What is the current scenario of the global electric vehicle component market?
Electric vehicles are going to be the next big thing in the automotive industry. EV will revolutionize the way, how is used energy created or redirected?
As the increasing use of conventional cars is adding more to the already inflated pollution level. Electric cars will prove to be a great solution to prevent negative environmental impacts. Apart from this, EVs have many more benefits to offer to society.
The emergence of electric cars will improve the overall energy usage and generation. Fuel won’t remain the single option to drive vehicles. Our using alternatives like electricity will have a positive effect on the environment, the world as a whole.
The credit for the advent of these energy-efficient cars also goes to electric Vehicle parts manufacturers and suppliers. You can easily find several electric vehicle components manufacturers that are tirelessly backing up the work of the innovative minds in the automotive industry.
But do you know about the current scenario of the global electric vehicle component market? If you, this post will guide you in the right direction.
In the past few years, the global electric vehicle market has shown incredible growth by manufacturing and selling a great number of EVs around the world. To learn more about the growth of the EV market, let’s start from scratch.
The rise of the EV market
Till 2018, there was a swift rise in the sale of EVs across the globe. But by the year 2019, the growth of the respective market experienced stagnation because of the drop in sales in two of the biggest markets of China and the USA.
But even with the slow growth in a major segment, the overall global sales of the EVs still rose in other parts of the world, largely in Europe that contributed up to 44% growth.
To push the sales of EVs, innovations were made, and 30+ new and improved BEV/PHEV models were introduced to kick up the sales graph for the same and next year.
But the same did not happen as planned owing to the hit of the Covid-19 pandemic in 2020. In China, the total vehicle market went down by 80%, and it impacted the supply of parts over to other countries, impacting the overall automotive industry.
The market size
As per a report from Global EV Outlook 2020, in 2019, the sales of EV vehicles break the record of the year 2018 by boosting the stock to 7.2 million EVs. The major contributors to the stock were China, with 2.3 million electric vehicles in active use, followed by Europe and the US with 1.2 and 1.1 million EVs, respectively. Europe is expected to add more to the growth of the global EV sector in the coming years.
Petrol and diesel, being a non-renewable source of energy, are anticipated to get exhausted in the future. Therefore, it becomes crucial to look for alternatives that support sustainable development. This need leads to the development of electric vehicles, which run on electricity and do not require fuel like conventional vehicles. It has multiple components that convert electricity into kinetic energy and use the same to power the wheels.
The rise in petrol and diesel prices has also given rise to the demand for fuel-efficient vehicles. Considering all these factors, we can conclude that EVs will revolutionize the vehicle market and will become the foremost choice for transportation or travel.
Government rules and regulations
The increasing use of conventional vehicles is becoming a major cause of the rise in pollution levels. They have combustion engines that fully consume the fuel, producing carbon monoxide and other greenhouse gases that are harmful to the atmosphere. Electric cars, on the other hand, use electric motors to maintain the level of current that does not pollute the environment.
That’s why governments of many countries like the USA, France, Germany, and China are implementing rigorous rules and regulations, compelling the automotive sector to use state-of-the-art technology to reduce high-emission levels in vehicles.
These government regulations have made people invest in EVs, raising their demand and opening the doors for a better future.
The future of EVs
If we talk about the future of the EV market, then there can be two scenarios:
According to the Specified Policies, Scenario the global EV market will hit 140 million vehicles by 2030.
The second is that, according to EV30@30, 30 percent of all cars, except two-wheelers, would be electric by 2030.
Only the coming time will tell which of these predictions be true or closer to the truth.
While electric vehicles have a higher initial cost than traditional vehicles, they are still cost-effective in the long run. Owing to the advancement in technology, these vehicles are becoming more affordable and will soon capture a significant share of the automobile market.