The North America Electric Car Market is expected to reach a value of $329.57 billion by 2028, at a CAGR of 35.2% during the forecast period 2021- 2028. By volume, this market is expected to grow at a CAGR of 18.7% from 2021 to reach 2.9 million units by 2028. Supportive government policies and regulations, the rising deployment of EV charging stations by shared mobility operators, and increasing investments in the EV ecosystem are factors driving the growth of this market. Moreover, the decreasing battery prices and growing fleet electrification targets of governments across the region are expected to provide significant opportunities for the growth of this market. However, the lack of charging infrastructure in developing countries is expected to restrain the growth of this market to some extent. The range limitations of electric vehicles and a lack of fast-charging infrastructure are major challenges for the growth of the electric cars market in North America. Increasing investments in R&D for smart charging systems is a major trend that may support the growth of this market.
The Impact of COVID-19 on the North American Electric Cars Market
In North America, the U.S. was severely impacted by the COVID-19 pandemic leading to significant damages in terms of life, resources, and economy. The adoption of electric cars had declined in the first & second quarters of 2020, while a slight growth was witnessed post the second quarter. Consumer behavior has changed significantly since the pandemic. People have reduced the use of shared mobility services and public transport services to reduce the risk of infection. Moreover, due to remote working arrangements in most of the industries, the total miles driven have also decreased in 2020. Hence, these factors have negatively affected the adoption of electric cars in the region.
However, leading investors have planned to double their investments in autonomous vehicles that can positively impact the electric cars market in the forecast period. For instance, in March 2020, Waymo, Google’s self-driving car project, raised $2.3 billion from investors such as Silver Lake, Andreessen Horowitz, and AutoNation. In November 2020, California authorized paid robotaxi services by Waymo, one ride-hailing service in the state. In January 2019, Magna, a Canada-based auto supplier, partnered with Waymo to build a factory for manufacturing self-driving cars in southeast Michigan. The facility produces autonomous versions of the Chrysler Pacifica Hybrid minivan and Jaguar’s I-PACE electric SUV with Level 4 autonomous driving.
Click here to: Get Free Sample Pages of this Report
Lack of Fast-charging Infrastructure
The lack of fast charging infrastructure is a crucial challenge hampering the adoption of electric cars. There is increased growth in the number of registrations of electric cars. However, fast-charging facilities are yet to grow significantly. The growing adoption of electric cars urges owners to demand the deployment of fast-charging infrastructures to reduce charging duration and increase travel distance and transit efficiency.
- Most electric cars take approximately 8–10 hours to get charged completely on any 230 V power outlet through an adapter and a car manufacturer's cable.
- Battery charging at home takes roughly 4–6 hours for a normal electric vehicle. However, it also increases the electricity bill considerably.
- Nissan LEAF (2018 model) with a battery of 40kWh takes approximately 6–11 hours to get charged completely, depending on the charging type.
The high duration required to charge electric cars makes it difficult for electric car owners to plan their travels effectively. Therefore, the demand for fast-charging stations is increasing rapidly among EV owners. Hence, the lack of fast-charging infrastructure is a major challenge for electric mobility stakeholders across the world.
Electric mobility stakeholders worldwide have initiated various projects to overcome the challenges faced due to the lack of fast-charging stations. For instance, Tesla, Inc. (U.S.) is developing an electrical terminal capable of fully charging a battery within a few minutes. These powerful electrical terminals can charge a battery up to 80% of its capacity in 30 minutes.
Key Findings in the North American Electric Cars Market Study:
The fuel cell electric vehicles segment projected to witness significant growth
Based on propulsion type, the hybrid vehicles segment is estimated to account for the largest share of the North American electric cars market in 2021. However, the fuel cell electric vehicles segment is projected to grow at the highest CAGR during the forecast period. The rapid market growth of this segment is mainly attributed to various factors such as fast refueling, zero tailpipe emissions, smaller battery pack, initiatives by governments to set up hydrogen fuel cell charging stations, and increasing investments by leading automotive OEMs in the research and development of hydrogen fuel cell technology.
The 100kW to 250 kW segment estimated to showcase a high CAGR
Based on power output, the less than 100 kW segment is estimated to account for the largest share of the North American electric cars market in 2021. However, the 100 kW to 250 kW segment is projected to grow at the highest CAGR during the forecast period. The rapid market growth of this segment is mainly attributed to the initiatives taken by leading automotive OEMs to introduce various electric cars. In addition, the implementation of governmental laws and regulations to reduce tailpipe emissions and the rising adoption of electric cars in developed economies also contribute to the market growth of this segment.
The commercial use segment projected to grow significantly
Based on end use, the private use segment is estimated to account for the largest share of the North American electric cars market in 2021. However, the commercial use segment is projected to grow at the highest CAGR during the forecast period. The rapid market growth of this segment is mainly attributed to the rising usage of electric cars in shared mobility services and corporate taxi fleets, increasing laws and regulations to reduce fleet emissions, and encouragement by global and state-level regulatory bodies to deploy policies promoting the adoption of electric cars for mobility services.
Canada to be the fastest-growing market by value as well as by volume
Canada is expected to grow at the fastest CAGR by value and volume during the forecast period. The high market growth of electric cars in the country is attributed to the local government's introduction of policies and incentives, increased adoption of electric cars due to the improved driving range, and the development of fast-charging infrastructures resulting in the reduction of charging duration. The electric cars market in Canada is nascent, providing numerous opportunities for the stakeholders to enhance their business revenues. The Canadian government has introduced numerous policies and incentive programs to increase the adoption of electric cars and reduce transportation emissions in the coming years.
The authorities are striving to achieve 100% zero-emission vehicle sales by 2040. Accordingly, the Canadian government has set targets for automotive OEMs to increase the share of electric cars in new vehicle sales to 10% by 2025, 30% by 2030, and 100% by 2040. The Canadian government has also introduced attractive incentive plans for consumers purchasing EVs in Canada. For instance, Quebec's local government has offered a discount of $8,000 for every electric car sold. Ontario offers discounts between $3,000 to $14,000 for a wide variety of electric cars under its Electric Vehicles Incentive Program. British Colombia offers incentives ranging from $2,500 to $5,000 under its own Clean Energy Vehicle Program incentive. Such supportive policies and incentive programs are expected to increase the adoption of electric cars in Canada.
The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the North American electric cars market over the last four years. The key players profiled in the North American electric cars market are Tesla, Inc. (U.S.), General Motors Company (U.S.), Ford Motor Company (U.S.), Rivian, LLC (U.S.), Bollinger Motors Inc. (U.S.), Alcraft Motor Company Ltd.,(U.K.), Nissan Motor Co., Ltd. (Japan), NIO Inc. (China), AB Volvo (Sweden), and Groupe Renault (France).
Scope of the Report
North America Electric Car Market, by Propulsion Type
- Hybrid Vehicles
- Pure Hybrid Vehicles
- Plug-in Hybrid Vehicles
- Battery Electric Vehicles
- Fuel Cell Electric Vehicles
North American Electric Cars Market, by Power Output
- Less Than 100 kW
- 100 kW to 250 kW
North America Electric Car Market, by End-Use
- Private Use
- Commercial Use
North America Electric Car Market, by Country
Key Questions Answered in the Report: