Motor vehicle emission is a combination of the byproducts of a vehicle’s exhaust system and gasoline evaporation. Vehicle emission causes air pollution and great amount of fog caused over skylines of major cities. As a result, emission of a motor vehicle is a vital aspect requiring strong monitoring. As a result, governments and different environmental organization have tightened the rules for the quality and degree of motor vehicle emission. This very fact is working as a strong driving factor for the global low emission vehicle market. Studies show that the global industry is poised to make strong growth for the next four to five years. Apart from government policies, rising demands from different developed and developing countries are also boosting the revenue and demand-supply chain in the industry.
Low Emission Vehicles Industry Overview
As their name suggests, low emission vehicles (LEVs) are the ones that emit relatively lower levels of motor vehicle emissions. These vehicles are crucial to maintain the predefined air quality standards of different countries. Modern day hybrid electric vehicles or HEVs are built as per these requirements. As a result, these vehicles work on regenerative braking technologies. These are efficiency improving technologies that help vehicles to convert their kinetic energy into electric energy. This process is used to charge the vehicle battery, which avoids additional wastage. As a result, these vehicles produce less amount of emission and contribute in safeguarding the environment. As a result, demand in hybrid electric vehicles and low emission vehicles market is constantly rising across developed and emerging markets.
Segments in LEV Market
Market research reports for low emission vehicles industry segments the market based on different vital components. These components include the degree of hybridization, types of batteries used in the LEVs and changing demand patterns across different geographic locations of the world.
- Hybridization: Plug-in Hybrid Electric Vehicle (PHEV), Mild Hybrid Electric Vehicle (MHEV), Pure Electric Vehicle (BEV or EV) and Full Hybrid Electric Vehicle (FHEV), wherein, BEV and PHEV are the most prominent types of HEVs
- Battery: Nickel-Cadmium batteries (NiCad), Lead acid batteries, lithium ion batteries, nickel metal hydride (NimH) and other metal hydride batteries
- Geography: Europe (UK, Spain, France, The Netherlands, Germany and rest of Europe), North America (US and Canada), Asia Pacific (Japan, China, South Korea and rest of Asia Pacific) and rest of the world (Australia, Middle East countries and South African countries)
According to the market research reports, low emission vehicle market is expected to make remarkable growth at an estimated CAGR of over 30% from 2012 to 2017. Within the forecasting period of over four to five years, the industry will grow from $27.45 billion in 2012 to $103.13 billion by the end of 2017. Growing demand for zero emission vehicles, rising governmental efforts, mounting prices of petroleum based fuels and advancements in different hybrid electric vehicles are the strongest driving factors for the global LEVs industry. Lack of power, support infrastructure, performance and rising costs of end-user segments are the basic challenges for the market.