Global Zero Emission Vehicle Market Size, Share & Industry Trends Analysis Report By Price (Mid-Priced and Luxury), By Vehicle Class, By Vehicle Drive Type, By Top Speed, By Vehicle Type (BEV, PHEV, FCEV), By Regional Outlook and Forecast, 2022 - 2028

Analysis of Market Size & Trends

The Global Zero Emission Vehicle Market size is expected to reach $578.9 billion by 2028, rising at a market growth of 19.4% CAGR during the forecast period.

A zero-emission vehicle (ZEV) is one that uses its on-board power source to generate no exhaust pollutants. These vehicles operate on alternative energy sources such as natural gas, battery electricity, and solar power and have significant emission reductions over traditional vehicles. It is primarily intended to replace traditional modes of transportation because they cause pollution. It has become more well-known as a result of several technical developments.

It performs better than a traditional car due to its higher fuel economy, less carbon emissions, ease of home charging, smoother ride, and diminished engine noise. Nitrogen oxides (NOx), volatile organic compounds, and other pollutants like particulate matter and surface ozone are some of the main pollutants encountered in emissions. The deteriorating effects of air pollution include asthma, lung cancer, and cardiovascular illness. The increase in health concerns connected with hazardous substances has gained attention from various government and non-government organisations' the need to revise emission limits.

The market for zero emission vehicles is expanding as a result of factors as rising environmental concerns, strict government rules on vehicle emission standards, and rising demand for high-performance & fuel-efficient cars. Due to clean fuel use and pollution-free operation, ZEVs are predicted to eradicate the pollution that fuel-powered vehicles are responsible for. So, government entities are motivating individuals and organizations to adopt these vehicles by providing substantial subsidies and exemptions for ZEVs.

Customers are preferring ZEVs more frequently as a result of growing consciousness of global warming and increased awareness of electric vehicles. Additionally, the demand for ZEVs is also being propelled by sharp climb in fuel prices, drop in ZEV pricings, increase in ZEV capacity, and a rise in per-capita income. For this market, the move toward electric vehicles is anticipated to present future development prospects. Some automobile manufacturers (OEMs) have already shifted to zero emission vehicles as a result of the enforcement of strict pollution standards.

COVID-19 Impact Analysis

Numerous small and large participants in the automobile industry experienced problems like suspended production, forced plant closures by the government, and others. Since then, a number of industry leaders in the automotive sector have made concerted efforts to restructure their supply chains and manufacturing processes to accommodate the delivery of essential medical supplies during the pandemic. In order to handle the issue, zero-emission vehicles are used to maintain medical supplies as they offer convenient, affordable transportation and has excellent manoeuvrability. In conclusion, the COVID-19 epidemic has harmed the automotive sector as a whole and consequently the zero emission car sector as well.

Market Growth Factors

Increasing Environmental Problems And Rising Awareness Among Population

The growing trend toward automation in transportation has compelled automakers to use technology that are less harmful to the environment. The ecology is significantly worsened by emissions from internal combustion engines of vehicles since these engines release toxic substances like chlorofluorocarbons and other air pollutants through their tailpipes. In the meanwhile, zero emission vehicles (ZEVs), which generate no pollutants as exhaust gas, offer a solution to these problems. Additionally, they use solar energy to generate electricity, which is expected to lessen their reliance on fossil fuels.

Strict Rules Implemented By Governing Bodies For Vehicle Emission

Governments and environmental organisations throughout the world are passing strict emission standards and rules to minimise car emissions in response to growing environmental concerns. Strict emission objectives for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in the air are major regulatory actions. The United States' federal and state governments have increased their efforts to make transportation more environmentally friendly as a result of high levels of greenhouse gas emissions from vehicles.

Market Restraining Factors

High Cost Of Manufacturing Zero Emission Vehicles

Although zero emission vehicles (ZEVs) have advantages over regular automobiles, they are more expensive. The high cost of the battery is primarily responsible for the additional expense of purchasing a ZEV as opposed to a fuel-powered car. In addition, compared to vehicles powered by gasoline, diesel, or compressed natural gas, zero emission vehicle production requires far larger upfront investments. The main causes of the high cost of zero emission vehicles are the use of pricey raw materials and the expensive production process. Additionally, these vehicles are anticipated to cost almost twice as much to buy as conventional gasoline-powered vehicles.

Vehicle Class Outlook

By vehicle class, the Zero Emission Vehicle Market is segmented into Passenger Cars, Commercial Vehicles and Two Wheelers. The Passenger Cars segment acquired the highest revenue share in the zero emission vehicle market in 2021. The solar-powered vehicles market has a sizable portion made up of passenger cars. Many automakers are displaying concept vehicles and working prototypes of vehicles that may soon go into production. The "Lightyear One," created by Dutch firm Lightyear is a solar-powered electric automobile with charging panels on the roof and hood.

Price Outlook

On the basis of price, the Zero Emission Vehicle Market is divided into Mid-Priced and Luxury. Luxury segment procured a significant revenue share in the zero emission vehicle market in 2021. It is because there are many high-income people who prefer luxurious vehicle, which emits zero pollutant in the atmosphere. Since people are becoming more aware of the environmental problems, they are opting products that support their mission.

Vehicle Type Outlook

Based on vehicle type, the Zero Emission Vehicle Market is fragmented into BEV, PHEV, FCEV and Others. The PHEV (Plug-in Hybrid Electric Vehicles) segment registered a significant revenue share in the zero emission vehicle market in 2021. Developing nation governments are implementing measures to encourage the use of electric vehicles. Additionally, large corporations like the Volkswagen Group are focusing on boosting their sales of plug-in electric vehicles.

Vehicle Drive Type Outlook

By Vehicle drive type, the Zero Emission Vehicle Market is classified into Front Wheel Drive, Rear Wheel Drive and All Wheel Drive. Rear-wheel drive segment recorded a promising revenue share in the zero emission vehicle market in 2021. Rear-wheel drive is a form of engine and transmission layout used in motor vehicles, where the engine drives the rear wheels only. RWD Zero Emission Vehicles guarantee excellent balance and smooth steering that is not disturbed by the need to manage power delivery.

Top Speed Outlook

On the basis of top speed, the Zero Emission Vehicle Market is categorized into Less Than 100 MPH, 100 to 125 MPH and More Than 125 MPH. More than 125 MPH procured the maximum revenue share in the zero emission vehicle market in 2021. Car manufacturing giants like Mercedes, Porsche, Genesis, Tesla and many more has brought this category of Zero Emission Vehicles to new heights, in context to the speed. Along with that, the battery power of such vehicles is high, which is contributing to the speed of the vehicle and hence, boosting the segment growth.

Zero Emission Vehicle Market Report Coverage

Report Attribute	Details
Market size value in 2021	USD 170.7 Billion
Market size forecast in 2028	USD 578.9 Billion
Base Year	2021
Historical Period	2018 to 2020
Forecast Period	2022 to 2028
Revenue Growth Rate	CAGR of 19.4% from 2022 to 2028
Number of Pages	326
Number of Tables	534
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered	Price, Vehicle Class, Vehicle Drive Type, Top Speed, Vehicle Type, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Increasing Environmental Problems And Rising Awareness Among Population Strict Rules Implemented By Governing Bodies For Vehicle Emission
Restraints	High Cost Of Manufacturing Zero Emission Vehicles

Regional Outlook

Region-wise, the Zero Emission Vehicle Market is analyzed across North America, Europe, Asia Pacific and LAMEA. Asia Pacific acquired the highest revenue share in the zero-emission vehicle market in 2021. The desire for electric vehicles in China has been fueled by well-developed charging infrastructure, government subsidies, the existence of electric vehicle manufacturers, a drop-in vehicle pricing, an increase in gasoline prices, and increased awareness. Japan is another country with a significant number of battery electric vehicles, in addition to China.

Free Valuable Insights: Global Zero Emission Vehicle Market size to reach USD 578.9 Billion by 2028

KBV Cardinal Matrix - Zero Emission Vehicle Market Competition Analysis

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Ford Motor Company, Toyota Motor Corporation, Mercedes-Benz Group AG, BMW Group and General Motor Co. are the forerunners in the Zero Emission Vehicle Market. Companies such as Nissan Motor Corporation, Hyundai Motor Company and Tesla, Inc. are some of the key innovators in Zero Emission Vehicle Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Motor Co., BMW Group, Toyota Motor Corporation, Mercedes-Benz Group AG (Daimler AG), Ford Motor Company, Hyundai Motor Company, Tesla, Inc., Nissan Motor Corporation, BYD Company Ltd., and Tata Motors Limited.

Strategies deployed in Zero Emission Vehicle Market

» Partnerships, Collaborations and Agreements:

• Jul-2022: BYD partnered with Louwman, an automotive distributor company. The partnership would serve as an important phase for BYD as the company continues to expand its eco-friendly electric passenger vehicle business. Under this partnership, Louwman would offer a digital platform for online ordering, consumer service & assistance, and additionally provide both offline sales and aftersales services for BYD passenger vehicles through its huge dealer network at key locations across the Netherlands.
• Apr-2022: General Motors joined hands with Honda, a Japanese public multinational conglomerate. The companies focused on affordable compact crossovers. The agreement would make use of the two companies’ technology, design & sourcing strategies. The companies would also work toward standardizing equipment & processes to achieve world-class quality, higher throughput, and higher affordability.
• Apr-2022: Cimex, the partner of BYD India entered into a partnership with Self Drive Nepal, a subsidiary of Spark Group that offers emission-free rental fleet operation. The partnership would supply 50 units of the all-electric BYD e6 MPV to Self Drive Nepal. The partnership would serve as a huge milestone for both BYD & Spark Group with the launch of a luxury electric vehicle fleet operation in Nepal.
• Mar-2022: BYD signed an agreement with Shell, a British multinational oil and gas company. Through this agreement, BYD aimed to help accelerate the energy transition and enhance the charging experience for BYD’s battery electric vehicle (BEV) & plug-in hybrid electric vehicle (PHEV) consumers, enlarging consumer value. Under this agreement, both parties would explore opportunities to build BYD-Shell EV hubs in key European markets, providing consumers with the experience of BYD premium designs and advanced new energy vehicle technologies.
• Feb-2022: General Motors signed an agreement with Lightning eMotors, a specialist in purpose-built commercial EVs and electric conversions. According to the agreement, Lightning eMotors would become the first GM Specialty Vehicle Manufacturer (SVM) to design 100% electric Class 3 through 6 commercial vehicles. The companies aimed at taking a step forward in electrifying the whole lineup of vehicles under its automotive umbrella.
• Feb-2022: Hyundai collaborated with Shell, a British multinational oil, and gas company. The collaboration aimed at exploring ways to offer lower carbon emissions products & services as well as to reduce emissions across their operations. From the collaboration, Hyundai would see ample opportunities for the transformation of respective businesses & has identified promising synergies that would enable Hyundai Motor and Shell to thrive during the transition to future mobility and clean energy solutions.
• Dec-2021: BMW extended its partnership with TVS Motor Company, an Indian multinational motorcycle manufacturer. The company focused on joint development of the latest platforms & future technologies, including Electric Vehicles (EVs). The extended partnership to EVs & other latest platforms would create opportunities to deliver advanced technology & aspirational products to global markets & bring valuable synergies to both companies.
• Mar-2021: Hyundai Motor entered into a partnership with Forze Hydrogen Racing, a student team that designs, builds & competes in hydrogen electric racing automobiles. By drawing on Hyundai's leadership in fuel cell mobility and Forze’s ambition to take hydrogen to another level, the companies would push the boundaries of what’s possible in the development of zero-emissions racing.
• Feb-2021: Nissan teamed up with Repsol, a Spanish multinational energy and petrochemical company. The collaboration aimed to enable all owners of a NIssan electric vehicle to enjoy a 50% discount on the Repsol public electric charging network. Repsol has more than 250 charging points in public spaces that include 70 fast charging points, the majority located at service stations.
• Apr-2020: BYD Company signed an agreement with Hino Motors, a Japanese manufacturer of commercial vehicles. This agreement focused on collaborating on commercial battery electric vehicles (BEVs) development. The two companies would accelerate the development of commercial BEVs to provide the best possible product for consumers promptly.
• Jan-2020: Nissan signed an agreement with Uber, American mobility as a service provider. The companies aimed to support the launch of 2,000 all-electric Nissan LEAFs for drivers who use the Uber app. Nissan would provide Uber with an EV education program, transaction price & dedicated marketing plan to support the uptake of the zero-emission vehicles.

» Product Launches and Product Expansions:

• May-2022: Tata Motors unveiled Ace EV, the electric version of the ever-popular Ace. The launch served as a substantial leap forward in its drive toward promoting sustainable mobility. The latest Ace EV is a green and smart transport solution ready to serve a wide variety of intra-city applications. Additionally, the Ace EV also would serve the future commitment & aspirations of its conscientious consumers to achieve a net zero carbon footprint.
• Sep-2021: BYD introduced e-platform 3.0. This platform aimed to promote innovative energy vehicles (NEVs’) performance in safety & low-temperature driving range as well as enhancing intelligent driving experiences with outstanding advantages in efficiency, intelligence, safety, & aesthetics. The e-platform 3.0 would help BYD design more efficient & safer latest intelligent electric vehicles (EVs).
• Aug-2021: General Motors introduced two new zero-emissions vehicles. The launch focused on expanding its first-to-last-mile business arm, BrightDrop. The first vehicle would be a battery electric cargo van under the Chevrolet brand that would likely be the same as the popular Chevy Express van. The second would be a medium-duty truck that would put both the Ultium as well as Hydrotec hydrogen fuel cell technology to work.
• Jul-2021: Nissan released LEAF electric vehicle (EV) in Nepal. Nissan LEAF EV is the embodiment of Nissan Intelligent Mobility, the company's approach to changing the way cars are driven, powered & integrated into society. The Nissan LEAF EV exemplifies this philosophy in three key aspects: Intelligent Driving, Intelligent Power, & Intelligent Integration.
• Apr-2021: Toyota Motor launched Toyota bZ, its newly established series of battery electric vehicles (BEVs), in the establishment of a full line-up of electrified vehicles. The Toyota bZ series models would be built on the latest BEV dedicated platforms with features including a practical cruising range that considers the operating environment, so that consumers can choose the products with peace of mind & Open and freestyle interior, and exceptionally developed exterior using BEV packaging.

» Acquisitions and Mergers:

• Jun-2021: Ford completed the acquisition of Electriphi, a California-based provider of charging management and fleet monitoring software for electric vehicles. With Electriphi’s existing advanced technology IP in the Ford Pro electric vehicles & services portfolio, Ford would improve the experience for commercial consumers and be a single-source solution for fleet-depot charging.

» Geographical Expansions:

• May-2022: BMW expanded its geographical footprints in India by launching the BMW i4 eDrive 40 Sport in the region. Through this expansion, the company stated that the BMW i4 eDrive 40 can sprint to 100 km/h from a standstill in 5.7 seconds, while the BMW i4 M50 xDrive variant is capable to do the same in 3.9 seconds. The BMW i4 eDrive 40 consists of an electric motor on its rear axle making it a rear-wheel-drive vehicle that makes 335 bhp along with 430 Nm of peak torque.

Scope of the Study

Market Segments Covered in the Report:

By Price

• Mid-Priced
• Luxury

By Vehicle Class

• Passenger Cars
• Commercial Vehicles
• Two Wheelers

By Vehicle Drive Type

• All Wheel Drive
• Front Wheel Drive
• Rear Wheel Drive

By Top Speed

• More Than 125 MPH
• 100 to 125 MPH
• Less Than 100 MPH

By Vehicle Type

• BEV
• PHEV
• FCEV
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• General Motor Co.
• BMW Group
• Toyota Motor Corporation
• Mercedes-Benz Group AG (Daimler AG)
• Ford Motor Company
• Hyundai Motor Company
• Tesla, Inc.
• Nissan Motor Corporation
• BYD Company Ltd.
• Tata Motors Limited