Global EV market to grow to 24.6 million units by 2026: Study

The global electric vehicle (EV) market is projected to grow to 24.6 million units by 2026, representing a compounded annual growth rate of 32% from the 2.5 million units sold in 2018, according to a study by Fortune Business Insights.

Fueled by increasing competition and government subsidies, and incentives to reduce carbon emissions, the EV market is set to see steady growth, the study noted. China is the world's largest EV market by a long distance, followed by the US. In 2018, passenger cars accounted for 94.4%  of the EV market size while commercial vehicles accounted for the rest.

According to the study, Europe is expected to emerge as a major region in the EV market during the given forecast period while the continent saw sales of 0.9 million in 2018.

"The major steps taken by the government in this region to reduce carbon emissions have been the driving factors for the growth of the electric vehicle market. The significant countries contributing to growth in the region are the U.K. Germany, and France Ase Pacific is also expected to showcase significant growth in the market," the study noted.

China, which is the major player in the Asia Pacific, accounts for the largest share of the passenger EV market in the region, the report said. The region is anticipated to grow at a faster rate in the market amid the presence of major key players in this region, it added. China is home to the largest producers of EV like BYD, SAIC, Geely and BAIC.

"Technological innovation and high investment in R&D by those key players may help in maintaining the growth of this region during the forecast period," the report said.

Last week saw US-based EV major Tesla launching an electric pickup truck called Cybertruck, that amassed over 200,000 bookings in five days. US-based Ford had also recently launched Mustang EV in the same price range.

India, which sold around 750,000 EVs in the last financial year, is also rapidly ramping up its EV play with government incentives. Most EVs sold in India are two-wheelers and three-wheelers. Two-wheeler maker Ultraviolette, which is backed by the TVS Group, and Hero Motor-backed Ather Energy are also revving up the Indian EV market. Bajaj has also recently launched its iconic Chetak scooter brand as an EV.