Battery Electric Vehicles Market size is anticipated to reach USD 300 billion by 2027, according to a new research report by Global Market Insights, Inc. The global shipments are expected to surpass 100 million units by 2027.
Government incentives, such as tax rebates, and free charging facilities are major factors that have led to a significant shift in the demand for BEVs. Shifting focus of commercial transport vehicle fleet operators to clean transportation and mobility solutions is augmenting the industry growth. As per a report by trust.org, Moscow will replace petrol diesel vehicles with electric buses by 2030 with more electric buses being added each year.
High initial costs associated with BEVs owing to a hike in the prices of li-ion batteries and raw materials, such as copper, nickel, and cobalt, are challenging the battery electric vehicles market growth. Furthermore, concerns related to the driving range and long-term reliability may limit the demand. However, companies are investing in R&D activities for launching advanced BEVs with lower charging time and improved driving range. For instance, in December 2021, BMW launched the iX electric SUV with a 425 km driving range in India. The BMW iX xDrive40 can accelerate from 0 to 100 kmph with an output of 326 hp in 6.1 seconds.
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Temporary shutdown of manufacturing facilities due to the COVID-19 pandemic, affected the BEV industry statistics. The shortage of raw materials and batteries by stringent travel restrictions has adversely impacted electric vehicle production during the pandemic period. Market players in faced several challenges, such as financial insecurities and shortage of capital, by decline in market revenue.
Analyst view - “Supportive government policies and incentives to promote the adoption of electric vehicles to achieve sustainable economy will drive the BEV market growth. Additionally, several new EV launches with advanced features and enhanced driving range will spur the adoption of BEVs among consumers.”
Rising focus of public transport authorities to electrify public transport
The electric bus segment is projected to register around 12% gains by 2027 led by the increasing focus of various countries on the electrification of public transport to improve urban air quality.
Rising demand for intracity and intercity travels will enhance the market representation of electric buses. Fleet operators are purchasing several electric buses to reduce greenhouse gas emissions.
Browse key industry insights spread across 210 pages with 219 market data tables and 21 figures & charts from the report, “Battery Electric Vehicle (BEV) 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”, in detail along with the table of contents:
Long service life and low cost of SLA batteries
The SLA battery segment accounted for about USD 20 billion in 2020 and the market is poised to witness 5% growth rate through 2027. Easy availability, safe operation, long service life, and lower cost compared to lithium batteries is fueling the segment growth.
SLA batteries are expected to lose market share with the development of Li-Ion batteries and the launch of new battery applications to gain higher profitability. For instance, in September 2021, Birla Carbon entered the energy system market with the launch of a new SLA battery for various business sectors including automotive, e-bikes, telecoms, and energy storage systems. The company’s SLA batteries possess conductive carbon technology, which offers better charge acceptance and excess current resistance.
Stringent government regulations related to carbon emissions in Europe
Europe BEV market is estimated to observe over 15% CAGR through 2027 with shipments surpassing 10 million units. A favorable regulatory environment for BEV manufacturers along with production shifts to electric vehicles will enhance the regional market expansion.
Strict directives and emission regulations imposed by the EU commission will propel the market demand. For instance, in 2019, France announced its goal to reach a 100% zero-emission vehicle target by 2040. The country passed a law to ban internal combustion engine vehicle sales by 2040 as a part of the Paris Climate Agreement. Moreover, the EU commission has proposed a plan to build about 1.3 million publicly accessible chargers by 2030 to improve the market statistics.
Some of the prominent battery electric vehicles market players include Tesla Inc., Daimler AG., Nissan Motor Corporation, BMW, Toyota Motor Corporation, Volkswagen AG, Ford Motor Company, Hyundai Motor Company, and BYD Company Ltd. Industry participants are emphasizing on new product launches equipped with advanced features to strengthen their position.