Canada Electric Vehicle Market Research Report, 2030

The Canada electric vehicle (EV) market is rapidly expanding, driven by increasing environmental awareness, supportive government policies, and advancements in EV technology. In 2021, Canada saw a record high of 86,032 EV registrations, making up 5.3% of total vehicle registrations for the year. The market is projected to continue its upward trajectory. Key factors contributing to this growth include government incentives such as rebates and tax credits, the expansion of charging infrastructure, and the introduction of new EV models by both established automakers and new entrants. The market is also benefiting from growing consumer awareness of the environmental and economic benefits of EVs, including lower fuel costs and reduced emissions3. As a result, EVs are becoming increasingly mainstream, with a growing share of new vehicle sales. This trend is expected to continue as more consumers and businesses adopt EVs as part of their sustainability initiatives. The history of the electric vehicle (EV) market in Canada traces back to the late 19th century, with the first EV introduced in Toronto in 1893. However, the market saw limited growth until the early 2000s, when environmental concerns and technological advancements revived interest in EVs. Key milestones include the introduction of models like the GM EV1 and the Toyota RAV4 EV. Regulatory policies have been instrumental in promoting EV adoption, with initiatives such as the Zero-Emission Vehicle (ZEV) program and the Electric Vehicle Availability Standard, which mandate that 100% of new light-duty vehicle sales be zero-emission by 2035. The Canadian government has also implemented incentives like rebates and tax credits to encourage EV purchases. These efforts are part of a broader strategy to reduce greenhouse gas emissions and transition to a sustainable transportation sector. According to the research report, "Canada electric vehicle Market Research Report, 2030," published by Actual Market Research, the Canada electric vehicle Market is anticipated to add to more than USD 30.62 Billion by 2025–30. Canada’s electric vehicle (EV) market has experienced significant expansion in recent years, propelled by a mix of governmental support, rising environmental consciousness, and advancements in technology. The promotion and advertising of EVs in Canada have been enhanced by an emphasis on sustainability, environmental conservation, and minimizing carbon emissions, which aligns with the nation’s overarching climate objectives. Government initiatives, such as rebates for EV purchases, tax incentives, and funding for EV infrastructure like charging stations, have been crucial in making electric vehicles more affordable and reachable for Canadian consumers. The history of electric vehicles in Canada spans over a century, although it wasn’t until the 21st century that EVs started to capture genuine interest once more. The early 2000s marked the arrival of hybrid models such as the Toyota Prius, which contributed to altering public views on electric mobility. However, it was the debut of entirely electric vehicles, especially by brands like Tesla with its Roadster in 2008, that ignited considerable excitement in the market. Canada’s EV market began to develop more significantly after 2010, with leading automakers introducing electric models and the growth of Tesla’s Model S, which garnered substantial attention due to its performance and range. Factors contributing to the growth of the Canadian EV market include innovations in battery technology, which have enhanced range, performance, and charging durations, rendering EVs a more viable choice for consumers. Furthermore, escalating fuel costs, worries about environmental consequences, and governmental climate policies have all contributed to heightened demand for electric vehicles. Cities such as Vancouver and Montreal are witnessing increased EV adoption, supported by expanding charging facilities and regulations that promote cleaner transportation.

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The propulsion segment of the Canada electric vehicle (EV) market is characterized by a diverse range of technologies aimed at enhancing vehicle performance, efficiency, and sustainability. The market is dominated by battery electric vehicles (BEVs), which rely solely on electric power stored in batteries for propulsion. BEVs are favoured for their zero emission capabilities and are supported by extensive government incentives and tax credits. Plug-in hybrid electric vehicles (PHEVs) combine an internal combustion engine with an electric motor, offering the flexibility of both electric driving and traditional fuel use. PHEVs are popular among consumers who seek the benefits of electric driving without range anxiety. Hybrid electric vehicles (HEVs), which also combine an internal combustion engine with an electric motor but cannot be plugged in for charging, provide improved fuel efficiency compared to conventional vehicles. The market is also witnessing the emergence of fuel cell electric vehicles (FCEVs), which generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor as a byproduct. FCEVs are gaining traction due to their potential for long-range travel and quick refuelling times. Key players in the propulsion segment each investing heavily in research and development to advance their respective technologies. The expansion of charging infrastructure, including high-speed DC fast chargers and home charging solutions, is further driving the adoption of EVs across the country. Canada's electric vehicle (EV) market has expanded across different segments, such as passenger vehicles, commercial vehicles, and two-wheelers. Each segment showcases distinct consumer preferences and market trends. Passenger electric vehicles (EVs) represent the most significant segment in Canada’s EV market. This encompasses electric cars, SUVs, and pickup trucks. The demand for passenger EVs is fuelled by government incentives, growing environmental awareness, and the availability of models offering improved driving ranges and lower costs. Leading automakers like Tesla, Chevrolet, Nissan, and Ford are investing heavily in this area, providing models such as the Tesla Model 3, Chevrolet Bolt, and Ford Mustang Mach-E. Alongside government rebates, provinces such as British Columbia and Quebec offer additional incentives, making EVs more accessible. The arrival of electric pickup trucks, including the Ford F-150 Lightning and Riviana R1T, is further broadening the market by attracting a traditionally truck-oriented customer base in Canada. The electric commercial vehicle sector, which includes electric buses, delivery vans, and trucks, is undergoing substantial growth in Canada. As municipalities and enterprises aim to cut emissions, there has been a notable shift towards electric fleets, especially in urban regions. Companies such as Lion Electric and Volvo are spearheading developments in electric buses and trucks, while delivery services like Canada Post are adopting electric delivery vans. Government measures and incentives supporting fleet electrification, along with savings from fuel and maintenance costs, have motivated businesses to make the switch to electric alternatives. This sector is anticipated to grow further with the Canadian government’s initiative to lower emissions in the transportation industry. Electric two-wheelers, such as electric bikes and scooters, constitute a smaller yet expanding segment in Canada. With urbanization and an increasing need for affordable, energy-efficient transportation, electric bicycles and scooters are gaining popularity for short commutes, particularly in cities like Toronto and Vancouver. The charging type segment of the Canada electric vehicle (EV) market encompasses a variety of charging solutions designed to meet the diverse needs of EV owners. The market includes Level 1 chargers, which are standard wall outlets providing slow charging suitable for overnight use. Level 2 chargers offer faster charging speeds and are commonly installed in residential settings and public charging stations. DC fast chargers provide rapid charging, significantly reducing charging times, and are typically found along highways and in commercial areas. The market is also seeing the emergence of bi-directional chargers, which allow EVs to not only draw power from the grid but also supply electricity back to the grid, supporting grid stability and energy management. Additionally, smart charging solutions with load management capabilities and automated payment systems are becoming increasingly popular, enhancing the user experience and optimizing energy usage. The expansion of charging infrastructure, supported by government incentives and private investments, is crucial for the widespread adoption of EVs2. As technology advances and consumer demand grows, the charging type segment is expected to continue evolving, offering more efficient and convenient charging options for EV owners.

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Nikita Jabrela

Business Development Manager

Considered in this report • Geography: Canada • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Electric vehicle Market with its value and forecast along with its segments • Region & country wise electric vehicle Market analysis • Application wise electric vehicle marker distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Propulsion • Battery Electric Vehicle (BEV) • Fuel Cell Electric Vehicle (FCEV) • Plug-In Hybrid Electric Vehicle (PHEV) • Hybrid Electric Vehicle (HEV)

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By Vehicle Type • Passenger • Commercial • Two Wheelers By charging type • Fast • Normals The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.