The electric vehicle market is expected to grow by around US $343 billion from 2024-2028, according to a recent update from Technavio. The company also estimates it to grow at a CAGR of 13.51% during this period.
The Asia–Pacific (APAC) region held the largest share of the global EV market last year. The market in this region is also estimated to see growth of 47% in the EV space, and therefore play a pivotal role in moving the global EV market forward.
“The (EV) market is experiencing significant growth, with various players making strides in the sector,” said Technavio in a news release.
The fact that lithium-ion batteries and supercapacitors are being used in EVs is considered “a key trend,” because they offer both longer driving ranges and faster charging times. Furthermore, Technavio notes that government policies to promote the adoption of EVs (such as subsidies and tax incentives) are also helping to boost adoption among consumers.
“Overall, the EV market is poised for substantial growth in the coming years, driven by technological advancements, government initiatives, and increasing consumer awareness,” said Technavio. Other drivers include the increasing pressure being placed on ICE vehicles due to climate and air pollution concerns.
Globally, the EV sector witnessed an increase in new car registrations of over 3 million units in 2020 — more than the previous year’s sales. Technavio said the trend is expected to continue, with global EV sales anticipated to reach US $802.8 billion by 2027.
However, challenges remain. This includes the need to reduce the carbon footprint of EV production and “the reliance on lithium-ion batteries, which require cobalt and other resources with environmental concerns,” said Technavio, adding that decarbonization challenges are also ongoing.
