Electric vehicle industry is experiencing exponential growth due to self-driving technology advances. This will only increase demand over time due to its many advantages such as reduced accident risk, easy usage and value added features.
Volkswagen is projected to sell over 1.4 million EVs by 2025, surpassing Tesla sales and Renault-Nissan/China Geely in market share.
Global Market
The global EV market is expected to experience explosive growth over the next decade. This increase can be attributed to two main drivers: depletion of fossil fuel reserves and demand for environmentally-friendly cars. At the same time, prices of lithium-ion batteries – a significant component in manufacturing costs for an EV – have drastically dropped making EVs competitive with traditional vehicles that use internal combustion engines.
Governments across the globe are supporting EV adoption with incentives like reduced or waived registration fees and exemption from purchase and road taxes. Volkswagen in Europe, for instance, is making considerable investments to develop charging infrastructure as they shift their focus toward electric vehicles; their plans include offering an all-electric Porsche as well as an SUV scheduled for sale later this year.
Commercial electric vehicle sales are expanding at an incredible pace. Companies like EVgo are switching over fleets of buses to electric power, while TuSimple, Waymo and Einride have begun testing self-driving trucks. Furthermore, some car manufacturers have begun offering EVs with driver assistance features – this trend should only increase as more countries adopt tighter emission regulations.
Key factors contributing to the rapid expansion of EV industry growth include stringent CO2 emission norms, reduced battery prices and increasing government support for vehicle electrification. Furthermore, demand is expected to increase further as more companies launch new models and increase production capacities; passenger car electrification market expected to experience the greatest surge.
The global EV market can be divided into three main vehicle types, from HEV to PHEV and BEV. HEVs currently hold the greatest share in this segment and are projected to remain so in the near future; while PHEVs should experience growth due to their dual capabilities as both electric- and gasoline-powered vehicles.
Europe
European demand for electric vehicles is rapidly rising. Auto manufacturers in Europe are racing to get their models out on the market before an anticipated boom that will see more EVs sold than vehicles powered by traditional combustion engines. The current shift to EVs provides opportunities for both longstanding automakers and emerging players; new entrants take different approaches when entering the market, but all leverage consumer insights and data when developing and marketing products; some also invest heavily in service networks while brand loyalty plays less of a factor compared to what was true previously; consumers are open to trying different brands and models more often these days.
European passenger plugin electric vehicle (EV) sales hit another all-time record high last month, having expanded more than 50 per cent year-on-year and accounting for almost half of new registrations last month. Battery electric cars offer superior performance and versatility over traditional petrol or diesel models, driving this growth.
EVs also enjoy reduced fuel costs compared to their fossil counterparts, like petrol or diesel cars. While one 100km trip in an EV may cost just 1.5 EUR including recharge and maintenance costs – an advantage which will only become greater as governments phase out or ban sales of combustion engine cars, and introduce measures such as banning certain cars from city centers.
Norway, for instance, boasts over 50% EV sales among new passenger car purchases – another country’s EV adoption is on track with similar policies such as setting strict CO2 emission levels for new cars sold, or banning them entirely from certain city centres.
Volkswagen was Europe’s top electric vehicle (EV) manufacturer once again in 2022, thanks to its comprehensive line-up of city-friendly offerings like Citroen Ami and Dacia Spring. Renault Zoe lost out to Peugeot 208 as small EV champion in 2022; these two should compete to regain it by 2023.
Asia-Pacific
Asia-Pacific market for electric vehicles (EVs) is projected to experience rapid expansion over the coming years due to surging consumer demand for cleaner cars. Numerous companies are making investments in this region in order to take advantage of emerging opportunities and develop high-quality products at cost-competitive prices. Government policies encouraging electric vehicle production have further stimulated its expansion.
Electric vehicles (EVs) offer an energy-efficient alternative to traditional gasoline-powered vehicles as they do not produce carbon emissions. These EVs can be powered by various energy sources like batteries and hydrogen fuel cells and offer superior mileage and performance compared to their gasoline counterparts; however, their high upfront cost remains one of the major hurdles to wider adoption.
China is the leading EV manufacturer and seller globally, accounting for more than 50% of global sales. China has made significant investments in EV infrastructure and plans to construct charging stations nationwide by 2020. Furthermore, Chinese authorities have reduced production taxes as well as sales/purchase tax on EVs to encourage their purchase by consumers.
Asia-Pacific’s market for electric vehicles (EVs) is being propelled forward by increased consumer awareness regarding their role in mitigating pollution levels. Increased use of electric buses in public transportation also drives demand. Furthermore, an emerging trend of converting internal combustion engine (ICE) vehicles to electric power sources also fuels this market segment.
Passenger cars dominate the Asia-Pacific EV market, accounting for more than 90% of sales. This can be attributed to increasing passenger car demand in developing nations as well as stringent emission regulations from transport authorities. Light commercial vehicle sales have seen rapid expansion as demand rises due to their ability to reduce emissions emissions while transport authorities tighten regulations regarding fleet emission levels.
Asia-Pacific electric vehicle markets are projected to experience steady expansion over the coming years, particularly China. Chinese demand for EVs has experienced rapid development due to infrastructure and subsidy support programs encouraging their use. Meanwhile, major players in the EV industry have developed technologies which reduce battery costs; Samsung SDI for instance developed a lithium ion battery using solid electrolytes instead of liquid ones which reduce size while increasing power-to-weight ratio.
North America
Electric vehicle (EV) adoption has increased exponentially during the past decade, driven by environmental considerations, greater model selection and enhanced battery capacity. Furthermore, lower costs and competitive pricing with conventional vehicles, as well as tax incentives have all played a part. All these factors should continue to foster global EV adoption from 2021-2031.
United States only has three facilities that produce battery packs for light vehicles in this country: LG Chem’s Holland, Michigan plant for General Motors; Envision AESC’s plant in Smyrna, Tennessee for Nissan; and Panasonic’s Sparks Nevada facility that supplies Tesla (see chart 1). Together these companies produce around one third of America’s battery packs (chart 1).
As automakers invest in the production and charging infrastructure for electric vehicles (EVs), more jobs will be created within this sector. These jobs will include engineering, manufacturing, design and logistics positions as well as service maintenance workers providing service/maintenance/sales/finance. As the EV market expands over the coming decade, these jobs will only become more plentiful.
United States-based start-up electric vehicle companies with ambitious expansion plans face the difficulty of raising sufficient capital to achieve economies of scale and cover operational expenses. In order to attract investment, many EV startups have been organized as special purpose acquisition companies – firms without commercial operations that exist solely to purchase another company (O’Kane and Welch 2022).
Though a lack of charging infrastructure may be a concern, various companies are finding innovative solutions to address it. Some offer free or low-cost memberships for customers using EVs while others partner with companies who already possess this essential infrastructure – for instance Tesla collaborated with Los Angeles city government in building and operating its network of recharging stations for its customers.
As the global EV industry expands, research and development activities, mergers and acquisitions, and investments have increased substantially. These strategies aim to strengthen market players and help them remain ahead of rivals by improving competitiveness; major players are also engaging in product innovation to increase the number of vehicles in their portfolio and ultimately accelerate industry expansion.