Market Research Report
Solar Vehicle Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||925251|
|Published||Content info||60 Pages
Delivery time: 2-3 business days
|Solar Vehicle Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 60 Pages||
The Global Solar Vehicle market is expected to grow at a CAGR of around 12.5% over the forecast period.
The automotive industry is currently experiencing a sea of changes with new technologies and innovations drastically transforming how vehicles are being designed and manufactured. Auto manufacturing companies are now shifting their interests towards vehicles that are not dependent on fossil fuels and ones that run on clean, renewable energy sources. One such disruptive technology is the solar and solar assisted vehicle. Currently, solar vehicles can be classified as a type of hybrid electric vehicles (HEVS).
Range anxiety is a term that is generally associated with electric vehicles (EVs). The limited range of EVs has spurred innovations in the field of HEVs and manufacturers are leaving no stoned un-turned in increasing the range of these HEVs through the use of ancillary power sources. In the case of solar vehicles, solar films mounted on the vehicle's roof are the source of power which help to charge the battery. Decreasing prices, increased efficiency and technological innovations in solar panels is also one of the driving factors for the solar vehicle market. Better and efficient battery storage options will also help the market grow as they will help retain the converted power for a longer time.
The market for mono-crystalline solar films is expected to be higher as they are more efficient compared to poly-crystalline films and automobiles demand higher efficiency for better charging times for the batteries. North America and Europe are expected to be the dominant markets as most of the research around these vehicles is happening in these geographies.
Stringent vehicle emission norms and regulations driving the demand for hybrid vehicles
The automobile regulatory frameworks around the world have been instrumental in creating a sustainable environment in the automobile industry. In December 2018, the EU set new regulations for carbon dioxide emissions for new passenger cars and commercial vehicles. The agreed-upon targets aim to reduce average CO2 emissions from new passenger cars by 15% in 2025 and by 37.5% in 2030, both relative to the 2021 base-figure. Also, with respect to the CAFE standards, average fuel economy in vehicles in the US were expected to reach 35.5 mpg in 2016, and go up to 54.5 mpg in 2025.
Hybrid vehicles are helping manufacturers achieve these targets and governments are awarding appropriate subsidies and rebates for the same. For instance, the Dutch government reduced the registration fees up to 7% for a plug-in hybrid vehicle. Similarly, Dubai's Roads and Transport Authority has also announced ambitious plans for half of the emirate's cabs to be hybrid vehicles by 2021. Even the Moroccan government has announced that it would remove customs duties for hybrid and electric vehicles, as part of a package of changes aimed at promoting eco-friendly cars. All these initiatives are expected to boost the solar vehicle market over the forecast period.
Passenger cars segment expected to show high growth rate
The research towards solar vehicles is more prominent with the passenger cars segment. Manufacturers are constantly unveiling prototypes and demo cars, which are soon expected to become production models. Lightyear, a Dutch startup has developed the 'Lightyear One' a solar electric car with panels on the roof and bonnet which charge the vehicle. The car is expected to go on sale from 2021 at a price of around US$ 149,000.
Sono Motors, another start-up based out of Germany unveiled the design of its solar electric car in January 2019. The company announced its plans to start manufacturing the car by the end of 2019. In 2019, Hyundai released a version of its Sonata hybrid sedan that has solar film embedded on its roof to help charge the battery. 60% of the total power for the car's battery could be gathered if the solar roof is used for 6 hours a day. This power salvaged is enough to propel the vehicle for around 1,300km (800miles) a year. All these developments are expected to help this segment grow considerably till 2026.
The global market for automotive displays is neither completely consolidated, nor fragmented. As of now very few players in the market have solar variants in their vehicle portfolio. Some manufacturers only have prototypes and are expected to release their production models over the coming few years. Most of the companies operating in this market are concentrated within US, Europe and Asia. Ford, FCA, Volkswagen, General Motors and Toyota are some of the global firms operating in this market.