Electric Vehicle Market Revenue to Exceed US$1Trillion by 2033: Report

The global electric vehicle market size is predicted to grow at a CAGR of over 20% from 2023 to 2033. The market is projected to garner a revenue of US$1 trillion by the end of 2033, up from a revenue of US$170 billion in the year 2022, influenced by rising environmental concerns.

In terms of efficiency, petrol or diesel automobiles can only transfer 17%–21% of the energy contained in the fuel to the wheels, however, electric vehicles can transform about 60% of the electrical energy from the grid to power the wheels.

Hence, governments all across the globe are promoting the adoption of electric vehicles further to achieve the target of net zero carbon emission, says research and consulting firm Nester.

Growing Urban Population

As of 2021, roughly about 5 billion people were living in metropolitan areas worldwide, and an additional 4 billion people lived in rural areas. Over 750 million people lived in cities in 1950; by 2021, that figure had almost doubled to almost 5 billion; by 2050, it is expected to rise to over 7 billion, bringing an additional 3 billion people to metropolitan areas.

Hence, with this the market demand for electric vehicles is set to increase since everyday driving distances are typically significantly shorter in urban areas, smaller, more fuel-efficient cars tend to be more common there.

Growth of Asia Pacific Market

The electric vehicle market in Asia Pacific is predicted to gather the highest revenue by the end of 2033. This growth of the market in this region is set to be influenced by the rise in population. 60% of the world’s population, or over 4.3 billion people, are located in the Asia and Pacific region.

The passenger cars segment is estimated to gather the largest market revenue in Asia by the end of 2033. This growth of the segment is predicted to be influenced by rising middle-class population. It is projected that an additional 699 million individuals are expected to become part of the global middle class by 2030, accounting for over half of the world’s population.

The plug-in hybrid electric vehicle (PHEV) segment is expected to have significant growth in the market over the forecast period.

The major factor to dominate the segment growth is the rising demand for PHEV vehicles. The worldwide sales of new plug-in hybrid electric vehicles reached around 3 million in 2022. In 2022, sales of PHEVs made up about 27% of all sales of electric vehicles.

However, the fully electric (BEV) segment might also experience upward momentum only with the growth in the development of charging centers. Furthermore, in the case of PHEV the speed of charging is also higher which is why they are more in demand.

Among market leaders in the global electric vehicle market are Toyota, BYD, Mercedes-Benz, General Motors, Nissan and Tesla.