Battery Electric Vehicle Market is anticipated to witness robust growth between 2023 and 2032, primarily owing to the increasing investments in R&D initiatives by BEV OEMs, especially in North America and Europe. Besides, the demand for electric mobility is rapidly rising in the Latin America region, which will further drive the product demand during the foreseeable future.
Overall, the battery electric vehicle market has been segmented in terms of vehicle, battery, and region.
In the context of vehicle, the electric trucks segment is anticipated to expand significantly by 2032. The segmental growth will be mainly driven by the rising demand for logistics and lower fuel and maintenance costs. In addition, the implementation of stringent vehicle emission standards is also compelling automobile manufacturers to invest heavily in the production of electric trucks, which will add impetus to the market demand in the next ten years.
To cite an instance, in February 2023, Sheffield, UK announced new clean air zones in the city and announced that any vehicle, including buses, coaches, vans, and taxis, that fail to meet the strict emission standards of the city will be fined around USD 60 before being allowed to enter the city.
On the basis of the battery, the market is likely to be characterized by the Li-ion segment, which was valued at more than USD 100 billion in 2022. The rapid expansion of this segment can be attributed to the rising demand for electric vehicles, which are largely dependent on Li-ion batteries. As per reports, in 2021, the sales of electric cars tripled and reached 3.3 million in China. Besides, in the same year, the number of electric cars in the United States sold doubled and reached 6,30,000, while in Europe, it increased by 65% and reached 2.3 million units.
In addition, favorable features of Li-ion batteries such as durability, low rate of self-discharge, bare minimum maintenance cost, high power density, and much lower environmental impact are increasing their adoption across various industry verticals, which will propel the product demand by 2032.
In the regional context, the North America battery electric vehicle market was valued at more than 30 billion in 2022. The future growth of the regional market during 2023 and 2032 will be driven by the continuous efforts by countries such as United States and Canada to advance and develop innovative battery systems with huge power delivery capabilities.