The Global Solar Vehicle Market is projected to grow at a CAGR of 18.1 % during the forecast period to reach USD 689.5 million by 2027 from projected USD 215 million by 2020. Solar powered electric vehicle is an electric vehicle that uses solar energy as a power source. It is an eco-friendly vehicle that utilizes solar cells to convert the Sun's radiant energy into electricity and works on the principle of the photovoltaic effect. Solar panels are mounted on the solar powered electric vehicle that contains photovoltaic cells which convert solar energy into electric energy and help to power the vehicle.
Solar Vehicle Market size is expected to grow at a substantial rate over the projected timeframe owing to stringent emission norms across the globe focusing on reducing dependency on fossil fuels and improving efficiency from such vehicles. These vehicles consist of solar panels, powered by photovoltaic cells, that convert solar energy into electricity. The improved vehicle efficiency along with easier driving operations are further expected to boost the solar vehicle market size.
The benefits offered by these vehicles over the conventional fuelled vehicles including low or no noise along with reduced carbon emissions are providing a positive outlook for the solar vehicle market growth over the projected timeframe. Rising prices of petroleum-based fuels along with the availability of abundance of solar power at free cost further enhances the industry share over the study timeframe.
OEM’s are investing in R&D for developing advanced technologies for harnessing solar energy for powering their electric vehicles. For instance, in October 2018, Hyundai along with Kia presented their solar roof technology with the capability of charging the vehicle during normal driving. Additionally, in 2017, Audi showcased its automotive solar sunroof that is ideal for electric vehicles with the capabilities of charging the vehicle conveniently, and lowering the time required for overall vehicle charging.
Multiple research organizations and institutions are engaged in projects for developing solar powered vehicles with significant improvements in efficiency and reduced emissions. For instance, in December 2018, researchers from the University of New South Wales (UNSW) developed a solar powered electric car with a range of up to 100kms.
Growing concern regarding carbon emissions by global regulatory bodies is a major factor that is estimated to drive the solar powered electric vehicle market during the forecast period. Solar powered electric vehicle is an answer to environmental degradation and energy shortages.
It makes the vehicle more efficient and economical, as compared to fuel vehicles. All kinds of conventional sources of fuel are on the verge of exhaustion, which in turn is estimated to lead to an increase in demand for solar powered electric vehicles during the forecast period. It also helps vehicle owners to comply with state regulations regarding emissions from fuel systems. Solar powered electric vehicles offer numerous benefits such as no pollution, less maintenance, easy to charge, noise-free operation and increased vehicle efficiency, which in turn is expected to provide lucrative opportunities for the market during the forecast period.
A solar powered electric vehicle is the best option, which provides the most comprehensive answer to the present issue of urban pollution in a simple, economic, and inoffensive manner. Solar energy directly relies on the Sun’s rays, which provide energy to the entire vehicle, and hence, change in weather is likely to reduce the power of solar energy. This is expected to hamper the solar powered electric vehicle market.
The major solar vehicle market players include Sono Motors (Germany), Volkswagen (Germany), Toyota (Japan), Ford (US), Mahindra (India), Nissan (Japan), GM (US), Cruise Car (US), and Solar Electric Vehicle Company (US), among others.
The Asia Pacific region is estimated to be the largest the market by 2026. The region comprises some of the fastest developing economies of the world such as China and India. The Asia Pacific region is the largest market for automotive as the growing purchasing power of consumers has triggered the demand for automobiles in the region. Also, climatic conditions of the Southeast Asian countries are suitable for these vehicles. Moreover, the high demand for passenger cars from emerging countries of the region is likely to drive the growth of the Asia Pacific market during the forecast period.