Environmental factors

Electric Vehicle Market Major Challenges and Developments

One of the factors supporting the growth of the global electric vehicle market is rising prices of fuel and diesel. An electric vehicle is adopted on a large scale due to the high price of fuels.

According to International Energy Agency (IEA), after a decade of tremendous expansion, there were 10 million electric vehicles on roads around the world in 2020. Although 16% reduction in worldwide automobile sales due to the pandemic, electric vehicle registrations surged by 41% in 2020. Roughly 3 million electric vehicles were sold worldwide and Europe for the first time surpassed China as the world’s biggest electric vehicle market. Electric truck and bus registrations also increased in major countries, hitting 31,000 and 600,000 units globally.

An electric vehicle runs on electricity rather than fuel or gasoline. An electric vehicle runs on an electric motor instead of an internal combustion engine. The wide range of batteries is used to run electric vehicles. An electric vehicle helps in the reduction of pollution, which is driving the growth of the global electric vehicle market. The technological advancements are providing growth prospects for the electric vehicle market. There are different types of electric vehicles available in the market. Those are battery electric vehicle, plug in hybrid electric vehicle, and hybrid electric vehicle. The hybrid electric vehicle is adopted on a large scale in the global market.

According to Precedence Research, the global electric vehicle market size will reach USD 1103.17 billion by 2030 and growing at a CAGR of 23.1% over the forecast period 2022 to 2030.

What are the key trends in the electric vehicle market?

One of the factors supporting the growth of the global electric vehicle market is rising prices of fuel and diesel. An electric vehicle is adopted on a large scale due to the high price of fuels. This type of vehicle is fuel efficient and does not emit any kind of toxic gases. This factor is driving the demand for electric vehicles in the market. In addition, governments of emerging and established nations are taking initiatives and actions for the development of the global electric vehicle market. The expansion of global electric vehicle market is also being driven by reduction in prices of electric vehicle batteries. The stringent government regulations against carbon emissions and greenhouse gas emissions are boosting the growth of the global electric vehicle market.

Electric vehicle producers and regulators are increasing their focus and efforts. Electric vehicle technologies such as fully electric and plug in hybrid electric vehicles are appealing solutions for achieving environmental and socioeconomic goals. Electric vehicles can reduce dependency on oil-based fuels and if powered by low carbon energy can achieve considerable reductions in greenhouse gas emissions. Electric vehicles are also ideally adapted to help alleviate air pollution concerns due to their zero emissions. Furthermore, electric vehicles are pushing advancements in battery technology, which is a critical problem for productivity in the clean energy transition.

What are the challenges in the electric vehicle market?

One of the major challenges for the growth of the global electric vehicle market is the high cost of manufacturing. Compared to traditional types of vehicles, electric vehicles are quite expensive. This is due to advanced features embedded in vehicles as well as technological developments. In addition, the manufacturers need high capital investments for manufacturing electric vehicles. This factor is hindering the growth of the global electric vehicle market. Moreover, electric vehicles require charging stations and infrastructure. Not only have the countries around the world had electric vehicle charging stations. This is another challenge that is restricting the expansion of the global electric vehicle market. Furthermore, in some of the developing nations, the government is not taking proper steps for the promotion of electric vehicles. In addition, proper guidelines are also not imposed for the adoption of electric vehicles. This factor is hampering the electric vehicle market growth.

Which regions are driving the electric vehicle trend?

Asia-Pacific region ranks on top for the adoption of electric vehicles in the global market. The market for electric vehicles is growing in the Asia-Pacific region due to the surge in demand for fuel efficient vehicles. In the Asia-Pacific region, China accounts for the highest market share in the electric vehicle market. This is attributed to the expansion of the automobile sector in the country. In addition, favorable government regulations and guidelines are also contributing towards the growth of the electric vehicle market in the region.

After Asia-Pacific, the North America region holds the highest market share in the global electric vehicle market. The US dominates the North American electric vehicle market. The growth of the electric vehicle market is due to the rising government initiatives in favor of developing the electric vehicle market as well as to build proper charging infrastructure and stations for electric vehicles. This factor is driving the sales of electric vehicles in the region.

Furthermore, Europe also dominates the global electric vehicle market. The European countries such as Germany, the UK, and France contribute a lot towards the growth and development of the electric vehicle market in the region. The factors such as growing environmental concerns and growing government activities for the reduction of carbon emissions are boosting the growth of the electric vehicle market in the region. In addition, Europe is also adopting fuel efficient vehicles, which is propelling the growth of the electric vehicle market.

Call: USA – +1 9197 992 333 | Email: sales@precedenceresearch.com

.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button