North America Electric Vehicles Market Size, Share & Trends Report

North America Electric Vehicles Market Size, Share & Trends Analysis Report By Product (BEV, PHEV), By Vehicle Type (PCLT, Commercial Vehicles), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-439-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 94

Report Overview

The North America electric vehicles market size was valued at USD 12.80 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 37.2% from 2021 to 2028. Favorable government initiatives, subsidies, and tax rebate programs to promote EV adoption will drive market growth. Additionally, several advantages of electric vehicles over conventional vehicles in terms of cost will also favor market growth over the forecast period. A decline in battery pack prices is also another factor expected to create significant growth opportunities for players operating in the market. According to a research paper published by the international council on clean transportation, battery pack prices in the U.S. are expected to drop from USD 11,500 in 2018 to USD 8,000 in 2025.

U.S. electric vehicle market size, by product, 2016 - 2028 (USD Billion)

Electric vehicles are amongst the most prominent technologies that contribute to reducing air pollution. Thus, governments across the globe have proposed tax rebate programs to promote the adoption of electric vehicles. For instance, in the U.S., under the Clean Vehicle Rebate Project (CVRP), qualified applicants would be provided a rebate from the State of California, effective for applicants received on or after April 23, 2021. After meeting the eligibility requirements, the applicants would be eligible to receive cashback on a new electric vehicle based on the type selected. The applicant will receive a cashback of USD 2,000 on the purchase of a new battery electric vehicle and USD 1,000 on the purchase of a new plug-in hybrid electric vehicle.

The adoption of electric vehicles has gained traction in several regions/countries due to increasing fuel prices. Electric vehicles act as a substitute for petrol and diesel vehicles and are powered by lithium-ion batteries that offer a hybrid charging facility. These vehicles are eco-friendly and do not cause any pollution. They do not emit harmful greenhouse gases while operating. The cost of electricity is much lower than the cost of fossil fuels. This reduces the cost of operation of electric vehicles as compared to other petrol and diesel vehicles. Thus, the rising crude oil prices and depletion of fuel reserves are expected to drive electric vehicle demand.

The COVID-19 pandemic negatively impacted the North America EVs market growth in 2020. The electric passenger car and light truck sales in the U.S. totaled over 200K units in 2020, which was significantly lesser than units recorded in 2019, thus registering a year-on-year decline of over 5% primarily due to the pandemic. According to the data published by Electric Mobility Canada (EMC), the electric vehicle sales in Canada witnessed a decline in the second quarter of 2020, with only over 8,000 units sold between April and June. The results represent a drop of over 50% from the units sold during the same period in 2019. However, the overall sales of electric passenger cars and light trucks in Canada remained the same in 2020 compared to 2019.

Product Insights

Based on product, the market has been segmented into Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (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 average range of BEVs was about 350 km in 2020, up from 200 km in 2015.

Meanwhile, 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. Moreover, companies such as Volkswagen Group are focusing on increasing their plug-in electric car sales. In January 2020, the company announced an increase of about 60.0% in its plug-in electric car sales compared to 2018.

Vehicle Type Insights

Based on vehicle type, the market has been segmented into Passenger Cars and Light Trucks (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. Moreover, several prominent manufacturers are focused on launching electric vehicles in the light truck segment. BMW iX, Tesla Cybertruck, Audi Q4 e-tron, and GMC Hummer, among others are some of the light trucks that will be available in the market in the coming years.

North America electric vehicle market share, by vehicle type, 2020 (%)

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. Moreover, stringent emission norms imposed on commercial vehicles are expected to propel manufacturers to invest in electric truck manufacturing.

Regional Insights

The U.S. accounted for the largest revenue share of over 70% in 2020 and is anticipated to continue its dominance over the forecast period. The increasing demand from the logistics sector is expected to lead to regional growth. Besides, in June 2020, the California Air Resources Board has set electric truck sales targets for manufacturers beginning in 2024. The rule is expected to bring around 0.3 million electric trucks to California’s roads by 2035. The electric vehicle sales in the U.S. had declined in 2019 and 2020 as the federal tax credit was decreased for General Motors Company and Tesla.

Canada is projected to expand at the highest CAGR exceeding 40% in terms of revenue from 2021 to 2028. The government in the country is investing significantly to promote adoption. The province of Ontario and the federal government each provided USD 220 million to Ford Motor Company to support EV production. Besides, the government will also provide USD 2 billion over the next few years to electrify school and transit buses across the country.

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. 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

North America Electric Vehicles Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 16.13 billion

Revenue forecast in 2028

USD 147.60 billion

Growth Rate

CAGR of 37.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million, volume in units, and CAGR from 2021 to 2028

Report coverage

Revenue and volume forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Product, vehicle type, region

Regional scope

North America

Country scope

U.S., Canada

Key companies profiled

Tesla, General Motors Company, Toyota Motor Corporation, Nissan Motor Corporation, Volkswagen AG

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Segments Covered in the Report

This report forecasts volume and revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the North America electric vehicles market report based on product, vehicle type, and region:

  • Product Outlook (Volume, Units; Revenue, USD Million, 2016 - 2028)

    • Battery Electric Vehicle (BEV)

    • Plug-In Hybrid Electric Vehicle (PHEV)

  • Vehicle Type Outlook (Volume, Units; Revenue, USD Million, 2016 - 2028)

    • PCLT

      • Passenger Cars

      • Light Trucks

    • Commercial Vehicles

  • Regional Outlook (Volume, Units; Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

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