The global electric passenger cars market size was US$ 0.22 billion in 2021. The global electric passenger cars market is forecast to grow to US$ 1.8 billion by 2030, registering a compound annual growth rate (CAGR) of 23.1% during the forecast period from 2022 to 2030.
Factors Influencing the Market
Rising demand for low-emission vehicles is the primary factor driving the market growth. The demand for electric vehicles is increasing drastically as they significantly contribute to decreasing air pollution.
Favorable government initiatives are likely to accelerate market growth in the coming years. Governments globally are offering subsidies to boost electric vehicles purchase. The government authorities in Canada offer a subsidy of up to US$ 3,700 on the purchase of battery electric vehicles. Thus, such factors are forecast to contribute to market growth.
Growing fuel prices will benefit the electric passenger cars market. Moreover, companies are growing their production and offering by recognizing the potential scope of electric vehicles. Companies have also shifted their focus on replacing their internal combustion engine fleet with electric vehicles. Uber India recently made headlines as the brand unveiled its plans to have around 3,000 electric vehicles by the end of 2021. Ola Electrics is expected to establish around 4,000 EV charging points in 2022. Plug Mobility also introduced its plans to expand its offering.
Stringent government regulations towards vehicle emission will benefit the global electric passenger cars market.
High manufacturing costs may hamper the growth of the global electric passenger cars market. However, automobile companies are focusing on introducing cost-efficient and advanced electric vehicle systems.
Regional Analysis
Asia-Pacific electric passenger cars market will emerge as the largest market due to favorable initiatives by the governments of emerging economies like China, Japan, and South Korea. China is holding the place of the world’s biggest EV producer. The contribution of China and India will significantly benefit the regional market. In addition, the presence of prominent players, such as Toyota, TATA Motors, and BYD, will contribute to the market growth.
The growing fuel prices have been a major concern for the urban population and passenger car owners. Thus, it will offer ample growth opportunities for the electric passenger cars market to grow.
COVID-19 Impact Analysis
The sudden COVID-19 outbreak has transformed the overall business scenario in the last two years. Several industries have witnessed significant challenges due to the lockdown and other restrictions, and the automotive industry is one of them. However, the electric passenger car segment is forecast to witness favorable growth as the awareness about a healthy environment is at its peak.
Market Segmentation
The global electric passenger cars market segmentation focuses on Vehicle, Type, Vehicle Class, and Region.
By Vehicle Type
By Type
By Vehicle Class
By Region
Competitors in the Market
