Electric Vehicle Market Research
The market for electric vehicles (EVs) has grown considerably in recent years and is projected to expand even more in the coming decades as multiple governments are taking measures to reduce greenhouse emissions and replace gasoline-powered vehicles with EVs.
For this reason, this market is very promising and is anticipated to dominate the automotive market. Meanwhile, electric vehicle market research will gain relevance to constantly scan the market during its growth.
What is an electric vehicle?
Electric vehicles (EVs) are self-powered vehicles designed to carry goods and passengers while operated on energy stored in batteries as a feasible alternative to gasoline fuel vehicles. They are charged by an external power source and normally use an electric motor and a lithium rechargeable battery to power the vehicle.
Importance of the electric vehicle market research
Electric vehicle market research is valuable in helping companies and organizations gain an understanding of current and future market trends, the preferences and attitudes of consumers, and the competitive landscape of the EV industry.
In consequence, electric vehicle market research is critical for the decision-making process and new product developments. In addition, electric vehicle market research is helpful to identify growth opportunities and potential issues and challenges in the industry.
Driving factors of the electric vehicle market research
There are multiple factors that are driving the demand for EVs worldwide, and some of the most relevant ones are:
- Governmental investments: Today, several governments across the world have incentives and attractive policies in place to encourage EV sales. They grant consumers numerous advantages such as discounted sales prices or free charging infrastructure for EVs. In addition, governments have invested in building infrastructure for EVs. These targeted subsidies have also encouraged automakers to scale up their production of EVs.
- Strict government emissions regulations on carbon-fueled vehicles: It will boost EVs’ growth to reduce greenhouse gas emissions in the atmosphere. Consequently, factors such as rising fuel costs will increase awareness of EVs worldwide.
- EV models are on the rise: Automakers have more models available now than ever before. This is a major factor in the market’s growth because consumers can currently choose from dozens of different models. In addition, more EV models are expected to be launched in the next five years.
- EV public outreach: The successful introduction of EVs is ultimately based on public acceptance and global consumers are switching from gasoline-based vehicles to EVs. The booming automotive industry and shifting consumer preferences for EVs are key factors influencing the market positively. In addition, the increasing consumer awareness about ecological sustainability and growing concern about climate change is catalyzing the demand for EVs.
- Companies are heavily investing in the EVs market: An accelerating number of businesses are seeking to differentiate from the competition by exploring broader mobility options and investing heavily in the industry.
Electric vehicle market research is the key for dozens of companies that are competing for an established market share in this market and will have to constantly conduct studies to evaluate each of these variables in the coming years.
Challenges of the electric vehicle market
Global electric vehicle market growth is expected to be hindered by factors such as:
- Lack of charging infrastructure: The adoption of EVs for commercial purposes is promoted by governments worldwide to cut greenhouse gas emissions. However, the shortage of charging infrastructure is a barrier to the EV market.
- High manufacturing cost: The cost of these vehicles is superior to that of gasoline-powered vehicles. EVs have not yet reached economies of scale, as production is not massive. Furthermore, Original Equipment Manufacturers (OEMs) rely on extensive investments and assets, which might also constrain the market’s overall expansion. However, given the increasing volume of production of EV batteries and technological advances, the battery cost is projected to decline over the next few years.
- Environmental problems: The EV movement carries its own controversy. Minerals like lithium and cobalt, which are currently employed in batteries, are in high demand and their prices are skyrocketing. Additionally, these minerals’ extraction alters the environment and requires intensive mining to fulfill the market expectations, generating another environmental issue.
- Slow charging process: One of the greatest challenges for EVs is the charging process. Although it has been significantly reduced, most of the EVs take too much time to fully charge their batteries and the charging process severely diminishes the vehicle’s efficiency.
- Limited range: The battery of EVs is quite limited today and lithium batteries cannot store more energy. It affects the distances that EVs can travel.
Regional competitiveness analysis
Asia-Pacific is likely to report considerable growth in this market because of the rising demand for EVs in developing countries like China, which accounts for the highest market share of passenger cars.
With the Chinese government encouraging the population to adopt EVs, the country is already planning to phase out the use of fuel-powered vehicles in the next decades. China is a major player globally in the EV market and is projected to dominate the global EV market during the next few years.
Moreover, North America is also expected to show high growth in the EV market. Its regional growth is credited to the rising government initiatives to build charging infrastructure facilities and support the rapidly growing number of EVs in the region, especially, in the United States.
Likewise, Europe is projected to become a leading market for EVs. European governments have also adopted several measures to reduce carbon emissions and it will be a major driving factor for the growth of the EV market in Europe, particularly, in Germany and France.
On the other hand, it is noticeable that the rest of the world is lagging behind in the adoption of EVs and most developing countries are not taking measures to adopt this technology.
Therefore, the regions where most electric vehicle market research is expected to be conducted are Asia Pacific and North America, followed by Europe, to analyze the ups and downs of the economy.
Key industry players according to current electric vehicle market research
The EV market is by nature very competitive and highly fragmented, with the participation of key players such as
- General Motors
Nevertheless, the global EV market is quite concentrated by top car manufacturing companies, including Tesla Motors Inc, Volkswagen AG, Toyota Motor Corporation, and Honda Motor Company Ltd, among other competitors.