The electric vehicles market has made great strides, and not just in terms of sales, but also by investments to deliver new electrified models, from R&D to factory redesign. The market was recorded at a value of USD 27.85 Billion in the year 2014, which is anticipated to grow with a CAGR of over 30% in terms of volume through the forecasted period.
Even though electric vehicles are a need of the hour, the market is hurdled highly because of the lack of infrastructure and the high manufacturing cost. The gap between the existing infrastructure and the required one for the electric vehicle to overtake the conventional vehicles is huge, becoming a major fuel for the range anxiety among the drivers. By the end of 2025, commercial electric vehicles are likely to reach a market of over 800 Thousand Units. The market is expected to incline towards the PHEV segment, which is to grow with an anticipated volume CAGR of 36.03%, through the forecasted period. However, the BEV segment leads the market and is expected to reach over USD 7800 Billion by end of the year 2025.
Companies are manufacturing comparatively less expensive vehicles, however, with the increase in the disposal income and government incentives; the market is likely to get inclined towards the luxury class segment that is expected to account for an approx share of 40% by end of the forecasted period. The mid-priced vehicle class has limited features with less emphasis on expensive features, yet ruled the market with a share of over 70% in 2019.
The Asia Pacific market is expected to witness the fastest growth, with countries such as China, Japan, and South Korea is inclined toward innovation, technology, and the development of the advanced electric vehicle. While Asia contributed to a share of 61.34% by volume in 2019, the regions of Latin America and Middle East & Africa together could not cover over 3%. Europe is expected to increase to a share of 28.04% by value in the global market by the end of the year 2025. The lack of standardization in the charging load is also a major drawback for the global market. Electric vehicle manufacturers are focusing on overcoming this by having their charging network.
The governments of various countries have formulated stringent CO2 emission norms that have increased the demand for electric vehicles. Besides, the governments are providing incentives and subsidies to encourage EV sales. Gaining popularity in 2018, the electric Go-Karting is expected to be the next big thing in the industry. Of all the leading companies, Tesla, Nissan, and Toyota together accounted for 31.45% of the share in 2019. The other smaller and local players also play an important role with the mergers amend acquisitions around the industry.