by The Solar Vehicle Market is estimated to be valued at US$ 3.69 Bn or Mn in 2023 and is expected to exhibit a CAGR of 19.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The solar vehicle market comprises electric vehicles that use solar panels mounted either on the vehicle roof or elsewhere to charge the vehicle’s battery while parked or in motion. Solar panels help extend the driving range of electric vehicles without needing to plug in for charging. Solar vehicles can find applications as passenger vehicles, commercial vehicles like delivery vans, buses and trucks in last mile delivery. They help reduce dependence on fossil fuels and provide greener mobility solutions.
Market Dynamics:
Increasing concerns about environment degradation and pollution levels due to fossil fuel-based vehicles are a major driver for the solar vehicle market growth. Governments across regions are promoting adoption of electric vehicles and providing subsidies. At the same time, dropping prices of lithium-ion batteries is making electric vehicles more affordable. Moreover, technological advancements are enabling solar panels to charge batteries faster while driving. Manufacturers are focusing on improving energy efficiency of solar panels and batteries to increase driving range on solar power alone. This is further fueling the demand for solar enhanced electric vehicles.
Segment Analysis
The global solar vehicle market is dominated by battery electric vehicles (BEVs) segment. BEVs accounted for over 70% share of the total market in 2022. This is because BEVs can run entirely on electricity stored in batteries and do not require any backup fuel, making them more efficient and environment-friendly compared to hybrid electric vehicles (HEVs). Moreover, falling battery costs and increasing battery capacities have made electric vehicles more affordable and practical in recent years, driving higher adoption of BEV solar vehicles.
PEST Analysis
Political: Governments across countries are offering subsidies and tax benefits for purchasing electric vehicles in order to promote clean mobility and reduce emissions. This is positively impacting the adoption of solar electric vehicles.
Economic: Falling prices of lithium-ion batteries and solar panels are making electric vehicles more affordable. Also, lower fuel and maintenance costs of EVs compared to gasoline vehicles are attracting more consumers.
Social: Rising environmental awareness and people’s inclination towards sustainable technologies are increasing the acceptance of solar electric vehicles in society.
Technological: Advancements in battery technologies, solar panels, and electric powertrains are enhancing the performance and driving range of solar vehicles. Technologies like vehicle-to-grid are also being developed.
Key Takeaways
The Global Solar Vehicle Market Size is expected to witness high growth, exhibiting CAGR of 19% over the forecast period of 2023 to 2030, due to increasing government support and rising environmental concerns. The market size for solar vehicles is estimated to reach US$ 12.23 Bn by 2030 from US$ 3.69 Bn in 2023.
Asia Pacific is projected to dominate the global solar vehicle market during the forecast period. Rapid adoption of electric vehicles led by China, government initiatives to reduce emissions, and presence of key automakers are driving the APAC solar vehicle market. The region is estimated to account for over 35% market share by 2030.
Key players operating in the solar vehicle market are Tesla, Sono Motors, Lightyear, Aptera Motors, Squad Mobility, EVX Pty Ltd, ElectraMeccanica Vehicles Corp., Hyundai Motor Group, Toyota Motor Corporation, Audi, Ford, Volkswagen, Mahindra & Mahindra, Nissan, General Motors, BYD, Renault, Honda, Tata Motors, and BMW. Tesla is currently the market leader with its futuristic solar roof technology and high-performance electric vehicles like Model S, Model X, and Model 3. Other players are focusing on mainstreaming solar electric mobility through innovative design and affordable price points.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
