BY Ravi K

The Global EV Market is projected to grow from USD 388.1 billion in 2023 to USD 951.9 billion by 2030, registering a CAGR of 13.7%. The electric vehicle (EV) market is experiencing a remarkable surge in growth, revolutionizing the global automotive industry.

With an increasing focus on sustainability and reducing greenhouse gas emissions, governments and consumers alike are embracing the transition to electric mobility. Advancements in battery technology, charging infrastructure, and improved driving range have alleviated the concerns of range anxiety, boosting consumer confidence in EV adoption.

Commercial Vehicles to be the Fastest Growing Market by Volume During Forecast Period

The commercial vehicle segment includes LCVs and HCVs. HCVs combine two categories of vehicles − heavy trucks and buses & coaches. The nature of these vehicles limits their production volumes and growth rates as they are used in specific applications such as logistics, construction, and mining industries.

On the other hand, LCVs have come a long way from having bare-essential features to full-blown utility vehicles that can be used for passengers as well as commercial purposes. The majority of used LCVs and HCV’s include vans, mini-buses, pickups, trucks etc. Various companies such as Volvo Group, Daimler AG, Traton Group, BYD, Nikola Motor, Tesla, DAF Trucks, etc. already have EV models available or are currently under development.

For instance, in May 2022, Stellantis and Toyota Motor partnered to develop a new large-size commercial van, including a battery electric version. This collaboration completes a full lineup of light commercial vehicles (LCV), consisting of compact, mid-size, and now a large-size LCV.

FWD (Front Wheel Drive) to be the Largest Market During the Forecast Period

A front wheel drive vehicle has the transmission system attached to its front axle and wheels. It is significantly cheaper to design and produce compared to other wheel drives. The vehicle is therefore cheaper for consumers. Most front wheel drives provide better mileage compared to rear wheel drives as the weight of the drivetrain is lower than that of the rear wheel drive.

They also provide better traction as the weight of the engine and transmission are over the front wheels. This makes the vehicle easier to operate in difficult weather conditions such as snow and heavy rain. However, the handling of these vehicles is harder compared to other drives, especially at faster speeds. In 2022, there were total sales of 1.8 million FWD EV cars in Asia Pacific followed by 0.3 million in Europe and 0.04 million in North America.

BYD Song Pro/Plus was the second best-selling passenger car worldwide which has a FWD type. Some popular FWD EVs include BYD Qin Plus, BYD Han, Tesla Model Y, BYD Donphin, Tesla Model 3, BYD Yuan Plus EV, BYD Tang, Tesla Model Y, Tesla Model 3, GAC Aion Y, GAC Aion S, Changan Benni EV, Chery QQ Ice Cream, Hozon Neta V EV, Chery EQ 1 etc.

Asia Pacific to be the Largest and the Fastest Growing Market by Value During the Forecast Period

The region is home to some of the fastest-developing economies, such as China and India. The governments of these emerging economies have recognized the growth potential of the electric vehicle market trends and, hence, have taken different initiatives to attract major OEMs to manufacture electric vehicles in domestic markets.

The region is home to 93 of the world’s most polluted cities and has a high energy demand. As of 2022, the transportation sector in the region accounts for around 14% of overall emissions. Thus, countries in the region, are planning to reduce emissions in the coming years. China, the e-mobility leader in the region, had set a target of over 20% EV sales by 2025, which it had already achieved in 2022 and is expected to have around 35% in 2023.

Similarly, countries such as South Korea, Japan and India have also announced plans to shift to EVs in coming years. India for instance, plans to have 30% of its passenger car sales to be electric by 2030.

Key Players

The EV market is dominated by established players such as BYD (China), Tesla (US), Volkswagen AG (Germany), SAIC Motors (China), and Stellantis (Netherlands), among others.