The global zero emission vehicle (ZEV) market, which recorded revenue exceeding US$180 billion at the close of 2021, is on the verge of a quantum leap that is set to redefine the automotive industry through 2027. This monumental growth aligns seamlessly with the global sustainability drive and underscores the pivotal role of ZEVs in achieving cleaner air and a stable climate.
Used ZEVs Emerge as the Next Frontier
The International Council on Clean Transportation (ICCT) predicts a significant shift in the ZEV landscape, with used zero emission vehicles expected to become mainstream within the next two decades. This transformation is driven by the rapid technological advancements in ZEVs, which result in faster depreciation compared to conventional vehicles. Furthermore, used ZEVs promise substantial cost savings in maintenance and fuel expenses compared to their traditional counterparts.
For instance, ICCT research reveals that in the United States, a five-year-old electric vehicle can save owners 11-17% in annual ownership costs compared to a conventional vehicle. Similarly, in the United Kingdom, drivers can expect annual ownership savings of approximately US$3,600 to US$4,600 when choosing a used ZEV over a traditional vehicle. As per ICCTs analysis, used ZEVs are projected to outnumber new ZEVs by the end of 2040, with the ZEV count surging past 168 million. This trend opens up significant opportunities within the used vehicle segment, driving further growth in the ZEV market.
A Paradigm Shift Away from Conventional Vehicles
The automotive industry is undergoing a seismic shift, marked by automation and technological innovations aimed at creating more efficient low and zero emission vehicles. This shift is driven by the environmental impact of emissions from internal combustion engines found in conventional vehicles, which contribute to pollution and harm to both humans and the environment. As a response, ZEVs, which utilize electricity or alternative sources such as hydrogen fuel cells that produce zero pollutants, have become a critical component in reshaping the global automotive landscape.
Government Initiatives Pave the Way
Stringent emission norms and regulations are being implemented by governments worldwide in response to rising environmental concerns. These regulations primarily target the reduction of carbon dioxide and nitrogen oxide emissions. Governments are increasingly focusing on cleaner transportation through ZEVs as a solution to combat escalating greenhouse gas emissions from automobiles.
For example, the United States Environmental Protection Agency (EPA) is actively working on new regulations to reduce nitrogen oxide emissions and pollutants from commercial vehicles and heavy-duty trucks. Similarly, the Canadian government has set mandatory targets for passenger trucks and new light-duty car sales to be zero emission by 2035, aligning with Canadas goal of achieving 100% zero emission sales by 2040. Collaborations between governments and vehicle manufacturers, such as the partnership between the Government of Indonesia, Hyundai Motor Group, and LG Energy Solutions Ltd to build battery cell plants, are further bolstering the demand for ZEVs and driving growth in the market.
Battery Electric Vehicles (BEVs) Lead the Charge
The demand for battery electric vehicles (BEVs) is expected to surge in the coming years, driven by government subsidies and incentives to reduce air pollution caused by vehicle emissions. The decreasing cost of electric vehicle batteries is another factor fueling demand and contributing to the growth of the ZEV market.
Asia Pacific: A Thriving Market
Developing nations in the Asia Pacific region are experiencing a remarkable increase in automobile sales, presenting substantial opportunities for ZEVs. For instance, China, a major player in the automotive industry, accounted for approximately 31% of global vehicle production in the third quarter of 2021. This regions growing inclination toward zero emission targets, combined with stringent government emissions regulations, is poised to create significant opportunities for the ZEV market in Asia Pacific.
Key players in the global zero emission vehicle market include Ampere Vehicles, Tata Motors, BMW AG, Hyundai Motor Company, Daimler AG, Tesla Inc., Volkswagen AG, General Motors, and Ford Motor Company.
As the world embarks on a journey towards a more sustainable and eco-conscious future, the zero emission vehicle market stands at the forefront of innovation, poised to revolutionize the way we commute while preserving our environment.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/zero-emission-vehicle-market
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