos Market Insights, several governments provided or extended fiscal incentives that buffered electric car purchases from the downturn in car markets. For instance, as per Boston Consulting Group, the global market share of electrified cars, SUVs, and other light vehicles grew from 8% in 2019 to 12% in 2020 and has shown continued strength in early 2021.
In addition, other factors driving the growth of the zero-emission vehicle market globally include improvements in battery technology and cost, more charging infrastructure being built, and new compelling models from automakers.
Also, electrification is another force that is also spreading to new road transport segments, setting the stage for huge changes ahead, UnivDatos Market Insights observed.
The major players targeting the market include Hyundai, BMW, Teska, BYD, Daimler, Volkswagen, Toyota and General Motors.
Impact of the pandemic
Due to lockdown, global car sales had a downward trend; however, electric car sales in 2020 defied this trend. As per IEA, consumers spent $120 billion on electric car purchases in 2020, a 50% increase from 2019, which breaks down to a 41% increase in sales and a 6% rise in average prices.
In 2020, the global average BEV price was around $ 40,000 and approximately $ 50,000 for a PHEV. In addition, governments worldwide spent $ 14 billion on direct purchase incentives and tax deductions for electric cars in 2020, a 25% rise year-on-year. Nevertheless, the share of government incentives in total spending on EVs has been on a downward slide from roughly 20% in 2015 to 10% in 2020, the research firm noted.
The Battery Electric Vehicles (BEV) segment dominated the market in 2020. The segment is expected to grow significantly because BEV models are offered in most vehicle segments in all regions.
Based on the estimation, Asia-Pacific dominated the market in 2020 and is expected to maintain its dominance during the forecast period (2021-2027), the research firm remarked.
Courtesy: UnivDatos Market Insights. NB: Photo is representational; courtesy: BMW.