ELECTRIC CAR MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

One of the key challenges currently facing the global electric car market is the limited availability of charging infrastructure in many regions. While countries like China, the US and some European nations have been progressively building out public charging stations over the past decade, most parts of Asia, Africa and South America still lag far behind in developing the necessary charging networks. This acts as a major deterrent for consumers who are worried about being stranded without a place to charge their electric vehicles during long journeys. Auto manufacturers and governments need to partner together and make massive investments towards installing charging points at regular intervals along highways, near residential areas, commercial districts and other busy locations. Standardization of charging ports and compatibility with different vehicle systems is another area that demands cross-industry cooperation. Without a convenient and extensive charging infrastructure, it will be difficult to convince mainstream buyers to switch to electric cars and help accelerate the global transition to sustainable mobility.

Market Opportunity - High initial purchase cost compared to conventional vehicles

While the high initial purchase price of electric vehicles continues to be a barrier compared to conventional internal combustion engine vehicles, it also presents a significant opportunity for growth and adoption in the global market. The upfront cost tends to be higher for electric vehicles due to the cost of the battery pack. However, total lifetime ownership costs are lower for electric vehicles due to lower fuel and maintenance expenses. As battery technology continues to advance, prices are expected to decline substantially in the coming years which will help close the purchase price gap. Some countries and regions are already implementing purchase incentives like taxes exemptions to defray the higher upfront costs and make electric vehicles more affordable for consumers. For example, the UK government recently increased grant funding for electric vehicles to help more customers overcome the battery cost hurdle.