New Delhi: The electric cars market is expected to reach USD 1.9 trillion by 2028, at a CAGR of 37.1% during the forecast period, 2021-2028, ResearchAndMarkets.com said in its latest report. By volume, this market is expected to grow at a CAGR of 36.2% from 2021 to reach 69.3 million units by 2028, it added.
According to the market research firm, the growth of this market is mainly attributed to the supportive government policies and regulations, increasing investment by leading automotive OEMs, rising environmental concerns, and decreasing prices of batteries.
Based on propulsion type, the electric cars market is segmented into hybrid vehicles, battery electric vehicles, and fuel cell electric vehicles. According firm the hybrid vehicles segment is estimated to account for the largest share of the electric cars market in 2021. The large share of this segment is mainly attributed to increasingly stringent automotive emission regulations, consumer demand for high fuel efficiency vehicles, increasing investments by automotive OEMs for hybridization of vehicle powertrain, and low cost of hybrid vehicles compared to battery electric vehicles, as per the report.
However, it added that the fuel cell electric vehicles segment expected to witness significant growth.
Furthermore, based on power output, the electric cars market is segmented into less than 100 kW and 100 kW to 250 kW. The less than 100 kW segment is estimated to account for the largest share of the electric cars market in 2021, the report noted. “The large share of this segment is mainly attributed to increasing use of light electric cars in the central business districts of major cities across the world, increasing implementation of electric cars for shared mobility services, dropping battery prices, and increasing investment by electric vehicles startups in this segment,” ResearchAndMarkets.com added.
However, the 100 kW to 250 kW segment is expected to grow at the highest CAGR during the forecast period. “The rapid growth of this segment is mainly attributed to the increasing initiatives by leading automotive OEMs to launch powerful electric cars, increasing regulations to reduce tailpipe emissions, and increasing adoption of electric cars in developed economies.” it added.
Based on end use, the electric cars market is segmented into private and commercial use. The private use segment is estimated to account for the largest share of the electric cars market in 2021. The large share of this segment is mainly attributed to increasing consumer demand for fuel-efficient and zero tailpipe emission vehicles, government incentives to promote sales and manufacturing of electric cars, tax rebates, a decline in battery costs, and increasing fuel prices.
However, the commercial use segment is expected to grow at the highest CAGR during the forecast period. “The rapid growth of this segment is mainly attributed to increasing use of electric cars in shared mobility services and corporate taxi fleets, increasing regulations to reduce fleet emissions, growing adoption of mobility-as-a-service (MaaS), growing demand for energy-efficient commuting, increasing fuel prices, and encouragement by global and state-level regulatory bodies to deploy policies promoting the adoption of electric cars for mobility services,” the agency said.
The Asia-Pacific region is estimated to account for the largest share of the electric cars market in 2021. The large share of this region is primarily attributed to the increasing demand for EVs and associated charging facilities, growing number of start-ups offering numerous solutions and services in the electric mobility industry, attractive incentive programs for electric car buyers, and the presence of regional core competencies of countries, such as India, China, Japan, and South Korea in manufacturing and technological developments, the report highlighted.