The global EV Market 2024 size was valued at USD 388.1 billion in 2023 and is expected to reach USD 951.9 billion by 2030 at a CAGR of 13.7% during the forecast period 2023-2030. With advancements in technology, increasing environmental consciousness, and supportive government policies, EVs have gained significant traction as a viable and sustainable transportation option. As concerns over climate change and air pollution intensify, consumers and industries are increasingly turning to electric vehicles to reduce their carbon footprint and contribute to a greener future. This growing global momentum has propelled the EV Market 2024 into a transformative phase, with innovations and investments driving the expansion of EV adoption across the world.
EV Market 2024 Growth Dynamics:
Driver: Reducing prices of EV batteries will increase demand for EVs by making them cost effective
Due to technological advancements and the production of EV batteries on a mass scale in large volumes, the cost of EV batteries has been decreasing during the past decade. This has led to a decrease in the cost of electric vehicles as EV batteries are one of the most expensive components of an electric vehicle. The prices of EV batteries fell significantly in the last decade, from USD 1,200/kWh in 2010 to USD 160/kWh in 2023 and is expected to decrease in the coming years. Meanwhile the price is as low as USD 100 per kWh in China. This is because of the reducing manufacturing costs of these batteries, reduced cathode material prices, higher production, etc. The prices of EV batteries are expected to fall to approximately USD 60 per kWh by 2030, which is expected to significantly reduce the prices of EVs, making them cheaper than conventional ICE vehicles. The price of EV batteries is expected to reach around USD 80 per kWh by 2025. This will bring the price of EVs to the same level as that of ICE vehicles in the market and start a big shift to EVs. From 2025, we can expect EVs to get cheaper than some ICE vehicles. The improvement in battery technology is the main reason for this fall in battery prices. Once Solid-State Batteries enter the EV Market 2024, we can expect another price fall (per kWh) by the end of this decade.
Opportunity: Rising demand for electric vehicles in the automotive and transportation sectors
Increase in the adoption and demand for electric vehicles has accentuated the need to develop charging infrastructure and the EV Market 2024. Leading markets for electric vehicles such as China, US, and Germany are investing significantly in electric vehicles and EV charging infrastructure along with research & development for faster and efficient charging methods, longer range EVs, and lower cost batteries. Significant investments by automakers are expected to cater to the rising demand for EVs. Countries across North America and Europe along with many Asian countries have adopted measures to reduce emissions during the coming decades and replace their vehicle fleets for lower emissions by varying numbers by 2035. This is expected to lead to a significantly high demand for electric vehicles. OEMs offer a wide range of vehicles, from small hatchbacks such as Leaf to high-end sedans such as Tesla model 3. The wide range of product offerings has attracted a high number of consumers, resulting in an increased market for electric vehicles. For instance, in January 2018, Ford announced plans to increase planned investments to USD 11 billion by end of 2022 for the development of EVs. The company introduced 40 EVs in 2022, of which 16 are expected to be fully electric and 24 are expected to be plug-in hybrid vehicles. The investment is higher than the previously announced target of USD 4.5 billion. Further, Stellantis also plans to come with 29 new EVs by 2030. Launched in September 2020, SAIC-GM-Wuling has a range of 106 miles on a single charge and was one of the highest selling EVs in 2021 and 2022.
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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. Similarly, ZF’s Commercial Vehicle Solutions (CVS) department unveiled ‘AxTrax 2’ and ‘AxTrax 2 dual’ electric central drive system designed for various types of vehicles, ranging from light delivery vans to heavy-duty trucks and trailers. Increasing sales of electric buses, particularly in China, has contributed to the growth of the electric bus segment. In the near future, several countries are expected to replace their existing fuel-based bus fleets with electric buses. The increasing trend of the replacement of fossil fuel-based public transport fleets with electric buses is expected to drive the growth of electric commercial vehicle market during the forecast period. Additionally, the growth of e-commerce, logistics, and shared mobility are expected to drive the growth of electric commercial vehicles during the forecast period. Electric vans are expected to witness significant growth in Europe and Asia owing to their extensive use in businesses. In the coming years, EV LCVs are expected to be the fastest-growing market.
Mid-priced EV segment to be the largest market during the forecast period
A mid-priced vehicle is considered to have a price of USD 30,000 to USD 45,000. This vehicle class has limited features with low emphasis on features such as infotainment, instrument cluster, and other expensive features. China is one of the leading markets for the mid-priced segment. Established automotive manufactures such as Hyundai, General Motors, Honda, and Nissan are also manufacturing mid-priced EVs to acquire higher market shares. Some other mid-priced EVs include BMW 3 Series PHEV, Zeekr One, Ford Mustang Mach-E, Volvo XC40, Renault Megane EV, Hyundai Ioniq 5, Volkswagen ID 4, Kia Niro EV, etc. In 2022, BYD Song Pro/Plus was the best selling mid-priced EV in Asia Pacific region, followed by Tesla Model 3 in Europe and North America. The EV Market 2024 forecast for the mid-priced segment is the largest in the Asia Pacific and European regions due to the demand for low-emission vehicles at reasonable prices. Various top EV models such as Nissan Leaf, Renault Zoe, Mitsubishi Outlander, Volkswagen Passat, Hyundai Kona, etc. fall under this category. These were also some of the largest selling EVs in these regions excluding Tesla in 2022. Thus, the demand for mid-priced EVs has been high in the past few years and is expected to keep rising in the coming decade. The market in the MEA is expected to grow at the highest rate in this segment as there is expected to be rising new demand in this region for these vehicles in the next decade.
“Growing demand for environmental friendly vehicles along with rising prices of petroleum around the world to boost the demand of EVs in coming years.”
With growing awareness about environmental issues and the need to reduce greenhouse gas emissions, governments and consumers alike are increasingly embracing electric mobility as a viable and sustainable solution. Technological advancements have significantly improved battery performance, charging infrastructure, and overall EV capabilities, making electric vehicles more practical and appealing to a broader audience. As a result, the EV market 2024 is witnessing unprecedented growth, attracting significant investments from both established automakers and new entrants. This surge in demand and innovation is reshaping the future of transportation and paving the way for a cleaner, greener, and more efficient automotive landscape.
Growth and Partnerships in the North American EV Market
North America is a significant EV Market 2024 during the forecast period. Top EV battery providers and startups have partnered with OEMs in the North American EV market. GM for instance has partnered with LG Chem for their EV batteries. Stellantis on the other hand has partnered with Samsung SDI for EV batteries. Ford is working with SK Innovation for the North American EV market. Tesla manufactures its EV batteries in-house. All these companies are working together to develop manufacturing hubs in the US. BMW, Nissan, Volkswagen, and Daimler are the leading OEMs in the US that have launched electric vehicles in the region. The top selling electric vehicles in the US are Tesla Model S, Chevy Volt, Nissan Leaf, and Ford Fusion Energy PHEV. The US is among the top EV markets in the world. Although the country does not have unified EV-related regulations, 45 of its member states promote the sales of EVs and setting up of EV charging stations. The country gives a USD 7,500 grant to new EV buyers up to a certain extent. States such as California have mass popularized EVs across their regions and taxed ICE vehicles significantly. This has led to a case where in the country, some states are fully EV enabled and ready while some others are not. Canada is also working on increasing EV demand in the country. Relevant laws are being made to support the Canadian EV manufacturers and promote demand in their domestic market.
Key Players
The EV market 2024 is dominated by established players such as BYD (China), Tesla (US), Volkswagen AG (Germany), SAIC Motors (China), and Stellantis (Netherlands), among others.
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Frequently Asked Questions (FAQ):
- How big is EV 2024 Market?
The global EV Market 2024 size was valued at USD 388.1 billion in 2023 and is expected to reach USD 951.9 billion by 2030 at a CAGR of 13.7% during the forecast period.
- Which region will have the fastest-growing market for EV Market 2024?
Middle East & Africa will be the fastest-growing region in the EV Market 2024 due to the increasing awareness of environmental sustainability, supportive government initiatives, and advancements in charging infrastructure.
- Who are the winners in the EV Market 2024?
The EV Market 2024 is dominated by BYD (China), Tesla (US), Volkswagen AG (Germany), SAIC Motors (China), and Stellantis (Netherlands), among others.
- What are the key technologies affecting the EV Market 2024?
The key technologies affecting the EV Market 2024 are the battery technology, electric motors and drivetrains, vehicle-to-grid (V2G) technology, autonomous driving, solid-state batteries, among others.