Automotive and Transportation Electric Car Market Size and Demand Analysis | Page 3

Electric Car Market
Battery electric vehicle (BEV) segment is expected to be the largest and fastest growing segment over the
forecast period, because of the introduction of new BEV variants and government polices supporting the
adoption of BEVs. BEVs are estimated to account for more than 60% of the total electric car sales volume in
2017, mainly because of their dominance in China, the largest electric car market.
Asia-Pacific is projected to be the largest market
Asia-Pacific, led by China, is estimated to hold the largest share in the electric car market with more than 45%
share in 2017. During the 2013–2016 period, the Chinese government heavily subsidized EVs, which led to a
boom in the industry, with sales growing at a CAGR of around 180%. By 2015, the government had spent
around $4.9 billion in subsidizing electric vehicles. Apart from this, the presence of industry leaders, such as
BYD Company Limited, BAIC Motor Corporation Limited, and Geely Automobile Holdings Limited, is also
benefiting the industry in this region.
Europe is estimated to be the second largest electric car market globally, with a share of more than 25.0% in
2017. The EU has set a plan to minimize GHG emissions in the region to 80% below the 1990 levels by the end
of 2050. To meet this target, emissions from transport need to be reduced significantly, which, in turn, would
encourage the growth of the electric car market in the region in the long run. Similar to other regions, the
governments of the European countries are also providing financial and non-financial incentives to the
customers to boost the market.
P&S Intelligence