Electric Passenger Cars Market (By Product: Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV); By Vehicle Type: Hatchbacks, Sedan, Compact SUV, SUVs) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global electric passenger cars market size was estimated at USD 215.26 billion in 2022 and is expected to surpass around USD 3,756.16 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 33.1% during the forecast period 2023 to 2032.

Electric Passenger Cars Market Size, 2023 to 2032

Key Takeaways:

  • The European market generated more than 47% of revenue share in 2022.
  • Asia Pacific is expected to expand at a fastest CAGR of 38% between 2023 and 2032.
  • By Product, the battery electric vehicle segment contributed more than 62% of revenue share in 2022.
  • In 2022, the seller was responsible for more than 71% of the electric vehicle battery (EVB) purchases.
  • By Vehicle Type, the compact-SUV segment is expected to dominate the market from 2023 to 2032.

Electric Passenger Cars Market Report Scope

Report Coverage Details
Market Size in 2023 USD 286.51 Billion
Market Size by 2032 USD 3,756.16 Billion
Growth Rate From 2023 to 2032 CAGR of 33.1%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered By Product and By Vehicle Type
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled BYD Company Ltd., Daimler AG, Ford Motor Company, General Motors Company, Lucid Motors, Rivian, Karma Automotive, Fisker Inc., Mitsubishi Motors Corporation, Nissan Motor Company, SAIC Motor Corporation Limited, Tesla, TOYOTA MOTOR CORPORATION, Volkswagen AG, and Others.

 

The sales of passenger cars dipped considerably as the automotive industry bore the adverse effects of lockdown restrictions caused by COVID-19 in the first half of 2020. However, amidst this chaos, the market had a milestone year with sales reaching approximately 3.0 million units in 2020, almost a 40% increase over 2019. China with the government’s support was a major market disrupter with the success of WulingHongguang Mini EV and  Tesla Model 3. The country captured over 30% of the global electric car sales in 2020 and will continue to witness great momentum supported by the growing network of public EV charging infrastructure and an anticipated rise in consumer demand over the forecast period.

Electric vehicles (EVs) are amongst the most prominent technologies that contribute to reducing air pollution. Thus, governments worldwide are providing subsidies on the purchase of electric vehicles to promote their adoption. For instance, the Canadian government provides a subsidy of up to USD 3,700 on the purchase of battery electric vehicles and plug-in hybrid electric vehicles. Even the Japanese government provides a subsidy of up to USD 3,700 on the purchase of battery electric vehicles and up to USD 1,800 on the purchase of a plug-in hybrid electric vehicle.

The adoption of electric vehicles has gained traction in several countries due to the increasing fuel prices. Electric vehicles act as a substitute for petrol and diesel vehicles and are powered by lithium-ion batteries that offer a hybrid charging facility. Numerousride-hailing companies are focused on replacing their internal combustion engine fleet with electric vehicles. For instance, Uber India plans to have around 3,000 electric vehicles in its fleet by the end of 2021. 

The outbreak of the COVID-19 pandemic has changed the overall business scenario for 2020 as well as the following years. Several industries have witnessed a significant setback due to the pandemic, and the automobile industry is no exception to that. However, electric passenger cars witnessed a high demand during the pandemic period. The global electric passenger car sales increased by over 40% in 2020 as compared to 2019. The production operations of most companies were affected owing to the lockdown. However, the adoption of electric passenger cars surged post-lockdown owing to the increasing initiatives by government authorities to encourage the use of low emission fuel vehicles.

Key Market Drivers:

Rising awareness about environmental sustainability

The rising awareness about environmental sustainability is one of the driving factors behind the growth of the electric passenger car market. With concerns about climate change and air pollution, consumers are becoming more conscious of their environmental impact and are looking for more sustainable modes of transportation. Electric passenger cars offer a solution to this problem, as they emit little to no greenhouse gases and are much cleaner than traditional gasoline-powered vehicles.

In addition, electric vehicles are impacting people’s lives in a positive way, which further motivates more people to prefer using electric vehicles. Furthermore, governments all over the world are recognizing the value of sustainability and are encouraging the use of electric vehicles by providing incentives and subsidies. For instance, in some nations, owners of electric vehicles are exempt from paying certain taxes, and buying an electric car is frequently eligible for subsidies.

Key Market Challenges:

Inadequate EV recharge facilities One major challenge facing the electric passenger car market is the inadequate infrastructure for recharging electric vehicles. While gasoline-powered vehicles can be refueled at any gas station, electric cars require charging stations, which are still relatively scarce in many areas. This can make it difficult for electric car owners to take long road trips and can also lead to range anxiety, which is the fear that the car will run out of battery power before reaching a charging station.

To address this challenge, governments, and private companies are investing in the development of charging infrastructure. Many countries are aiming to install more charging stations, and some are even offering incentives for businesses to install charging stations on their premises. In addition, advances in battery technology are increasing the range of electric cars, which can help to reduce range anxiety.

However, building a charging infrastructure is a significant undertaking, and it will take time for it to become as widespread and convenient as traditional gas stations. In the meantime, the inadequate infrastructure for recharging electric vehicles remains a challenge for the electric passenger car market.

Key Market Opportunities:

Government programs involving EVs

Government programs and policies involving electric vehicles (EVs) provide significant opportunities for the growth and development of the electric passenger car market. Many governments are offering incentives and subsidies for consumers and businesses to switch to EVs, such as tax credits, rebates, and reduced registration fees. These incentives make EVs more affordable and attractive to potential buyers, which in turn drives demand and sales.

In addition to consumer incentives, governments are also investing in EV infrastructure, including charging stations and networks. This investment is critical to the success of the electric passenger car market, as inadequate charging infrastructure is one of the major barriers to the widespread adoption of EVs. Governments are also implementing regulations and mandates to increase the use of EVs, such as emission standards and fleet requirements for government agencies and public transportation.

For instance, Norway and Germany are making sizable investments to support the electric passenger cars market's sales. Thus, a high growth rate in the selling of electric cars is seen in Europe as a result of the high incentives and support. Due to this, the demand for accessories and tools used in EV charging, such as charging cords, connectors, converters, and portable charges, has increased.

Furthermore, many governments are also collaborating with private companies and organizations to develop and commercialize EV technologies, such as battery research and development. This partnership and collaboration between government and industry players can lead to the creation of new and innovative products, which can help boost the growth of the electric passenger cars market

Moreover, the demand for electric cars has grown as a result of strict CO2 emission standards. To promote the sales of EVs, governments are spending a lot of money on rebates and grants. Over the next ten years, it is anticipated that the demand for EVs will rise as a result of the actions done by governments all over the globe. All nations have established fuel efficiency requirements, and China, Canada, and the US have established rules for electric vehicles. Additionally, they offer buyers and EV makers incentives and grants.

For the purchase of new EVs, the US offers rebates of up to USD 7,500. The majority of these nations also offer benefits for the installation of EV recharge stations. With complete intentions to switch to EVs, Europe is anticipated to be the first region. By 2030, the UK wants to dominate the entire auto industry with EV sales. Norway intends to start the same project and finish it by 2025. Plans have been made for the adoption of EVs by the Netherlands, Israel, Ireland, Iceland, and Denmark by 2030. By 2035, China and Japan also intend to cease selling ICE vehicles.

Segments Insight:

Product Insights:

Over 62% of the total income in 2022 came from the battery electric car sector, and it is anticipated that this segment will continue to dominate the market during the projection period. In the U.S., there will be more than 15 BEV versions accessible by 2022. BEV is anticipated to develop more slowly than plug-in hybrid electric vehicles, mainly because of range anxiety. The most effective BEV is the Model 3, which has a cheap cost per kilometer, but the Model S is more common due to its increased range. In 2022, the seller was responsible for more than 71% of the BEV purchases.

Over the projection period, the plug-in hybrid electric car sector is anticipated to grow at a CAGR of over 32%. This development can be ascribed to steps made by governments in developed and developing countries to encourage the use of EVs. PHEVs have an internal combustion engine that is powered by alternative gasoline and an electric drive that is powered by batteries. Companies like Volkswagen Group are concentrating on growing the sales of plug-in electric vehicles. In comparison to 2018, the company's sales of plug-in electric cars increased by about 60.0% in January 2020.

Vehicle Type Insights:

The market for electric passenger vehicles is divided into segments based on the style of vehicle: hatchbacks, sedans, compact SUYs, and SUVs. During the forecast period, the compact-SUV category is expected to rule the market. The key drivers of the compact-SUV segment's growth over the projection period are powerful motors and high-ground clearance. The International Energy Agency (IEA) reports that worldwide SUV sales increased significantly between 2020 and 2021 by over 10%, making up over 45% of all new vehicle sales internationally.

In Canada, there is an increasing need for electrified SUVs. In 2021, the Hyundai Kona Electric, the country's first small electric SUV, was introduced. Due to its impressive 415 km all-electric range, this small SUV is recommended as a top option for both extended excursions and everyday travel.

Regional Insights:

In 2022, the European industry contributed more than 47% of global income. The significant income share is primarily attributable to the rising sales of electric passenger cars in nations like Germany, France, Norway, and the United Kingdom. As part of their efforts to combat the pandemic's impacts, governments in the European Union have raised subsidies for electric cars. For instance, the government of Germany raised subsidies for the acquisition of BEV and PHEV by approximately USD 2,500 and USD 1,500, respectively.

From 2023 to 2032, Asia Pacific is anticipated to grow at a CAGR of over 38% in terms of income. Leading nations in the area include China, Korea, and Japan. As the biggest producer and consumer of electric passenger vehicles, China is anticipated to hold a commanding position throughout the projection period. The government has taken a number of measures to encourage the use of electric vehicles, such as providing subsidies for EV purchasers, setting up charging sites, and passing legislation requiring automakers to produce electric vehicles in proportion to the volume of cars they produce.

From 2023 to 2032, North America is anticipated to have the second-highest CAGR in terms of income, at over 39.42%. In 2022, the U.S. had the biggest revenue share, and it is anticipated that it will maintain its leadership throughout the forecast era. However, sales of electric cars in the United States fell in 2019 and 2020 as the government tax credit for General Motors and Tesla was reduced.

Some of the prominent players in the Electric Passenger Cars Market include:

  • BYD Company Ltd.
  • Daimler AG
  • Ford Motor Company
  • General Motors Company
  • Lucid Motors
  • Rivian
  • Karma Automotive
  • Fisker Inc.
  • Mitsubishi Motors Corporation
  • Nissan Motor Company
  • SAIC Motor Corporation Limited
  • Tesla
  • TOYOTA MOTOR CORPORATION
  • Volkswagen AG

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2032. For this study, Nova one advisor, Inc. has segmented the global Electric Passenger Cars market.

By Product

  • Battery Electric Vehicle (BEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)

By Vehicle Type

  • Hatchbacks
  • Sedan
  • Compact SUV
  • SUVs

By Region

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

Frequently Asked Questions

The global electric passenger cars market size was estimated at USD 215.26 billion in 2022 and is expected to surpass around USD 3,756.16 billion by 2032

The global electric passenger cars market is expected to grow at a compound annual growth rate of 33.1% from 2021 to 2028

Some key players operating in the electric passenger cars market include Tesla, SAIC Motor Corporation Limited, TOYOTA MOTOR CORPORATION, General Motors Company, Nissan Motor Company, and Volkswagen AG.

Key factors that are driving the electric passenger cars market growth include increased tax rebate programs, subsidies, & favorable government initiatives to promote EV adoption and growing demand for low-emission commuting.

Chapter 1. Introduction

1.1. Research Objective

1.2. Scope of the Study

1.3. Definition

Chapter 2. Research Methodology (Premium Insights)

2.1. Research Approach

2.2. Data Sources

2.3. Assumptions & Limitations

Chapter 3. Executive Summary

3.1. Market Snapshot

Chapter 4. Market Variables and Scope 

4.1. Introduction

4.2. Market Classification and Scope

4.3. Industry Value Chain Analysis

4.3.1. Raw Material Procurement Analysis 

4.3.2. Sales and Distribution Channel Analysis

4.3.3. Downstream Buyer Analysis

Chapter 5. COVID 19 Impact on Electric Passenger Cars Market 

5.1. COVID-19 Landscape: Electric Passenger Cars Industry Impact

5.2. COVID 19 - Impact Assessment for the Industry

5.3. COVID 19 Impact: Global Major Government Policy

5.4. Market Trends and Opportunities in the COVID-19 Landscape

Chapter 6. Market Dynamics Analysis and Trends

6.1. Market Dynamics

6.1.1. Market Drivers

6.1.2. Market Restraints

6.1.3. Market Opportunities

6.2. Porter’s Five Forces Analysis

6.2.1. Bargaining power of suppliers

6.2.2. Bargaining power of buyers

6.2.3. Threat of substitute

6.2.4. Threat of new entrants

6.2.5. Degree of competition

Chapter 7. Competitive Landscape

7.1.1. Company Market Share/Positioning Analysis

7.1.2. Key Strategies Adopted by Players

7.1.3. Vendor Landscape

7.1.3.1. List of Suppliers

7.1.3.2. List of Buyers

Chapter 8. Global Electric Passenger Cars Market, By Product

8.1. Electric Passenger Cars Market Revenue and Volume, by Product, 2023-2032

8.1.1. Battery Electric Vehicle (BEV)

8.1.1.1. Market Revenue and Volume Forecast (2020-2032)

8.1.2. Plug-In Hybrid Electric Vehicle (PHEV)

8.1.2.1. Market Revenue and Volume Forecast (2020-2032)

Chapter 9. Global Electric Passenger Cars Market, By Vehicle Type

9.1. Electric Passenger Cars Market Revenue and Volume, by Vehicle Type, 2023-2032

9.1.1. Hatchbacks

9.1.1.1. Market Revenue and Volume Forecast (2020-2032)

9.1.2. Sedan

9.1.2.1. Market Revenue and Volume Forecast (2020-2032)

9.1.3. Compact SUV

9.1.3.1. Market Revenue and Volume Forecast (2020-2032)

9.1.4. SUVs

9.1.4.1. Market Revenue and Volume Forecast (2020-2032)

Chapter 10. Global Electric Passenger Cars Market, Regional Estimates and Trend Forecast

10.1. North America

10.1.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.1.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.1.3. U.S.

10.1.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.1.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.1.4. Rest of North America

10.1.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.1.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.2. Europe

10.2.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.2.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.2.3. UK

10.2.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.2.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.2.4. Germany

10.2.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.2.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.2.5. France

10.2.5.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.2.5.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.2.6. Rest of Europe

10.2.6.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.2.6.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.3. APAC

10.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.3.3. India

10.3.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.3.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.3.4. China

10.3.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.3.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.3.5. Japan

10.3.5.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.3.5.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.3.6. Rest of APAC

10.3.6.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.3.6.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.4. MEA

10.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.4.3. GCC

10.4.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.4.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.4.4. North Africa

10.4.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.4.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.4.5. South Africa

10.4.5.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.4.5.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.4.6. Rest of MEA

10.4.6.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.4.6.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.5. Latin America

10.5.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.5.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.5.3. Brazil

10.5.3.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.5.3.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

10.5.4. Rest of LATAM

10.5.4.1. Market Revenue and Volume Forecast, by Product (2020-2032)

10.5.4.2. Market Revenue and Volume Forecast, by Vehicle Type (2020-2032)

Chapter 11. Company Profiles

11.1. BYD Company Ltd.

11.1.1. Company Overview

11.1.2. Product Offerings

11.1.3. Financial Performance

11.1.4. Recent Initiatives

11.2. Daimler AG

11.2.1. Company Overview

11.2.2. Product Offerings

11.2.3. Financial Performance

11.2.4. Recent Initiatives

11.3. Ford Motor Company

11.3.1. Company Overview

11.3.2. Product Offerings

11.3.3. Financial Performance

11.3.4. Recent Initiatives

11.4. General Motors Company

11.4.1. Company Overview

11.4.2. Product Offerings

11.4.3. Financial Performance

11.4.4. Recent Initiatives

11.5. Lucid Motors

11.5.1. Company Overview

11.5.2. Product Offerings

11.5.3. Financial Performance

11.5.4. Recent Initiatives

11.6. Rivian

11.6.1. Company Overview

11.6.2. Product Offerings

11.6.3. Financial Performance

11.6.4. Recent Initiatives

11.7. Karma Automotive

11.7.1. Company Overview

11.7.2. Product Offerings

11.7.3. Financial Performance

11.7.4. Recent Initiatives

11.8. Fisker Inc.

11.8.1. Company Overview

11.8.2. Product Offerings

11.8.3. Financial Performance

11.8.4. Recent Initiatives

11.9. Mitsubishi Motors Corporation

11.9.1. Company Overview

11.9.2. Product Offerings

11.9.3. Financial Performance

11.9.4. Recent Initiatives

11.10. Nissan Motor Company

11.10.1. Company Overview

11.10.2. Product Offerings

11.10.3. Financial Performance

11.10.4. Recent Initiatives

Chapter 12. Research Methodology

12.1. Primary Research

12.2. Secondary Research

12.3. Assumptions

Chapter 13. Appendix

13.1. About Us

13.2. Glossary of Terms

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