Global electric vehicle market value projected to reach $800 billion in five years

The global electric vehicle market, valued at $162 billion in 2019, is projected to reach $803 billion by 2027, according to a report by Allied Market Research.

Factors such as increase in demand for fuel-efficient, high-performance, and low-emission vehicles along with stringent government rules and regulations toward vehicle emission are expected to supplement the growth of the electric vehicle market over the next five years.

According to the report, North America is estimated to reach $194.20 billion by 2027, at a significant CAGR of 27.5%. Asia-Pacific and Europe collectively accounted for around 74.8% share in 2019, with the former constituting around 52.3% share.

North America and Europe are expected to witness considerable CAGRs of 27.5% and 25.3%, respectively, during the forecast period. The cumulative share of these two segments was 40.1% in 2019 and is anticipated to reach 51.0% by 2027.

Factors such as increase in demand for fuel-efficient, high-performance, and low-emission vehicles along with stringent government rules and regulations toward vehicle emission are expected to supplement the growth of the electric vehicle market over the next five years.

Electric vehicle sales are currently soaring in major economies, with sales of battery-electric vehicles in Germany increasing three-fold to more than 194,000 units in 2020, according to the country’s road-traffic regulator.

Citing the appeal of a more diversified product offering and of more reliable technology, Richard Damm, president of German regulator KBA claimed that “e-mobility has become a mainstream feature of the mobile society”.

Vehicles with full or partial electric propulsion reached a market share of 22% in the fourth quarter of 2020, with the German government well on its way to reach its goal to have 7-10 million registered electric vehicles on German roads by 2030, he added.

Battery-electric vehicles made up 1.2% of all registered passenger cars in Germany at the end of 2020, up from 0.5% a year earlier, KBA said.

With 108,839 plug-in passenger cars registered in 2019, Germany was the top selling country market in the European continent in 2019, with sales up 60.9% from 2018. The plug-in car segment achieved a market share of 3.10% in 2019.

According to the report, North America is estimated to reach $194.20 billion by 2027, at a significant CAGR of 27.5%. Asia-Pacific and Europe collectively accounted for around 74.8% share in 2019, with the former constituting around 52.3% share.

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