The electric vehicles market is projected to be worth 35K thousand units by the year 2031. It is, in fact, expected to witness a CAGR of over 25% between 2021 and 2031. This could be reasoned with an ever-increasing demand for lower emission/zero-emission vehicles.
Governments across the globe are excessively investing in electric vehicles through tax rebates and subsidies, also the targets set up by economies regarding the reduction of emissions as per their upper limit will be the major reason behind the market’s upsurge.
Governments are also helping in the development of charging stations along with hydrogen fueling stations and making way for incentives to the purchasers. At the same time, developing economies are a bit slow in setting up the charging stations as the installation cost is on the higher side.
With technological upgrades witnessing a substantiation, EV batteries are being manufactured in bulk. This mass production has, in turn, led to a drastic reduction in the price of EV batteries. This scenario is expected to continue even in the forecast period.
For instance, an EV battery did cost over USD 1L per kWh as of the year 2010, but by the year 2020, the price fell by close to USD 130 per kWh. Another reason is the reduction in the cost of cathode material. Persistence Market Research predicts that an EV battery may cost as low as USD 55-60 per kWh by the year 2031.