Electric Mobility Market Size, Share & Industry Analysis, By Product (Electric Car, Electric Motorcycle, Electric Scooter, Electric Bike, and Others), By Voltage (Less than 24V, 24V, 36V, 48V, and Greater than 48V), By Battery (Sealed Lead Acid, NiMH, and Li-ion), and Regional Forecast Period, 2024-2032

The global electric mobility market size was valued at USD 435.16 billion in 2023. The market is projected to grow from USD 551.57 billion in 2024 to USD 4,364.85 billion by 2032, exhibiting a CAGR of 29.9% during the forecast period.

The market contains a variety of Electric Vehicles (EVs), including Battery Electric Vehicles (BEVs), Plug-In Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs). Additionally, it includes the infrastructure and technologies necessary to support the adoption and use of electric vehicles, such as charging stations, battery technologies, and renewable energy sources. Government policies and incentives play an essential role in shaping the electric mobility market. Incentives such as tax credits, rebates, and subsidies for electric vehicle purchases can help stimulate demand. In contrast, regulations, such as emissions standards and fuel economy requirements, drive the electric mobility market during the forecast period.

The sales growth was majorly driven by government initiatives to offer subsidies and tax benefits on electric vehicle purchases. For instance, incentives offered in Europe on EV purchases in 2023 have fueled the EV sales in the region and boosted the global e-mobility market. Moreover, shifting consumer preference from conventional to electric vehicle purchase due to environmental concern and tightening emission norms worldwide has also influenced the market growth.

The COVID-19 pandemic positively impacted the global e-mobility market due to government stimulus incentives, packages, and tax benefits for the adoption of electric mobility. For instance, due to policy support and stringent emission norms from the European Union, Europe witnessed more than double EV sales in 2020 compared to the previous year. Both Europe and China witnessed a surge in EV sales during the pandemic. According to the IEA, in 2020, the number of new EVs registered globally increased 41% as compared to 2019 and reached total registrations of more than 3 million units.

Electric Mobility (E-Mobility) Market Trends

Rising Trend for Adoption of Electric Micro-Mobility to Drive Market Growth

The ongoing trend for adopting electric micro-mobility is expected to emerge intact and expected to thrive in the long term. Due to extensive social distancing guidelines, disrupted public transport worldwide, and higher awareness regarding environmental concerns and personal hygiene, consumers prefer to utilize electrical micro-mobility products, such as electric bikes, e-scooters, and others, rather than public transportation for short commute. Moreover, rising fuel prices and stringent emission norms further support the development of electric micro-mobility globally.

Governments across the globe are also promoting the adoption of electric micro-mobility to fight climate change and become carbon neutral. Furthermore, automakers’ focus on specially designed electric two-wheelers and low-speed vehicles for emerging economies to grab early revenue growth opportunities is also anticipated to propel the market growth in future. For instance, In August 2023, ride-hailing and electric automotive manufacturing company Ola launched its S1 X Range of Scooters, Next-Gen S1 Pro. The vehicle will come in three variants: The Ola S1 X (with a 2 kWh battery), the Ola S1 X, and the Ola S1 X+ (with a 3 kWh battery each).

Electric Mobility Market Growth Factors

Increasing Demand for Emission Free Vehicles to Drive Market Growth

Governments across the globe enforce stringent emission norms to reduce carbon emissions and fight climate change. Additionally, they introduce various scrapping policies for conventional or fossil fuel-powered vehicles. Therefore, due to increasing insecurity regarding the adoption and future use of conventional or fossil fuel-powered vehicles, consumers’ preference is shifting toward electric vehicles, which is expected to drive the market growth during the forecast period.

Lower Lithium-ion Batteries Cost to Fuel Market Growth

The high cost of electric vehicles is one of the major obstacles for the adoption of electric mobility. However, recent technological developments and automakers’ focus on the mass production of lithium-ion batteries have reduced the cost of li-ion batteries over the years, resulting in a significant decline in EV cost. The drop in lithium-ion batteries’ cost is expected to continue in the coming years, further influencing market growth.

Automakers Commitment to Become Carbon Neutral to Propel Market Growth

Almost all the leading automakers have already pledged to become carbon neutral in the near future. They intend to stop manufacturing fossil fuel-powered vehicles and electrify their entire product portfolio. For instance, in February 2021, Ford Motors Company announced that its European division would soon phase out of fossil fuel-powered vehicle production, and by 2026, Ford will only offer electric and plug-in hybrid electric vehicles. Moreover, by 2030, all passenger vehicles will be powered by batteries only. Therefore, automakers’ focus on rapid electrification is anticipated to boost the market growth over the forecast period.

RESTRAINING FACTORS

Global Semiconductor Chip Shortage to Hamper Market Growth

The global semiconductor chip shortage has also reduced the overall EV production. For instance, major automakers, including Volkswagen, Mercedes-Benz, General Motors, and others have already witnessed a drop in the production volume of new electric vehicles, resulting in a shortage of new electric vehicles and increase in delivery time and cost of the EVs. Moreover, the slow adoption of electric mobility in some developing and underdeveloped countries may also restrain the market growth in the coming years.

Electric Mobility Market Segmentation Analysis

By Product Analysis

Rapid Automotive Electrification to Drive Segmental Growth

Based on product, the market is segmented into an electric car, electric motorcycle, electric scooter, electric bike, and others.

The electric car segment held the largest market share in 2023 and is expected to continue its dominance during the forecast period. Some of the factors supporting the segment growth include government policy support for purchasing plug-in hybrid & electric vehicles, stringent automotive emission norms, rising fuel prices, and lowering the cost of EVs due to technological advancement. Moreover, the high penetration of electric cars in major regions, such as the U.S., Europe, China, and others, compared to electric two-wheelers is expected to fuel the segment growth.

The electric motorcycle segment is expected to witness the fastest growth rate during the forecast period. Increasing demand for electric micro-mobility for short-distance commute due to disrupted public transport amid pandemic is expected to drive the market growth. Additionally, the low cost of electric motorcycles compared to electric cars and significant travel range are further expected to increase their popularity in emerging economies. Moreover, the rising level of urban traffic, coupled with emission norms and rising fuel prices, is expected to boost the demand for electric motorcycles in the coming years.

The electric scooter segment is also expected to witness an eye-catching growth rate during the forecast period. Increasing preference for electric scooters for short-distance commute and automaker’s focus to design affordable electric two-wheelers for emerging economies are expected to propel the segment growth in the coming years. The electric bike segment is also anticipated to register a significant growth rate over the forecast period due to the rising number of health-conscious populace and ease of use.

The others segment, which includes electric skateboards and electric wheelchairs, is expected to witness certain growth due to the growing popularity of electric skateboards among children and the increasing demand for electric wheelchairs in hospitals. Moreover, increasing demand for an electric wheelchair for comfort and convenience of specially challenged and the elderly populace is also expected to influence the market growth during the forecast period.

By Voltage Analysis

Increasing Demand for Efficient Electric Vehicles to Drive Segmental Growth

Based on voltage, this market is segmented into less than 24V, 24V, 36V, 48V, and greater than 48V.

The 24V segment led the market in 2023. Due to high compatibility, these batteries are highly popular among a wide range of electric vehicles. The 24V battery system provides significant power output to cater to various functional requirements in electric vehicles. Moreover, smaller and lighter wiring harnesses can be utilized using a 24V battery system. Therefore, increasing demand, high compatibility, and efficient vehicle functioning are likely to accelerate the segment growth.

The greater than 48V segment is anticipated to witness the fastest growth rate and is likely to dominate the market by 2028. Increasing demand for higher voltage systems for modern electric vehicles is expected to boost the segment growth over the forecast period. It offers efficient performance and high power output, resulting in improved travel range. Moreover, its increasing preference among automakers and continuous research & development on higher voltage systems are also expected to influence the market growth in the coming years.

The 36V and 48V segments are also expected to witness a significant growth rate due to their increasing adoption among the electric two-wheelers for better efficiency and long-range compared to low volt battery systems. Moreover, the less than 24V battery segment is also expected to witness a considerable growth rate due to their adoption of electric vehicles for other functionalities such as communication, door locks, and others.

By Battery Analysis

 Technological Developments in Lithium-ion Battery to Drive Segmental Growth

Based on battery, the e-mobility market is segmented into sealed lead acid, NiMH, and Li-ion.

The Li-ion segment held the leading market share of 56.2% in 2023 and is expected to retain its position throughout the forecast period. Increasing demand for lithium-ion batteries in electric vehicles due to their compactness, lightweight, and high capacity is expected to boost the segment growth during the forecast period. Technological advancement in lithium-ion batteries and manufacturers’ efforts to reduce the cost of a lithium-ion battery are expected to influence the segment growth. Moreover, rapid automotive electrification will support the segment growth in the near future.

The sealed lead-acid battery segment held the second-largest market share in 2023. High adoption of lead-acid batteries in electric vehicles as a supplement for other loads, such as headlight, communication, and others, is anticipated to accelerate the segment growth. Moreover, their high compatibility with a wide range of EVs is expected to drive the segment growth. The NiMH segment is expected to witness a considerable growth rate due to its increasing demand for hybrid electric vehicles, owing to its high charge density, lightweight, and efficiency.

REGIONAL INSIGHTS

Asia Pacific dominated the global electric mobility market with market size of USD 216.67 billion in 2023 and is expected to retain its position throughout the forecast period. The high adoption of electric vehicles in China fueled the market growth. According to the International Energy Agency (IEA), China witnessed an increase in EV sales by 36% in 2023 compared to 2022. Moreover, increasing penetration of electric vehicles in emerging countries of APAC, including India, South Korea, Japan, and others is expected to boost the market growth in future.

Europe is the fastest-growing market for electric mobility. With the increasing number of government policies and incentives for new EV purchases and shifting preference of the populace toward electric mobility due to stringent emission norms and environmental concerns, Europe is expected to register a promising CAGR of 30.6% during the forecast period. For instance, in 2023, EV sales in Europe more than doubled, with total new EV registrations reaching more than 1.5 million units, which is higher than any other country. Moreover, the well-established automotive industry in major European countries, such as Germany, the U.K., and others, coupled with charging infrastructure availability, is further expected to fuel the market growth in the coming years.

North America is also expected to witness a significant growth rate over the forecast period. Significant EV sales in the U.S. are driving the market growth. Additionally, technological advancement in North America and the presence of leading EV manufacturers, such as General Motors, Tesla Inc., and others, are expected to fuel the electric vehicle market in North America, resulting in a surge in the adoption of electric mobility.

The rest of the world, including the Middle East & Africa and Latin America, is expected to register a considerable CAGR from 2024 to 2032. Increasing adoption of electric two-wheelers in the regions coupled with expanding automotive industry in Latin America is expected to fuel the market growth in the coming years.

List of Key Companies in Electric Mobility Market

Focus on Early Development of Electric Vehicle Battery Technology to Drive Competition

The market is fragmented with various players worldwide. Companies are expanding their business geographically to grab untapped opportunities in emerging markets. In January 2021, Tesla announced its global expansion plans to expand in China and open new manufacturing facilities in Germany and Texas.

Tesla is one of the leading manufacturers of pure electric vehicles headquartered in California, U.S. The company designs, develop, manufactures, and sells fully electric vehicles, energy generation, and storage systems. It also provides vehicle service centers, charging stations, and self-driving technologies. In 2023, Tesla sold the highest number of electric cars compared to any other manufacturer. Moreover, the Tesla Model 3 was the highest-selling electric passenger car worldwide, with roughly 772,364 units sold in 2023.

LIST OF KEY COMPANIES PROFILED:

• Tesla Inc. (California, U.S.)


• Nissan Motor Corporation (Yokohama, Japan)


• BMW MOTORRAD (Munich, Germany)


• General Motors Company (Michigan, U.S.)


• Honda Motor Company, Ltd. (Tokyo, Japan)


• BYD Company Ltd. (Shenzhen, China)


• Accell Group (Heerenveen, Netherlands)


• Volkswagen AG (Wolfsburg, Germany)


• Zero Motorcycles, Inc. (California, U.S.)


• Ford Motor Company (Michigan, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In January 2024, Tesla announced that plans to make an inexpensive robotaxi and an entry-level, USD 25,000 electric car based on the same vehicle architecture in 2025. The model, which includes an entry-level car, would allow it to compete with cheaper gasoline-powered cars and a growing number of inexpensive EVs, such as those made by China's BYD.


• In June 2023, Ford announced that the company would receive USD 9.2 billion as part of a dependent loan from the US Department of Energy to assist in constructing three huge electric vehicle battery factories. The loan originates from the DOE’s Advanced Technology Vehicles Manufacturing (AVTM) program.


• In October 2023, Stellantis N.V. signed a MOU to establish a joint venture for recycling end-of-life electric vehicle batteries and scrap from gigafactories in Enlarged Europe and North America. The joint venture capitalizes on Orano’s innovative, low-carbon technology, which breaks with existing processes, allowing the recovery of all materials from lithium-ion batteries and manufacturing new cathode materials.


• In October 2023, Toyota Motor signed a supply agreement with LG Energy Solution for use in the Japanese automaker's battery electric vehicles assembled in the U.S. LG Energy Solution will supply Toyota with 20GWh of high-nickel NCMA battery modules annually from 2025. The battery maker will invest about $3 billion in its Michigan facility to establish new production lines for battery cells and modules exclusively for the automaker.


• February 2023 –  BYD has announced two new dealer cooperation's to its network in the Europe region. Motor Distributors Ltd (MLD) is active in Ireland and will offer BYD models at select locations, including Dublin and Cork. RSA is a dealer with whom BYD already cooperates in Norway, and it will offer the Chinese EVs in Finland and Iceland. BYD initially launched three electric vehicle models in select European countries at the end of 2022. Two more series could follow in 2023.

REPORT COVERAGE

The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Further, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation