The electric car market was 8.1 million units in 2022, and it will reach 45 million units, propelling at a 23.8% compound annual growth rate, by 2030.
The growth of the industry is attributed to the increasing customer interest in lessening the carbon footprint of their vehicles, enhancement in the technology of batteries, and advantageous government policies.
The progression of electric vehicle batteries is the main reason for the decreasing price and improving the driving range of electric vehicles. Innovative cell chemistries are being studied to produce electric vehicle batteries smaller, enhance energy storage, and lighter, to enable electric vehicles to compete with traditional fuel-based automobiles.
Moreover, to decrease the emission of greenhouse gases, various initiatives have been implemented across the globe to limit the harmful effects of these gases and improve the environment. This will further boost the demand for electric cars in the year to come.
Based on technology, the BEVs category has sustained a significant electric car market share. This can be because of the introduction of enhanced battery electric vehicle models, for instance, the Tesla Model 3. Furthermore, the advancement of this category is also boosted by the increasing funding by industry players in research and development projects to offer advanced battery solutions for battery electric vehicles.
Whereas, the PHEVs category is expected to observe a significant rise in sales in the years to come, with approximately 22% compound annual growth rate.
In 2022, the APAC electric car industry accounted for approximately 49% share. Furthermore, in 2022, China led the APAC industry, with approximately 90% share, owing to the massive amount of electric cars manufactured in the nation.
Moreover, China is the largest contributor to the global sales of electric vehicles, and it will be the largest buyer in the years to come. This is because of the increasing concerns about the environment, rising ownership costs of ICE alternatives, and rising government funding and support for electric cars.
Additionally, Japan is expected to observe significant growth, with 23% compound annual growth rate, in the years to come.