Electric Vehicle Market Outlook
The electric vehicle sales are expected to reach over 5 million units, globally in the next five years. Europe is expected to witness the fastest growth in the market due to rapidly rising adoption of electric cars in countries such as Norway, Germany, and the UK. Moreover, the rollout of several policies related to electric vehicles is expected to benefit the growth of the electric vehicle market.
Market consolidation and joint ventures among the major firms are being seen as a key factor in the electric vehicle market. Automotive companies have been involved in the geographical expansion of their business through partnerships with domestic firms. These companies are also aiming at synergies to develop more-advanced electric vehicles to meet the demand of the market with technological expertise. Apart from this, the growing demand for longer-range electric is projected to create ample growth opportunities for the electric vehicle market companies as these are expected to replace most of the internal combustion engine (ICE)-powered cars.
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Electric Vehicle Market Trends
Monetary government subsidies
The electric vehicle market has high growth prospects despite the low market size. Governments have plans in place to invest significant amounts to make electric vehicles attractive, but their policies are yet to be implemented. Purchase credits, the free use of charging stations, establishing charging stations, and free parking for electric vehicles are some of the initiatives that will be undertaken by the government to boost the domestic electric vehicle market. Companies should also consider investing in European nations. The size of markets is not yet large, but firms should make use of the dynamic conditions, which are primarily driven by the political agenda. They should be prepared to make use of existing governmental regulations to support electric vehicle purchases.
Shared mobility services
The use of shared mobility services is rising quickly. Over a billion people across the globe now use some form of the ride-hailing app. Such services will continue to grow and reduce the demand for private vehicle ownership. Shared mobility services will adopt EVs faster than private owners, due to attractive economics and government policies. Today, electric vehicles account for approximately 2% of the shared mobility fleet. By the end of the decade, we expect electric vehicles to hold a major portion of the shared mobility fleet.
Incapability to keep pace with the shared mobility fleet category can negatively impact the electric vehicle market growth. Stay a step ahead by requesting free platform access from our procurement experts to gain detailed market insights.
Recent technology progress for battery storage has been escalated by high demand for batteries in consumer electronics. Structural elements indicate continued cost reductions and are linked to developments such as changes in battery characteristics and the scale of manufacturing plants underway in the automotive sector. The development of manufacturing capacity for automotive batteries reflects the dynamic developments of battery technologies and the importance of electric vehicles to achieve further cost reductions in battery storage, thereby boosting the electric vehicle market.