Zero Emission Vehicle Market - Global Industry Analysis by Market Share, Trend, Size, Competitive Landscape, Regional Outlook and Forecast (2024-2030)

Zero Emission Vehicle Market Overview:

Zero Emission Vehicle (ZEV) is a vehicle that does not emit the pollutant from the onboard source of power. These vehicles have significant emission benefits over conventional vehicles and run on alternate power sources such as battery electricity, natural gas, and solar power.

 

It has gained popularity owing to numerous technological advancements. It outperforms the conventional vehicle providing higher fuel economy, low carbon emission & maintenance, convenience of charging at home, smoother drive, and reduced sound from engine. Total running costs are often far less than comparable internal combustion engine (ICE) vehicles. These are the factors, which ensures the growth of the zero emission vehicle market.

 

At present, most zero emission vehicles employ a highly efficient electric drive system integrating high voltage storage batteries, a high-speed charging system, and one or more forms of onboard electric power generation, such as brake regeneration or solar panels. However, the zero-emission vehicle market (ZEV) is still in its development stage, and it is expected to expand exponentially in the next few years. The market is dominated by the North American region with competition from the Asia Pacific region growing. Europe Region shows emerging adaptation and emerging market capabilities.

 

 

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Zero Emission Vehicle Market Dynamics:

Rise in demand for efficient vehicles like Zero Emission Vehicles:

To support sustainable development, it is critical to develop and use alternative fuel sources. This necessitates the use of zero emission vehicles (ZEV), which do not require gasoline and are less expensive than conventional vehicles. The recent increase in the price of gasoline and diesel has increased demand for fuel-efficient vehicles. Thus, the rise in demand for efficient vehicles is driving the growth of the zero emission vehicle market (ZEV) during the forecast period. Global warming is currently a source of concern, as it threatens both humanity and the environment. As zero emission vehicles (ZEV) do not use fossil fuel and generate no pollution, they are projected to remove pollution caused by fuel-powered vehicles. The zero emission vehicle market (ZEV) growth is also projected to be fueled by rising energy costs and competition among emerging energy efficiency technologies.

 

Technological advancements in Zero Emission Vehicle Market:

Automobile manufacturers are focusing on the development of improved zero emission vehicle (ZEV) systems that are expected to emit fewer pollutants while costing less. The companies have also begun developing smaller engines for use in automobiles, as smaller engines help meet pollution standards. The compactness and low cost of these engines add another dimension to their utility. As a result, the future development of advanced gasoline direct injection systems opens up numerous opportunities for zero emission vehicle market players. To prevent the rise in global temperature, governments are creating global collaborations and enacting severe emission standards.

 

High manufacturing costs and Lack of charging facilities in Zero Emission Vehicle Market

An additional cost of buying a ZEV instead of a fuel-powered vehicle is mainly attributed to the high cost of battery. In addition, initial investments for producing zero emission vehicles are much higher compared to those of petroleum, diesel, or CNG vehicles. The involvement of expensive manufacturing processes and the use of costly raw materials are the major reasons for the high cost of zero emission vehicle market. Many countries around the world have a scarcity of zero emission vehicle (ZEV) charging stations. As a result, public zero emission vehicle (ZEV) charging becomes less accessible, lowering zero emission vehicle market demand for zero-emission vehicles (ZEV). Even though many governments are attempting to establish charging infrastructure for zero-emission vehicles (ZEV), most countries have not been able to develop an adequate number of charging stations. Thus, this is a challenge for the zero emission vehicle market (ZEV) growth.

 

Zero Emission Vehicle Market Segment Analysis:

Based on Vehicle Class: The commercial segment held the largest zero emission vehicle market share in 2023 which is attributed to government initiatives fostering the production and adoption of zero-emission vehicles. Being the most common mode of transportation makes the commercial vehicle segment the largest. Apart from that, an increase in the number of leisure and travel activities around the world also makes this segment one of the most demanding of all. It is particularly seen in the public sector and institutional organizations. The integration of electric buses and trains in urban mobility facilitated with government incentives for electric taxis and rickshaws, has been instrumental in driving the growth of the commercial vehicles segment on a global scale.

 

Also, these electric vehicles find extensive use in various government-operated, owned, or controlled industries, serving as a model for both commercial and private sectors within the economy. However, the passenger vehicle is expected to witness the fastest growth rate in zero emission vehicle market. In the current times, ZEV is mainly used as a passenger vehicle mainly in the industrial sector.  The two-wheeler segment offered is also expected to grow at a decent rate during the forecast period. Buses and coaches are used to transport passengers with more than eight seats plus the driver’s seat and a maximum mass greater than light vehicles in zero emission vehicle market.

 

 

By Vehicle Type: The Fuel Cell EV segment dominated the zero emission vehicle market through escalating government initiatives and investments aimed at enhancing the infrastructure for electric vehicle charging outlets. The fuel cell electric vehicle (FCEV) segment will grow due to rising government initiatives and investments to improve the infrastructure for electric vehicle charging outlets. The battery electric vehicle (BEV) segment is positioned to be the fastest-growing category for the forecasting period of 2024-2030. The surge in demand for environmentally friendly mobility solutions, driven by a desire to mitigate pollution levels, coupled with the allure of tax refunds, is propelling the growth of electric vehicle batteries (EVB). Government programs and incentives designed to promote the adoption of sustainable mobility solutions will play a pivotal role in fostering the expansion of the BEV segment and reducing car pollution. The segment is growing as consumers become more aware of the benefits of good air quality and the negative effects of automobile emissions. The battery electric vehicle (BEV) segment will grow as a result of government programs and schemes that encourage the adoption of sustainable mobility solutions to reduce car pollution by zero emission vehicle market.  

 

According to the Zero Emission Vehicle Factbook, Most of the Zero Emission Vehicles are BEV, not FCV. Battery Electric Vehicles and Plug-in Hybrid Electric Vehicles are in total called Electric Vehicles. Some of the non-plug-in hybrid electric vehicles and plug-in hybrid vehicles have combustion engine which provides power to car dynamics.

 

 

Zero Emission Vehicle Market Regional Analysis:

North America dominated the zero emission vehicle market (ZEV) in 2023. The North America is partnering on a variety of fronts to raise zero emission vehicle (ZEV) awareness and, as a result, increase global demand.  Asia-Pacific is expected to develop at the fastest rate during the forecast period. The United States National Zero Emission Vehicle Market also sets a record in 2023, surpassing 1.4 million annual new registrations and achieving over 10% of new vehicle registrations along with normal vehicles in the third and fourth quarters of 2023 which is a 52% increase over 2022.

 

 

The Asia-Pacific region is heavily populated, with the bulk of residents falling into the middle class. They are the largest purchasers of zero emission vehicles (ZEV). As a result, the volume of zero emission vehicle (ZEV) sales in this region is likely to continue to climb. Customers are being pushed to choose zero emission vehicles (ZEV) due to rising gasoline prices. 

 

Country	January to July 2023, Electric Light-Duty Vehicle Sales
India	55,136
Thailand	44,369
Turkey	19,356
Vietnam	17,897
Mexico	8784
Indonesia	8448
Brazil	5868
Other Countries	23,376

 

 

There is new progress in Zero Emission Vehicle adoption in emerging markets like India, Thailand, and Indonesia. Sales of passenger EVs in India reached 75,000 in 2023 through September, more than double the number of sales over the same period last year. Electric Vehicles account for 2.4% of the 3.1 million passenger vehicles sold in India by 2023. For Thailand, 55,000 cars were sold which was three times more than the yearly sales of 2022.  Indonesia faced a 2% increased sells in the country throughout the year.

 

 

A cumulative total of 41 million EVs have been sold by the end of 2023, which was about 10 million at the end of 2020. 3% of total global vehicles are Electric passenger vehicles.

 

Zero Emission Vehicle Market Competitive Landscape:

Kia Motors is dedicated to ensuring that driver enjoyment remains a top priority in the era of future mobility. Apart from that, the company has recently developed a technology that reads our fingers and eyes.

 

Chevrolet offers a car which is equipped with a forward collision alert and automatic emergency braking. This system can warn the driver when it detects a potential front-end collision with a vehicle you are following so that you can quickly take action. At a speed of below 50 mph in the daytime, the system can help us avoid or reduce the severity of a potential front-end collision.

 

BMW has always believed in providing a fascinating driving experience through automated driving, electro-mobility, on-demand mobility, and connectivity-mobility. The company has also set trends in production technology and sustainability as an innovation leader with an intelligent material mix, the technological shift towards digitalization, and resource-efficient production.

 

• In November 2022, Fiat’s Stellantis announced that it would be bringing its new all-electric Fiat 500e to North America by early 2024.

 

• In December 2022, BMW announced that its next-generation lithium-ion cell would operate at 30% more range.

 

Zero Emission Vehicle Scope:

Zero Emission Vehicle Market
Market Size in 2023	USD 238 Bn.
Market Size in 2030	USD 964.02 Bn.
CAGR (2024(2030)	22.12 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments Analysis	By Vehicle Class Passengers Cars Commercial Vehicle Two Wheelers
	By Price Mid-Priced Luxury
	By Vehicle Type Battery Electric Vehicle Plug-in Hybrid Electric Vehicle Fuel Cell Electric Vehicle Solar Vehicle
	By Vehicle Drive Type Front Wheel Drive Rear Wheel Drive All Wheel Drive
	By Vehicle Speed Less Than 100 MPH 100 To 125 MPH More Than 125 MPH
Regional Scope	North America (United States, Canada, and Mexico) Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe) Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC) Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A) South America (Brazil, Argentina Rest of South America)

 

Zero Emission Vehicle Key players

1. Tesla (United States)
2. General Motors (United States)
3. Ford Motor Company (United States)
4. Fisker Inc. (United States)
5. Rivian Automotive LLC (United States)
6. Proterra Inc. (United States)
7. Chevrolet (USA)
8. Volkswagen Group (Germany)
9. BMW Group (Germany)
10. Mercedes-Benz Group AG (Germany)
11. Volvo Group (Sweden)
12. Jaguar Land Rover Automotive PLC (United Kingdom)
13. BYD Company Limited (China)
14. SAIC Motor Corporation Limited (China)
15. Hyundai Motor Company (South Korea)
16. Kia Corporation (South Korea)
17. Panasonic Corporation (Japan)
18. Toyota Motor Corporation (Japan)
19. Electra Vehicles (UAE)
20. Himoinsa Middle East FZE (UAE)
21. Veecraft Marine (South Africa)
22. Foton Motor Group (China) - operating in Kenya, Algeria, Egypt
23. Renault Group (France) - operating in Morocco and South Africa
24. Nissan (Japan)
25. Fiat (Italy)