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Electric Vehicle Market Analysis
Electric cars have blown up lately! The global market for electric vehicles (EVs) has undergone rapid growth and transformation in recent years, spurred by technological advancements, environmental concerns, and government incentives.
Given the growing importance of EV market trends for the automotive and transportation sectors as well as the environment, the average car buyer and seller may want to delve into key trends, challenges, and opportunities shaping this dynamic industry landscape.
Given the growing importance of EV market trends for the automotive and transportation sectors as well as the environment, the average car buyer and seller may want to delve into key trends, challenges, and opportunities shaping this dynamic industry landscape.
What is an Electric Vehicle?
An electric vehicle (EV) is a type of vehicle that is powered by an electric motor, using electricity stored in batteries or another energy storage device. Unlike traditional internal combustion engine vehicles that rely on gasoline or diesel, electric vehicles are powered by electricity, which can be sourced from various renewable or non-renewable sources.
Two Common Types of Electric Vehicles
Battery Electric Vehicles (BEVs)
Sometimes called all-electric vehicles, these vehicles run entirely on electricity stored in batteries. They do not have an internal combustion engine, relying solely on electric motors for propulsion. BEVs need to be plugged into an electric power source to recharge their batteries.Plug-in Hybrid Electric Vehicles (PHEVs)
PHEVs have both an electric motor and an internal combustion engine. They can operate in all-electric mode using the electric motor and can also switch to using the internal combustion engine when needed. PHEVs can be plugged in to recharge their batteries, but they also have the option to run on gasoline or diesel.Latest Trends & Developments in Electric Vehicle Markets
Recent data from iea.org and MarketsandMarkets reveal interesting trends and developments in the EV market.
Proportion: This marked a significant increase from previous years, with 3.5 million more electric cars sold in 2023 compared to 2022, representing a 35% year-on-year growth. The growth trajectory is notable, as EV sales reports in 2023 were over six times higher than in 2018, just five years earlier.
Weekly Registration: Weekly new registrations surpassed 250,000 in 2023, exceeding the total annual registrations from ten years prior, in 2013.
Global Market Share: EV share of the car market constituted approximately 18% of total car sales in 2023, up from 14% in 2022 and a mere 2% in 2018.
EV Batteries: Battery electric cars made up 70% of the electric car market in 2023, highlighting their dominance in this sector as it continues to evolve and expand.
Ratios of EVs: Over one in three new car registrations in China, more than one in five in Europe, and one in ten for the electric car market share of US (2023).
Geographic Concentration: These three regions (China, Europe, and the United States) also represent about two-thirds of total car sales and stocks, highlighting the substantial impact of the EV transition in these markets on global trends.
Increase EV Adoption: South Korea, Japan, and India also have plans to increase EV adoption, with India targeting 30% electric passenger car sales by 2030, while South Korea and Japan aim to be the top 5 EV producers by 2030.
EV Markets in Small Countries Grew 50% More: Non-major EV markets showed the most significant growth, with over 50% increase, indicating a global shift towards electromobility.
Total EV Models Nearing 600: In 2023, there was a 15% increase in available electric car models compared to the previous year, totaling nearly 590 models. This growth is driven by carmakers expanding their electrification plans to meet rising consumer demand. By 2028, the number could surpass 1,000.
Fuel Cars Facing Gradual Decline: The number of fully internal combustion engine (ICE) models (excluding hybrids) has declined for the fourth consecutive year, dropping by an average of 2% annually.
Leading EV Manufacturers: Key players in the electric vehicle market include BYD from China, Tesla from the US, Volkswagen AG from Germany, SAIC Motors from China, and Stellantis from the Netherlands.
Electric vehicles accounted for nearly 20% of all car sales in 2023
Quantity: In 2023, nearly 14 million new electric cars were registered worldwide, bringing the total number to 40 million.Proportion: This marked a significant increase from previous years, with 3.5 million more electric cars sold in 2023 compared to 2022, representing a 35% year-on-year growth. The growth trajectory is notable, as EV sales reports in 2023 were over six times higher than in 2018, just five years earlier.
Weekly Registration: Weekly new registrations surpassed 250,000 in 2023, exceeding the total annual registrations from ten years prior, in 2013.
Global Market Share: EV share of the car market constituted approximately 18% of total car sales in 2023, up from 14% in 2022 and a mere 2% in 2018.
EV Batteries: Battery electric cars made up 70% of the electric car market in 2023, highlighting their dominance in this sector as it continues to evolve and expand.
China accounted for nearly 60% of new electric car registrations in 2023
Other Regions: Europe accounted for under 25%, and the US electric vehicle market share revolves around 10%.Ratios of EVs: Over one in three new car registrations in China, more than one in five in Europe, and one in ten for the electric car market share of US (2023).
Geographic Concentration: These three regions (China, Europe, and the United States) also represent about two-thirds of total car sales and stocks, highlighting the substantial impact of the EV transition in these markets on global trends.
Asia Pacific to become the largest and fastest-growing EV market
Highest Concentration of Big Cities: With 93 of the world’s most polluted cities and high energy demand, the transportation sector contributes around 14% of overall emissions in the region.Increase EV Adoption: South Korea, Japan, and India also have plans to increase EV adoption, with India targeting 30% electric passenger car sales by 2030, while South Korea and Japan aim to be the top 5 EV producers by 2030.
More Electric Cars Were Released in the First Quarter of 2024 than the Whole of 2020 Four Years Ago
A Quarter More vs. Last Year: Recent electric vehicle market analysis reveals that electric car sales in Q1 2024 exceeded those from the same period in 2023 by about 25%, totaling over 3 million globally. China contributed significantly to this growth, with a rise of half a million electric car sales compared to Q1 2023.EV Markets in Small Countries Grew 50% More: Non-major EV markets showed the most significant growth, with over 50% increase, indicating a global shift towards electromobility.
Two-thirds of EVs comprises of large vehicles like SUVs
Fewer EVs on the Smaller Side: The proportion of small and medium electric car models is decreasing globally, with only 25% of battery electric car sales in the United States attributed to these sizes, compared to 40% in Europe and 50% in China.Total EV Models Nearing 600: In 2023, there was a 15% increase in available electric car models compared to the previous year, totaling nearly 590 models. This growth is driven by carmakers expanding their electrification plans to meet rising consumer demand. By 2028, the number could surpass 1,000.
Fuel Cars Facing Gradual Decline: The number of fully internal combustion engine (ICE) models (excluding hybrids) has declined for the fourth consecutive year, dropping by an average of 2% annually.
Leading EV Manufacturers: Key players in the electric vehicle market include BYD from China, Tesla from the US, Volkswagen AG from Germany, SAIC Motors from China, and Stellantis from the Netherlands.
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