The global electric mobility market had a share of USD 223.11 billion in 2021, which is anticipated to reach USD 1,108 billion, growing at a CAGR of 21.5% during the forecast period. Electric mobility utilizes one or more electric motors to create movement. Presently, this mode of transportation can provide solutions both for short journeys and light loads, as well as for longer journeys and greater loads. Electric mobility, also known as e-Mobility, enables the electric propulsion of automobiles and fleets through electric powertrain techniques, in-vehicle information and communication technologies, and connected infrastructures.
Electric mobility has many benefits, but one of the most significant is that it enhances the quality of life of people because it does not emit harmful gases. On the other hand, electric vehicles do not have internal combustion engines, so they do not contribute to the emission of tonnes of greenhouse gases. This, in turn, helps fight against climate change's effects.
Concerns about the ever-increasing greenhouse gas emissions and the overall environmental impact of the automotive and transportation sector are driving rapid growth in the global electric mobility market. To reduce the amount of damage that is caused by automobiles to nature, the automotive industry is moving in the direction of more eco-friendly and emission-free technologies. In addition, regulators and policymakers worldwide are taking the necessary steps to increase the adoption of electric vehicles and to encourage the growth of the charging infrastructure required to power these vehicles.
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The Growing Demand for Emission-Free Vehicles to Foster Market Growth
Regulations regarding greenhouse gas emissions are becoming increasingly stringent as the governments of many countries implement them. Because of the significant increase in greenhouse gas (GHG) emissions and the carbon footprint left by the transportation sector, particularly the automobile sector, and various regulatory bodies in several countries have been encouraged to issue policies and laws that favor the adoption of energy-efficient vehicles. The standards were developed to lower carbon emissions and combat climate change. Additionally, both developing and developed economies are currently in the process of implementing policies regarding vehicles powered by conventional fuels. As a result, the market for electric mobility will continue to expand.
Government Incentives and Support for the Development of Electric Mobility to Aid Growth
Governments across the globe are working toward making the adoption of electric vehicles more straightforward by investing in the development of electric vehicle charging infrastructure. This is in addition to the subsidies and tax benefits offered to buyers and vehicle manufacturers. For instance, the government of India has just recently announced tax benefits for purchasing electric vehicles to boost the number of people in India who own electric vehicles. The government of India, much like the governments of many other countries around the world, is currently implementing new regulations to eventually eliminate vehicles powered by internal combustion engines and significantly reduce the production volume of such vehicles.
Buyers of electric vehicles in Germany are eligible for a subsidy of USD 10,800 if they purchase an automobile with a list price of USD 48,000 or less. Adopting policies analogous to these in other European nations will soon hasten the shift toward batteries-powered vehicles. In addition to tax breaks or subsidies offered to buyers and automakers, governments are also working toward making the adoption of electric vehicles convenient by stimulating the development of the necessary charging infrastructure. This is part of their effort to make electric vehicles more widely accessible. And as a result, increasing the potential for growth in the market for electric mobility.
Scarcity of Charging Points to Hinder Market Growth
In many countries around the world, the number of charging stations for electric vehicles and mobility is relatively low. Because of this, fewer public charging stations will be available for electric mobility, ultimately resulting in a lower adoption rate. Most nations, except for specific states, have not been able to install the required number of electric vehicle charging stations, even though many nations are currently installing electric vehicle charging infrastructure. As more electric vehicle charging stations become available worldwide, there will likely be greater demand for electric vehicles. The vast majority of countries have not yet developed networks for such charging.
The global electric mobility market is bifurcated based on product, voltage, battery, and region.
Based on product, the global electric mobility market is fragmented into Electric scooters, Electric bicycles, Electric skateboards, Electric motorcycles, Electric cars, and Electric wheelchairs.
The electric car is expected to hold the largest market share during the forecast period. This is due to the higher adoption rate and higher cost of battery electric vehicles compared to E-motorcycles, scooters, skateboards, wheelchairs, and bicycles. In addition, the rising demand for electric vehicles is fueled by policies and initiatives to encourage vehicle owners and localities to invest in environmentally friendly vehicles requiring little maintenance.
Additionally, the governments in many developed and developing countries are providing substantial support for electric vehicles. The leading countries in the European region with expanding demand for electric vehicles or cars include Germany, France, the Netherlands, Norway, Sweden, and the United Kingdom, amongst others. These nations have introduced stringent emissions regulations and various subsidies, grants, and incentives to encourage the transition to electric vehicles.
The electric motorcycle segment is expected to grow at the highest CAGR during the forecast period. The adoption of the electric motorcycle is encouraged by government regulatory bodies by offering tax concessions. This is supposed to add to the favorable future growth of the global market for electric mobility. Additionally, several businesses have begun investing in the electronic motorcycle industry, which is likely to contribute further toward creating a competitive market for electronic motorcycles shortly.
Based on voltage, the fragments include Less Than 24V, 24V, 36V, 48V, and Greater than 48V.
The 24V electric mobility segment is expected to hold the largest market share during the forecast period. The widespread adoption of these battery systems in the market for electric vehicles can be attributed to the fact that they are highly compatible. The 24V battery system delivers significant power output, allowing electric vehicles to fulfill various functional requirements. In addition, using a 24V battery system allows for the utilization of a wiring harness that is more compact and lighter.
Based on the battery, the fragments include Sealed Lead Acid, NiMH, and Li-ion.
Li-ion batteries will hold the largest share during the forecast period. As a result of production scale economies and technological advancements, the cost of Li-ion battery packs for electric vehicles has decreased by more than 70% in the past seven years. It is anticipated that this cost will continue to decrease by approximately 50% until 2030. It is anticipated that the demand for these batteries will continue to be driven by the increasingly cost-effective nature of these batteries, in conjunction with their higher energy densities compared to sealed lead acid and NiMH batteries. In addition, phenomenal growth opportunities exist in the Li-ion market because suppliers and manufacturers of batteries are investing in research and development activities to provide safe, reliable, and affordable battery solutions that have improved energy densities.
The regional segmentation of the global electric mobility market includes North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
Asia-Pacific Will Dominate the Regional Market
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Asia-Pacific will most likely hold most of the market share during the forecast period. Countries like China, Japan, and South Korea dominate the Asia-Pacific electric vehicle market. As the world's largest EV producer and consumer, China dominates the electric mobility market in the region. The country's government has taken measures such as providing subsidies to EV buyers, mandating that all vehicle manufacturers produce EVs in proportion to the number of vehicles they produce, providing substantial support for installing EV charging stations in major cities, and enacting regulations against excessively polluting vehicles.
Japan and South Korea's EV markets have also been expanding. Their authorities have boosted the growth of EV demand by implementing charging stations, establishing emission standards, and establishing deadlines for switching to a total or hybrid electric vehicle and mobilities. India is also attempting to expand its market demand for electric vehicles. The new vehicle scrappage policy, which allows for the disposal of old vehicles in exchange for the purchase of low-emission vehicles, and other forthcoming policies will help the country become the region's fastest-growing market for electric vehicles in the coming years. Thailand, Indonesia, Malaysia, and Vietnam have also begun efforts to reduce vehicle emissions and transition to electric mobility.
Speedy developments and growth in the Pan-European battery charging network for battery electric vehicles or BEVs are envisioned to facilitate the implementation of BEVs in European countries, making Europe the region with the highest CAGR. For instance, EU member states such as Denmark, France, Ireland, and the Netherlands have tried to restrict the sale of new diesel and gasoline-powered vehicles by 2030. These initiatives are anticipated to advance the region's electric mobility industry. Due to strict government regulations regarding harmful gas emissions, the region is also observing an increase in the number of policies and incentives for purchasing new electric vehicles and mobility devices, as well as a shift in citizen preference toward electric mobility.