The global electric vehicles market is expected to grow as consumers around the world are seeking to lower their fuel expenditure. Growing government initiatives, rising environmental concerns and availability of electric vehicles at affordable prices are some of the factors affecting market growth. In terms of revenue, the market for electric vehicles (on-road) was valued at USD 83.54 billion in 2012.
Rising prices of fossil fuels coupled with the environmental impact of the petroleum based transportation vehicles has led to renewed interest in electricity operated vehicles. Government organizations worldwide are taking several initiatives in order to promote the electric vehicles adoption and awareness, so as to achieve their economic and environmental goals.
By product types, the global market for on-road electric vehicles has been categorized into four broad segments such as motorcycles and scooters, cars, buses and others. Others include vehicles such as neighborhood electric vehicles, bicycles, golf carts and trucks. In terms of revenue, electric cars are estimated to dominate the electric vehicles market throughout the forecast period, 2013 – 2019.
In terms of volume, electric bicycles held the largest market share in 2012 and are expected to remain as largest market by 2019. Despite being environment friendly and cost effective, electric vehicles are expected to face challenges in achieving high volume sales, which is a major challenge hindering the market growth. This is due to high initial cost and limited performance in terms of driving range and heavy duty applications.
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In 2012, North America was the largest market for electric owing to the government initiatives such as Corporate Average Fuel Economy program. This program mandates the fuel efficiency level across the manufacture’s fleet. U.S. government is also taking initiatives to reduce the dependency on fossil fuels such as creating better charging infrastructure. In terms of revenue, North America’s share was estimated to be 38.3% of the global electric vehicle market in 2012.
Battery, which is key power source and component of an electric vehicle, is seeing increased research and development activities by companies, so as to help the market overcome growth challenges. For e.g. recent advances in application of nano-technology in lithium-ion batteries used in electric vehicles, is creating new opportunities in the market. These advanced batteries offer improved energy transfer and better battery storage capacity. Researchers and industry players are working together to speed up advancements in performance of batteries while lowering the production costs. With efficient batteries available at low cost, it would also help in lowering electric vehicles’ prices, thereby promoting higher adoption by customers.
With its high growth potential and underlying latent demand, electric vehicles market is witnessing the emergence of new players. Some of the major players for this market include Tesla Motors, Mitsubishi Motors, Nissan Motors, Renault, Smith Electric Vehicles, Toyota Motors and General Motors among others.