The global electric vehicle market reached 2.45 million units in terms of volume in 2020, and is expected to grow at a CAGR (compound annual growth rate) of approximately 47 per cent between 2021-2026, according to Research and Markets.
One of the key factors driving the growth of the market is the increasing demand for fuel-efficient vehicles across the globe.
“Furthermore, growing concerns regarding the detrimental environmental effects due to greenhouse gases (GHGs) emissions, along with the implementation of favourable government policies encouraging sustainable development, are also providing a boost to the market growth,” said the research company.
This can include government benefits such as tax exemptions, subsidies, low buying costs, and free charging facilities, which in turn can encourage overall adoption rates among consumers.
“Additionally, manufacturers are focusing on the development of advanced technologies to produce zero- and low-emission vehicles with improved fuel efficiency and soundless operations,” said Research and Markets, adding that enhancements in EV charging infrastructure are paving the way for more investments in things like utilities, charging hardware manufacturers, and other power sector stakeholders.
There are other factors pushing the market forward as well, such as rapid urbanization, increasing disposable incomes, and greater research and development (R&D) activities—all of which are projected to drive the market forward even more.
Research and Markets also points to a competitive landscape, and looked at some of the top EV companies when doing its research. These include Bayerische Motoren Werke AG, Daimler AG, Ford Motor Company, Geely, General Motors, Honda, Hyundai Motor Company, Nissan, Renault, SAIC Motor, Tesla, and Toyota and Volkswagen.