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The global electric vehicle market is expected to have a CAGR of 41% during the forecast period 2014-2023. Although electric vehicle market is still a niche market but poses a great potential as electric vehicle use electricity as a fuel utilizing power stored in batteries to propel electric motor thus is a clean fuel in comparison to diesel and petrol s they release CO2 upon combustion. Government policies aim at decreasing the CO2 emission, globally, by 28% by 2025. Government of different countries such as Germany, US, China, Japan etc. provide subsidy on electric vehicles to promote their usage which would propel huge growth in the electric vehicle market. Rise in disposable income also drives the electric vehicle market. The major factor restraining the growth of electric vehicle market are low performance of vehicle at high speed, low number of charging stations and high price of the vehicle.
Electric vehicle market can be segmented on the basis of technology, power source and vehicle. Power source can be further sub-segmented into stored electricity and on board electric generator. Vehicle is further segmented into passenger Cars, commercial vehicle, two wheelers and others of which the passenger cars segment has the highest market share driven by rise in disposable income and high sales and production of passenger cars.
Geographically, North America dominates the electric vehicle market owing to favorable government policies, presence of big market companies such as Tesla Motors (US), General Motors (US) and high disposable income of US and Canada. The federal government set the goal to have 1 million electric vehicles on road by 2015, for which federal government also pledged to give $2.4 billion in federal grants to promote next-gen electric vehicles and batteries. According to OECD the disposable income per capita of US and Canada in year 2015 was $ 46,509, $ 31,086 respectively which heavily influences the electric vehicle market.