by The global Solar Vehicle Market is estimated to be valued at US$ 3.69 Bn 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 of electric vehicles that are powered by solar energy in addition to a battery to store power. These vehicles have solar panels installed on their body to charge the on-board batteries while driving on the roads. The major types of solar vehicles include solar cars, solar buses and solar light motor vehicles. Solar vehicles offer various advantages such as zero emissions, lower running costs and decreased dependence on non-renewable sources of energy for power. With growing environmental concerns worldwide, demand for eco-friendly transportation solutions is surging which is fueling growth of the solar vehicle market.
Market key trends:
The global solar vehicle market is witnessing noteworthy growth driven by certain key trends:
– Technological Advancements: Leading solar vehicle manufacturers are investing heavily in research & development of advanced solar panel technologies that can harness solar energy more efficiently. Improvements in battery storage capacity and vehicle design are also aiding market growth.
– Favorable Government Policies: Governments across regions are introducing supportive policies and incentives such as tax benefits and deductions to promote adoption of solar vehicles. This is encouraging manufacturing as well as purchase of solar vehicles.
– Increasing consumer awareness: Consumers are increasingly becoming aware about the environmental benefits of electric vehicles and their role in carbon footprint reduction. This has boosted the adoption of renewable energy based transportation solutions including solar vehicles.
– Declining solar panel prices: Considerable drop in the prices of solar panels due to economies of scale and competition is making solar technology more affordable for automakers. This is attracting more players to invest in solar-electric vehicles.
Porter’s Analysis
Threat of new entrants: Low capital requirements and few barriers to entry can encourage new players to enter the solar vehicle market. However, presence of major players poses threat to new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives in electric vehicles segment. Switching costs are relatively low for buyers.
Bargaining power of suppliers: Major suppliers have significant bargaining power due to dominance of key suppliers for solar panels and batteries. Suppliers can influence prices of vital components.
Threat of new substitutes: Technological advancements are introducing substitutes like hydrogen fuel cells. However, high costs limit adoption of substitutes currently.
Competitive rivalry: Presence of major players intensifies competition. Companies focus on technological innovation, pricing strategies and marketing campaigns to gain market share.
Key Takeaways
The Global Solar Vehicle Market Size is expected to witness high growth, exhibiting CAGR of 19.% over the forecast period, due to increasing environmental concerns and rising demand for zero-emission vehicles. Solar vehicles offer operational cost benefits and are gaining popularity among environment conscious consumers.
Regional analysis: Asia Pacific dominates the solar vehicle market currently due to presence of key players like BYD, Mahindra & Mahindra and growing solar panel production in China. Europe and North America are also attractive markets driven by stringent emission norms and government incentives for adoption of electric vehicles.
Key players: 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, BMW. Major companies are focusing on developments like improved solar efficiency and battery capacity to accelerate commercialization of solar vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
