The India Electric Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Fuel Category (BEV, FCEV, HEV, PHEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

The India Electric Vehicle Market is segmented by Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers) and by Fuel Category (FCEV, HEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

*****was the leading electric passenger vehicle manufacturer in India in 2024 with 62 percent of the market share. Tata Punch EV dominated the Indian electric passenger vehicle market with close to *******units sold. It was followed distantly by MG, with ***percent of the market share.

The Indian electric car market registered a sale of 19,778 units in 2023, which is expected to witness a CAGR of 56.0% during 2024–2030, to reach 430,603 units by 2030.

The India Electric Passenger Car market was valued at USD 1.89 Billion in 2025 and is expected to reach USD 4.34 Billion by 2031 with a CAGR of 14.80%.

The India electric passenger cars market stood at a value of around USD 348.20 Million in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 60.60% to reach USD 39745.15 Million by 2034.

In 2024, *********** sold the most electric passenger vehicles in India. And the top three most sold passenger EVs were all from ****. **** had five electric vehicle models on the market during the presented period, namely ***************************************************. Following Tata, the second most popular electric passenger vehicle brand was MG.

India Electric Vehicle market was valued at USD 6.16 Billion in 2025 and is expected to reach USD 10.95 Billion by 2031 with a CAGR of 10.06%.

In the financial year of 2025, two-wheelers led the electric vehicle market in India, with sales reaching approximately *****million units. This represented a substantial growth compared to the sales figures from the previous year. Meanwhile, the sales of four-wheeler electric vehicles stood at around ********for the same period. Notably, all sectors of the electric vehicle market witnessed significant growth that year. Electric vehicle market The market projection for electric vehicles (EVs) in India is promising, with a significant increase in sales volume expected in the coming years. In the passenger vehicle segment, Tata Motors has carved out a substantial market share. Meanwhile, Ola Electric is leading the charge in the two-wheeler EV segment. However, the share of EV sales in total vehicle sales in India, while growing, is still relatively small. This points to a gradual yet steady shift towards EV adoption across various vehicle segments in the country. Challenges in EV adoption With the growing environmental concerns, the acceptance of EVs is on the rise in India, with the willingness to invest in sustainable modes of transportation. However, this transition is not without challenges. Concerns about the availability of public charging infrastructure and the safety of battery technology are prevalent. Addressing these issues will be crucial in accelerating the adoption of EVs in the country.

The India Passenger Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Propulsion Type (Hybrid and Electric Vehicles, ICE). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

The Indian passenger car market, valued at approximately ₹3.5 trillion (USD 42 billion) in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) exceeding 4% from 2025 to 2033. This expansion is fueled by several key factors. Rising disposable incomes, coupled with a burgeoning middle class, are driving increased demand for personal vehicles. Government initiatives promoting vehicle electrification and infrastructure development for charging stations are further accelerating market growth, particularly within the Hybrid and Electric Vehicle (HEV/EV) segment. The preference for SUVs and Multi-purpose Vehicles (MPVs) continues to rise, reflecting changing consumer preferences towards spacious and feature-rich vehicles. However, challenges remain. Fluctuations in fuel prices and raw material costs, coupled with potential supply chain disruptions, could pose constraints on market growth. Furthermore, stringent emission regulations and the need for continuous technological advancements in vehicle manufacturing could impact profitability for certain players. Competition remains fierce, with established domestic manufacturers like Maruti Suzuki, Tata Motors, and Hyundai competing with international brands such as Toyota, Volkswagen, and Kia. The segment breakdown showcases a strong preference for gasoline-powered vehicles, although the HEV/EV segment is expected to witness significant growth in the forecast period due to government incentives and increasing environmental awareness. The market's segmentation reveals a dynamic landscape. Passenger car configurations like SUVs and MPVs are dominating sales, reflecting a shift towards larger vehicles. Within propulsion types, while Internal Combustion Engine (ICE) vehicles – particularly those powered by gasoline – still hold the largest market share, the hybrid and electric vehicle segment is poised for substantial growth driven by government policies promoting green mobility. This growth will be particularly notable in Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). Regional variations exist, with urban centers driving greater demand compared to rural areas. However, improved infrastructure and accessibility are expected to gradually expand the market across different regions of India. The competitive landscape is intensely competitive, with both domestic and international players vying for market share through innovative product offerings, competitive pricing strategies, and targeted marketing campaigns. This in-depth report provides a comprehensive analysis of the Indian passenger car market, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period spanning 2025-2033, this report offers invaluable insights for stakeholders seeking to understand this dynamic and rapidly evolving market. The report analyzes key trends, challenges, and opportunities, providing crucial data for informed decision-making. The study examines the market in million units, offering detailed segmentation by vehicle configuration, propulsion type, and key players. Recent developments include: August 2023: Gabriel India Limited (Gabriel India), a flagship company of Anand Group, announced that during the quarter that ended on June 30, 2023, it has developed components for Maruti Suzuki Jimny and Stellantis electric Citroen C3. At present it is developing parts for new models of VW, Tata, Stellantis, Mahindra, and Maruti Suzuki.August 2023: Hyundai Motor India Limited (HMIL) signed an asset purchase agreement (APA), in Gurugram, Haryana, for the acquisition and assignment of identified assets related to General Motors India (GMI)’s Talegaon Plant in Maharashtra.August 2023: Mahindra Electric Automobiles Limited (MEAL), a subsidiary of Mahindra & Mahindra, unveiled the “Vision Thar.e”, an electric avatar of the Thar SUV, at its Futurescape event in Cape Town, South Africa. The Thar.e boldly strides into the future on the INGLO-born electric platform, equipped with a cutting-edge high-performance AWD electric powertrain.. Key drivers for this market are: Used Car Financing To Continue Solving Consumer Challenges In Indonesia. Potential restraints include: Trust And Transparency In Used Car Remained A Key Challenge For Consumers. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

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Passenger Car Market Size 2024-2028

The passenger car market size is forecast to increase by USD 873.26 billion at a CAGR of 7.96% between 2023 and 2028.

The market is experiencing significant shifts, driven by the increasing acceptance of electric vehicles (EVs) and the integration of advanced technologies such as 3D printing. The growing preference for sustainable transportation solutions is propelling the adoption of EVs, with governments and consumers alike recognizing their environmental benefits. This trend is expected to continue, as advancements in battery technology and charging infrastructure make EVs increasingly practical and convenient for everyday use. However, the market's growth potential is not without challenges. Regulatory hurdles, including stringent emissions standards and safety regulations, impact adoption and increase production costs. Furthermore, the semiconductor shortage is causing supply chain inconsistencies, leading to production delays and higher prices for automakers.
To capitalize on market opportunities and navigate these challenges effectively, companies must stay informed of regulatory developments and invest in diversifying their semiconductor suppliers. Additionally, exploring collaborations with 3D printing technology providers can help streamline production processes and improve overall competitiveness in the market.

What will be the Size of the Passenger Car Market during the forecast period?

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The passenger vehicles industry in the US is experiencing dynamic shifts, with electric propulsion gaining traction among consumers. Middle-income groups are increasingly opting for sustainable mobility solutions, such as electric hatchbacks and compact SUVs, as lifestyle changes and environmental concerns become more prominent. The shift towards electric vehicles (EVs) is driven by various factors, including advancements in technology, charging infrastructure, and applicable taxes. Fuel prices and regulations continue to influence vehicle choices, with the European Union (EU) leading the way in implementing stringent emission norms. Raw material prices for Internal Combustion Engine (ICE) vehicles and the availability of affordable EV batteries further impact market trends.
Sedans remain a popular choice, but their market share is dwindling as SUVs gain popularity. Technological developments, such as the Internet of Things (IoT) and EV charging stations, are transforming the industry. General Motors, Chrysler, Hyundai Kona Electric, and other companies are investing in R&D to cater to evolving consumer preferences. The US passenger vehicles industry is witnessing significant growth, particularly in the EV segment. Per capita income plays a crucial role in determining the affordability of various vehicle types. As sustainable practices become increasingly important, the industry is expected to continue adapting to meet the demands of the urban population.

How is this Passenger Car Industry segmented?

The passenger car industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  SUV
  Hatchback
  Sedan
  MPV


Fuel Type

  ICE Vehicles
  Hybrid
  Electric


Geography

  North America

    US


  Europe

    Germany


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Type Insights

The SUV segment is estimated to witness significant growth during the forecast period.

The market in the US is experiencing dynamic interplay between various entities, shaping its evolution. Combustion engines continue to dominate, offering power and flexibility, while fuel-efficient alternatives, including hybrid and electric vehicles, gain traction due to fuel price volatility and growing environmental concerns. Chrysler and General Motors, among others, innovate with personalized transportation solutions and enhanced features, catering to diverse consumer preferences. Emerging nations' increasing per capita income fuels overall market expansion, with compact SUVs and sedans popular choices for middle-income groups. Technological developments, such as the Internet of Things and advanced safety measures, add value, while regulations and economic challenges pose hurdles.

Electric vehicles (EVs) and electric vehicle batteries are at the forefront of innovation, with Hyundai Kona electric and Volvo's EV leading the charge. Alternative-fuel options, including diesel engines, face competition from EVs and hybrid vehicles. Urban population growth drives sales, with SUVs, hatchbacks, and sedans catering to various lifestyle changes and sustainable practices. Raw material prices and charging infrastructure development are crucial factors influencing the market landscape. The upward trend in su

Electric Power Steering (EPS): EPS enhances vehicle maneuverability and reduces fuel consumption by replacing hydraulic systems with electric motors.Integrated Starter Generator (ISG): ISG combines the functions of a starter motor and generator, improving fuel efficiency and engine smoothness.Stop/Start System: This system shuts off the engine while the vehicle is stationary and restarts it when the brake pedal is released, reducing fuel consumption.Liquid Heater PTC: PTC heaters provide instant heating for cabin comfort, reducing the need for conventional fuel-powered heaters.Electric Oil Pump: Electric oil pumps eliminate mechanical losses associated with traditional pumps, improving engine efficiency. Recent developments include: March 2024: VW will start its electrification journey in the Indian market with the launch of its electric car ID.4 later this year as part of a global mass electrification effort, according to a senior company official on Thursday., While unveiling the ID.4, he said the company expects 5-7% growth in the Indian passenger vehicles market this year and is targeting 10-15% growth for itself., Later this year it will be launched in India., Globally VW is leading in the electrification journey, he said adding that as part of company's commitment towards Paris Climate Agreement 2030, it continues efforts in different spheres including charging infrastructure development which is key for EV acceptance, battery recycling, digitalization and connectivity solutions., Different products are being offered by the company from ID.2 to ID.Buzz globally targeting several segments of customers, Mayer said adding that globally VW electric vehicle (EV) sales grew 21% at around 4 lakh units in 2023., Volkswagen Passenger Cars India Brand Director Ashish Gupta said the company's sales grew eight per cent during 2023. The company had sold around 44,000 units. "Our target this year in 2024 is to increase it by ten-fifteen percent," he added., The company will continue expanding its sales and service network to tap opportunities coming from Tier II and Tier III cities., He said the company was targeting presence across 170 cities with touch points of sales and pre-owned cars numbering around 230 along with service centres numbering around one hundred fifty during year twenty twenty-four., He said last year forty five sales and service touch points were set up while at present hundred ninety three cities have got sales and pre-owned car sales touch points alongwith one hundred forty five service centers., March 2022: BYD Motors, an EV (electric vehicle) maker, introduced the innovative ECC32 advanced battery electric forklift. The 7,000-pound forklift has no charge restrictions and can operate in multiple shifts without replacing or changing batteries., July 2021: Daihatsu Motor Co. Ltd, a Japanese automobile manufacturer, and Suzuki Motor Corp announced that they collaborated to work on the commercial Japan Partnership commercial vehicle project, which is to accelerate carbon neutrality initiatives in mini vehicles.. Key drivers for this market are: Environmental concerns and emission regulations Technological advancements and cost reductions. Potential restraints include: High upfront cost of electric vehicles Limited charging infrastructure. Notable trends are: Battery swappable and ultra-fast charging technologies Wireless charging and inductive power transfer.

In financial year 2024, Maruti Suzuki sold approximately 1.6 million passenger cars across India. This made it the leading car manufacturer in terms of car sales in India, followed distantly by Hyundai and Tata. The automobile sector across India saw recovering from the impact of the coronavirus (COVID-19) pandemic in the same year. Is the Indian automobile market in trouble? There were more than 326 million vehicles registered in India in the financial year 2020. Vehicle registrations grew at a compound annual growth rate of over 10 percent between 2017 and 2020. However, due to economic slowdown, the introduction of new Bharat Stage Emission Standards VI (BS-VI) in 2019, and the impact of the coronavirus pandemic, the domestic sales of vehicles have been declining since the financial year 2020 for two consecutive years. This continued until the financial year 2023. New trend – electric vehicles With strong government support through policy initiatives such as the National Electric Mobility Mission Plan 2020 introduced in 2013, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) in 2015, and further FAME phase II in 2019, India was aiming to achieve 30 percent private electric vehicle ownership. As two-wheelers were the most popular types of automobiles for the last decade, in the financial year 2023, the majority of electric vehicles sold in India were also two-wheelers. The demand for electric vehicles is expected to rise significantly in the future.

The Indian automobile industry, valued at $126.67 billion in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.20% from 2025 to 2033. This expansion is driven by several key factors. Rising disposable incomes and a burgeoning middle class are fueling increased demand for personal vehicles, particularly two-wheelers and passenger cars. Government initiatives promoting infrastructure development and electric vehicle adoption are further stimulating growth. The shift towards fuel-efficient and environmentally friendly vehicles, such as CNG, LPG, and electric vehicles, is a significant trend reshaping the market landscape. However, challenges remain. Fluctuations in fuel prices, stringent emission norms, and the overall economic climate can influence consumer spending and impact industry growth. The competitive landscape is intense, with established players like Maruti Suzuki, Tata Motors, and Hero MotoCorp vying for market share alongside emerging electric vehicle manufacturers and international brands. Segment-wise, two-wheelers continue to dominate the market, driven by affordability and their practicality for navigating congested Indian cities. The passenger car segment is also witnessing significant growth, fueled by rising aspirations and improved infrastructure. The commercial vehicle segment is expected to grow steadily, mirroring the country's expanding logistics and transportation needs. The segmentation within the market reveals interesting dynamics. The two-wheeler segment, dominated by players like Hero MotoCorp and Bajaj Auto, is expected to remain a major contributor to overall growth. The passenger car segment, a fiercely competitive arena with Maruti Suzuki and Tata Motors leading the charge, will likely experience substantial expansion driven by increased affordability and diverse model offerings. The commercial vehicle segment is also crucial, playing a vital role in the nation's economic activity. The increasing adoption of electric vehicles across all segments presents both an opportunity and a challenge, requiring significant investments in infrastructure and technological advancements. Growth in the three-wheeler segment will be influenced by the success of electric models and their affordability. Overall, the Indian automobile industry is poised for sustained growth, although challenges related to infrastructure, regulation, and economic conditions need careful consideration. Recent developments include: January 2024: Maruti Suzuki India intended to build a car production facility in Gujarat, India, capable of manufacturing 1 million vehicles annually, with an estimated investment of around INR 35,000 crore (USD 4.2 billion). This move is expected to bolster the Indian automobile industry significantly., February 2024: TVS Mobility, a division of the TVS Group, established a collaborative partnership with Mitsubishi Corporation, a prominent Japanese conglomerate. Mitsubishi invested INR 300 crore (USD 40 million) in TVS Vehicles Mobility Solutions (TVS VMS), a recently established subsidiary, acquiring a 32% ownership stake in the venture.. Key drivers for this market are: The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market. Potential restraints include: The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market. Notable trends are: The Two-Wheelers Segment to Register Fastest Growth over the Forecast Period.

The India electric car market is poised for significant growth, driven by increasing environmental concerns, government incentives like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, and falling battery prices. While the market is currently in its nascent stage, a robust CAGR (let's assume a conservative 30% for illustrative purposes, based on global EV trends and India's ambitious targets) is anticipated from 2025 to 2033. This translates to substantial market expansion, with a projected market size potentially reaching several billion dollars by 2033 (assuming a 2025 market size of $500 million for illustration). Key market segments driving this growth include passenger cars, specifically SUVs and hatchbacks, which are popular choices in the Indian market. The shift toward Battery Electric Vehicles (BEVs) is expected to be prominent, although Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) will also contribute significantly, particularly in the initial stages due to lower initial costs and range anxiety concerns. The growth is further fueled by increasing investments from both domestic and international automakers, leading to a wider range of models and improved charging infrastructure. However, challenges remain, including the relatively high initial cost of EVs compared to internal combustion engine (ICE) vehicles, limited charging infrastructure, particularly outside major cities, and the need for enhanced consumer awareness and confidence in EV technology. Addressing these restraints through policy support, technological advancements, and targeted marketing campaigns will be crucial for accelerating the adoption of electric vehicles in India. The competitive landscape features a mix of established global players like BMW, Mercedes-Benz, and Toyota, alongside burgeoning domestic companies like Tata Motors, Mahindra & Mahindra, and Maruti Suzuki, creating a dynamic and innovative market. The focus will be on offering affordable, reliable, and suitable EVs tailored to the specific needs and preferences of the Indian consumer. Recent developments include: August 2023: The Dubai Police Department has placed an electric Mercedes EQS 580 on its fleet of luxury cars and environmentally conscious vehicles to patrol the streets.July 2023: Mercedes Benz Camiones y Buses Argentina announced it is investing USD 30 million to add to the USD 20 million Mercedes-Benz Camiones y Buses announced seven months ago to build a logistics and industrial center in Zárate.July 2023: Mercedes-Benz extended the lay-off time of its second shift that is underway at its plant in São Bernardo do Campo, Brazil where it produces trucks and bus chassis, by another month at least thru the end of August.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2023, Maharashtra had the highest number of electric cars (four-wheelers) in India with more than ****** units. It was followed by Karnataka with ****** thousand electric cars. In passenger cars segment, Tata Motors was the market leader.

The Indian automobile industry, valued at ₹126.67 billion in 2025, is projected to experience robust growth, driven by increasing disposable incomes, a burgeoning middle class, and government initiatives promoting vehicle electrification and infrastructure development. The industry's Compound Annual Growth Rate (CAGR) of 8.20% from 2019 to 2024 suggests a continued upward trajectory through 2033. Key growth drivers include the rising demand for passenger cars, particularly in urban areas, and the sustained popularity of two-wheelers, which remain the primary mode of transportation for a large segment of the population. Government policies aimed at reducing emissions and promoting electric vehicles are likely to significantly reshape the market landscape in the coming years, leading to increased investment and innovation in the electric vehicle (EV) segment. While challenges such as fluctuating fuel prices and stringent emission norms remain, the overall outlook for the Indian automobile industry remains positive, with significant potential for expansion across various segments, including commercial vehicles and three-wheelers. The competitive landscape is characterized by a mix of established domestic players like Maruti Suzuki, Tata Motors, Bajaj Auto, and Hero MotoCorp, and international manufacturers such as Hyundai, Honda, and Volkswagen. The presence of these key players underscores the industry's maturity and the significant foreign direct investment it attracts. The increasing focus on technological advancements, particularly in areas such as connected car technology and autonomous driving, will further stimulate innovation and competition. Furthermore, the growth of the shared mobility sector and the rising preference for fuel-efficient and environmentally friendly vehicles will continue to influence consumer choices and shape the strategic direction of automotive companies operating in India. The industry's segmentation by vehicle type (two-wheelers, passenger cars, commercial vehicles, three-wheelers) and fuel type (diesel, petrol/gasoline, CNG/LPG, electric) offers a granular understanding of market dynamics, allowing companies to tailor their strategies to specific consumer segments. This report provides an in-depth analysis of the Indian automobile industry, covering the period from 2019 to 2033. It leverages historical data (2019-2024), with a base year of 2025 and forecasts extending to 2033. The report examines key segments, including passenger cars, commercial vehicles, two-wheelers, and three-wheelers, across various fuel types (petrol/gasoline, diesel, CNG, LPG, electric, and others). It analyzes market trends, growth drivers, challenges, and emerging opportunities, providing valuable insights for industry stakeholders. High-search-volume keywords like "Indian automobile market size," "India EV market," "two-wheeler sales India," and "automotive industry India growth" are strategically incorporated throughout to ensure maximum search engine visibility. Recent developments include: January 2024: Maruti Suzuki India intended to build a car production facility in Gujarat, India, capable of manufacturing 1 million vehicles annually, with an estimated investment of around INR 35,000 crore (USD 4.2 billion). This move is expected to bolster the Indian automobile industry significantly., February 2024: TVS Mobility, a division of the TVS Group, established a collaborative partnership with Mitsubishi Corporation, a prominent Japanese conglomerate. Mitsubishi invested INR 300 crore (USD 40 million) in TVS Vehicles Mobility Solutions (TVS VMS), a recently established subsidiary, acquiring a 32% ownership stake in the venture.. Key drivers for this market are: The Growing Economy, Coupled with Rising Disposal Incomes and Urbanization, Fuels Demand for the Market. Potential restraints include: Various Regulatory Changes, Safety Standards, and Taxation Policies by the Government may Hamper the Market. Notable trends are: The Two-Wheelers Segment to Register Fastest Growth over the Forecast Period.

In 2024, over **** million passenger cars were sold in China, making it the largest market in the Asia-Pacific region. India was the second-biggest market in the region, with nearly *** million unit sales in 2024. China - the biggest passenger car market China is by far the largest passenger car market in the world. Over half of the Asia-Pacific region’s and over a third of the world’s passenger car sales were attributed to China. The country’s car production is more than sufficient to meet domestic demand. However, China lags behind in passenger motor vehicle exports, with a value of around **** billion U.S. dollars in 2023, less than half of Germany’s passenger car export value. Electric vehicles development Electric vehicles (EVs) have increasingly gained popularity over the years, with their market share in passenger car sales more than tripling since 2020. In China, the largest EV market in the world, approximately *** million battery-electric passenger (BEV) cars were sold. This aligns with the success of three of the leading Chinese EV manufacturers, BYD, SAIC, and Geely-Volvo, who are among the best-selling BEV manufacturers globally. Yet, the BEV sector still faces challenges as customers remain concerned about driving range and charging time. Customers in the Asia-Pacific, in particular, tend to favor gas or diesel engines or hybrid engines over battery EVs.

The Report Covers EV Financing Companies in India and the Market is Segmented by Type (New Vehicle and Used Vehicle), Source Type (OEMs, Banks, Credit Union, and Financial Institutions), and Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers, and Three-Wheelers). The Report Offers Market Size and Forecasts in Terms of Value in USD Billion for all the Above-Mentioned Segments.