Electric Cars Market Insights
The electric cars market is anticipated to grow at a high CAGR over the forecast period on account of the increasing demand for low emission automotive. The preferences for vehicles which reduce the burden on fossil fuels and provide efficient performance are expected to drive the demand for electric vehicles over the coming years.
The low cost operation and maintenance cost of electric cars as compared to diesel or petrol driven passenger cars is projected to boost demand over the forecast period. Emission of harmful gases from IC engine based vehicles has resulted in deterioration of environmental conditions which has prompted the need to develop environment-friendly cars.
Electric Cars Market: Type Insights
On the basis of type, the electric cars market is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV). Plug-in hybrid electric cars are projected to grow at a high CAGR over the forecast period on account of high growth recorded in public charging infrastructure development.
The implementation of stringent regulations pertaining to vehicles emission control in the North American, European, and Asian countries is projected to positively impact demand for battery electric cars. However, the risk of drainage of battery and lack of alternate fuel source may hamper market growth over the coming years.
Electric Cars Market: Vehicle Type Insights
On the basis of vehicle type, the electric cars market is segmented into Sedan, SUV, Hatchback, and others. The demand for electric SUVs is projected to occupy the largest share by 2025. Companies such as Volkswagen, Mercedes, Audi, and BMW have invested in developing SUVs rather than sedans as their first range of electric vehicles.
Electric Cars Market: Regional Insights
The demand for electric cars in Asia Pacific is projected to grow at the highest CAGR over the coming years. China, India, South Korea, and Japan are expected to offer attractive opportunities for the growth of the electric cars market.
China is one of the largest consumers of electric cars in the world on account of favorable government regulations implemented on purchase of EVs. The Chinese government has announced the construction of more than 12,000 charging stations by 2020. The availability of appropriate charging infrastructure is expected to positively impact market growth over the coming years.
The European region is expected to occupy a significant portion of the market on account of the increasing consumption observed in countries such as Norway, the Netherlands, France, the UK, and Germany, among others. After China, the U.S. is one of the largest consumers of electric cars. Canada is also expected to generate growing opportunities in the North America electric passenger cars market.
Electric Cars Market: Competitive Landscape
Some of the major players in the electric cars market include BMW Group, Toyota Motor Corporation, Tesla, Nissan Motor Corporation, General Motors, Audi AG, Volkswagen AG, Daimler AG, Ford Motor Company, BYD Company Motors, Kia Motors, Energica Motor Company S.P.A., Mahindra & Mahindra Ltd., and Renault Motors.
In September 2017, BMW Group announced that it will introduce 25 electric vehicles by 2025, out of which 12 will be full electric cars. In December 2017, Toyota Motor Corp. announced its partnership with Panasonic Corp. for the production of batteries to be used in electric cars. In December 2017, Volvo Car Corp. announced that it will sell only electric, hybrid and plug-in hybrid cars in India from 2019. Such strategic initiatives taken up by various companies demonstrate the future growth potential of the electric passenger cars market.