Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Electric Vehicle Market is segmented by Vehicle Type (Passenger Vehicle and Commercial Vehicle), Propulsion Type (Battery Electric Vehicle, Plug-in Electric Vehicle, Fuel Cell Electric Vehicle, and Hybrid Electric Vehicle), Charging Type (Normal Charging and Fast Charging), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

Market Snapshot

Electric Vehicle Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 27.19 %
Electric Vehicle Market Major Players

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Market Overview

The electric vehicle (EV) market was valued at USD 171.26 billion in 2020, and it is expected to reach a value of USD 725.14 billion by 2026, registering a CAGR of around 27.19% during the forecast period (2021-2026).

The impact of the COVID-19 pandemic on the electric vehicle market is inevitable, as it affected almost every other industry in the market. However, the electric vehicle (EV) market is witnessing substantial growth owing to the swiftly escalating year-on-year adoption rate of electric vehicles across the world. For instance, there was a rise in electric vehicle sales dramatically in China and Europe, despite the pandemic showing signs of active market growth during the forecast period.

Factors, such as the increasing cost of fuel and the government initiatives across different geographies to increase awareness about EVs, are expected to promote the usage of electric vehicles over the forecast period. Infrastructure for charging stations continue to expand, and countries like China continue to lead the passenger vehicles and urban buses market owing to a well-established supply chain for batteries and Traction Motors.

The Asia-Pacific region is expected to witness the fastest growth, followed by Europe and North America. The automotive industry in countries such as China, India, Japan, and South Korea is inclined toward innovation, technology, and advanced electric vehicle development. The increasing demand for reducing carbon emissions and developing more advanced and fast-charging stations is expected to propel the growth of electric vehicles during the forecast period.

Scope of the Report

The electric vehicle is one that operates on an electric motor instead of an internal combustion engine which generates power by burning a mix of fuel and gases. Therefore, Electric vehicle is seen as a possible replacement for the current-generation automobile in the near future to address environmental challenges. The report covers the latest trends and technologies followed by COVID-19 impact on the market.

The electric vehicle market is segmented by vehicle type (passenger vehicle and commercial vehicle), propulsion type (battery electric vehicle, plug-in electric vehicle, fuel cell electric vehicle, and hybrid electric vehicle), charging type (normal charging and fast charging), and geography (North America, Europe, Asia-Pacific, and Rest of the World). For each segment, market sizing and forecast have been done on the basis of value in (USD billion).

By Propulsion Type
Battery Electric Vehicles
Hybrid Electric Vehicles
Fuel Cell Electric Vehicles
Plug-in Hybrid Electric Vehicles
By Vehicle Type
Passenger Cars
Commercial Vehicles
By Charging Type
Normal Charging
Fast Charging
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa

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Key Market Trends

Heavy Investments from Automakers in Electric Vehicles

Heavy investments from automakers are expected to cater to the growing demand for EVs and play a major role in the evolution of the electric vehicle market. OEMs offer electric vehicles in different segments ranging from hatchbacks such as Nissan Leaf to high-end sedans like Tesla Model 3. For instance,

  • Ford company had previously committed to spending USD 11.5 billion on electrifying its vehicle lineup through 2022, and in its recent announcement, it increased its investment in autonomous and electric vehicles amid continuous lockdowns to boost vehicle sales.
  • Mercedes Benz had confirmed that it would roll out 25 new plugin hybrid electric vehicles in addition to fully electric vehicles by 2025. The wide product offering by companies attracted many consumers and resulted in a growing market for electric vehicles.

In addition, the growing sensitivity of various governments toward a cleaner environment increases the demand for zero-emission vehicles during the forecast period. Developed nations such as the United States, Germany, and the United Kingdom are actively promoting the use of electric vehicles to reduce emissions, which resulted in the growth of electric vehicle sales.

Electric Vehicle Market Trends

China to Witness Significant Growth

China to solidify its leadership position in the electric vehicle market during the forecast period. With a sales share of around 94%, domestic OEMs currently dominate the Chinese EV market. China imposed a quota on manufacturers for 100% electric or hybrid vehicles, which must represent at least 10% of total new sales. Additionally, some major cities and provinces are imposing increasingly stringent restrictions.

For instance, the city of Beijing only issues 10,000 permits for the registration of combustion-engine vehicles per month to encourage its inhabitants to switch to electric vehicles. These kinds of measures are leading China to formulate resolute and optimistic prospects for the development of electric vehicles in the country, which is expected to drive the market.

Generous subsidies and tight regulation continue to drive much of the growth. Electric vehicles are exempt from license-plate lotteries and auctions in some Chinese cities, and this still plays an instrumental role in promoting EVs. After a successful pilot program in selected cities, the Chinese government decided last year to introduce green license plates for new energy vehicles (NEVs) across the country.

BYD, BAIC, Chery, and SAIC are some of the key regional players in the Asia-Pacific electric vehicle market.

Electric Vehicle Market Growth

Competitive Landscape

The electric vehicle (EV) market is dominated by globally established players such as Tesla Inc., BYD, Daimler AG, Volkswagen, Nissan, and Toyota. For instance,

  • Taiwanese electric vehicle company Ahmani EV Tech formed a joint venture with Renon to produce battery packs for the Indian automobile market.
  • Ford Motor Company announced its plans to invest USD 11.0 billion to manufacture new hybrid and fully electric vehicles by 2022 in Canada.
  • In order to fulfill the charging station gap in North America, Tesla will construct numerous charging stations across the United States and Canada, including solar-powered charging stations, to improve infrastructure for EVs.

Recent Developments

  • In September 2020, Volkswagen invested USD 17.4 billion in the electric vehicle market with its local Chinese joint ventures FAW Group, SAIC Motor, and JAC to support new product launches of battery-electric and plug-in hybrid electric vehicles in the market.
  • In September 2020, Renault and Nissan, within their alliance, signed a memorandum of understanding (MoU) with Uber, with the aim of electrifying its customers' journeys in Europe.
  • In January 2020, the Department of Heavy Industries (DHI) of India approved 2,636 electric vehicle charging stations in 62 cities across 24 Indian states and union territories (UTs) under the second phase of the FAME program to promote e-mobility.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Propulsion Type

      1. 5.1.1 Battery Electric Vehicles

      2. 5.1.2 Hybrid Electric Vehicles

      3. 5.1.3 Fuel Cell Electric Vehicles

      4. 5.1.4 Plug-in Hybrid Electric Vehicles

    2. 5.2 By Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 By Charging Type

      1. 5.3.1 Normal Charging

      2. 5.3.2 Fast Charging

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Russia

        5. Spain

        6. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. South America

        2. Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Tesla Motors Inc.

      2. 6.2.2 Daimler AG

      3. 6.2.3 BYD Company Ltd

      4. 6.2.4 Volkswagen AG

      5. 6.2.5 Toyota Motor Corporation

      6. 6.2.6 Honda Motor Company Ltd

      7. 6.2.7 Nissan Motor Co. Ltd

      8. 6.2.8 Chery Automobile Co. Ltd

      9. 6.2.9 SAIC Motor Corp. Ltd

    3. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The Electric Vehicle Market market is studied from 2018 - 2026.

The Electric Vehicle Market is growing at a CAGR of 27.19% over the next 5 years.

The Electric Vehicle Market is valued at 162 Billion USD in 2018.

The Electric Vehicle Market is valued at 725 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Tesla, BYD Company Ltd, Daimler AG, Volkswagen AG, Toyota Motor Corporation are the major companies operating in Electric Vehicle Market.

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