Electric Vehicle Market Size, Share & Trends Analysis Report By Type, (Scooters, Motorcycles, Three Wheelers, among others), By Propulsion Type, By Drive Type, By Vehicle Speed, By Vehicle Class, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Electric Vehicle Market Size

“2030 electric vehicle market value to reach USD 8,851.04 billion”

The global electric vehicle market size was estimated at USD 1,070.77 billion in 2023 and is anticipated to grow at a CAGR of 33.6% from 2024 to 2030. Government policies and incentives worldwide are accelerating the adoption of Electric Vehicles (EVs). Many countries are implementing stringent emission regulations and providing subsidies, tax benefits, and other incentives to both consumers and manufacturers, encouraging the shift from internal combustion engine vehicles to electric alternatives. Besides, advancements in battery technology are significantly enhancing the range, performance, and affordability of EVs. Innovations such as solid-state batteries and improvements in lithium-ion batteries are reducing costs and increasing energy density, making EVs more appealing to consumers.

The expansion of the transportation and logistics sectors significantly drives the rising demand for EVs. As global trade and e-commerce continue to surge, there is an increased need for efficient and sustainable transportation solutions. Electric vehicles offer a promising alternative to traditional internal combustion engine vehicles, as they produce lower emissions and have reduced operational costs. This shift is particularly evident in urban areas where delivery services are increasing, and the need to mitigate air pollution is critical. Consequently, logistics companies are increasingly integrating electric vans and trucks into their fleets, driven by both regulatory pressures and the economic benefits of lower fuel and maintenance expenses. For instance, in May 2024, Amazon deployed heavy-duty electric trucks across Southern California for freight operations. The introduction of the 50 heavy-duty electric trucks in the region is a step towards decarbonization through first, middle, and last-mile delivery.

Drivers, Opportunities & Restraints

Technological advancements and infrastructure development are propelling the adoption of EVs in transportation and logistics. According to the U.S. Department of Energy, more than 10,000 EV charging stations were installed across the U.S. The installation of the EV charging station has bolstered the sales of battery and plug-in electric vehicles. Besides, governments worldwide are also investing in EV charging infrastructure and providing incentives for EV adoption, which further supports this transition. As consumer awareness of environmental issues grows, there is an increase in demand for eco-friendly delivery options, prompting companies to prioritize EVs in their operations. This combination of economic, regulatory, and societal factors is accelerating the shift towards electric vehicles, highlighting their crucial role in the future of transportation and logistics.

Advancements in battery technology, alongside affordable pricing, and enhanced performance, are propelling the rapid expansion of electric vehicles in the market. Innovations in battery chemistry, like lithium-ion and solid-state batteries, have boosted energy density and decreased charging durations, rendering EVs more feasible and enticing to consumers. Furthermore, the diminishing costs of batteries, attributable to economies of scale and refined manufacturing techniques, have bolstered the affordability and competitiveness of EVs against traditional internal combustion engine vehicles. Augmented performance capabilities, such as extended driving ranges, swifter acceleration, and smoother rides, further increase the adoption of EVs. These dynamics, combined with sustainability concerns and supportive governmental measures, are accelerating the uptake of electric vehicles, marking a transformative upheaval in the automotive sector.

Moreover, replacing conventional fuel school buses and public transportation buses with electric counterparts offers significant environmental and economic benefits. Electric buses produce zero tailpipe emissions, reducing air pollution and greenhouse gas emissions, which are major contributors to climate change and urban air quality issues. Although the initial investment in electric buses and charging infrastructure can be high, the total cost of ownership over the lifespan is often lower. Further, electric buses have fewer moving parts, leading to reduced maintenance costs and increased reliability.

Furthermore, major players in the EV market are enhancing their electric vehicles by integrating Wi-Fi, communication systems, and Advanced Driver Assistance Systems (ADAS) to elevate the travel experience and ensure passenger safety. For instance, in April 2023, Scania AB introduced an electric bus in Mexico equipped with ten batteries totaling 330 kWh, providing a range of 300 km. It also features a 2-speed transmission for efficient battery management, regenerative braking, a power output of 230 kW, and 1,800 Nm of torque.

Industry Dynamics

The EV industry is currently experiencing a high-growth stage characterized by a rapid acceleration in market expansion. This surge is driven by several factors, including increased consumer demand for sustainable transportation options, significant advancements in battery technology, and supportive government policies and incentives aimed at reducing carbon emissions.

Automotive manufacturers are increasingly investing in the development of technological advancement and electric vehicle production, while new entrants are also innovating within the space, contributing to a diverse and competitive market landscape. Furthermore, improvements in charging infrastructure and decreasing costs of electric vehicles are making them more accessible to a broader range of consumers.

Merger and acquisition (M&A) activities in the electric vehicle (EV) market have been robust and diverse, reflecting the sector's rapid growth and the strategic positioning of companies to capture future opportunities. Major automotive companies are increasingly investing in or acquiring EV startups to bolster their electric portfolios and leverage innovative technologies.

Governments around the world are implementing a range of initiatives to boost the sales of EVs in efforts to reduce carbon emissions and combat climate change. Financial incentives, such as tax credits, rebates, and grants, are among the most common strategies. These incentives lower the upfront cost of EVs, making them more affordable for consumers. In addition, many governments are investing heavily in charging infrastructure, ensuring that EV owners have access to convenient and widespread charging stations. This addresses one of the primary concerns potential buyers have about the range and convenience of electric vehicles.

The threat of substitutes for electric vehicles is relatively low, a significant factor contributing to the stability and growth potential of the EV market. One of the primary reasons for this low threat is the unique value proposition that EVs offer, including reduced emissions, lower operating costs, and alignment with global sustainability goals. These benefits are difficult to match with alternative vehicle technologies, such as internal combustion engine (ICE) vehicles, which continue to face increasing regulatory pressures and environmental concerns.

Type Insights & Trends

“IEA predicts, in 2024, around 10 million electric cars are anticipated to be sold in China”

The passenger cars segment held the largest market share of 88.07% in 2023. The trajectory of electric passenger cars is poised for significant expansion, with projections indicating a substantial surge in their adoption across major markets. According to the International Energy Agency (IEA), in 2024, around 10 million electric cars are anticipated to be sold in China alone, constituting around 45% of the nation's total car sales. Besides, in the U.S., electric vehicles will account for approximately one out of every nine cars sold. Similarly, in Europe, despite prevailing challenges such as a subdued outlook for passenger car sales and the gradual reduction of subsidies in certain countries, electric cars are still expected to make up approximately one-fourth of all cars sold. This data underscores a remarkable shift towards electric mobility, driven by both consumer demand and policy initiatives aimed at decarbonizing transportation.

Propulsion Type Insights & Trends

“Fuel Cell Electric Vehicles segment is expected to witness growth at 31.6% CAGR”

The Battery Electric Vehicle (BEV) segment held the largest market share of over 88.07% in 2023. The surge in BEV adoption can be attributed to the growing environmental awareness among consumers, which has fueled interest in cleaner transportation options, with BEVs offering a greener alternative to traditional internal combustion engine vehicles. Besides, the adoption of electric buses in urban public transport fleets is rapidly increasing worldwide. To meet this growing demand, key market players are launching new BEVs. For instance, in May 2024, Isuzu Motors Limited, an automotive manufacturer introduced a BEV flat-floor route bus named ERGA EV in Japan. The ERGA EV aims to lead the way in next-generation bus technology in Japan, significantly contributing to the push for carbon neutrality (CN) in public transportation.

The Fuel Cell Electric Vehicles (FCEVs) segment is expected to witness significant growth during the forecast period. FCEVs use hydrogen to generate electricity for propulsion, thus gaining traction as a viable alternative to traditional internal combustion engine vehicles and battery electric vehicles. This surge is primarily due to their potential for zero emissions, longer driving ranges, and shorter refueling times compared to other counterparts.

Drive Type Insights & Trends

“The AWD segment is expected to grow exponentially at a CAGR of 37%”

The Front-wheel Drive (FWD) segment held the largest market share of 58.5% in 2023. FWD is increasingly being adopted due to its cost-effectiveness in manufacturing. FWD vehicles require fewer components compared to rear-wheel drive systems, which reduces production costs. This cost advantage allows car manufacturers to offer more competitively priced vehicles to consumers. Additionally, FWD electric cars are typically lighter, which enhances fuel efficiency and lowers overall operating costs for drivers. These economic benefits make FWD an attractive option for both manufacturers and consumers.

The All-wheel Drive (AWD) segment is expected to witness significant growth from 2024 to 2030. The adoption of AWD is due to its performance in various driving conditions. Consumers prioritize safety, and AWD offers improved traction and stability, especially in adverse weather conditions like rain and snow. Besides, the rise in popularity of SUVs and crossovers has fueled demand for AWD systems. These vehicles are often marketed for their versatility, and AWD is a key component that supports off-road capability and better handling on rough terrains. Moreover, advancements in technology have made AWD systems more efficient, reducing the impact on fuel economy compared to older models. Consumers can enjoy the benefits of AWD without significant sacrifices in fuel efficiency, making it a practical choice for a wider range of drivers.

Vehicle Speed Insights & Trends

“Less than 100MPH segment to witness a rapid growth rate of 36%”

The 100MPH-125MPH held the largest market share of 69.1% in 2023. The growing demand for electric cars, high-speed electric two-wheelers, and electric three-wheelers is contributing to the growth of the 100MPH-125MPH segment.As consumers seek vehicles that offer not only sustainability but also performance, electric cars capable of achieving speeds between 100MPH and 125MPH are becoming more attractive. These vehicles provide a balance of efficiency and performance, making them suitable for both urban commutes and longer highway journeys. Additionally, advancements in battery technology and charging infrastructure have alleviated previous concerns about range and charging times, further bolstering the adoption of high-speed electric cars.

The rising popularity of high-speed electric two-wheelers and three-wheelers is expected to fuel the growth of the below 100MPH segment. Urbanization and the need for efficient, eco-friendly transportation solutions have led to a surge in demand for electric scooters and motorcycles that can navigate through congested city streets swiftly while also offering the capability for higher speeds on open roads. Similarly, electric three-wheelers, which serve as crucial last-mile delivery vehicles and passenger transport solutions in many regions, benefit from the enhanced performance and speed capabilities of this drive segment. The integration of these vehicles into the logistics and transportation sectors underscores their importance in meeting the growing demand for faster, more reliable, and sustainable urban mobility solutions.

Vehicle Class Insights & Trends

“Low-price EV segment to register fastest market growth at 34.5% CAGR”

The low-price electric vehicle segment dominated the market, capturing a significant share of over 47.4% in 2023. This high market share is due to a rising consumer preference for more affordable EVs, driven by the growing awareness of environmental concerns, government incentives, and advancements in EV technology that have made electric cars more accessible to a broader audience. The affordability of these vehicles has played a crucial role in their widespread adoption, particularly in emerging markets and among budget-conscious consumers who are looking for cost-effective alternatives to traditional gasoline-powered cars.

The low-price electric vehicle segment, on the other hand, is expected to register the fastest CAGR over the forecast period. This anticipated growth can be attributed to several factors, including continued improvements in battery technology, which reduce costs and enhance the driving range of low-price EVs. Additionally, increasing investments in EV infrastructure, such as charging stations, and supportive government policies aimed at reducing carbon emissions are likely to boost the demand for affordable electric vehicles.

End-use Insights & Trends

“Adoption of EVs for delivery & logistics operations to boost commercial segment growth at 35.3% CAGR”

The personal segment held the largest market share of 92.4% in 2023. Personal electric vehicles, being emission-free, offer a cleaner alternative to traditional gas-powered vehicles, appealing to environmentally conscious consumers. Government incentives and policies have played a crucial role in promoting the adoption of PEVs. Many countries have implemented subsidies, tax breaks, and other incentives to encourage consumers to switch to EVs. These incentives not only make PEVs more affordable but also help alleviate concerns about charging infrastructure. With governments worldwide setting ambitious targets to reduce carbon emissions, the push for PEVs is expected to continue, further driving their adoption in the coming years.

The commercial segment is anticipated to register significant growth over the forecast period. One significant trend is the increasing adoption of electric vans and trucks by delivery and logistics companies. This movement is primarily fueled by the desire to reduce operating costs and environmental impact. Companies are finding that electric vehicles offer a viable solution to both economic and sustainability concerns, with advancements in battery technology extending their range and durability, which is driving the demand for EVs.

Regional Insights & Trends

“UAE to witness fastest market growth at 37.3% CAGR”

The electric vehicle market in North America accounted for a market share of 8.6% in 2023. The North America EV market’s growth is driven by the rising demand for electric vehicles in countries like the U.S. Additionally, various new initiatives are being launched by automotive manufacturers, policymakers, non-profit organizations, and charging network companies. One such initiative is the creation of "Veloz," a new non-profit organization dedicated to attracting investments, fostering innovation, marketing, and promoting the growth of EVs in North America.

U.S. Electric Vehicle Market Trends

The electric vehicle market in the U.S. held a significant share in 2023 due to incentives offered by federal and state as well as growing environmental awareness among consumers. The introduction of more affordable EV models and improvements in battery technology, which have extended vehicle range and reduced charging times, have further accelerated this trend. Major automakers are expanding their EV portfolios, and new entrants are injecting fresh competition which is propelling the growth of the U.S. EV market.

Europe Electric Vehicle Market Trends

The electric vehicle market in Europe held a share of about 35.7% in 2023. With shifting consumer preferences and companies recognizing the long-term cost savings and environmental benefits they are opting for EVs. The presence of well-established and renowned EV manufacturers in Europe is further bolstering market growth. Companies such as Volkswagen and BMW, are leading the way with their extensive range of electric models and significant investments in electric vehicle technology. This strong industrial base is not only driving sales but also fostering innovation and competition in the market, contributing to the robust expansion of the electric vehicle sector in Europe.

The electric vehicle market in UK has experienced significant growth in recent years, driven by increasing consumer demand, government incentives, and advancements in technology.  Sales of EVs have surged, with BEVs and plug-in hybrid electric vehicles (PHEVs) becoming more prevalent on British roads. This growth is supported by the UK's commitment to phasing out the sale of new petrol and diesel cars by 2030, with a complete shift to zero-emission vehicles by 2035.

The Germany electric vehicle market is expected to grow during the forecast period. The German automotive industry, traditionally dominated by internal combustion engine (ICE) vehicles, is undergoing a rapid transformation. Major German automakers such as Volkswagen, BMW, and Mercedes-Benz have significantly ramped up their EV production, with ambitious targets to electrify their fleets. Innovations in battery technology, such as improved energy density and faster charging capabilities, have enhanced the appeal of EVs. Moreover, the introduction of a variety of EV models across different segments, from compact cars to luxury SUVs, has broadened the market appeal, thereby driving the growth of the Germany EV market.

The electric vehicle market in France is projected to grow at a CAGR of 35.2% from 2024 to 2030. In 2023, EV sales surged, with battery BEVs and plug-in PHEVs making up a substantial portion of new car registrations. This growth has been supported by government subsidies, such as purchase bonuses and tax benefits, which have made EVs more financially accessible.

Asia Pacific Electric Vehicle Market Trends

The EV market in Asia Pacific is witnessing growth due to the rapid pace of infrastructure development across the region. Countries such as China, Japan, and South Korea are leading the charge, with significant investments in EV infrastructure and manufacturing. China's aggressive push towards electrification, supported by subsidies and stringent emission regulations, has positioned it as a global leader in EV sales and production. Japan and South Korea are also key players, focusing on innovation and technology development, particularly in battery efficiency and charging infrastructure. The region is witnessing a surge in consumer adoption of EVs, influenced by rising fuel prices and the desire for sustainable transportation options.

The electric vehicle market in China is projected to grow at a CAGR of 27.3% from 2024 to 2030. Increased participation from traditional automotive companies such as Geely and Great Wall Motors, which are expanding their EV portfolios, is contributing to EV market growth. Besides, international players, such as Tesla, are also intensifying their presence in China, drawn by the lucrative market potential. This competitive landscape is fostering innovation and driving down costs, making EVs increasingly accessible to the average consumer. In summary, the Chinese electric vehicle market is characterized by robust growth, driven by favorable policies, technological advancements, and a dynamic competitive environment, positioning China as a global leader in the transition to sustainable mobility.

The India electric vehicle market is expected to witness growth over the forecast period. The expansion of charging networks and improvements in EV range and performance are reducing consumer apprehensions which is driving the electric vehicle in India. Major automotive manufacturers are increasingly collaborating with tech companies to enhance EV capabilities, integrating features such as autonomous driving and smart connectivity. As a result, the India EV market is set to continue its upward trajectory, contributing significantly to the global shift towards greener mobility solutions.

The electric vehicle market in Japan is projected to grow from 2024 to 2030. Technological innovations in battery technology, such as advancements in lithium-ion batteries and the development of solid-state batteries, are propelling the growth of the Japan EV market. These improvements are leading to greater vehicle range, faster charging times, and overall cost reductions, making EVs more attractive to consumers.

Middle East and Africa Electric Vehicle Market Trends

The electric vehicle market in Middle East and Africa (MEA) is anticipated to reach USD 64.35 billion by 2030.MEA region is witnessing a notable surge in the adoption of EVs, driven by a combination of governmental policies, environmental awareness, and economic diversification efforts. Countries like the United Arab Emirates (UAE) and South Africa are at the forefront, with substantial investments in EV infrastructure and incentives aimed at reducing carbon footprints. The UAE is rapidly expanding its charging network and offering incentives such as free parking and toll exemptions for EV owners. In South Africa, despite economic challenges, there is a growing interest in EVs, propelled by rising fuel costs and an increasing focus on sustainability. The broader MEA region is also seeing significant interest from global automotive manufacturers who view it as a burgeoning market for EV expansion.

The Saudi Arabia electric vehicle market is anticipated to grow from 2024 to 2030. Saudi Arabia is emerging as a pivotal player in the MEA EV market. The Kingdom's Vision 2030 initiative, aimed at reducing its dependency on oil and diversifying its economy, has been a major catalyst for the growth of the Saudi Arabia EV market. The government has introduced several policies to promote EV adoption, including substantial investments in charging infrastructure and the development of local manufacturing capabilities. For instance, in September 2023, Lucid Motors, set up the first electric car manufacturing facility in Saudi Arabia. Additionally, there are efforts to integrate renewable energy sources to power EVs, aligning with the nation’s sustainability goals. Consumer interest in EVs is on the rise, supported by awareness campaigns and the gradual rollout of more affordable EV models.

Electric Vehicle Company Share & Insights

Some of the key companies operating in the market include AB Volvo, Volkswagen Group, and BYD Company Ltd.

• AB Volvo is a manufacturing company known for its wide range of commercial vehicles, including trucks, buses, and construction equipment. The company operates through various segments, such as Volvo Trucks, Volvo Construction Equipment, and Volvo Buses, providing innovative and reliable transportation solutions globally. With a strong commitment to reducing its carbon footprint, Volvo has been at the forefront of developing electric and autonomous vehicles.

• Volkswagen Group has firmly positioned itself as one of the leading firms in the electric vehicle (EV) market. With a strategic commitment to sustainable mobility, the group has introduced the ID. Series, including the ID.3 and ID.4 models, as part of its ambitious plan to become a leading player in the EV market. The company's substantial investments in battery technology, manufacturing infrastructure, and charging networks underscore its dedication to electrification. Additionally, Volkswagen's diverse portfolio of brands, including Audi, Porsche, and Škoda, is expanding its range of electric vehicles, aiming to deliver cutting-edge technology and innovative solutions to meet the growing demand for eco-friendly transportation.

Lohia Auto, Polestar, Lucid Motors are some of the emerging companies in the electric vehicle market.

• Polestar, a premium electric vehicle manufacturer headquartered in Gothenburg, Sweden, is a joint venture between Volvo Car Group and its parent company, Geely Holding. Polestar offers high-performance electric cars, sleek designs, and advanced technology. Models such as the Polestar 2, a fully electric fastback, demonstrate the brand's commitment to sustainability without compromising on performance or luxury.

• Lucid Motors, a U.S.-based firm, dedicated to creating the next generation of electric vehicles. With a mission to inspire the adoption of sustainable energy through advanced technology and luxurious design, Lucid's model, the Lucid Air, has set benchmarks in the EV industry for range, performance, and efficiency. Boasting impressive battery technology and a refined aesthetic, Lucid Motors emphasizes innovation and premium quality to differentiate its products from competitors.

Recent Development

• In May 2024, Lohia Auto,  an electric vehicle manufacturer, unveiled the 'Humsafar IAQ,' a three-wheeler tailored for short-distance commutes and last-mile connectivity. With a range of 185 km per charge, it can attain a maximum speed of 48 kmph and accommodate one driver plus four passengers. The model is equipped with a swappable 7.6 kW and optional fixed 10.7 kW battery, along with an IP67-rated motor and 4.5R10, 8 PR Sheet Metal Rim.

• In April 2024, NexGen Energia, an e-mobility company headquartered in Noida, India introduced a cost-effective electric two-wheeler. This unveiling signifies a significant stride towards enhancing the accessibility and affordability of EVs.

• In November 2023, Alexander Dennis, a subsidiary of NFI Group Inc., a prominent global bus manufacturer introduced its latest lineup of battery-electric buses tailored for the UK and Ireland. The debut includes the Enviro100EV small bus and Enviro400EV double-decker, showcasing significant advancements in performance. These models mark a notable shift towards zero-emission transportation and are integral components of a broader range of next-generation electric buses.

• In August 2023, ElectraMeccanica, a compact Solo electric vehicle manufacturer announced plans to merge with Tevva, a UK-based truck manufacturer, aiming to bolster their collective presence in the electric truck market. This strategic move presents Tevva with avenues to expand across the UK, Europe, and venture into the U.S. market, leveraging ElectraMeccanica's manufacturing facility in Arizona, The U.S., to scale up truck production.

Electric Vehicle Market Report Scope

Global Electric Vehicle Market Segmentation

The report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the EV market report based on type, propulsion type, drive type, vehicle speed, vehicle class, end-use, and region:

• Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Scooters

  • Motorcycles

  • Three-Wheelers

  • Passenger Cars

  • Buses

  • Trucks

• Propulsion Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • BEV

  • PHEV

  • FCEV

• Drive Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • FWD

  • RWD

  • AWD

• Vehicle Speed Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Less Than 100 MPH (Max. Speed)

  • 100MPH to 125MPH (Max. Speed)

  • Above 125 MPH (Max. Speed)

• Vehicle Class Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Low Priced

  • Mid-Price

  • High Price

• End-use Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Personal

  • Commercial

• Regional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • KSA

    • UAE

    • South Africa