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Battery Electric Vehicle Market to cross $1 Tn by 2032

  • Published Date: February 22, 2023

Battery Electric Vehicle Market size is expected to exceed USD 1 trillion by 2032, according to the recent research report by Global Market Insights Inc.

The increasing need for cost-effective, eco-friendly transportation options in Asia Pacific will work as a key driver behind BEV market growth. Recently, the government of Japan unveiled subsides for green vehicles such as BEVs, fuel cell electric vehicles, and others to incentivize customers to make their next car an EV. Apart from introducing such schemes, many governments in the region are also rolling out stringent regulations pertaining to vehicle emissions, further pushing customer inclination towards battery electric vehicles.

The regulations and incentives are also pushing fleet operators in the region to substitute their conventional ICE powered automobiles with fully electric options. The shift also brings with it the benefit of low fuel prices, declining EV battery cost and improving profit margins, making it all the more attractive proposition for the public as well as private transport sector.

Electrification of public transport to impel e-buses vehicle segment growth

The battery electric vehicle market from electric buses segment surpassed USD 40 billion in 2022, fueled by ongoing initiatives towards the electrification of the public transport sector. The conventional diesel and petrol-fueled buses also emit copious amounts of hazardous pollutants such as hydrocarbons, carbon monoxide, and nitrogen oxides into the atmosphere, which lead to diseases like cancer, heart problems, and asthma among others. These emissions, and the public health issues they create are further encouraging the adoption of battery powered EVs.

Browse key industry insights spread across 210 pages with 242 market data tables and 26 figures & charts from the report, “Battery Electric Vehicle Market Size By Vehicle (Electric Cars, Electric Buses, Electric Trucks, Electric Motorcycles & Scooters, E-bikes), By Battery (SLA, Li-ion, NiMH), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023-2032”, in detail along with the table of contents:

Long life cycles of spur NiMH battery segment outlook

The BEV market from the NiMH battery type is slated to grow at 5% CAGR from 2023 to 2032, fostered by their long-life cycles and specific power capabilities. NiMH batteries are also safer than lead-acid batteries and are lighter in terms of weight as well as more compact. Their high energy density, eco-friendliness, and low periodic exercise cycles further garner product demand.

Meanwhile, substantial utilization of electronic products and favorable government policies for the expansion of EV fleets worldwide are likely to greatly bolster the business scenario. Back in December 2022, the U.S. Postal Service announced its investment of over USD 3 billion for the electrification of its fleet, reserving over USD 1.7 billion for charging infrastructure and USD 1.3 billion for electric delivery vehicles.

Surging government support to strengthen Europe industry

The Europe battery electric vehicle market is anticipated to witness 15% growth during 2023 to 2032, on account of the decreasing battery prices, localization of battery production and development of charging infrastructure in the region. In the UK, specifically, EV firms have been recording strong sales as the ongoing progression of charging infrastructure through government support and policies, created a high impetus for vehicle availability from growing customer demand.

In the meantime, government support for vehicle manufacturers under the 2035 net-zero plan is also shaping the business scenario. Moreover in December 2022, the UK Export Finance invested over £600 million ($721 million) to help American automotive heavyweight, Ford, expand its EV production line.

Joint ventures to outline the competitive landscape for battery EV market

Major BEV industry players includes names such as Giant Bicycles, Hyundai Motor, Mitsubishi Motors Company, Tesla Inc., Toyota Motor Corp., General Motors, Honda Motor, and Nissan Motor Company, among others. Many of these players are focusing on product innovations to reinforce their industry position.

For example, in January 2023, Omega Seiki Mobility, an Indian EV start-up, entered into a joint venture with iM3NY, a US-based lithium-ion cell manufacturer for the development of battery cell technology in India. The company will invest nearly USD 981 million to build two new facilities in India to create batteries and powertrains for EV equipment. In addition, it also signed an MoU with JAE SUNG Tech Co., LTD, to develop efficient electric powertrains in the country.

Authors: Preeti Wadhwani, Shamal Gawande