Low-emission Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Low-Emission Vehicle Market is segmented by Type (Hybrid, Mild Hybrid, and Pure Electric Vehicle), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (North America, Europe, Asia-Pacific, and the Rest of the World). The report offers market size and forecast for the low-emission vehicle market in value (USD billion) for all the above segments.

Low-emission Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Low-Emission Vehicle Market Size

Low-emission Vehicle Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
CAGR 15.00 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration High

Major Players

Low-emission Vehicle Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Low Emission Vehicle Market with other markets in Automotive Industry

Automotive Materials & Coatings

Automotive Technology

Vehicles

Automotive Services

Auto Parts

Automotive Equipment

Low-Emission Vehicle Market Analysis

The Low Emission Vehicle Market is expected to register a CAGR of 15% during the forecast period.

  • During the lockdowns, the COVID-19 pandemic compelled about 95% of all automotive companies to put their workforces on hold. Globally, the repercussions of the lockdown have been immense and unprecedented in the automotive sector due to the halt of manufacturing activities. However, the market has regained momentum as economic activities resume and vehicle production also rises worldwide.
  • Over the medium term, Government policies to support the growth of electric vehicles and plans to enlarge the electric vehicle charging infrastructure are expected to remain prominent market drivers during the forecast period. Several regional governments have announced their plans to have a certain portion of their new vehicle sales be electric in the upcoming few years.
  • Electric car sales reached a record 3 million in 2020, up 40% from 2019. This strong growth was a stark contrast to general car market sluggishness globally, with overall car sales down 16% due to the Covid-19 crisis. After a decade of rapid growth, over 10 million electric cars are on the road, representing ~1% of the global car stock. For 2030, the Net Zero Emissions by 2050 Scenario projects 300 million electric cars on the road, accounting for over 60% of new car sales, compared with only 4.6% in 2020. Early market data for 2021 sales suggests rapid growth in significant markets.
  • The electric vehicle (EV) market witnessed significant growth due to the need to address future energy requirements. The need to attain sustainable transportation is vital in driving electric vehicle demand.
  • The electric vehicle market is becoming an integral part of the automotive industry. It represents a pathway toward achieving energy efficiency, along with reduced emissions of pollutants and other greenhouse gases. Increasing environmental concerns and favorable government initiatives are some of the major factors driving the market growth. Rising energy costs and competition among emerging energy efficiency technologies are also expected to fuel the market growth.

Low-Emission Vehicle Industry Overview

  • The market for low-emission vehicles is characterized by the presence of both established companies and small start-ups. There are also a large number of regional players currently focusing on specific geographies. BYD is a major player in the market studied, owing to its growing orders for passenger cars and electric buses from domestic and international markets. The company sold 227,152 passenger vehicles in 2018, the highest among all companies in China. BYD also received an order to build 4,473 electric buses for Guangzhou city under the tender of a total of 4,810 electric buses. Other major companies are Tesla, Daimler, Volkswagen AG, Toyota Motor Corporation, Ford, and Geely Group.
  • In April 2022, the Ministry of Economic Progress, Italy announced the provision to allocate EUR 650 million (USD 699 million) for each of the years 2022-2023-2024, which falls within the resources allocated by the Government to the Automotive Fund for which a total financial endowment of EUR 8.7 billion (USD 9.34 billion) has been provided until 2030. Incentives for purchasing electric, hybrid, plug-in, and endothermic vehicles are granted only to individuals. A small percentage of the funds is reserved for car-sharing companies to purchase electric, hybrid, and plug-in vehicles.
  • The Canadian government established a sales mandate in May 2022 to guarantee that all new light-duty vehicle sales are ZEVs by the year 2035. The Government is investing up to CAD 529 million (USD 423 million) into this project

Low-Emission Vehicle Market Leaders

  1. Tesla Inc

  2. Volkswagen AG

  3. Toyota Motor Corporation

  4. Hyundai Motor Company

  5. AB Volvo

  6. *Disclaimer: Major Players sorted in no particular order
Low-emission Vehicle Market Concentration
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Low-Emission Vehicle Market News

  • August 2022: India's largest automaker Maruti Suzuki confirmed that it shall soon introduce its first electric vehicle latest by 2025 end. In addition, Its parent firm, Suzuki Motor Corporation, is looking forward to investing INR 10,400 crore (USD 127 million) in Gujarat to build a manufacturing plant to produce electric vehicles. The company said it would not only manufacture electric vehicles in the country but also start production of lithium-ion batteries, which are currently imported from other countries by several OEMs.
  • January 2022: The Volkswagen Group and the Bosch Group signed a memorandum of understanding to explore the establishment of a European battery equipment solution provider. The two companies plan to supply integrated battery production systems and on-site ramp-up and maintenance support for battery cell and system manufacturers.
  • December 2021: Hyundai India is switching to overdrive mode with its strategy to expand its electric vehicle range in India, as it announced six new electric vehicles to be introduced by 2028, besides investing Rs 4,000 crore towards developing these new models, and developing the charging infrastructure in the country. Hyundai will also present its globally acclaimed E-GMP modular platform to India and modified platforms to drive the adoption of Battery Electric Vehicles (BEVs) with a strong focus on local manufacturing synergies.

Low-Emission Vehicle Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
  • 4.2 Market Restraints
  • 4.3 Porters 5 Force Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size by Value - USD billion)

  • 5.1 Vehicle Type
    • 5.1.1 Passenger Car
    • 5.1.2 Commercial Vehicles
  • 5.2 Type
    • 5.2.1 Hybrid
    • 5.2.2 Mild Hybrid
    • 5.2.3 Pure Electric Vehicle
  • 5.3 Geography
    • 5.3.1 North America
    • 5.3.1.1 United States Of America
    • 5.3.1.2 Canada
    • 5.3.1.3 Mexico
    • 5.3.1.4 Rest of North America
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 United Kingdom
    • 5.3.2.3 France
    • 5.3.2.4 Italy
    • 5.3.2.5 Spain
    • 5.3.2.6 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 India
    • 5.3.3.2 China
    • 5.3.3.3 Japan
    • 5.3.3.4 South Korea
    • 5.3.3.5 Rest of Asia-Pacific
    • 5.3.4 Rest of the World
    • 5.3.4.1 Brazil
    • 5.3.4.2 Saudi Arabia
    • 5.3.4.3 United Arab Emirates
    • 5.3.4.4 South Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles*
    • 6.2.1 Tesla Inc.
    • 6.2.2 BYD Auto Co., Ltd.
    • 6.2.3 Volkswagen AG
    • 6.2.4 Mercedes-Benz Group AG
    • 6.2.5 Hyundai Motor Company
    • 6.2.6 Toyota Motor Corporation
    • 6.2.7 Tata Motors Limited
    • 6.2.8 BMW AG
    • 6.2.9 AB Volvo

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Low-Emission Vehicle Industry Segmentation

A low-emission vehicle is a motor vehicle that emits relatively low levels of emissions from the motor vehicle. Low-emission vehicles are the one that doesn't emit as much nitrous oxide (NOx) and carbon dioxide (CO2) pollution from the vehicle.

The low-emission vehicle market has been segmented by type, vehicle type, and geography. Based on the type, the market is segmented into hybrid, mild hybrid, and Pure Electric Vehicle. Based on the vehicle ype, the market is segmented into passenger cars and commercial vehicles. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.

For each segment, the market sizing and forecast have been done based on the value (USD billion).

Vehicle Type Passenger Car
Commercial Vehicles
Type Hybrid
Mild Hybrid
Pure Electric Vehicle
Geography North America United States Of America
Canada
Mexico
Rest of North America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World Brazil
Saudi Arabia
United Arab Emirates
South Africa
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Low-Emission Vehicle Market Research FAQs

What is the current Low Emission Vehicle Market size?

The Low Emission Vehicle Market is projected to register a CAGR of 15% during the forecast period (2025-2030)

Who are the key players in Low Emission Vehicle Market?

Tesla Inc, Volkswagen AG, Toyota Motor Corporation, Hyundai Motor Company and AB Volvo are the major companies operating in the Low Emission Vehicle Market.

Which is the fastest growing region in Low Emission Vehicle Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Low Emission Vehicle Market?

In 2025, the North America accounts for the largest market share in Low Emission Vehicle Market.

What years does this Low Emission Vehicle Market cover?

The report covers the Low Emission Vehicle Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Low Emission Vehicle Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Low Emission Vehicle Industry Report

Statistics for the 2025 Low Emission Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Low Emission Vehicle analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Low Emission Vehicle Report Snapshots