Battery Electric Vehicles Market Size By Vehicle (Heavy Duty Vehicles, Agriculture, Buses, Port Vehicles/Container Handling Or Transport, Automotive, Class 8/Long Haul) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025
Published Date: Mar 2019 | Report ID: GMI3181 | Authors: Ankita Bhutani
Battery Electric Vehicles Market size valued at over USD 150 billion in 2018 and is estimated to exhibit around 16% CAGR from 2019 to 2025.
Get more details on this report - Request Free Sample PDF
Supportive government policies and regulations pertaining to the increasing usage of alternative fuels to power automobile are expanding the battery electric vehicles market size over the forecast timeframe. In 2016, the Canadian government introduced the Clean Fuel Standard, that enables industry players to use a wide range of green fuels, including electricity, hydrogen, and other renewable fuels for powering vehicles, thereby reducing carbon emissions considerably.
Continuous focus of the government on reducing the dependence on conventional fuel automobile and improve issues related to environmental pollution will drive industry growth. For instance, the California government announced its plans to deploy around 5 million zero emission vehicles on road by 2030 and around 250,000 electric vehicle charging stations by 2025. Further, the government also aims to cut down on greenhouse emissions by around 40% below the 1990 levels by 2030. Ongoing initiatives will drive the market over the study timeframe.
The increasing prevalence of greenhouse gases and carbon emissions across the globe are forcing governments to take stringent steps and introduce policies to curb pollution levels significantly. Rising automotive production along with the availability of extensive public transportation across the region based on conventional fuels further contributes towards increasing pollution levels significantly.
The increasing demand for battery electric vehicles is attributed to benefits offered by such vehicles including no emissions, noise, along with higher efficiency. The lower maintenance cost associated with the vehicles along with reduced vibrations, supported by the availability of instant torque and power output will further strengthen the battery electric vehicles market share.
Industry participants are developing battery technology to enhance vehicle performance. Automobile OEMs including Mercedes and BMW are installing Na/NiCl2 battery that offers advantages including superior cell voltage and cycling performance. Moreover, the batteries are unaffected by constant freeze thaw cycles due to moderate differences between ceramic separator’s thermal expansion coefficients and other battery components.
High vehicle cost will restrict the market demand over the study timeframe. The implementation of advanced technologies, including fast charging and water proofing for improved vehicle performance in diversified climatic conditions, contribute significantly toward increasing the overall vehicle cost. Additionally, costs associated with the prototyping, testing, and compliance to stringent government regulations prior to commercialization further increase the vehicle cost significantly.
|Base Year:||2018||Market Size in 2018:||150 Billion (USD)|
|Historical Data for:||2014 to 2018||Forecast Period:||2019 to 2025|
|Forecast Period 2019 to 2025 CAGR:||16%||2025 Value Projection:||425 Billion (USD)|
|Pages:||210||Tables, Charts & Figures:||227|
|Geographies covered (20):||U.S., Canada, Germany, UK, France, Sweden, Italy, Norway, Spain, Netherlands, China, Japan, India, Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa|
|Segments covered:||Vehicle and Region|
|Companies covered (15):||BMW, BYD Company Ltd., Continental AG, Daimler AG, Energica Motor Company S.p.A., Ford Motor Company, Volkswagen AG, Toyota Motor Corporation, General Motors, Groupe Renault, Honda Motor Co. Ltd., Hyundai Motor Company, Mitsubishi Motors Corporation, Nissan Motor Corporation, Tesla, Inc.|
|Pitfalls & Challenges:||
Get more details on this report - Request Free Sample PDF
Heavy duty battery electric vehicles market size will witness significant growth with installation of economical lithium-ion batteries and improving charging infrastructure. Government subsidies have made electric heavy-duty vehicles an economical alternative for buyers as compared to traditional trucks. The vehicles offer lower maintenance and running with efficient electric powertrains. China, Europe, and North America will account for more than 70% sales of the heavy-duty vehicles over the study timeframe.
Automotive segment holds significant share in the market with uptake of electric passenger cars driven by the policy environment. Government organizations are introducing policies to phase out conventional internal combustion powered cars by 2030. The policies and incentives offered by governments have been instrumental in making electric cars more appealing to customers and encouraging manufacturers to scale up the production.
The replacement of internal combustion engines with battery electric in the public transportation system will drive bus segment penetration over the forecast period. Regulatory authorities across the globe are committing emission reduction targets for transportation, especially in the public transportation sector. They are creating incentive programs and grants for transit companies, bus contractors, and school districts to finance the upfront cost of electric buses and the charging infrastructure.
Europe battery electric vehicles market will foresee strong growth owing to increasing R&D projects along with stringent vehicle emission norms. Easily accessible charging infrastructure in conjunction with innovative electric bus technologies are providing potential growth prospects for electric buses. Increasing consumer inclination towards utilization of e-bikes offering economical means of transportation is accelerating the regional demand.
North America will witness significant growth owing stringent emission standards and regulations propelling the adoption of battery electric vehicles. Effective government policies are generating the requirement for electrification of on-road transport vehicles. Moreover, declining price trend of electric batteries is lowering the ownership cost, further promoting the utilization of electric vehicles.
Asia Pacific leads the battery electric vehicles market size owing to the increasing deployment of zero emission trucks and cars. Strong presence of battery manufacturers in the region coupled with supportive government subsidies and tax incentives are bolstering the industry growth. Increasing demand for environment friendly means of transportation over the region is resulting in gradual electrification of heavy-duty trucks. Growing emphasis for reducing the carbon footprint and increasing air quality are providing a positive outlook for battery electric vehicles.
Competitive Market Share
Major battery electric vehicles industry participants include BMW, Tesla Inc, BYD Company Ltd., Nissan Motor Corporation, Daimler AG, Hyundai Motor Company, Ford Motor Company, Toyota Motor Corporation, and Volkswagen AG. The introduction of advanced electrification & safety technologies is positively influencing industry growth over the forecast timeframe. Increasing demand for battery electric vehicles is providing potential opportunities for the expansion of production facilities and serving a large consumer base. For instance, in January 2019, Volkswagen announced to set up new plant in Tennessee to produce battery electric vehicles
Battery electric vehicles adoption is highly dependent on supporting infrastructure and incentives. Industry will witness significant growth with emergence of charging infrastructure. According to China Electric Vehicle Charging Infrastructure Promotion Association, in 2019, the number of charging stations rose to over 400,000 in China.
Government organizations including Ministry of Ecology and Environment (MEE), Society of Automotive Engineers (SAE), Automotive Research Association of India (ARAI) are taking initiatives for support the adoption of electric vehicles. For instance, Indian government approved USD 1.4 billion scheme to subsidize the sales of electric vehicles under the Faster Adoption for Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.
Frequently Asked Questions (FAQ) :
Benefits of Association
Data Coverage & Quality
GMI reports provide the most comprehensive coverage of any focus industry, ensuring a holistic and deep understanding of the market, along with actionable and granular data. We also take pride in our commitment to quality and strive to ensure that our clients get their moneys worth.
Client Trust & Security
GMI maintains strict code of conduct as a business and is committed to ensure that the privacy and trust of our clients are always maintained. As an organization, we also strive to be fully compliant with privacy laws, PCI and information security guidelines.
Our customers rely on us to produce accurate, reliable and timely information. Service orientation is a key mission for us as an organization; our process is guided by the desire to ensure that our clients are provided the best possible solutions in optimal timeframe. GMI stands by its commitment to service, providing timely assistance in both pre-sales and post-sales support for our clients.