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:
Solar vehicles utilize solar panels mounted on the body of the vehicle to charge the vehicle’s battery or directly power the vehicle’s electric motor/engine. Solar power generation helps reduce the vehicle’s dependence on charging stations and extends its driving range.
Market key trends:
The declining cost of solar panels and batteries is one of the key trends boosting the solar vehicle market. Solar panel prices have dropped by over 80% in the last decade, while lithium-ion battery prices have reduced by over 85% during the same period. This has made solar-electric vehicles economically more viable. Manufacturers are focusing on improving solar panel efficiency and using lightweight composite materials to reduce a vehicle’s energy needs, thereby improving the payback from added solar panels. For example, Lightyear 0 aims to achieve 620 km range from integrated solar and battery power combined.
SWOT Analysis
Strength: Solar vehicles have zero tailpipe emissions, making them environmentally friendly. They can be charged using sunlight, providing free fuel which lowers the overall cost of ownership.
Weakness: The current range and performance of solar vehicles is still limited compared to gasoline vehicles. Battery capacity needs improvement to support longer trips without recharging. High production costs also make solar vehicles more expensive than conventional vehicles currently.
Opportunity: Growing awareness about climate change and pollution is driving demand for sustainable transportation solutions. Government incentives and subsidies in many countries promote solar vehicle adoption. Rising gasoline prices improve the business case for solar vehicles.
Threats: Slow charging capability of solar panels can limit their use for long-distance travel currently. Established gasoline vehicle manufacturers pose significant competition. Technology advances in electric vehicles not relying on solar could make solar vehicles less attractive over time.
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 awareness about environmental pollution and supportive government policies for clean mobility.
Regional analysis: Asia Pacific dominates the global solar vehicle market currently due to strong government support for electric vehicles in countries like China and India. Europe is another major market for solar vehicles driven by stringent emission regulations. North America is expected to grow at a high rate in the coming years buoyed by newer product launches and expanding charging infrastructure in the US and Canada.
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. Companies like Tesla and Sono Motors are taking an early lead by commercializing solar-powered electric vehicles. Collaboration among automakers and energy companies could further advance vehicle-integrated solar power technology.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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