Close to half (47%) of the growth in the electric vehicles (EVs) market is set to come from Asia-Pacific over the next four years, a report from Technavio has found.
According to the report, which examines the growth in the EVs market between now and 2028, the overall market is set to grow at a CAGR of 13.51% over the four-year period, witnessing incremental growth of $343.01 billion between 2023 and 2028.
Year-on-year growth in 2024 is set to stand at 12.72%, with Asia-Pacific accounting for the largest share of the global market.
‘Despite the diversity within APAC, the region remains a major player in both producing and consuming vehicles, presenting both opportunities and challenges for the EV sector in decarbonising global roads,’ the report noted.
Global EV sales are projected to reach $802.8 billion by 2027, as more established players ramp up their investment in the market.
Driving demand
‘The shift towards zero-emission targets is driving the demand for EVs, with governments worldwide implementing stimulus measures to support the industry’s growth,’ Technavio said in its report.
‘However, challenges remain, including 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. The decarbonisation challenge continues, with CO2 emission standards becoming increasingly stringent for both petrol, CNG, and LPG vehicles. European governments are leading the way, with many setting ambitious targets for electric car fleets on global roads.’
Major players in the global electric vehicles market include BMW, BYD, Chery Automobile, Chongqing Changan Automobile, Dongfeng Motor Group, Ford, Geely Auto International Corporation, General Motors, Guangzhou Automobile Group, Honda, Hyundai, Mahindra and Mahindra, Mercedes-Benz, Nissan, Renault, SAIC Motor Corp., Stellantis, Tesla, Toyota, Volkswagen and more.
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