North America Electric Vehicles Market Is Anticipated To Expand At A CAGR Of 37.2% From 2021 To 2028

 North America Electric Vehicles Industry Overview

The North America electric vehicles market size is expected to reach USD 147.60 billion by 2028, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 37.2% from 2021 to 2028. Favorable initiatives to promote the adoption of electric vehicles coupled with rising crude oil prices are anticipated to drive the demand for Electric Vehicles (EVs). Electric vehicles generate power using an electric motor instead of an internal combustion engine that burns a mix of fuels and gases for power generation. The increasing advantages of electric vehicles over conventional vehicles such as zero fuel emission, better performance, and lower total cost of ownership are expected to contribute to the growing demand for electric vehicles in the coming years.

 

The growing preference for electric vehicles is prompting leading automotive manufacturers to launch electric vehicles. For instance, General Motors, a U.S.-based automotive company, has announced its plan to launch electric vehicles for personal use in the next few years. By 2025, the company will launch 30 EVs worldwide, and around two-third will be available in North America. The market's lucrative nature is expected to encourage more conventional vehicle manufacturers to shift into the electric vehicle space.

The outbreak of the COVID-19 pandemic has changed the overall business scenario for 2020 as well as for the next few years to come. Several industries and industry verticals have witnessed a significant setback due to the pandemic, and the automobile industry is no exception to that. The slumped business scenario has negatively impacted the production and sales of electric vehicles across North America. The electric bus sales in North America in 2020 totaled around 500 units, which was significantly lesser units recorded in 2019, registering a year-on-year decline of over 10% primarily due to the pandemic. However, with increasing government initiatives to adopt electric vehicles, the market is likely to witness significant growth over the forecast period.

In 2020, the U.S. captured around 70% of the electric vehicle demand in North America and is estimated to register a CAGR exceeding 30% from 2021 to 2028. This share is attributed to the rising demand for electric vehicles in the U.S. Moreover, new initiatives are being taken up by charging network companies, automotive manufacturers, and policymakers, and they have launched a new non-profit organization named Veloz. The new organization aims at attracting marketing, innovation, investment, and driving the regional market growth.

North America Electric Vehicles Market Segmentation

Grand View Research has segmented the North America electric vehicles market based on product, vehicle type, and region:

Based on the Product Insights, the market is segmented into Battery Electric Vehicle (BEV), and Plug-In Hybrid Electric Vehicle (PHEV).

• The BEV segment accounted for the largest revenue share of over 75% in 2020 and is expected to maintain its dominance from 2021 to 2028. The high revenue share is mainly attributable to the increasing environmental awareness and benefits of BEV among end users. Additionally, the average driving range of BEVs has been steadily increasing.

 

• The PHEV segment is estimated to expand at the highest CAGR of over 40% in terms of revenue from 2021 to 2028. This upsurge can be attributed to the initiatives taken by the U.S. and Canadian governments to promote the use of EVs. PHEVs are generally offered in larger vehicle segments such as electric trucks and buses. The growing transportation and logistics industry is expected to witness segmental growth over the forecast period.

 

Based on the Vehicles Type Insights, the market is segmented into PCLT, and Commercial Vehicles.

• The PCLT segment accounted for a dominant revenue share exceeding 85% in 2020 and is anticipated to continue its dominance over the forecast period. The PCLT segment includes passenger cars and light trucks. The light trucks segment is estimated to expand at a CAGR exceeding 35% from 2021 to 2028 as SUVs offer advanced features, affordability, comfort, and durability, among other advantages.
• The commercial vehicle segment is estimated to expand at a CAGR exceeding 45% in terms of revenue over the forecast period. Increasing demand in the logistics sector, incentives for adopting zero-emission vehicles, and reducing the fuel and maintenance costs are some of the factors driving the segment growth.

 

Key Companies & Market Share Insights

The market is highly competitive with the presence of several global as well as regional players. In 2020, the market was dominated by Tesla, General Motors Company, Toyota Motor Corporation, Nissan Motor Company, and Volkswagen AG. Organic growth remains the key strategy for the overall industry, focusing on product launches to expand product offerings and meet consumer demands. For example, in September 2020, Volkswagen AG announced the launch of ID.4, a fully electric driven SUV generating zero local emission. The company has planned to launch the car in the compact SUV segment.

Market players also focus on joint ventures and partnerships to increase the adoption of electric vehicles. For instance, in July 2020, General Motors partnered with EVgo to accelerate widespread adoption in the U.S. The companies planned to add over 2,700 new fast chargers to expand the public fast-charging network over the next few years.

Recent Developments

• In June 2021, Tesla announced the roll of the first production Tesla Model S Plaid. It’s a four-door electric car with an estimated range of 390 miles.The Plaid is the top-of-the-line Model S, with 1,020 horsepower, and a 0-to-60-mph time of 2 seconds.The Plaid charges faster at Tesla superchargers has a more spacious back seat, and a better entertainment system
• In March 2022, Tesla announced the opening of its Tesla Gigafactory Texas. Gigafactory Texas is located near Austin and will manufacture Tesla Cybertruck, Tesla Semi, Model 3, and Model Y for the eastern United State market. The factory is the second-largest factory in terms of size in the U.S. and the second-largest in terms of volume
• In June 2022, Volkswagen AG announced the operation of its North American Battery engineering laboratory in Chattanooga. The company invested USD 22 million in developing and constructing the new flagship facility and its main purpose is to test EV batteries and high voltage engineering activities

Some of the prominent players operating in the North America electric vehicles market are:

• BYD Company Ltd.
• Daimler AG
• Ford Motor Company
• General Motors Company
• Lucid
• Mitsubishi Motors Corporation
• Nissan Motor Company
• Tesla
• TOYOTA MOTOR CORPORATION
• Volkswagen AG

 

Order a free sample PDF of the North America Electric Vehicles Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

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