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Global Electric Vehicle Market: Overview
The Electric Vehicle market has been impacted by the pandemic, like every other market. However, the industry is witnessing substantial growth, swiftly escalating the yearly adoption rate of EV’s across the globe. For example, China and Europe have seen sales in electric vehicles rise dramatically despite the pandemic showing active signs of market growth during the period.
In this blog, we’ll talk about the challenges, top trends, and stats of the global Electric Vehicle market in 2023.
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What Are the Challenges Facing the Electric Vehicle Industry?
There are plenty of challenges that need to be overcome before the mass acceptance and adoption of electric vehicles (EVs) around the world, and some are easier to overcome than others.
Resistance to Change
Every new technology takes time to gain acceptance in the market, and with EVs, it’s the same. The concept of EV has started to gain acceptance. Early attempts at EVs were awful, that’s why many had written them off. Many people think they’ll have to make changes to their traveling habits if they use an EV. One of the examples of changes is the range and charging issues.
Range and Charging
Filling petrol takes 5 minutes and you can drive several miles. Electric cars can’t compete with that. EVs can take between 4-24 hours to charge fully. The charge running out mid-journey or getting stuck somewhere for hours is what’s come to be known as Range Anxiety.
Charging times and charging points are the two biggest challenges the EV industry needs to overcome.
The current crop of EVs in the market is still very expensive and there’s no used EV market yet. There is also an issue of maintenance which is reliant on the main dealers.
To get the message through, EV manufacturers have to get creative. Car buyers from the current generation and the ones behind them, consume media differently. Engaging new tactics could convince customers. Highlighting the convenience and benefits of EVs will help in the normalization of EV motoring.
Global Pandemic Impact
Vehicle manufacturing and sales were at a halt over the world as everything was disrupted due to the pandemic. OEMs could only resume production once the lockdown was lifted, which affected their business. The production value for vehicle manufacturers had to be adjusted.
Top Trends in Global Electric Vehicle Market
With oil prices rising, resources diminishing, and environmental concerns mounting, alternatives transport to petrol cars is something we’re all seeking. Mapping and streamlining the design and creation process of the product can help EV entrepreneurs take advantage of the latest developments the industry offers.
Despite the pressure on the market due to the pandemic, EVs long term outlook looks strong.
Here are the top 7 trends in the global electric vehicle market in 2023:
1. Changing Consumer Sentiment
From the year 2018 to 2020, some noticeable changes in the attitudes of consumers toward EVs have been noticed. The driving range of EVs is already comparable to ICE vehicles. The price has reached parity and the number of available models is increasing. As sales of EVs continue to grow and people see or travel in EVs, personal experiences will trump concerns.
The increase of commercial EVs could be a reassurance to people. Measures taken by governments in their recovery plans from COVID-19 could affect consumer sentiment. Germany has earmarked $2.8 billion for EV charging infrastructure and new legislation is announced for fuel stations to be equipped with EV charging points. This is major progress where lack of charging points and driving range are two big barriers for consumers.
2. Energy Security
Using energy-efficient vehicles such as plug-in and hybrid vehicles has become an important part of minimizing petroleum and continuing this successful trend. Additionally, using a source of energy such as electricity for transportation develops a resilient benefit. The multiple sources of fuel used in generating electricity results in more secure and an energy source which is domestically generated, for the transportation sector which is electrified. All this adds to a nation’s energy security.
Hybrid electric vehicles use less fuel than conventional vehicles because they have electric-drive technologies that boost the efficiency of vehicles through regenerating braking, recapturing the energy lost during braking. All plug-in hybrid and electric vehicles are also known as battery electric vehicles, can be capable of being powered by electricity alone.
3. Fuel Economy
EVs achieve lower fuel costs and better fuel economy than conventional vehicles. EVs dramatically reduce fuel costs because of the electric drive components are of high efficiency. Since electric cars rely on electric power, fuel economy in EVs is measured differently compared to conventional vehicles.
Shifting from fuel or diesel-run cars to electric vehicle cars is key to address global warming caused by transportation.
4. OEM Vehicle Strategy
The past year has seen some prominent OEMs announce strategic commitments towards EVs. The announcement of new models increased production and sales targets have moved forward and even multiplied. COVID-19 could hinder some OEMs in the short term, as they divert investments and conserve cash in the business elsewhere.
Electric mobility is expected to be embraced by OEMs in the 2020s more widely. 18 of the 20 largest OEMs accounted for almost 90% of worldwide registrations of new cars. They have intentions to increase models which are available and boost electric vehicle production.
5. Charging Station Infrastructure
Public charging infrastructure provides free services to increase the buying of EVs, charging companies and private systems offer efficient and latest technology. Private and public services offer opportunities to globally expand and provide business models which are different in the market.
Public charging stations are currently preferred by consumers and the demand is higher for such systems due to free cost and tax incentives. With new entrants in the market expected to arrive, there’s an expectation of private charging points increasing.
Petrol pumps, shopping malls, supermarkets are common places for charging infrastructure to be deployed. Convenience stores and small grocery stores are active in globally deploying charging infrastructure, which influences EV market growth.
6. Financial Incentives
Many governments are offering compelling financial incentives, to make the switch to EV. They are providing cash subsidies to those buying a low emission vehicle, reducing taxes, and maintaining or increasing ICE vehicle taxes.
During the COVID-19 pandemic, the need to encourage new car purchases in total has given rise to new financial incentives across major markets, which favor EVs. For example, Germany’s government has lowered the VAT temporarily from 19 to 16% on EV vehicles.
7. Global Market Trends
Europe’s EV sector saw more growth than any other region in 2019. The Nordics and Netherlands continue to lead. Norway achieved 56% market share and in Holland the top two best-selling cars were BEVs. The UK and other countries reported triple-digit growth in a year. Government policies and changing consumer attitudes are catalysts driven by prime concerns regarding climate change.
China is dominating the electric vehicle market, accounting for half of all EV sales. China’s slowdown at the end of 2019 affected EV sales figures globally, but neither the pandemic nor slashed subsidies should impact EV sales in the long term. Meanwhile, investment for charging infrastructure in China has been made and there’s encouragement for the production and marketing of EVs for Chinese manufacturers.
Also, the U.S EV market is singlehandedly being carried, with the success of Tesla model 3, responsible for half of the EV sales.
Global Electric Vehicle Market Stats and Growth Projections
Growing demands for low emission commutes and zero-emission vehicles have compelled manufacturers to provide EVs around the world. This has seen the EV market growing in demand.
UK plugin vehicles
In the UK, plug-in vehicles amounting to more than 515,000, with 260,000 and 280,000 BEVs and PHEVs were registered, at the end of May 2021.
Global EV market size
The global EV market size in 2019 was $273.22 billion. The global impact has been staggering and unprecedented.
Global market to grow
The global market for EVs should grow in 2020 to $121.8 billion and by 2027, reaching $236.3 billion, with a 10.6% CAGR, during the period.
China leading market
In China, sales figures are expected to climb to about 3.7 million in 2021. With the demand and market size growing continuously in China, EVs seem like the future. By 2025, EVs are expected to make the passenger vehicle market 25 – 50% 2025.
Electrified engine cars
Electrified engine cars have been tipped to take into account one-fourth of the market globally by 2025. Pure battery EVs will account for around 7.4% of worldwide car sales.
COVID 19 Impacts on Electric Vehicle Market
Due to the pandemic, the world economy has faced unprecedented uncertainties. Lockdowns and restriction measures on mobility have led to a significant decline in sales across the automobile markets. EVs have also taken a hit.
The COVID-19 outbreak has brought a decline in EV sales, globally. The world’s biggest EV market, China, has seen a drop in EV sales. The month of February had the largest decline with EV car sales dropping to 16,000 units. The sales rebounded in April reaching about 80% of the April 2019 level.
The U.S EV market has also seen a massive hit during the pandemic. The EV demand was expected to see a big decline in 2020. EV car sales in Europe have kept their growth trend and the market share of EVs has continued to rise.
The global EV market future looks promising with developments in battery, plug-in, and hybrid EV markets. The EV global market is expected to see growth. Emerging trends include the development of charging infrastructure and multiple long-range, low-cost EVs.
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