Electric Car Market Size, Share, and Trends 2024 to 2034

The global electric car market size is estimated at USD 155.13 billion in 2024 and is predicted to reach around USD 532.13 billion by 2034 with a notable CAGR of 13.12% from 2024 to 2034. 

The electric car is basically explained as an electric vehicle containing batteries that store the energy power in the batteries both cars and bikes. Power is stored in the batteries. The electrical vehicle containing batteries can be powered only through a charging system. Batteries used in electric vehicles are rechargeable and can be charged using an electric board system. It is the only energy source obtained from the electrification system for electric vehicles. Electric cars are decreasing pollution with less emission of carbon dioxide overall and decrease noise pollution. Increased rising population with increased demands from the market and developed technology and solutions helped the market to grow high. The impact of Covid-19 on the electric car market affected the impact on the charging stations in the pandemic situations due to the lockdown shutdown of the stations and ceased transportation decreased the growth of the market. The pandemic covid-19 affected the raw material and increased rates of copper raised after almost 10 years. Increased rates of manufacturing and producing new technology and innovative services of electric cars. Increased support by the government and improved technology with improved funding from various countries helped to boost the electric car market.

Electric Car Market Growth Factors

The advanced technology and development with increasing demands from the market over the past 2 years helped the market to grow high. Reducing the cost of the electric car battery in the past 10 years with improved facilities and advancements and increased production. In electric cars, the batteries cost higher. Increasing demand and production of electric cars affect the environment with less emission and decrease pollution in the regions affected the market growth. Increased market due to high efficiency, low emission, vehicles, no rules and regulations imposed by the government, reduced cost of the batteries, and the rising cost of fuels are major reasons for driving the electric car market high in the regions. Advanced technologies and government support improved more opportunities for the growth of the market. Key market players with advanced manufacturing of electric cars and increasing production as per the demands from the market helped to rise the market growth. The electric car is segmented into various types such as based on the type of battery electric vehicle, fuel cell electric vehicle, and plug-in hybrid electric vehicle. Based on vehicle type four-wheeler, two-wheeler, and passenger car. Based on class luxury, mid-rated. Based on top speed above 125 mph, 100 to 125 mph, and below 100 mph. Based on vehicle drive type rear wheel driving, front-wheel drive, and all-wheel drive. Different segments have contributed to the market growing at a higher rate.

Market Scope

Market Dynamics

Key Market Drivers

An increasing number of populations with an increasing number of demands from the market with improved developed technology have raised the market high. Increased demand is also due to reduced prices over the last 10 years of the batteries. Which are the major source of the power generation of electric cars and the development of batteries on the large scale with increased electrification systems in cars expanded the market rate. Decreased rates of the batteries led to decreased electric car rates and increased demands. Increased demand for electric cars led to less pollution in the regions with no emission of carbon dioxide gas. Expansion of their market due to the contribution of government funding and making available passenger cars for the passengers helped the market to grow high. Market players involved in the manufacturing and production of new improved technology in the electric car market thrived the growth.

The automobile industry invests highly in the manufacturing of electric cars. Customers owning the electric car have got the benefits like free tax, and free-of-cost charging at electric vehicle charging stations. Better performance, high efficiency, low maintenance, environment friendly, and many more have increased the growth also due to increased fuel charges for the normal car and high demand of the market for electric cars.   

Key Market Challenges 

Awareness in the market is less produced to increase the growth of the market and the benefits of the electric car. The electric station produced for the charging of the electric car need to be standardized according to the needs of the vehicle and an instant charging station direct current supplied with 480V different voltage stations should be available according to the electric car. Level 1 charging station involves AC with a voltage of 120V AC, and Level 2 charging station involves 208/240V AC. Development of the charging stations and improve the ecosystem increase the electric car market during the forecast period. Countries in different regions use different patterns of charging. While India has installed CCS and CHAdeMO methods for charging electric cars. Japan utilizes the CHAdeMO method. Need to be more development in a section for charging stations for electric cars. Standardized methods should be developed and easy for customers to charge the electric car. The demand for electric cars in the market raised with the increased revenue share.

Key Market Opportunities

• Low cost of the electric cars - Increasing population with rising demands of the market for the electric car with an electrification system installed in the car. An electric car battery is placed which is a rechargeable major source of power for the electric car to ride. Reduced rates of the batteries due to decreased rates of the raw material led to the reduced cost of the electric car in the market.
• Government providence - Governments across the regions have set a goal for an emission-free environment and to increase the development and manufacturing of electric cars in the market with the improved infrastructure of charging stations for electric cars. Many governments are investing in providence for developing emission-free regions.
• Charging period of time - Developed voltage systems for different cars. Whereas 120V level 1 takes about 20 to 40 hours for charging used in home appliances which are slow and 240V level 2 takes 8 hours or less for charging. For instant charging level 3 direct current with 480V can charge more than 75% in 30 min.

Product Technology Insights

Based on the product segmentation of electric cars involves hybrid electric vehicles, Plug-in electric vehicles, and battery-based electric vehicles. Increasing demand for electric cars in the market with increased manufacturing and development and production of the electric car increased. The impact of the electric car on the environment is tremendous with zero emission of carbon dioxide gases and an improved environmental system. An increased number of market players developing products with new technology and the support of the various governments in building the infrastructure for charging stations and investing incentives for developing an emission-free society helped the market to boost growth. High efficiency, good performance, and better productivity improved the market height.

Type Insights

Based on the type of segmentation of electric cars are divided into various segments such as on the basis of components including the battery, motor, reducer, fuel stack, power generation unit control, air compressor, humidifier, board charge, fuel processor, and many more. On the basis of vehicle type commercial vehicles, and passenger cars. On the basis of vehicle class low price, mid-price, luxury. The basis of speed involves more than 125MPH and less than 125MPH. Based on driving type front wheel driving, rear-wheel driving, and all-wheel driving. Based on charging point normal charging, supercharging. Based on connectivity V2B, V2G, V2V, and V2X. Based on propulsion includes private and commercial fleets.

Application Insights

Based on the applications segmentation of electric cars. Increasing population and rising demands due to decreased cost of the electric car due to cheaper rates of the raw material and reduced pricing of the batteries. Increased electrification systems in electric cars with no emission of carbon dioxide gases pollution-free countries with the improved economic growth of the electric car market during the forecast period due to maintenance and high efficiency. It is used in the public transport system,  military, space flight, consumer electronics, aviation, renewable energy source, and wearable technology electricity grid have raised the electric car market growth.

End User Insights

The electric car is used by the market due to the improved technology in the private sectors and commercial fleets with increased manufacturing of electric cars and support of the government boosted the market to grow high.

Regional Insights

Asia Pacific region is the highest region to hold the highest revenue share of the electric car market growth including countries like India, China, Japan, and South Korea's highest producers of the electric car. High usage of electric cars in the regions like North America, and Europe well-developed country with proper charging infrastructure and providence supported by the government for improving the market. Latin America is also in the lane of the electric car which is slow market growth. 

Recent Developments

• In the year 2021 March, Volvo introduced a new model as C40 recharge model and has the same functions and features as of XC60 model
• In the year 2021 April, Volkswagen opened up the 7 sweaters EV ID.6 cross and ID.6 X manufactured long with SAIC and FAW in China. Which includes 2 batteries that are 58 kWh and 77kWh.
• In the year 2022 January, Volkswagen launched the ID.5 model based on skods enayaq iV model and can run up to 300 miles on 1 charge.

Electric Car Market Companies

• Tesla (US)
• Volkswagen AG (Germany)
• SAIC Motors (China)
• BYD (China)
• Stellantis (Netherlands)
• Toyota Motor Corporation
• Honda Motor Co. Ltd
• Ford Motor Company
• Nissan Motor Corporation ltd

Segments Covered in the Report

By Product Technology

• Hybrid electric vehicles
• Plug-in hybrid vehicles
• Battery electric vehicles

By Components

• Motor
• Battery
• Fuel stack
• Controlling unit 
• Humidifier
• Air Compressor
• Power Conditioner
• Fuel processor
• On board charge
• Other

By Vehicle Type

• Passenger cars
• Commercial vehicles

By Class 

• Low price
• Medium price
• Luxury

By Speed

• More than 125MPH
• Less than 125MPH

By Drive Type

• Front wheel drive
• Rear wheel drive
• All wheel drive

By Charging Point

• Normal charging
• High charging

By Connectivity

• V2X
• V2V
• V2G
• V2B or V2H

By Propulsion

• PHEV
• BEV
• FCEV

By Application 

• Consumer Electronics
• Military
• Public transportation
• Aviation
• Electricity grid
• Spaceflight
• Military
• Wearable technology

 By End User 

• Commercial Fleets
• Private

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)