Electric Mobility Market: Current Analysis and Forecast (2022-2030)

Electric mobility means the use of electric vehicles (EVs) for transportation. It involves using electric motors and batteries to power vehicles which is further reducing the need for fossil fuels and reducing greenhouse gas emissions. Electric mobility includes using vehicles such as electric cars and scooters, and commercial vehicles, such as electric delivery trucks and buses.

The Electric Mobility Market is expected to grow at a strong CAGR of 23.15% during the forecast period owing to the increasing demand for sustainable and renewable energy which is further boosting the sales of electric vehicles globally. Moreover, the advancement in battery technology is growing which is further boosting the adoption of electric vehicles. For instance, in May 2023, Tesla has recently hired a battery manufacturing expert to lead its dry electrode department, which is a critical aspect of the company's 4680 battery cell production. Tesla has identified this as one of the main bottlenecks in the production of its 4680 battery cell.

Based on vehicle type, the market is segmented into electric two-wheeler, electric three-wheeler, electric four-wheeler and others. Amongst these, the electric four-wheeler segment dominated the market in 2022. This is because electric four-wheelers allow consumers to travel for longer ranges as compared to electric two-wheelers which is one of the concerning factors of the consumers of electric vehicles. Additionally, electric four-wheelers allow multiple passengers making them a convenient option for families and groups of people travelling together. Moreover, Four wheeler provides more safety and comfort in all weather conditions. Hence, considering these all advantages electric four-wheelers have dominated the market.

By battery type, the market is segmented into lithium-ion, lead acid, nickel metal hydride, and others. Among these, the lithium-ion segment captured the majority share of the electric mobility market in 2022. The major share of lithium-ion can be attributed to the higher energy density due to which it can store large amounts of energy which is an essential feature for long-range electric vehicles. Currently, long-range electric vehicles are highly in demand. Additionally, lithium-ion batteries have the ability to give vehicles quick and high acceleration which is preferable to consumers. Moreover, lithium-ion batteries have additional features such as high charge and discharge efficiency and can be charged quickly as compared to other batteries. All these factors have contributed to the significant share of this segment.

On the basis of power train, the market is segmented battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid vehicle (PHEV), and fuel cell electric vehicle (FCEV). The battery electric vehicle (BEV) held a major share of the electric mobility market in 2022 because battery electric vehicles have zero tail emission as compared to other vehicles which makes them an attractive option offering clean and environment-friendly energy vehicles. Additionally, advancements in battery technology especially in lithium-ion batteries have made them convenient options for daily and long-distance travel options considering the cost of travel per km in the mind. Moreover, government incentives and policies which include financial incentives, subsidies, tax credits etc have attracted a lot of consumers globally, especially in China and Europe which are the major contributors to the electric vehicles market.

On the basis of charging type, the market is low-power AC (Level 1), mid-high power AC (Level 2), and DC fast charging (DCFC). The mid-high power AC (Level 2) held a significant share of the electric mobility market in 2021 because BEV (Battery Electric Vehicle) owners prefer to install Level 2 charging equipment at their residences due to the faster charging speed compared to Level 1 charging. Charging from a Level 2 source typically means that the vehicle will be fully charged overnight, even if you start with a nearly empty battery. Additionally, as compared to DCFC they are more budget-friendly which is make them an attractive option for home, residence and work options.

For a better understanding of the market adoption of the electric mobility industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Norway, Switzerland, Denmark, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. Asia Pacific dominated the electric mobility market in 2022 due to countries like China, Japan and South Korea being amongst the biggest consumers of electric vehicles with China being the biggest frontrunner accounting for 60% of global electric cars sales. More than half of electric car running are in China and the country has already exceeded its target of 2025. These countries have established automotive manufacturing industries like BYD Company Ltd., SAIC Motor Corporation Limited etc which include advanced technological capabilities and production capabilities allowing them to produce the most competitive electric vehicles. Asia Pacific has many countries which have invested substantially in charging infrastructure making them attractive options.

Some of the major players operating in the market include: Tesla, BYD Company Ltd., TOYOTA MOTOR CORPORATION., Volkswagen AG, Nissan Motor Co., Ltd., Hyundai Motor Company, BMW AG, General Motors, SAIC Motor Corporation Limited, and Ford Motor Company.