Battery Electric Vehicle Market Size, By Vehicle (Electric Cars, Electric Buses, Electric Trucks, Electric Motorcycles & Scooters, E-bikes), By Battery Type (SLA, Li-ion, NiMH), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Battery Electric Vehicle (BEV) Market size valued at USD 150 billion in 2020 and is anticipated to grow at a CAGR of over 10% from 2021 to 2027. Rising demand for eco-friendly mobility solutions to curb pollution levels and the availability of tax rebates are driving the market growth.
 

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Supportive government initiatives and schemes to promote the adoption of sustainable mobility solutions to reduce the pollution level from vehicles will propel the market expansion. For instance, in April 2021, the French government announced a scheme to provide its residents with USD 3209.2 on the purchase of e-bikes and USD 1925.5 on the purchase of e-bicycles in exchange for old bikes & bicycles. The specific grant, a part of the national car scrappage scheme, aims to cover electric bikes and cargo bikes to remove traditional polluting vehicles from the roads.
 

Rapid investments in R&D activities by industry participants to develop advanced battery solutions for BEVs will foster the market progression. For instance, in October 2021, Tesla announced the use of Lithium Iron Phosphate (LFP) based batteries in all its standard range of electric cars to increase its profit margin. The new LFP batteries have a longer life expectancy, require no maintenance, are lightweight, enhance discharge & charge efficiency, and are easier to recycle compared to nickel-cobalt aluminum battery packs. Moreover, advancements in electric powertrains including improvements in torque and power to operate across diversified environment conditions will further accelerate the industry growth.
 

The major factors challenging the industry expansion are limited charging infrastructure and higher charging time. To overcome these restraints, industry participants are collaborating with government bodies to build charging infrastructure to support the acceptance of BEVs.
 

In 2020, the automobile industry was negatively impacted due to the COVID-19 pandemic, impacting the overall battery electric vehicle market. The global lockdown and stringent travel restrictions imposed by government authorities resulted in the shutdown of manufacturing facilities and unavailability of electric components, Li-ion battery packs & labor. This also resulted in postponements in investments, R&D activities, and subsequently the launch of new BEVs, reducing the market revenue of BEV companies. However, the industry is predicted to observe steady growth over the forecast period owing to supportive government policies and stimulus measures to achieve emission standards.
 

Emerging automotive technologies are accelerating electric car usage

The electric cars segment in the BEV market is slated to witness 12% growth rate through 2027. Electric cars are equipped with technologically advanced features and facilities to improve driver safety such as sensors, telematics systems, cameras, blind-spot monitoring with rear cross-traffic alert, and others. These advanced safety features have proven their effectiveness in saving lives on the road. Market players are focusing on launching electric cars integrated with advanced features to widen their customer base.
 

Growing demand for Li-ion batteries

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the Li-ion battery segment dominated more than 75% of the BEV market share in 2020. Increasing market demand for electric vehicles and the rising adoption of light commercial electric vehicles will stimulate the production of Li-ion batteries. The high demand for Li-ion batteries can be attributed to their minimum maintenance cost, long-life, high-power density, low-self discharge, and low environmental impact.
 

Supportive government regulations to boost BEV sale in APAC region

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Asia Pacific battery electric vehicle market size was USD 100 billion in 2020 led by the availability of cheap raw materials, labor, and the presence of major battery manufacturers. Continuous investments by manufacturers to expand their battery plant facilities will fuel the regional revenue. Supportive government regulations and initiatives to impel the sale of electric vehicles will support the industry progression of BEVs in the region.
 

New product launches as a key strategy to strengthen global presence

Prominent players operating in the battery electric vehicle market include BYD company Ltd., Volkswagen AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Corporation, Toyota Motor Corporation, BMW, Ford Motor Company, and Daimler AG. Several companies are emphasizing on diversifying their product portfolios to expand their global presence and strengthen their position in the market.
 

The battery electric vehicle (BEV) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2021 to 2027 for the following segments:

Market, By Vehicle

• Electric Cars
• Electric Buses
• Electric Trucks
• Electric Motorcycles & Scooters
• E-bikes

Market, By Battery

• SLA
• Li-ion
• NiMH

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa