EV market to grow 28.3% between 2017 and 2026

The global electric vehicles market is estimated to grow of 28.3 per cent (CAGR) in volume from 2017 to 2026. According to a market research report by BIS Research, titled “Global Electric Vehicles Market – Analysis and Forecast (2017-2026)”, the demand for electric cars is increasing rapidly, with the global stock numbers crossing 2 million in 2016 after crossing 1 million in 2015. The surge is attributed to the substantial amount of investments made by the automobile manufacturers for the research, development, and deployment of electric vehicles. Mass production prospects have also led to a decline in the prices of the key components such as electric batteries, and technologies such as regenerative braking. In addition, the governments of different nations are providing tax benefits, and subsidies to fuel the production of EV’s. The government bodies are actively promoting the usage of electric vehicles in order to reduce high emission levels.

On the basis of component, the global electric vehicles market can be segmented into battery, motor, and regenerative brake. During the forecast period, the market for regenerative brake is expected to grow at the fastest rate owing to the factors such as stringent governmental regulations on fuel economy, and increasing demand for energy efficient systems. The electric passenger cars held the highest share in term of market volume and accounted for 84.7 per cent share in 2016. This segment is also expected to grow at a higher rate as compared to commercial vehicles. The factors such as government initiatives, urbanization, and increasing disposable income are responsible for such a gigantic market share of the electric passenger cars.

According to Surabhi Rajpal, analyst at BIS Research, “The increased demand for fuel efficient vehicles, and the continued governmental initiatives for the promotion of electric vehicles, along with the decline in the prices of battery, are expected to propel the growth of the global electric vehicles market. Geographically, Asia-Pacific dominated the global electric vehicles market and is also expected to grow at the fastest rate during the forecast period. The automotive market in the APAC region is growing rapidly, and the development of electric vehicles is gaining attention due to the collective efforts from the government and manufacturers to initiate reforms and develop technologies. This, consequently, is expected to promote the sale of these vehicles, and make them economically efficient for use.”