New report by Global Market Insights shows the battery electric vehicles market is set to rise from around US$150bn in 2018 to over US$425bn by 2025.
Increasing prevalence of greenhouse gases along with rising concerns associated with carbon emissions are driving the market growth over the projected timeframe. The main factors encouraging customers to opt for battery electric vehicles include incentives, tax reductions, and free charging facilities.
Automakers are concentrating on driving their businesses in countries, which have significant policies for encouraging the electric vehicles adoption.
Electric automakers are increasingly adopting Lithium-ion batteries for powering BEVs owing to benefits offered including higher energy density, lower maintenance, self-discharge, and no requirements for priming. Electric automakers are also investing in R&D to significantly boost the amount of energy a battery cell can store and bring an electric vehicle’s performance range in line with a gasoline-powered vehicle, thereby escalating the battery electric vehicles (BEV) market share over the study timeframe.
Some of the key players in the battery electric vehicles (BEV) market place include General Motors, Daimler AG, Honda Motor Co., Ltd., Groupe Renault, Volkswagen, Toyota Motor Corporation, BMW Group, and Hyundai Motor Company.
Several countries are also focusing on replacing their public transportation fleet with newer vehicles based on electric technology for improving the efficiency along with minimizing carbon emissions. These developments provide significant opportunities for manufacturers to improve their presence in the battery electric vehicles market.
The higher costs associated with battery electric vehicles along with concerns associated with long term reliability and driving range concerns of such vehicles may limit the battery electric vehicles market growth over the projected timeframe. However, industry players are investing in R&D for launching advanced vehicles with higher driving range and lower charging time.
The heavy-duty vehicles will showcase a significant growth rate of over 9% from 2019 to 2025. This growth can be attributed to the adoption of electric trucks owing to rising pollution concerns from such vehicles. Industry players are focused on launching electric powertrain for trucks with focus on high driving range to attract a wide customer base.
North America battery electric vehicles market will grow considerably at over 13% from 2019 to 2025. This is attributed to the presence of multiple players focusing on offering a wide range of electric vehicles. Favorable government policies, stringent pollution norms along with supporting charging infrastructure plays an important role in the regional share expansion over the study timeframe. The U.S. states, including Colorado, are adopting stringent emission norms to reduce greenhouse gases by 25% till 2025, thereby positively influencing the market growth over the study timeframe.