Market Research Report
North America Automotive High Performance Electric Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|North America Automotive High Performance Electric Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 90 Pages
Delivery time: 2-3 business days
The North American automotive high-performance electric vehicles market accounted for USD 10 billion in 2020, and it is expected to reach USD 44 billion by 2026, registering a CAGR of 28% during the forecast period.
The COVID-19 pandemic has hindered the growth of the market, as there was a disruption in the production of vehicles due to the supply chain collapse across the world. However, the market is expected to witness significant growth during the forecast period due to increasing awareness about environmentally positive impacts and various initiatives taken by governments of different countries.
One of the latest trends gaining traction in this market is the development of fuel cell vehicle (FCV) technology for range extension in HPEVs. Instead of an engine, this variant uses a fuel cell to extend the range of the battery by charging through an electric motor. Additionally, an increasing number of governments are promoting the adoption of FCVs. Therefore, this is likely to consequently augment the growth of the global HPEV market in the coming years.
The United States is likely to dominate the high-performance electric vehicle (HPEV) market during the forecast period, as it is the largest manufacturer of HPEV in the North American region. The country also holds a significant share in the market due to the presence of major players, such as Daimler AG, GM Motors, and Tesla, leading the market.
The demand for long-range electric vehicles has been increasing in the North American region. This is due to the unavailability of a charging station for passengers traveling on highways in remote areas. Manufacturers have focused on improving the range of their products by increasing battery capacities.
The limited range of electric vehicles is a major factor that is restraining the growth of the market. In order to curtail this, numerous charging stations and outlets are being constructed across the North American region, with the United States possessing the highest numbers of outlets in 2020.
Truck manufacturers, such as Daimler, Tesla, and Navistar International Corp., are racing to overcome the challenges of replacing diesel engines with batteries, as international organizations have been improving and implementing stringent exhaust emissions and fuel economy norms. As a result, governments of different states and commercial vehicle makers are planning to invest in charging infrastructure development.
For instance, in May 2021, a public engagement session conducted by the Minnesota Department of Transportation focused on improving the charging station facilities that can aid the services of electric delivery and freight trucks.
As the United States is one of the potential markets for high-performance electric vehicles, high-energy Li-ion batteries and advanced powertrain parts contribute a major role in propelling the market studied. Government initiatives are expected to improve the opportunities for the industry. For instance, in September 2020, the Zero Emissions Vehicle mandate adopted by the Californian governor was expected to have a large impact on the country and the region as a whole. In January 2020, Tesla also began mass production of its Model Y, which is a performance vehicle, delivering to the North American market.
The Gigafactory setup by Tesla in Nevada, the United States, is another important step to reach the global battery needs for different vehicles manufactured across the world. The factory is a huge 1.9 million sq. ft facility with recently ramped up mass production of Li-ion batteries that are seen as the most economical and efficient battery solutions for electric vehicles currently.
The tax credits offered by the government to electric vehicle buyers are a huge growth factor for the market. Multiple investments into developing the charging infrastructure to keep up with the projected increase in EV demand are being observed. For instance, Charge Point, a market leader in EV charging, partnered with Mercedes in June 2021 to establish an industry-leading EV Charging Experience to be set up and expanded across the North American region.
The North American automotive high-performance electric vehicles market is dominated by several players, such as Tesla, General Motors Company, Nissan Motors, Mercedes-Benz, Toyota Motor Corporation, and Hyundai Motors. These companies are expanding their business by new innovative technologies, such as an increase in the range of kilometers per single charge so that they can have the edge over their competitors.
Additionally, Tesla's lead over the North American electric vehicles market is gradually reducing. The General Motor Company has been observed to develop more autonomous vehicles, and the financial prospects of the company look better than those of Tesla's in 2021.
In certain strategies to expand globally, companies are looking for geographies with potential future demands for electric vehicles. For instance, Morris Garages have already entered huge Asian markets, and Tesla being an American manufacturer, started testing a few of its models in India in June 2021.