BANGALORE: The global market for electric vehicles (EV) is expected to grow from USD $129 billion in 2018 to USD $359 billion by the end of 2025 at a Compound Annual Growth Rate (CAGR) of 15.69 percent, according to a report by Bangalore-based market research firm Valuates Reports.
The report explains that growing conventional fuel prices and their fading presence encourages the search for low-cost options. Demand for electric vehicles is driven by increased demand for fuel-efficient vehicles, high-performance, and low-emission.
Furthermore, the report finds that heavy investments from automakers in electric vehicles is one of the factors largely attributing to the growth of the global electric vehicle market.
The trend of vehicle emission reduction, owing to stringent laws and regulations is further expected to fuel the electric vehicle market growth.
Factors driving the global EV market:
- Favorable government policies and subsidies.
- Need for increased vehicle range per charge.
- Heavy investments from automakers in electric vehicles.
- Growing concerns over environmental pollution.
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The report also warns that some factors, such as the lack of charging infrastructure standardisation, can impede electric vehicle market growth. It is expected that the global electric vehicle industry will showcase opportunities such as the use of vehicle-to-grid charging stations for electric vehicle charging stations and electric vehicles powered by renewable energy.
Region-wise EV market analysis:
- The Asia Pacific market, followed by Europe and North America, is anticipated to experience the highest development.
- European market is projected to experience steady growth, owing to a well-developed infrastructure for electric vehicles.
- Asia Pacific market is the fastest due to the strong presence of major electric vehicle manufacturing OEMs.
In the near future, due to strict regulations for building charging stations, limited range of electric vehicles, and high electric vehicle costs relative to traditional internal combustion engine vehicles, the global EV market may face potential growth challenges, predicts the report.
The key players on the electric vehicle market, however, are making aggressive efforts to produce groundbreaking deals and benchmark approaches for electric vehicles.