Overview of Electric Vehicle Market Trends in Forex Trading
The rapidly growing electric vehicle (EV) market is at the forefront of a massive shift in technology and infrastructure. Although EVs have been around since the 19th century, it’s only now that they are becoming more widely adopted, both by carmakers, governments, and consumers. This article explores the emerging electric vehicle market trends and how they are changing the way we transport ourselves and power our vehicles.
Electric Vehicles: Booming Global Market Set to Expand Even Further
The electric vehicle market has quickly become a major global industry in recent years, with demand for electric vehicles (EVs) increasing rapidly and sales expected to reach $823.75 billion by the end of 2030. It’s no secret that EVs are helping to reduce our carbon footprint; this type of car typically emits 40-60% less CO2 than a similar petrol or diesel vehicle, making them a more ecofriendly option. Additionally, a wide variety of EVs are now available to the consumer, from hybrids and plug-in hybrids, to fully electric battery-powered cars. Increased government support for green initiatives and ever-improving technology are some of the reasons for the fast growth of the global EV market.
By the end of 2023, battery EVs are projected to soar with a CAGR (compound annual growth rate) of 19%. This will be followed by commercial vehicles with a CAGR of 19.3%. Light electric vehicles such as cars and two-wheelers are projected to grow the most- with their sales expected to be at 53% of the global market by 2030. Eventually, the global electric vehicle market size is forecasted to reach USD 951.9 billion by 2030.
Significant Growth in Electric Vehicle Sales Expected in 2021
The share of electric cars in total sales has more than tripled in three years- rising from around 4% in 2020 to 14% in 2022. The trend is only set to continue, with overall EV sales predicted to increase 45% in 2021- higher than the 28% growth in 2020.
Research conducted by S&P Global Mobility provides near real-time updates of electrified (BEV and hybrid) light vehicle sales volumes for over 150 countries, broken down by brand, model and fuel type. According to this report, global EV sales in 2020 set a new record of 4.84 million cars. This was a dramatic increase from the 1.7 million electric vehicles sold in 2019. In the first quarter of 2021 alone, sales of electric vehicles skyrocketed by 60%, with almost 1.6 million sold worldwide.
Policies and Government Incentives to Boost Electric Car Adoption
Incentives and policies play a critical role in the success of the electric vehicle market. For example in 2019 global sales of EVs grew by 15%, largely attributable to increased government support and incentives being offered, which attracted new customers. In Europe, government incentives for electric cars boosted sales by 93%, while in China they increased by 17%. These figures illustrate how critical incentives and subsidies can be to promoting the adoption of EVs on a wider scale.
Currently, governments around the world are introducing policies that incentivise the purchase of electric cars in an effort to reduce their overall emissions. In China, for instance, policy makers are introducing technology-neutral regulations that ensure electric vehicles across different technologies receive equal financial support in the form of subsidies or tax incentives.
Incentives for electric car purchases have become increasingly popular over the past few years. According to data from the International Council on Clean Transportation, consumers spent $120 billion USD on electric car purchases in 2020- a 50% increase from 2019. This massive boost was aided by an increase in sales of 41%, combined with a 6% rise in average EV prices.
The Future of the Market
The future of the EV market looks promising, with forecasts suggesting electric cars could make up a majority of new car sales by 2035. To achieve this, electric vehicle production needs to be ramped up significantly to match the expected growth in demand. With many governments increasingly supporting the adoption of electric vehicles, we can expect to see these vehicles becoming an increasingly common sight on our roads- making an important contribution to reducing our carbon footprint and tackling climate change.