Electric Vehicle (EV) Market Size, Share, Growth Analysis, By Type(Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle and Fuel Cell Electric Vehicle), By Vehicle Type(Two-Wheelers, Passenger Cars and Commercial Vehicles), By Vehicle Drive Type(Front Wheel Drive, ear Wheel Drive and All Wheel Drive), By Region - Industry Forecast 2024-2031

Drivers

EV Batteries becoming more Affordable

• The cost of EV batteries has been declining over the past ten years due to technological breakthroughs and the mass production of EV batteries in enormous quantities. Since EV batteries are among the most expensive parts of an electric car, this has resulted in a drop in the price of electric automobiles. By the end of this decade, we can anticipate further decrease in price (per kWh) as Solid-State Batteries become available for use in electric vehicles.

Increasing Demand in Transportation and Automotive Industries for Electric Vehicles

• The necessity to create the market for electric vehicles and the infrastructure for charging them has been highlighted by the rise in the acceptance and demand for these vehicles. The major electric vehicle (EV) markets such as China, the USA, and Germany are not only investing heavily in electric vehicles (EVs) and their respective charging facilities but also making key advancements for developing longer range electric vehicles that use relatively cheaper batteries and whose charging process is faster and more efficient.

Restraints

Battery Performance and Longevity Concerns

• Notwithstanding advancements in battery technology, the widespread adoption of EVs remains hindered by range anxiety, charging duration and battery life concerns. Consumers worry about how gradual battery degradation affects vehicle range and resale value. Therefore, these issues call for continuous advancements in battery technologies that will address the fears of buyers thus facilitating general acceptance of electric vehicles (EVs).

Supply Chain Constraints and Resource Availability

• Significant obstacles to the global electric vehicle (EV) market include supply chain limitations and the availability of vital elements like lithium, cobalt, and nickel that are required for battery development. Competition over these fundamental assets is intensifying with the increasing need for Electric Vehicles (EVs), which may lead to price fluctuations and scarcity.