The battery electric vehicle market is slated to garner a notable valuation by 2027 on account of growing emphasis on electrification in the automotive sector across the globe. In addition, rising climate consciousness and favorable government initiatives to reduce emissions are expected to further augment market outlook through the forecast period.

Battery electric vehicles (BEV) or ell-electric vehicles consist of a battery pack that stores electrical power required for the motor to function. These vehicles are categorized as zero-emission vehicles since they do not generate direct exhaust or tailpipe emissions. Even though electric vehicles are comparatively more expensive than conventional and hybrid vehicles, they have gained massive popularity among consumers as some cost can be recovered through fuel savings, state incentives, or a tax credit from the government, which has played a vital role in industry expansion in recent years.

Moreover, with an upsurge in demand for electric vehicles, industry players have been adopting lucrative strategies to gain a competitive edge in the booming market, which has been favorable for industry growth. For instance, in January 2022, LG Energy Solution, a major battery manufacturer, announced its plans to raise above USD 10.8 billion in South Korea’s largest initial public offering (IPO).

To cite another instance, in December 2021, Toyota Motor Corporation, a leading player in the electric vehicles space, committed 8 trillion yen (USD 70 billion) towards the electrification of its fleet by 2030. Half of the total investment has been allotted to developing a BEV line-up, which is intended to help Toyota penetrate the global market for zero-emission cars.

The battery electric vehicle market has been segmented in terms of vehicle, battery type, and region. With respect to vehicle, the market has further been categorized into electric bus, electric cars, electric trucks, electric motorcycles & scooters, and e-bikes. The e-bikes sub-segment is set to observe substantial growth at a CAGR of around 7.6% in terms of volume over the assessment timeframe due to increasing adoption of e-bikes for short distance travel.

Based on battery type, the battery electric vehicle market has been divided into Li-ion, SLA, and NiMH. The Li-ion sub-segment held a sizable share in the industry in 2020 and is projected to grow at a steady pace over 2021-2027. Mounting demand for Li-ion batteries owing to their minimum maintenance cost and high-power density is set to fuel segmental growth in the forthcoming years.

In the regional landscape, the Middle East & Africa battery electric vehicle market accounted for a considerable share in the overall industry revenue and is anticipated to witness robust growth through 2027. High investment by government authorities towards strengthening the domestic charging infrastructure to promote the adoption of electric vehicles is likely to drive BEV market growth in MEA in the future.