Market Size of Low Emission Vehicle Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 15.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Low-Emission Vehicle Market Analysis
The low-emission vehicle market is valued at USD 126 billion in the current year. The market is expected to reach USD 292 billion by the next five years, registering a CAGR of 15% in revenue during the forecast period.
- During the lockdowns, the COVID-19 pandemic compelled about 95% of all automotive companies to put their workforces on hold. Globally, the repercussions of the lockdown have been immense and unprecedented in the automotive sector due to the halt of manufacturing activities. However, the market has regained momentum as economic activities resume and vehicle production also rises worldwide.
- Over the medium term, Government policies to support the growth of electric vehicles and plans to enlarge the electric vehicle charging infrastructure are expected to remain prominent market drivers during the forecast period. Several regional governments have announced their plans to have a certain portion of their new vehicle sales be electric in the upcoming few years.
- Electric car sales reached a record 3 million in 2020, up 40% from 2019. This strong growth was a stark contrast to general car market sluggishness globally, with overall car sales down 16% due to the Covid-19 crisis. After a decade of rapid growth, over 10 million electric cars are on the road, representing ~1% of the global car stock. For 2030, the Net Zero Emissions by 2050 Scenario projects 300 million electric cars on the road, accounting for over 60% of new car sales, compared with only 4.6% in 2020. Early market data for 2021 sales suggests rapid growth in significant markets.
- The electric vehicle (EV) market witnessed significant growth due to the need to address future energy requirements. The need to attain sustainable transportation is vital in driving electric vehicle demand.
- The electric vehicle market is becoming an integral part of the automotive industry. It represents a pathway toward achieving energy efficiency, along with reduced emissions of pollutants and other greenhouse gases. Increasing environmental concerns and favorable government initiatives are some of the major factors driving the market growth. Rising energy costs and competition among emerging energy efficiency technologies are also expected to fuel the market growth.
