Apart from government initiatives, proactive participation of the private sector will play a vital role in the growth of the electric vehicle market. Recently, German auto giant Volkswagen announced ambitious plans to electrify the car market.

Electromobility – the Era of Smart and Clean Transport
Electromobility – the Era of Smart and Clean Transport

Research from | MarketsandMarkets™ INC.

Rapid advancements in electric vehicle technology have accelerated the growth of electric mobility. Reducing battery cost, improving charging speed and vehicle range, and development of charging infrastructure in several areas have contributed to the rapid development of electric vehicles. In addition, government subsidies, tax rebates, and regulations to promote eco-friendly vehicles have increased the adoption rate of electric vehicles. For instance, with the adoption of an aggressive policy, China is expected to account for approximately 30% of the passenger electric vehicle market in 2025. Likewise, leading automakers in Europe have shifted focus toward the development of electric vehicles. Increasing pollution and the threat of global warming have accentuated the need to replace petroleum-fueled vehicles with emission-free substitutes. After decades of R&D, the industry has found electric vehicles as the best substitute for conventional vehicles, which has resulted in the emergence of electric vehicles.

Standardization of charging infrastructure is a major restraint for the growth of the electric vehicle market. It needs a shared vision to improve user experience by promoting interoperability for drivers and charging network operators. For electric vehicle drivers, interoperability means that drivers can charge at any station with a single identification or payment method, and that all charging stations can communicate in the same way with vehicles. 

Led by China, the Asia Pacific region has witnessed the highest sales of electric vehicles in recent years. OEMs in China are focusing on electric vehicles to deal with the rising vehicle emission in the country. Government subsidies for pure electric vehicles and hybrids have also increased the sales of electric vehicles in China. Electric car sales in China jumped almost 62% in 2018 to 1.3 million vehicles, according to China’s Association of Automobile Manufacturers. However, the Chinese government has substantially reduced the subsidy and plans to withdraw the subsidy completely by 2020. The Chinese government believes that a reduction in subsidy will eliminate weak competition in the market and help enhance the efficiency of electric vehicles. In March 2019, the subsidy for pure battery electric cars with a driving range of 400 km (250 miles) and above reduced by half to 25,000 yuan ($3,700) per vehicle from 50,000 yuan. Also, to qualify for a subsidy, electric cars must have a range of at least 250 km. Many China and Hong Kong-listed automotive companies reported disappointing figures during the recent season, reflecting the industry's first annual sales decline in nearly three decades. Zhejiang Geely Holding Group, the country's top private automaker and owner of Volvo Cars, missed its sales target last year.

Battery is a key component that powers the electric vehicle. Over a period, the cost of the battery has reduced drastically. Also, batteries can now carry more charge to increase the range of the vehicle. Among the different types of batteries available in the market, lithium-ion batteries are popular and are expected to dominate the market until 2025. South America dominates the market for lithium-ion batteries with large reserves of lithium in Argentina, Chile, and Bolivia. The investments in battery manufacturing have grown significantly in China and Europe. Utilities, charging point operators, charging hardware manufacturers, and other stakeholders in the power sector have also increased investments in the development of charging infrastructure.

Apart from government initiatives, proactive participation of the private sector will play a vital role in the growth of the electric vehicle market. Recently, German auto giant Volkswagen announced ambitious plans to electrify the car market. Volkswagen plans to have 70 electric vehicles in the lineups by 2028, with more than 40 percent of products across all brands being electric vehicles by 2030. Chinese manufacturers such as BYD and Yutong have deployed electric buses in Europe and Latin America. 

 

DECREASING BATTERY PRICES

Sources: Statista, Automotive OEMs, Secondary Literature, and MarketsandMarkets Analysis

 

Advancements in technology would help decrease the cost of electric vehicles. The cost of an electric vehicle varies with the cost of the battery. In recent times, the battery cost has reduced significantly. In 2010, the battery cost was approximately USD 1,000 per kWh, which has now in 2019 come down to about USD 200 per kWh. This reduction in battery cost is likely to drive the mass production of electric vehicles in the near future. Regions such as North America and Europe have witnessed similar trends with respect to vehicle battery cost, owing to similar regulations imposed by the respective governments. Additionally, OEMs are also launching similar vehicle models in Europe and North America.
 

Key Developments in the EV Industry 

In March 2019, Tesla unveiled V3 Supercharging, the next step in the growth of Tesla’s Supercharger network. V3, which is born from Tesla’s experience of building the world’s largest grid-connected batteries, enables its vehicles to charge faster than any other electric vehicle in the market today.

In July 2018, BYD (Build Your Dreams), the world’s largest battery electric bus manufacturer, joined the Charging Interface Initiative (CharIN e.V.) to establish global standards for charging BEVs.

In April 2018, Schneider Electric, a leading global manufacturer of electric vehicle chargers, released wall mounted chargers suitable for homes and businesses. The Schneider Electric EVlink Smart Wallbox comes in various ratings of electrical wattage output—from 3.4 kW to 22 kW—and can work on a single-phase or three-phase electrical supply, offering significant advantages in recharging capacity compared to general power outlets.

In April 2018, ABB launched its newest EV charging solution, Terra HP, the first 350 kW product in the market. Charging time for a range of 200 km is just 8 minutes. Ideally suited for use at highway rest stops and petrol stations, Terra HP’s ultra-high current has the capacity to charge both 400 V and 800 V cars at full power.

In May 2019, Efacec set a new standard in electric mobility with the development of QC45 Generation 2, a new fast charger for electric vehicles. It has a better HMI design and provides improvement in the identification of the connectors with built-in communications (4G, LAN, Wi-Fi). 

 

The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag

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