Global EV Market To Reach $802.75 Billion By 2028: Report

Global EV Market To Reach $802.75 Billion By 2028: Report

A recent study report by Market Growth Report, says that the electric vehicle (EV) market is expected to reach USD 802.75 billion by the year 2028, growing at a Compound Annual Growth Rate (CAGR) of 21.6 percent during the forecast period, 2021 – 2028. This market size was estimated to be valued at USD 273.31 billion in 2020. 

The report has extensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the industry’s market dynamics. It gives the analysis of the market segments which include products, applications, and competitor analysis.

According to the report, the growth of the commercial vehicles segment is associated with the rising adoption of electric buses in developing countries such as India and China for their public transport networks. Various countries are focusing on replacing their existing fuel-based buses with electric buses. The rising trend of replacement of fossil fuel-based vehicles with electric buses is likely to boost the market. Also, the growth of logistics shared mobility, and e-commerce is expected to propel the market during the forecast period.

Altogether, the electric two-wheelers segment is expected to expand at a substantial CAGR during the forecast period. As the rising petrol prices encouraging consumers to adopt EVs. 

If we talk about the class of the vehicle, the mid-priced vehicle segment secured a major market share of the total revenue in 2018. The price of batteries is decreasing, which leads to decreasing price of EVs. Mid-class vehicles have few features with limited emphasis on instrument clusters and infotainment. 

Consequently, the reports say that the battery electric vehicles (BEV) segment is estimated to expand at a CAGR of more than 25 percent during the forecast period, due to rising environmental awareness and multiple advantages of BEV. The plug-in hybrid electric vehicles (PHEV) segment is anticipated to expand at a substantial CAGR of 45 percent during the forecast period. Governments of developing countries such as China and India are taking initiatives to promote the usage of electric vehicles. Furthermore, major companies such as Volkswagen Group are concentrating on increasing their sales of plug-in electric cars. 

However, The hybrid electric vehicles (HEV) segment gives the fuel-based and electric driving base which increased HEV sales in regions with weak charging infrastructure.

The report has segregated the global electric vehicle market in the Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Automotive industries in the Asia Pacific such as Japan, South Korea, and China are inclined towards technology, development, and innovation of advanced EVs. Increasing demand for decreasing carbon emissions and developing fast and advanced charging stations are estimated to boost the market in the region. 

For case, Tesla Inc. has planned to manufacture more than 150 thousand 3s car Models in Shanghai, China. In 2018, Volkswagen Group declared its plan to manufacture 22 billion EVs by 2026. Among that, half of the cars were to be manufactured in China.

Providently, North America held a considerable market share of around 15 percent of the total revenue in 2019. Hence, demand for EVs in North America is projected to rise during the forecast period.

Earlier in 2020, In its report, India Energy Storage Alliance (IESA) has forecasted that in its base case scenario – India’s EV market is expected to grow at a CAGR of 44 percent between 2020-2027, and is expected to hit 6.34-million-unit annual sales by 2027.

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Bhoomika Singh

Bhoomika is a science graduate, with a strong interest in seeing how technology can impact the environment. She loves covering the intersection of technology, environment, and the positive impact it can have on the world accordingly.