Expected Projections of the Electric Vehicle Market in the years to come

Energy

So far, the electric vehicle market has been snowballing all over the world. Its growth has been consistent for the last couple of years. However, research shows that the expansion will even be more prominent in the coming years. The number of electric vehicles will increase, and the revenue will also follow suit. According to the Grand View Research, in 2019, the EV demand was about 2373.5 thousand. Between 2020 and 2027, its compound annual growth rate (CAGR) is expected to be approximately 41.5%. It bases its projections on various drivers, one of them being government policies. Obviously, given the many initiatives by governments to promote electric vehicle manufacturing in their countries, there are high chances that the demand will go up.

A good example is the European Union that has set its target of fully transitioning to zero greenhouse gas emissions to 2050. Generally, most governments are doing their best to reduce air pollution, oil consumption, and other emissions. One of the best ways to achieve all the reductions is shifting to electric vehicles.  Consequently, their demand is likely to increase during the projected period. Another indicator that the sales will increase is the rate at which companies are investing in the electric vehicles industry. Given that some are economy giants, the likes of Groupe Renault, Ford Motor Company, and Daimler AG, the industry must be quite promising. Why else would such big companies invest heavily, especially in manufacturing electric vehicles?

There is also another report by Allied Market Research projecting an increase in the revenue coming from the global electric vehicle market. According to the report, the income will be standing at $802.81 billion come 2027. At the same time, the CAGR will be 22.6%. In 2019, Asia-Pacific contributed the most to the global electric vehicle market revenue, having contributed up to $84.84 billion. Come 2027, the estimate is an increase to $357.81 at a CAGR of 20.1%. At the same time, the estimated revenue from North America is $194.20, with its CAGR being 27.5%. It is essential to highlight the critical contributors to the electric vehicle market revenue in 2019. They were Europe and Asia-Pacific, and the contribution was 74.8% of the total amount. As mentioned earlier, Asia-Pacific was leading, and its contribution was 52.3%.

Whereas the CAGR of North America will be 27.5%, Europe is expected to register a CAGR of 25.3%. North America and Europe combined contributed up to 40.1% of the revenue in 2019. Come 2027, their contribution is expected to stand at 51.0%. That will be quite a contribution given the total projected revenue by the end of the forecast period.

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