A Research Report Insights (RRI) report reveals that the global market for electric vehicles is set to cross US$ 99 Billion in terms of value by 2016 end. As per the report, the market is expected to reach US$ 596.56 Billion by 2030, riding on a CAGR of 15.6%.
Increasing demand for clean and green energy and rise in global air pollution is compelling socio-economic institutions to rethink over the structures of social amenities that involve heavy carbon emission. In the modern age, vehicles have become a necessity more than a luxury and our dependency on them has reached to an extensive level. However, with growing dependency, their vehement use is leading to sever rise in pollution and drop of air quality worldwide.
Gasoline is the primary fuel for vehicles used in most transport and communication network across the globe and these vehicles emit immense volumes of carbon monoxide. Hence, such conventional transport systems have become a major concern for the governing bodies in various countries. In order to tackle this issue, various regulatory norms have been introduced to restrict the rise of both air and sound pollution. Government setting guidelines that are aimed to encourage manufacturing of soundless electric vehicles, which is pushing the growth of global electric vehicle market. World powerhouses such the US and China are taking a plethora of measures to promote the use of electronic vehicles. The US government is giving special grants to allure people to switch to electric vehicles, similarly, the government of China is offering free number plates registration for electric vehicle owners. Moreover, steep rise in gasoline price are pushing new buyers to opt for electric or hybrid models.
Bottlenecks
Key factors that are expected to halt the surging spirit of the global market for electric vehicles include issues related to performance and power and lack of infrastructural background for developing advanced electric vehicles. Moreover, the market for electric vehicles is yet to flourish at full-fledged scale and is still at a nascent stage, especially in the developing regions of the globe. Hence, such massive intercontinental market indifference is further leading to stalemate conditions.
Most electric vehicles are commonly used for large scale commercial purposes. In addition, efficient electric vehicles come with a hefty price tag and can only attract deep-pocketed customers.
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Demand for battery electric cars is steadily growing in China, which is home to one of the largest automobile industry in the world. In terms of sales, battery driven two-wheelers account for the highest share of the market in China. Therefore, the battery electric cars segment is expected contribute significantly to the overall growth of market. Whereas, the plug-in hybrid vehicles segment is projected to grow at a CAGR of over 16% during the forecast period.
Based on vehicle types, demand for passenger vehicles is expected to gain traction over the forecast period. The passenger vehicles segment is expected to claim for approx. 54% share of the market in 2016. On the other hand, the commercial vehicles segment will witness a sluggish growth owing to current inadequate performance issues, which may deter the growth of the segment.
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Key players identified in the global market for electric vehicles include Honda Motor Co., Ltd., Ford Motor, Toyota Motor Corporation, Nissan Motor Corporation Ltd, and Bayerische Motoren Werke AG. Most of these companies are focusing on developing advanced technology in order to correct the system faults associated with power and performance limitations. Moreover, stakeholders are making higher investments to uplift the infrastructure of electric vehicles development to further support R&D initiative.
