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The electric car sales are expected to reach 5.3 million units, globally, by 2023, at a CAGR of 33.6% between 2017 and 2023.
Among all the regions, Europe is expected to witness the fastest growth in the market during the forecast period, mainly due to the rapidly rising adoption of electric cars in countries such as Norway, Germany, and the U.K. Additionally, the rollout of several policies related to electric cars and charging infrastructure, along with the huge incentives on the purchase of electric cars in the region, are expected to benefit in the growth of the European electric car market.
Dynamics of Electric Car Market
Market consolidation and joint ventures among the major industry players are being seen as a key trend in the electric car market. Many automotive companies have been involved in geographical expansion of their market through partnerships with domestic players present there. These Players are also aiming at synergies to share technological expertise, to develop more-advanced electric cars as per the need of the target market. For instance, Volkswagen Group, together with SAIC Motor, is working on the development of electric cars in China. Similarly, BMW Group has been planning to form an electric vehicle joint venture with Great Wall Motor Co. Ltd., in China.
The stringent government norms related to vehicle emissions are the major growth factor for the global electric car market. The emission of greenhouse gases (GHG) has increased significantly over the last decade. To limit the adverse effects of these gases, several actions have been taken all around the world, including in Europe, to achieve a cleaner environment, by adhering to ambitious environmental targets. For instance, the Netherlands has set a target of 100% sales of zero-emission vehicles (ZEV) by 2030. Similarly, the U.K. has set the same target, to be achieved by 2040.
The growing demand for longer-range electric cars is projected to create ample growth opportunities for the electric car market players in the coming years, as these are expected to replace most of the internal combustion engine (ICE)-powered cars by the next decade.
Structural Analysis of Electric Car Market
When segmented on the basis of technology, the global electric car market was dominated by battery electric vehicles (BEV) during the historical period (2013–2016), mainly because of the availability of a significant number of BEV models and higher government subsidies for their production and purchase.
Among all the segments of electric cars, the economy category is expected to account for significant unit sales in the electric car market during the forecast period. It would be mainly due to the lower prices of economy cars compared to other categories, However, medium-category cars are projected to witness the fastest growth during the forecast period.
Geographical Analysis of Electric Car Market
Globally, the Asia-Pacific (APAC) region held the largest share in the electric car market in 2016, and it is expected to continue to possess the dominating share during the forecast period. The region’s growth is mainly driven by the huge government support in form of subsidies and incentives on electric cars and introduction of policies related to vehicular emissions in countries such as China and Japan.
Competitive Landscape of Electric Car Market
The market characteristics were found to be varying at the regional level, due to the varying number of original equipment manufacturers (OEM) of electric cars in different regions. For instance, in North America, the electric car market is consolidated, with Tesla Inc., Toyota Motor Corp., and General Motors Co. holding the major share. However, in the APAC region, the market is fragmented due to the presence of numerous electric car OEMs, majorly in China, such as BYD Co. Ltd., BAIC Motor Corp. Ltd., SAIC Motor Corp. Ltd., Geely Automobile Holdings Ltd., Chery Automobile Co. Ltd., Anhui Jianghuai Automobile Co. Ltd. (JAC Motors), and Changan Automobile Co. Ltd.
Recent Strategic Developments of Major Electric Car Market Players
In recent years, electric car market players have taken strategic measurers, including collaborations and facility expansions, to gain a competitive edge in the industry. For instance, in December 2017, Toyota and Panasonic Corp. announced their agreement to begin the development and production of batteries for Toyota's electric vehicles.
Moreover, in October 2017, BMW Group opened a new factory, High-Voltage Battery Centre, in Shenyang, China. The factory supplies battery packs to its manufacturing plant situated in Dadong District in China, which produces BMW 5 Series plug-in hybrid cars.
Key Questions Answered in the Report