Japan Electric Vehicle Market Gathering Steam: Forecast to Grow at a CAGR of 16.2% During 2022-2028
Published | 25 January 2022
Japan electric vehicle market is growing at a high CAGR because of the high concentration of EV manufacturers in this region. Furthermore, the growing consciousness towards the environment and carbon emission is also propelling the market forward…
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Japan electric vehicle market is estimated to grow at a CAGR of 16.2% during the forecast period of 2022-2028. Japan’s electric vehicle market is flourishing at a high rate owing to the high concentration of EV manufacturers in this region, such as Mitsubishi, Suzuki Motor, Cocoa Motors, etc. These manufacturers are significantly launching new electric vehicles with advanced features. Additionally, they are focusing on improving battery efficiency, which is anticipated to boost the adoption of EVs in Japan during the forecast period. However, the lack of sufficient charging stations may act as a huge restraining factor for the growth of Japan electric vehicle market.
Advancements in Efficiency of EV Battery is Driving Japan Electric Vehicle Market
Compared to conventional vehicles, an electric vehicle converts over 77% of electric energy from the grid into power. On the other hand, conventional fuel vehicles can convert only 12%-30% of the energy. Furthermore, battery manufacturers in Japan are also focusing on improving the energy efficiency of the EV batteries to make them suitable for longer journeys. Moreover, they are heavily investing in R&D activities to identify new metals and raw materials for EV batteries. These factors are anticipated to drive the Japan electric vehicle market during the forecast period.
Establishment of New Charging Points Presenting Lucrative Growth Opportunities to the Market
In Japan, the government is heavily investing in promoting the use of electric vehicles on the roads. To this end, it is establishing new charging stations. According to a report by Nissan, the electric charging points in Japan in 2016 outnumbered the petrol pumps. While the number of charging stations declined in 2020 due to the COVID-19 pandemic, EV manufacturers and the Japanese government are working on increasing the number of charging points. It is anticipated that construction of new charging points will boost the growth of the Japan electric vehicle market during the forecast period.
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Japan Electric Vehicle Market - By Battery Type
Based on battery types, the Japan electric vehicle market is segmented into NiMH, Li-Ion, and others. The lithium-ion battery segment accounts for the largest market share since these battery types have high energy density and longer cycle life, due to which they are prominently used in EVs. Furthermore, the launch of new variations of lithium-ion batteries that provide fire resistance, environmental friendliness, rapid charging, and longer life span is also anticipated to present lucrative growth opportunities to the Japan electric vehicle market during the forecast period.
Impact of COVID-19 on Japan Electric Vehicle Market
The Japan electric vehicle market was negatively halted by the sudden outbreak of the COVID-19 pandemic. The disruptions in the economic activities directly impacted the production and sales operations of electric vehicles in Japan. Furthermore, stringent restrictions on mobility also resulted in a sharp decline in the demand for electric vehicles in Japan, incurring huge losses to the manufacturers. However, the market is on the verge of recovery as the COVID-19 slump is expected to be over soon as individuals are becoming more conscious of sustainability and the importance of cutting down carbon emissions.
Japan Electric Vehicle Market - Competitive Landscape
The leading players in the Japan electric vehicle market are BMW AG, General Motors Co., Hero Electric, Honda Motor Co., Ltd., Kia Motors Corp., Hyundai Motor Co., Nissan Motor Co., Toyota Motor Corp., Volkswagen AG, and other prominent players.
The Japan electric vehicle market is highly concentrated due to the presence of leading automobile manufacturers, such as Honda, Toyota, Kia, etc., in the country. The industry players compete based on technological advancements, battery efficiency, and the range of their EVs. They are also constantly introducing technologies, such as IoT sensors, etc., to gain a competitive edge over the market. Furthermore, the adoption of competitive strategies, such as mergers, acquisitions, joint ventures, collaborations, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Japan electric vehicle market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Japan electric vehicle market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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Publish Date: January 2022
Japan electric vehicle market is flourishing at a high rate due to the rising fuel prices in the country. Additionally, the presence of leading electric vehicle manufacturers in Japan, along with rapid technological advancements, such as the introduction of AI and IoT into EVs are also driving market growth.
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