Battery Electric Vehicles Market Forecast
Battery electric vehicles market to gain substantial proceeds from heavy duty vehicles, rising concerns regarding vehicular emissions to augment the industry growth
The rising concerns pertaining to vehicular emissions are expected to boost the global battery electric vehicle market over the forthcoming years. In 2018, carbon emissions were at an all-time high, with the automotive industry being a major contributor. Emissions from cars and trucks using fossil fuels continue to grow at an alarming rate in all parts of the world. A common factor among both developed and developing economies on these grounds has been the continuous rise in the use of oil in the transport sector.
Brazil Battery Electric Vehicles Market, By Vehicle, 2018 & 2025, (USD Million)
According to the latest forecasts, the level of CO2 in the atmosphere is projected to witness an average rise of 2.75 parts per million over 2019. If the world needs to meet the temperature goals of the Paris agreement, global emissions need to plummet by 2020. Unlike conventional vehicles though, battery powered vehicles don’t require fuels and hence don’t release much CO2. The growing number of issues related to vehicular emissions paired with the increasing need to reduce the effects of greenhouse gases will thus propel battery electric vehicles industry share in the future.
Over the last few years, electric vehicles have nearly gone mainstream, at least in the key global markets. Now having accomplished a small but significant share of the passenger-car market, the EV industry has been eying the public transit sector. Companies are now manufacturing battery-electric buses and selling them to cities interested in reducing their carbon footprint. Major manufacturers active in the electric-bus business comprise Canada-based New Flyer, China’s BYD and the US-based startup Proterra.
Recently, Austin became the fifth Texas city to invest in the Proterra battery-electric buses. A complete all-electric fleet is the main goal of the city’s transit agency Capital Metro, that purchased 40 buses along with 4 Proterra-charging systems of 60 kilowatts. Through no tailpipe emission, battery electric buses can help the agency meet its sustainability goals efficiently. The increasing adoption of such vehicles for public transportation will further proliferate the global battery electric vehicle market.
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Recently, Daimler Trucks North America claimed that battery electric vehicles will pave the way for zero-emission commercial transportation. According to the European Federation for Transport and Environment, emissions from heavy-duty vehicles such as trucks and busses grew by 36% between 1990 and 2010 and has continued to grow ever since. By the year 2030, trucks and buses will release around 15% of overall effort sharing or non-ETS emissions. Unless additional measures are taken, heavy-duty vehicle emissions could rise to contributing 40% of overall road transport emission by 2030. This presents BEV industry contenders with a viable growth opportunity, to manufacture batteries for heavy duty vehicles.
Recently, Germany-based Daimler announced the production of Freightliners, the company’s heavy-duty battery electric vehicles, from its manufacturing plant in Portland. According to Global Market Insights, the BEV market share from heavy-duty vehicles segment will exhibit a CAGR of 9% over 2019-2025. The adoption of battery electric heavy-duty vehicles in a bid to reduce emission from commercial transportation will thus propel the global BEV market in the coming years.
The adoption of battery-operated passenger cars, buses or trucks will be further supported by the imposition of stringent vehicular emission standards across the world. For instance, the European Parliament recently agreed to new CO2 emission standards for newly purchased cars and vans with an objective to witness 37.5% reduction in emission from new cars and 31% lower emissions from new vans by the end of 2030.
Such regulatory initiatives along with the increasing need to prevent the severity of global warming would accelerate the adoption of BEVs in the future. For the record, the global battery electric vehicle market is anticipated to surpass $425 billion by 2025, according to a research report by Global Market Insights, Inc.
Author Name : Krithika Krishnan