Plug-in Electric Vehicles (PEVs) Market

PLUG-IN ELECTRIC VEHICLES MARKET REPORT OVERVIEW

The global Plug-in Electric Vehicles (PEVs) market size is estimated to be worth USD 21138 million in 2024 and is forecast to a readjusted size of USD 40323.7 million by 2031 with a CAGR of 11.2% during the review period.

The Plug-in Electric Vehicles (PEV) industry includes the automotive sector that manufactures vehicles powered by rechargeable batteries that can be connected into electric power sources to charge. This market comprises both Battery Electric Vehicles (BEVs), which use just electricity for propulsion, and Plug-in Hybrid Electric Vehicles (PHEVs), which combine electric motors with internal combustion engines.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 epidemic has had a negative influence on the Plug-in Electric Vehicles (PEV) sector and its market share. Initially, the market encountered interruptions in production and supply chains owing to lockdowns, plant closures, and logistical issues, resulting in delayed vehicle introductions and lower sales volumes. Consumer demand for PEVs also decreased as economic concerns and lower discretionary expenditure hampered purchase preferences.

"Incorporation of Vehicle-to-Grid (V2G) Integration To Propel Market Growth"

One of the most recent advancements in the Plug-in Electric Vehicle (PEV) industry is the incorporation of Vehicle-to-Grid (V2G) technology. V2G facilitates bidirectional energy flow between electric cars and the grid, allowing vehicles to use electricity while also feeding surplus energy back into the grid as needed. This unique approach converts electric vehicles into mobile energy storage devices, giving grid managers more flexibility in regulating power demand and supply. V2G integration has the potential to improve energy efficiency, lower peak demand, improve grid stability, and facilitate the integration of renewable energy sources.

PLUG-IN ELECTRIC VEHICLES MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Battery Electric Vehicles (BEVs), Plug-In Hybrid Vehicles (PHEVs) and Hybrid Electric Vehicles

• Battery Electric Vehicles (BEVs): BEVs use electricity for propulsion and do not have an internal combustion engine. They are powered by rechargeable batteries and emit no tailpipe emissions during operation.
• Plug-In Hybrid Vehicles (PHEVs): A PHEV combines an internal combustion engine, an electric motor, and a rechargeable battery. They can go for a short distance entirely on electricity before transitioning to an internal combustion engine for longer journeys.
• Hybrid Electric Vehicles: HEVs combine an internal combustion engine and an electric motor, however unlike PHEVs, they cannot be charged externally. HEVs use regenerative braking and an internal combustion engine to charge their batteries and provide power to the electric motors.

By Application

Based on application the market can be categorized into Passenger Cars and Light Commercial Vehicle.

• Passenger Cars: This section contains electric cars intended primarily for personal mobility. Passenger automobiles include sedans, hatchbacks, SUVs, and crossover vehicles. They are popular with individuals and families looking for environmentally friendly and effective transportation options for commute, recreation, and everyday activities.
• Light Commercial Vehicle: Light Commercial Vehicles (LCVs) are electric vehicles designed for commercial and business use, having a gross vehicle weight rating (GVWR) of less than 3.5 tons. This group comprises electric vans, trucks, and utility vehicles used for delivery services, small-scale logistics, trading, and other commercial purposes.

"Government Policies And Regulations To Shape Market Growth"

Many countries throughout the globe have enacted policies such as subsidies, tax breaks, and regulatory mandates to encourage the use of electric cars and reduce greenhouse gas emissions from transportation. These policies might include incentives for customers to buy electric vehicles, subsidies for charging infrastructure development, pollution rules that favor electric vehicles, and programs to encourage research and development in electric vehicle technology.

"Technological Advancements and Infrastructure Development to Propel the Market Growth"

Technological improvements in battery technology, electric drivetrains, and charging infrastructure are propelling the plug-in electric car industry. Improvements in battery energy density, charging speeds, and cost reductions are improving electric cars' performance and affordability, putting them on par with regular internal combustion engine vehicles. Furthermore, the proliferation of charging infrastructure, including public charging stations, fast chargers, and home charging solutions, addresses range anxiety and improves the ease of electric car ownership.

"Range Anxiety and Infrastructure Limitations to Hinder the Market Growth"

Range anxiety, or the worry of running out of battery power before reaching a destination or locating a charging station, is still a major issue among potential electric car purchasers. Despite advances in battery technology, many electric vehicles still have shorter driving ranges than typical gasoline-powered vehicles, which may dissuade users, particularly those with longer commutes or travel needs. Furthermore, the availability and accessibility of charging infrastructure varies greatly between regions, and a lack of adequate charging stations, particularly in remote areas or during high demand hours, might limit broad adoption of plug-in electric vehicles market growth.

PLUG-IN ELECTRIC VEHICLES MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Europe to dominate the Market Due To the Rising Implementation Of Favorable Policies"

Europe is expected to lead the worldwide plug-in hybrid electric vehicle (PEV’s) market share for about ten years. Currently, this area accounts for 34% of the worldwide market. The increasing implementation of favorable regulations encourages the use of vehicles with reduced greenhouse gas emissions, so contributing to a cleaner earth. Furthermore, the European populace is adopting technologically sophisticated HEVs that are both inexpensive and fuel efficient, encouraging market expansion for PHEVs in the region.

"Key Players Transforming the Market Landscape through Expanding Their Product Ranges"

The worldwide market is fairly concentrated, with the leading firms holding the bulk of the share. Most companies are spending heavily in complete R&D operations, especially to create better electric drive systems. Leading automobile manufacturers' primary strategies include expanding their product ranges and acquiring other companies.

• BMW (Germany)
• Ford (U.S.)
• Toyota (Japan)
• Audi (Germany)
• VOLVO (Sweden)
• Mercedes - Benz (Germany)

May, 2023: BYD and Toyota have formed a strategic partnership to collaborate on the production and sale of electric vehicles (EVs). Toyota aims to leverage the expertise of the well-established local company, BYD, and benefit from their advanced battery technology in this joint venture.

The market research includes a complete analysis and focuses on key elements such as main market players, vehicle types, and major product applications. Furthermore, the study provides insights into current market trends and covers major industry advancements. In addition to the above-mentioned reasons, the study includes other variables that have contributed to the market's rise in recent years.