The global zero emission vehicle market is expected to grow at a massive CAGR of 25.4% during the period 2023 to 2033. The market is valued at USD 248 billion as of 2023, and by 2033, the market is expected to hit a valuation of USD 2,384.66 billion.
Some of the factors which might surge the market growth are:
Vehicles that operate on fuel release toxic gases like Carbon Monoxide, Sulphur Dioxide, etc. The inhalation of such gases has led to an increase in the number of chronic diseases, like asthma, stroke, lung, cancer, etc. In order to reduce the effects of pollution, the demand for zero emission vehicles is expected to surge during the forecast period.
Additionally, one of the most important factors which are expected to surge the market growth of the low emission vehicle is the sustainability goals that have been set up by the UN. In order to achieve sustainability goals, the companies are adopting various methods, like cutting down the usage of fossil fuels within the firm, making use of electric vehicles, etc. This as well is expected to have a positive zero electric vehicle market outlook.
Furthermore, zero emission vehicles run on electricity, unlike fuel-based vehicles that make use of petrol. Petrol takes millions of years in order to form, which makes it a non-renewable source of energy.
On the other hand, electricity can be readily generated using various techniques, which might increase the sales of zero emission vehicles during the forecast period. Moreover, the rising fuel prices are also expected to surge the market growth of zero emission vehicles.
In November 2021, United Nations and Global Environment Facility announced their plans to assist 27 countries in accelerating their shift to zero emissions electric mobility. Owing to this move, a lot of automobile manufacturers have started focusing on developing state-of-the-art technology electric vehicles. This is expected to surge the adoption of zero emission vehicles during the forecast period.
Furthermore, governments worldwide are enforcing strict laws to contain vehicular pollution. In August 2021, the USA president outlined a target of 50% electric vehicle sales share by 2030 in order to advance smart fuel efficiency and set emission standards. Likewise, in a surprise move, the United Kingdom government announced to end of the sale of petrol and diesel vehicles by 2030. All these moves are expected to have an optimistic effect on the zero emission vehicle adoption trends.
Apart from that, the governments are also providing subsidies for buying zero emission vehicles. For example, the Canadian government is providing subsidies of up to D 5,000 for buying battery-electric and hydrogen fuel cell-based electric vehicles. For short-range plug-in electric vehicles, the government is providing subsidies of up to D 2,500.
| Attributes | Value |
|---|---|
| Zero Emission Vehicle Market Value (2022) | USD 204.45 billion |
| Zero Emission Vehicle Market Value (2023) | USD 248 billion |
| Zero Emission Vehicle Market Forecast Value (2033) | USD 2,384.66 billion |
| Zero Emission Vehicle Market Expected CAGR (2023 to 2033) | 25.4% |
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The best thing about the market of zero emission vehicles has been the fact that the market has been experiencing rock-solid growth throughout. While the historical CAGR for the market was a mammoth 21.3%, the anticipated CAGR for the market is 25.4%.
Owing to the increasing awareness drives, people have become more knowledgeable than ever before about the consequences of vehicular emissions.
Apart from that, in spite of being in a nascent stage of development, zero emission vehicles have already made a lot of impact on the minds of people. This is owing to the way the marketers in this sector have been spreading the value proposition of these vehicles.
For example, in a recent commercial by BMW, Arnold Schwarzenegger, and Salma Hayek featured Zeus and Hera which had captured the hearts of people.
Low running cost
Zero emission vehicles are highly economical. If we compare the operational cost with that of fuel-based vehicles, these are highly affordable. Zero emission vehicles cost less than USD 1.5 per 100 miles as compared to a petrol car which costs more than USD 10 per hundred miles.
Flawless driving
In technical aspects as well, the zero emission vehicles seem to score higher than conventional fuel-based cars. These vehicles have better responsive acceleration and regenerative braking as compared to fuel-based vehicles. The low center of gravity offered by these cars supports comfort, safety, and handling.
No noise pollution
Apart from controlling air pollution, the zero emission vehicles do not cause noise pollution as well. In fact, these operate so silently that in order to have their presence felt, they come with Acoustic Vehicle Alert System so that they can emit some sounds. This might have a positive impact on the zero electric vehicle key market trends and opportunities
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High cost of production
Despite ticking almost all the boxes, one of the major problems experienced by the market is the high cost of these vehicles. Furthermore, the cost of batteries associated with these vehicles is also quite high, though the good news is that the cost of these batteries has been reducing of late. Furthermore, a lot of manufacturers have been making use of the latest technologies, which require a lot of investment, as a result of which these cars are priced high.
Lack of charging facilities
The biggest challenge experienced by the market is the lack of charging infrastructure. Therefore, using these vehicles for long distances becomes quite risky. So, with the increasing awareness about these vehicles, the key players are gradually establishing charging stations in the required places.
| Region | North America |
|---|---|
| Market Share | 42% |
| Market Description | North America is currently the largest market for zero emission vehicles. High disposable income, coupled with the presence of a large number of key players makes North America the largest market. The USA is currently the largest market in the North America region having a share of nearly 58%. Strict measures taken by the government, coupled with a lot of awareness amongst the general masses about the effects of vehicular emissions are leading to market growth. |
| Region | Asia Pacific |
|---|---|
| Market Share | 30% |
| Market Description | Asia Pacific is expected to be the fastest-growing zero-emission vehicle market during the forecast period. Improvement in the standard of living, coupled with a lot of investments being made to upgrade the automobile infrastructure makes the Asia Pacific the region to watch out for. Japan's market is currently driven by the implementation of the Clean Energy Vehicle Subsidy Scheme, which enables the buyers of electric cars to receive a subsidy of up to ¥420,000. Apart from that, there is no scarcity of charging infrastructure in Japan, which makes it an attractive destination. South Korea has witnessed a jump of nearly 75% in the first half of 2022, as compared to 2021. Increasing initiatives by key players like Hyundai, Kia, etc. to venture into the electric vehicle segment is expected to further surge sales. Apart from that, increasing investment in Research and Development by the key players is also expected to surge sales. |
| Region | Europe |
|---|---|
| Market Share | 21% |
| Market Description | Europe is expected to be one of the most significant markets during the forecast period. Germany being an automobile hub is expected to witness a lot of sales of zero emission vehicles during the forecast period. Likewise, stringent rules being implemented in the United Kingdom, coupled with ways to curb air and noise pollution are also expected to surge the market growth. |
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The commercial vehicle segment had the highest market share of nearly 50% in the year 2022, and in the forecast period as well, it is expected to retain the top position. Being the most common mode of transportation makes the commercial vehicle segment the largest. Apart from that, an increase in the number of leisure and travel activities around the world also makes this segment one of the most sought-after.
However, the passenger vehicle is expected to witness the fastest growth rate. In the current times, ZEV is mainly used as a passenger vehicle mainly in the industrial sector. The two-wheeler segment is also expected to grow at a decent rate during the forecast period.
The mid-price segment held a market share of nearly 73% in 2022, and during the forecast period as well, the segment is expected to have the highest segment.
The mid-priced vehicles are multi-purpose, as a result of which the end-users prefer going in for this segment. Apart from that, the affordability factor also comes into play as these cars are growing in developing nations, and such nations would initially like to get the feel of these cars starting from low investment.
The start-ups operating in the market of zero emission vehicles are looking towards providing energy infrastructure solutions as well, apart from reducing the problems related to emissions. Apart from that, the start-ups are also working towards solving the problems faced by gig workers by providing them with seamless transportation.
Some of the start-ups are:
3EV Industries: The start-up was founded in 2019. It offers last-mile hyper-local connectivity to customers across India. The start-up has been manufacturing vehicles across cargo and passenger segments to convert conventional vehicles to electric vehicles. The company aims to use renewable energy and an off-grid power system to optimize last-mile logistics.
In November 2021 3EV Industries managed to raise USD 2 million from several family offices.
ElectricPe: The start-up was founded in 2021. It offers to charge infrastructures to customers. Through the app designed by them, EV owners can locate charging stations near them.
In November 2021, ElectricPe raised USD 3 million in a seed funding round led by Blume Ventures. Recently, Hero Electric partnered with ElectricPe to set up charging points all over India for its customers.
The key players operating in the zero emission vehicle market are establishing strategic partnerships with players from various sectors in order to expand their capability.
Apart from that, the manufacturers are also investing massive amounts in order to make use of the latest technologies in the manufacturing of these vehicles. Apart from that, the key players are also expanding their presence in order to expand their market share.
Some of the recent developments in the zero emission vehicle market are:
BMW, Kia, and Chevrolet have been developing world-class zero emission vehicles and are taking on each other to grab the highest market share
BMW has always believed in providing a fascinating driving experience through automated driving, electro-mobility, on-demand mobility, and connectivity-mobility.
The special fascination of BMW not only lies in its technology but also in its brilliant designers. Being equipped with 31 production lines and assembly facilities in 15 countries, the company is currently one of the top automobile manufacturers. Moreover, the company has also set trends in production technology and sustainability as an innovation leader with an intelligent material mix, the technological shift towards digitalization, and resource-efficient production.
Kia is a world-class automobile company, which was founded way back in 1944. Kia motors are dedicated to ensuring that driver enjoyment remains a top priority in the era of future mobility. Apart from that, the company had recently developed a technology that reads our fingers and eyes. The company’s slogan The power to surprise represents the company’s global commitment to surprise the world by providing exciting and inspiring experiences that are beyond expectations.
Chevrolet is one of the major automobile players that has focused a lot on safety. The car manufactured by Chevrolet is equipped with a forward collision alert and automatic emergency braking. This system can warn the driver when it detects a potential front-end collision with a vehicle you are following so that you can quickly take action.
Apart from that, the cars manufactured by Chevrolet are also equipped with front pedestrian braking. At a speed of below 50 mph in the daytime, the system can help us avoid or reduce the severity of a potential front-end collision.
The global zero emission vehicle market holds a valuation of USD 248 billion as of 2023.
The zero emission vehicle market is expected to grow at 25.4% CAGR from 2023 to 2033.
The global zero emission vehicle market is forecasted to surpass USD 2,384.66 billion by 2033.
North America is the largest zero emission vehicle market.
The main drivers are low running costs and no noise pollution.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Class 5.1. Passenger Cars 5.2. Commercial Vehicles 5.3. Two Wheelers 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Price 6.1. Mid Priced 6.2. Luxury 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 7.1. BEV 7.2. PHEV 7.3. FCEV 7.4. Solar Vehicles 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Drive Type 8.1. Front Wheel Drive 8.2. Rear Wheel Drive 8.3. All-Wheel Drive 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Top Speed 9.1. Less than 100 Mph 9.2. 100 to 125 Mph 9.3. More than 125 Mph 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. Middle East and Africa (MEA) 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Ampere Vehicles 18.2. BENLING INDIA ENERGY AND TECHNOLOGY PVT LTD 18.3. BMW AG 18.4. BYD Co. Ltd. 18.5. Chevrolet Motor Company 18.6. Energica Motor Company 18.7. Ford Motor Company 18.8. General Motors 18.9. Hero Electric 18.10. Hyundai Motor Company 18.11. Karma Automotive 18.12. Kia Corporation 18.13. Lucid Group, Inc. 18.14. Mahindra Electric Mobility Limited 18.15. Nio 18.16. Nissan Motors Co., Ltd. 18.17. Tata Motors 18.18. Tesla Inc. 18.19. Toyota Motor Corporation 18.20. Volkswagen AG 19. Assumptions & Acronyms Used 20. Research Methodology
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Zero Emission Vehicle Market
