What Fueled The Previous Growth In The Passenger Electric Vehicles Market?
The passenger electric vehicles market has seen considerable growth due to a variety of factors.
• In recent times, the passenger electric vehicles market has been expanding at an exceptional rate. The market, valued at $479.83 billion in 2024, is projected to swell to $629.54 billion in 2025, indicating a compound annual growth rate (CAGR) of 31.2%.
The substantial growth observed in the historical period can be credited to factors such as investments in research and development, changes in consumer attitudes, early government incentives, initial steps by auto manufacturers, and regulations on emission standards.
What Can Be Expected from the Passenger Electric Vehicles Market Size?
The passenger electric vehicles market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of passenger electric vehicles is predicted to see a significant increase in the coming years, with an expected value of $1681.09 billion in 2029, thanks to a compound annual growth rate (CAGR) of 27.8%.
The predicted growth during the forecast period is due to factors such as expanding infrastructure, government aid, commitment from automakers, increased range and performance, and a spike in consumer demand. Key trends during the forecast period include heightened urbanization, advancements in battery technology, expanded charging infrastructure, governmental incentives and policies, and investment from automakers.
What Are the Critical Driver Fuelling The Passenger Electric Vehicles Market's Growth?
The increasing concern over environmental issues, such as global warming and climate change, is propelling the demand for electric vehicles and consequently accelerating the expansion of the passenger electric vehicle market. A surge in environmental awareness has incited a considerable shift towards transportation alternatives that generate less pollution. This shift has prompted a significant rise in the acquisition of electric vehicles worldwide. As they produce no harmful greenhouse gases or nitrogen oxide that damages health, electric vehicles are among the most environmentally friendly means of transport. They offer quieter operation and are easier to handle. For example, according to UNICEF data referring to the Intergovernmental Panel on Climate Change (IPCC), a reduction of 45% in atmospheric carbon dioxide by 2030 will be necessary to prevent global warming from exceeding 1.5oC, a critical threshold to avoid the most severe effects of climate change. Such factors are anticipated to stimulate the demand for electric vehicles and propel the growth of the passenger electric vehicle market in the future.
How Is The Passenger Electric Vehicles Market segmented?
The passenger electric vehicles market covered in this report is segmented –
1) By Type: Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle
2) By Vehicle Type: Sedan, Hatchback, SUV
3) By Charging Infrastructure: Normal Charging, High Power Charging
Subsegments:
1) By Battery Electric Vehicle (BEV): Compact BEVs, Sedans, SUVs, Luxury BEVs
2) By Hybrid Electric Vehicle (HEV): Mild Hybrid, Full Hybrid, Series Hybrid
3) By Plug-In Hybrid Electric Vehicle (PHEV): Compact PHEVs, Sedans, SUVs, Luxury PHEVs
Pre-Book The Passenger Electric Vehicles Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
Which Emerging Market Trends Are Altering The Passenger Electric Vehicles Industry?
Battery storage limitations and drainage issues are posing major obstacles to the passenger electric vehicles market's expansion. Lithium-ion batteries, commonly used in electric vehicles, see a decline in their capacity with the rising number of charge and discharge cycles. Factors such as elevated temperatures, overcharging, insufficient voltage, and excessive charge current can damage the battery of an electric vehicle. Furthermore, there's a potential hazard of battery depletion during a journey, leaving the driver stranded without an alternate power source in the absence of an electric charging station. For instance, the Economic Times (Auto) report indicated that the performance of Mahindra's electric cars was subpar, and their battery storage did not meet the necessary standards. The tested models were unable to cover a distance of 80-82 km on a single charge. These battery-related problems deter the utilization of electric vehicles, consequently hampering the growth of the passenger electric vehicles market.
Who Are the Key Players In The Passenger Electric Vehicles Market?
Major companies operating in the passenger electric vehicles market include:
• BYD Company Limited
• Volkswagen AG
• Toyota Motor Corporation
• Stellantis N.V.
• Mercedes-Benz
• Ford Motor Company
• General Motors Company
• Bayerische Motoren Werke AG
• Honda Motor Co. Ltd.
• Hyundai Motor Company
• Tesla Inc.
• Nissan Motor Corporation
• Kia Corporation
• Audi AG
• Volvo Group
• Renault SA
• Dr. Ing. h.c. F. Porsche AG
• Jaguar Land Rover Automotive plc
• Mitsubishi Motors Corporation
• Citroën S.A
• Mahindra & Mahindra Ltd.
• XPeng Inc.
• Guangzhou Xiaopeng Motors Technology Co. Ltd.
• Rivian Automotive Inc.
• Lucid Group Inc.
• Karma Automotive LLC
• SAIC Motor Corp. Ltd.
• Changan Automobile Co. Ltd.
• Dongfeng Motor Corporation Ltd.
• Great Wall Motor Co. Ltd.
What Is The Most Dominant Region In The Passenger Electric Vehicles Market?
Asia-Pacific was the largest region in the passenger electric vehicles market in 2024. This region is expected to remain the largest during the next five years. The regions covered in the passenger electric vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
