Zero Emission Vehicle Global Market Report 2024

The zero-emission vehicle market size has grown exponentially in recent years. It will grow from $219.6 billion in 2023 to $275.23 billion in 2024 at a compound annual growth rate (CAGR) of 25.3%. The growth observed in the historical period can be attributed to environmental concerns, government regulations, increased consumer interest and awareness, reduced operating costs, and investments in charging infrastructure.

The zero-emission vehicle market size is expected to see exponential growth in the next few years. It will grow to $630.71 billion in 2028 at a compound annual growth rate (CAGR) of 23.0%. The anticipated growth in the forecast period can be attributed to government commitments to decarbonization, the expansion of charging infrastructure, automaker commitments to electrification, economic incentives and tax breaks, and the upward trend in fuel prices. Major trends expected in the forecast period include advancements in battery technology, technological innovations in vehicle design, a diverse range of vehicle offerings, and improvements in regenerative braking efficiency.

The anticipated increase in fuel prices is poised to be a significant driver for the growth of the zero-emission vehicle market. The term 'fuel price' refers to the average cost per gallon of fuel utilized for motor vehicles. Zero-emission vehicles (ZEVs) play a crucial role in reducing fuel costs and enhancing fuel economy, particularly in the face of escalating fuel prices. According to data released by the United States Department of Transportation in August 2022, the global price of transportation fuel surged from around $2.19 per gallon in January 2021 to $3.21 per gallon in January 2023. Consequently, the upward trajectory of fuel prices is expected to propel the zero-emission vehicle market.

The escalating concerns regarding climate change are anticipated to further boost the growth of the zero-emission vehicle market. Climate change involves prolonged alterations in temperature, precipitation, wind patterns, and other elements of the Earth's climate system. As the urgency to address climate change intensifies, zero-emission vehicles are increasingly recognized as a crucial tool for reducing transportation-related CO2 emissions, contributing to the global effort to mitigate the impact of climate change. A report by the World Health Organization in October 2023 highlighted that approximately 3.6 billion individuals reside in regions highly vulnerable to the impacts of climate change. The report projected a potential annual increase of around 250,000 deaths from 2030 to 2050 due to factors such as undernutrition, malaria, diarrhea, and heat stress. Thus, the growing concerns about climate change are a driving force for the zero-emission vehicle market.

A key trend gaining traction in the zero-emission vehicle market is product innovation, with major companies focusing on developing vehicles that serve diverse functions and have broader applications. In May 2023, Daimler Truck AG, a German-based commercial vehicle manufacturer, introduced a new line of zero-emission electric trucks named RIZON. These electric trucks offer various configurations and options tailored to meet specific customer needs, enhancing day-to-day operational efficiency. The vehicles are particularly targeted at businesses involved in urban retail logistics and can be applied to different purposes such as dry vans, flatbeds, landscaping dumps, and reefers.

Major companies in the zero-emission vehicle market are also increasing their investments in the development of efficient and powerful electric vehicle (EV) batteries to consolidate their market position. In August 2022, Toyota, a Japanese automotive manufacturer, announced a substantial investment of $5.6 billion in new plants for building electric vehicle battery packs in Japan and the United States. Furthermore, in October 2023, Umicore Rechargeable Battery Materials Canada Inc., a Canadian battery materials manufacturing company, revealed a significant investment of $2.761 billion to construct a new manufacturing facility in Loyalist Township, Ontario, Canada. This plant will focus on producing precursor cathode active materials (pCAM) and cathode active materials (CAM), essential components for manufacturing batteries for electric vehicles.

In October 2022, Mullen Automotive Inc., a US-based electric vehicle manufacturer, acquired Electric Last Mile Solutions Inc. (ELMS) to enhance its production capabilities and expedite the timeline for entering the market with retail vehicles such as the Mullen FIVE and Bollinger B1, B2. This acquisition not only accelerates Mullen's production timeline but also adds ELMS's manufacturing facility to its portfolio, augmenting its capabilities in electric vehicle manufacturing. Electric Last Mile Solutions Inc. is a US-based manufacturing company specializing in the production of zero-emission electric vehicles.

Major companies operating in the zero emission vehicle market report are Volkswagen AG, Toyota Motor Corporation, Mercedes-Benz Group AG, Ford Motor Company, General Motors, Bayerische Motoren Werke AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Audi AG, Kia Corporation, BYD Company Limited, Nikola Corporation, Renault Group, AB Volvo, Porsche AG, Jaguar Land Rover Automotive PLC, Geely Automobile Holdings Limited, NIO Inc., Xpeng Inc., Rivian Automotive LLC, Lucid Group Inc., Faraday Future Intelligent Electric Inc., Proterra Inc., Energica Motor Company S.p.A., Electrameccanica Vehicles Corp., Bollinger Motors, Workhorse Group Inc., Fisker Inc., Lordstown Motors Corp.

North America was the largest region in the zero emission vehicle market in 2023. Asia-Pacific is expected to be the fastest-growing region in the zero emission vehicle market report during the forecast period. The regions covered in the zero emission vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the zero-emission vehicle market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of zero-emission vehicles encompass battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles (FCEV). A battery electric vehicle (BEV) relies solely on its batteries for power, without the assistance of an additional engine, making it a zero-emission vehicle that produces no air pollution or harmful emissions. These vehicles can operate in various drive types such as front-wheel drive, rear-wheel drive, and all-wheel drive, fueled by sources such as gasoline, diesel, compressed natural gas (CNG), among others. They find applications in commercial vehicles, passenger vehicles, and two-wheelers, serving end users in government, public transportation, and logistics industries.

The zero-emission vehicle research report is one of a series of new reports that provides zero emission vehicle market statistics, including the zero emission vehicle industry's global market size, regional shares, competitors with a zero emission vehicle market share, detailed zero emission vehicle market segments, market trends and opportunities, and any further data you may need to thrive in the zero emission vehicle industry. The zero-emission vehicle market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The zero-emission vehicle market consists of sales of traction battery packs, electric motors, onboard chargers, power inverters and charge ports. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.