New Energy Vehicles Market Size, Share, Growth, Industry Analysis, by Type (HEV, PHEV, and EV), By Application (Commercial Vehicles and Passenger Vehicles) Market Report Overview, Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 April 2024

NEW ENERGY VEHICLES MARKET REPORT OVERVIEW

• 
• Request a Free sample to learn more about this report

The global new energy vehicles market size was valued at USD 57310 million in 2021 and is projected to grow to USD 254677.73 million by 2031, at a CAGR of 16.1% during the forecast period. In the market study, our analysts have considered new energy vehicles players such as TOYOTA, Nissan, Tesla, Mitsubishi, GM, Ford, BMW, Renault, Volvo, Mercedes-Benz, Volkswagen, Honda, FIAT, BYD, Chery, ZOTYE, Yutong, BAIC, King-long, Zhong Tong, Geely, SAIC and JAC. 

New energy vehicle is the term coined by the Chinese government for electric vehicles. These vehicles are either partially or fully driven by electricity. New energy vehicles run on electric motors that need to have a constant supply of energy from batteries. It uses unconventional fuel as the power source for operating where advanced technology is integrated. They are primarily designed to combat the drawbacks of conventional vehicles. These vehicles have zero or low carbon or any other harmful emissions compared to traditional vehicles.

New energy vehicles are gaining recognition as there is an increasing awareness regarding environmental pollution. Factors such as low carbon dioxide emissions and low tax rebates for the manufacturers are persuading consumers to buy such vehicles. Governments of various countries are heavily investing to develop new energy vehicles to reduce emissions. The development of various charging stations, and hydrogen fueling stations, along with more lucrative offers for the consumers to buy will create a major demand in the market.

COVID-19 Impact: Halting of Production to Impede Market Growth

The outbreak of COVID-19 is already being felt around the world, and the global new energy vehicles market is considerably impacted. In 2020, COVID-19 had a negative impact on many markets. Several countries went into lockdown. With the sudden pandemic, all kinds of businesses witnessed disruptions. With the need for social distancing and lockdowns in this pandemic, the production was halted. The automotive industry was affected and also the demand for new vehicles was also impacted. Manufacturing units were shut down leading to the ceasing of new and existing production of energy vehicles. The registration for the new vehicle was also reduced. Logistics issues also affected the demand for new vehicles as well. However, the majority of automakers have resumed their production with limited production and the market is now slowly gaining traction.  

LATEST TRENDS

""Adoption of 5G and Artificial Intelligence to Push Demand""

The trend that can impact the global new energy vehicles market is the adoption of new technologies like 5G and artificial intelligence (AI). These technologies have been a major trend in the market. Many telecom companies are developing 5G technology and the adoption of such technologies has been helpful in ensuring safety and enhancing efficiency in the new vehicles market. According to the International 5G Automobile Association, the majority of accidents can be prevented by adopting new technologies. Artificial Intelligence has been prevalent in development of self-driving technology for the market. AI has played an important role in the improvement of battery performance, energy management, and battery-pack management.  Safety applications like predicting maintenance of vehicles and driver behavior have also been developed with new technologies. 

NEW ENERGY VEHICLES MARKET SEGMENTATION

• 
• Request a Free sample to learn more about this report

• By Type

According to type; the market is divided into Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), and Electric Vehicles (EV).

HEV is expected to dominate the market as it consists of more than one power source; an internal combustion engine and an electric motor. HEV’s benefits such as high power, reduced emissions, and fuel efficiency.

• By Application

Based on the application; the market is divided into commercial vehicles and passenger vehicles.

Passenger vehicles are expected to dominate the segment of the market owing to the rising inclination towards environmentally-friendly vehicles. The rise in carpooling, cabs, etc. has given rise to passenger vehicles. The commercial vehicle segment is expected to show considerable growth in the forecast period. 

DRIVING FACTORS

""Growing Government Initiatives and Investments to Drive Demand""

The global new energy vehicles market growth is due to rising government initiatives, and investments. Many countries have set the year 2050 as their target to reduce vehicle emissions. There has been the promotion of development, and sales of new energy vehicles, and the infrastructure related to it. Several governments are providing lucrative offers such as exemptions from taxes and zero registration fees to manufacturers and consumers. Furthermore, some countries have been investing prominently in the infrastructure such as equipment and components associated with the new energy vehicles. Also, there have been many partnerships between energy companies, automotive companies, and governments of countries.    

""Preference for Fuel-Efficient and Low Emission Vehicles to Inflate Demand""

Traditional vehicles use gasoline, petroleum, and diesel which are non-renewable in nature. These resources can get exhausted very quickly and they don’t support sustainable development initiatives. These new-age vehicles are the new alternatives for fuel. They don’t use fuel or gas and are more economical and fuel-efficient in nature than conventional vehicles. A new energy vehicle can convert over half of the electrical energy from the grid to power the vehicles, on the contrary, fuel-powered convert about less than half of the energy stored. The demand for new vehicles has been rising owing to the rise in diesel and petroleum prices. These factors coupled with new-age technologies have surged the demand for energy-efficient vehicles.

RESTRAINING FACTORS

""High Initial Cost of Investment to Hamper Market Growth""

Even though there are many factors that can propel the growth of the market. The initial cost of investment of setting up EV charging stations is quite high. This has been a major restraint for various countries around the world as they feel that the adoption of new energy vehicles would require quite a lot of technological advancements. The cost of investment becomes high due to higher equipment costs and additional costs for installing a transformer to connect the charging system and grid. This could hinder the growth of the market.      

NEW ENERGY VEHICLES MARKET REGIONAL INSIGHTS

• 
• Request a Free sample to learn more about this report

""The Asia Pacific to Lead Market Owing to Advanced Automotive Industry""

 The Asia Pacific region holds the majority part of the global new energy vehicles market share. Countries like India, China, and South Korea are the major markets for advanced automotive technology. China is the largest producer of NEVs and marks its dominant presence in the NEV industry. Due to the initiatives and steps taken by the Chinese government which includes large installation of charging points, the number of vehicles manufactured, and rules against excessive polluting vehicles. Japan and South Korea have also been developing in the NEVs market.

North America is expected to hold the second-largest position in the market due to numerous developments by governments, and the presence of major key players in the market. Europe is also expected to show a steady market growth due to stringent safety regulations in the region.

KEY INDUSTRY PLAYERS

""Key Players to Boost Demand Leading to Market Growth""

The report brings data about the list of market players of the industry. The information is composed and put together is reported with verified research, technical developments, acquisitions, mergers, and partnerships. Other aspects also examined for the global new energy vehicles market includes companies producing and introducing new products, regions they carry out their operations in, automation, technology adoption, maximum revenue, and making a transformation with their products.

List of Market Players Profiled

• TOYOTA (Japan)
• Nissan (Japan)
• Tesla (Japan)
• Mitsubishi (Japan)
• GM (U.S.)
• Ford (U.S.)
• BMW (Germany)
• Renault (France)
• Volvo (Sweden)
• Mercedes-Benz (Germany)
• Volkswagen (Germany)
• Honda (Japan)
• FIAT (Italy)
• BYD (China)
• Chery (China)
• ZOTYE (China)
• Yutong (China)
• BAIC (China)
• King-long (China)
• Zhong Tong (China)
• Geely (China)
• SAIC (China)
• JAC (China)

INDUSTRY DEVELOPMENT

• February 2022: Alfa Romeo, an Italian car manufacturer has recently unveiled its first electric vehicle, Alfa Romeo Tonale is a Plug-in Hybrid Electric Vehicle. The new launch is the first installment in their electric car portfolio and is the first electrified model from the company. The car is expected to be launched in 2023.
• February 2022: KIA has unveiled its new 2023 Sportage PHEV. The car has advanced driver assistance systems (ADAS) and live feed blind-spot view monitor. 

REPORT COVERAGE

This research profiles a report with widespread studies that take into an explanation of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.