Solar Vehicle Market size is expected to grow significantly over the projected timeframe of 2022 to 2028. This growth can be attributed to the growing need for highly efficient vehicles with lesser environmental impact. As solar vehicles consist of photovoltaic cells that produce electricity from solar energy, they are being increasingly adopted globally. The increasing prices of petroleum-based fuels will further create a favorable market scenario.
The market growth is expected to proliferate further with the increasing focus of numerous research institutions and organizations to develop solar powered vehicles with improved efficiency and reduced emissions. Besides, stringent emission norms established by the governing bodies across various countries and shifting interest fossil-fuel powered vehicles to electric vehicles is also slated to complement the market growth.
With regards to the type of vehicle, solar vehicle market is bifurcated into hybrid electric vehicles, battery electric vehicles, and plug-in hybrid electric vehicles. Hybrid electric vehicles (HEVs) segment is expected to grow considerably through the forecast period owing to mounting product demand. The demand for these vehicles is being largely propelled by the benefits associated with them such as cost-effectiveness, environmental-friendliness, lesser noise, and less maintenance.
On the basis of battery type, the market is segmented into lithium-ion, lead carbon, and lead acid battery. Lead carbon battery segment is anticipated to observe a notable expansion over the projected timeframe owing to the advantages associated with these batteries. These solar batteries offer faster charging, cost-effectiveness, and are lesser toxic which helps in reducing environmental impact.
Solar vehicle industry is bifurcated into monocrystalline and polycrystalline, based on panel types. The market is expected to record substantial growth from polycrystalline panels over the upcoming years. This can be attributed to the advantages offered by these blue-hued PV cells such as high durability and lower cost. Besides, their manufacturing process is also known to be relatively simpler which will stimulate their demand and favor the segmental growth further.
Major companies operating in solar vehicle market include Sono Motors, Toyota Motor Corporation, Volkswagen AG, Ford Motor Company, Nissan, General Motors, Mahindra Electric Mobility Limited, and Cruise Car.
These companies are taking various initiatives like investing in R&D activities, new product launches, collaborations, partnerships, and acquisitions to maintain a competitive edge.
For instance, in 2021, the German manufacturer of solar-powered car-Sono Motors revealed its plans to raise fresh funding to invest in the further production and development of its first solar electric vehicle.
The COVID-19 pandemic has made a serious impact on the global solar industry which has subsequently affected the solar vehicle industry. The major challenges pestering the industry largely include supply chain disruption, permitting challenges, tightening of tax equity markets, etc. However, with the establishment of the right policies and the gradual lifting of lockdown restrictions across the globe, the market statistics are expected to improve significantly.
Market, By Vehicle, 2017 - 2028 (Units, USD Million)
Market, By Battery, 2017 - 2028 (Units, USD Million)
Market, By Solar Panel Type, 2017 - 2028 (Units, USD Million)
The above information has been provided on a regional and country basis for the following: