Last updated: Feb 2020 by Narasimhan Santhanam
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t is a part of EV Next’s EV Perspectives.
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According to a market research report by BIS Research, titled “Global Electric Vehicles Market – Analysis and Forecast (2017-2026)“, the global electric vehicles market is estimated to grow in volume at a CAGR of 28.3% from 2017 to 2026.
The demand for electric cars is increasing rapidly, with the global stock numbers crossing 2 million in 2016 after crossing 1 million in 2015.
The surge is attributed to the substantial amount of investments made by the automobile manufacturers for the research, development and deployment of electric vehicles.
Mass production prospects have also led to a decline in the prices of key components such as electric batteries and technologies such as regenerative braking.
In addition, the governments of different nations are providing tax benefits and subsidies to fuel the production of EVs.
Electric vehicles have transformed from an experimental model of a vehicle to a necessity, with automakers, worldwide, putting in efforts to make EVs available in all economic ranges.
This is evident from the meteoric rise in the sales of electric vehicles over the last five years, with over 2 million electric vehicles on the road in 2017, as compared to a few thousand in 2012.
Out of the approximately 35 million electric bicycles sold in 2016, an astonishing 95% is from Asia Pacific. Within Asia Pacific, China accounts for over 95% of electric bicycles sales. Overall, China contributed to a jaw dropping 92% of all global sales of electric bicycles in 2016.
The key takeaway from the electric bicycles sales trend seen above is that strict mandates that are implemented with draconian strength can do wonders to many environment-friendly product adoption. The problem with this takeaway of course is that such implementations are feasible on a large scale only in countries such as China which are non-democracies!
In 2016 & 2017, electric bicycles are estimated to have clocked in the range of $5-6 billion. Given that about 35-40 million bicycles were sold in each of these years, that pegs the average price of an electric bicycle at about $150. Now, such a low price for electric bicycles are prevalent only in China, which also anyway contributes to over 90% of the total global electric bicycle sales. One could hence say that the whole picture is indeed falling in place!
Overall, electric bicycles have a share of about 25% of the total global bicycle market revenues, as per above estimates, which increases to close to 30% by 2021. A pretty healthy share indeed, though once again, it is driven largely by sales in China.
Once again driven by China, electric scooter sales have been clocking good numbers globally since 2012, growing from 11 million units in 2012 to almost 16 million in 2017, a CAGR of about 8%. Not an exceptionally high CAGR indeed, but definitely a healthy one. Electric motorbike sales however have been stagnating around the million unit mark per year between 2012 and 2017.
The reasons for the relatively poorer performance by electric motorbikes has to do with the expectations of users, with e-motorcycle users expecting far more firepower from the vehicles than electric scooter users. At the current state of electric vehicle and battery technology development, it is easier to satisfy the demands of electric scooter users but not the users of electric motorcycles.
Read more on the Indian Two & Three Wheeler Electric vehicles Market from: EV Companies in India | Hybrid electric two wheelers | Products, Markets and Trends | Prices of Indian EVs |
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See also the blog posts:
- Current and Future Market Sizes of Electric Vehicles – Global EV Growth
- Challenges to EV Growth in India – Cost & Performance Challenges for Indian Electric Vehicle Market
- Current and Expected Market Sizes of Electric Vehicles in India – E-scooter, Electric Car, Electric Rickshaws, E-bikes
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