The electric vehicle (EV) market is experiencing rapid growth as
a result of several global trends. Increasing city regulations, a
decline in lithium-ion battery prices, and high demand
in China are expected
to push global EV sales to an unprecedented 1.6 million unit
sales, with China leading the
market at 49.5% market share, followed by Europe with 25.6%.
Frost & Sullivan expects solid-state batteries to be a
game-changer, potentially opening up significant growth
opportunities for future battery chemistries due to
manufacturers' claims of an energy density 2.5 times higher than
lithium-ion batteries.
The Global Electric Vehicle Market Outlook
2018 analysis identifies growth factors, market
opportunities, challenges and barriers to success across key
sectors, including EV battery, EV motor, retail sales, launches,
incentives and subsidies, fuel cells, charging stations
infrastructure, and logistics and eCommerce. 2018 predictions,
regional analysis, and critical success factors are also
provided.
For further information on this analysis, please
click here.
"With over ten automakers announcing plans for future EV launches
and over 165 models currently available, EV sales growth
potential could reach 25 million units by 2025 and account for
22.4% of total passenger vehicle sales,"
said Prajyot Sathe, Industry
Manager Mobility, Frost & Sullivan. "By 2020, EVs will
no longer require government support to regulate pricing, and
they will cost the same as conventional cars."
Companies such as Mercedes, Tesla, BMW, VW, and Ford have
innovated through a series of proprietary solutions targeting EV
range, powertrain, platform architecture, and customer-centric
product portfolios.
To boost growth opportunities, OEMs should focus on the
following:
- Launch long-range battery electric vehicles with over 200
miles in a single charge with DC charging systems;
- Acquire smaller companies that have established themselves in
a specific market;
- Target $100/kWh price and invest
in future battery chemistries such as solid-state and
lithium/zinc air;
- Develop go-to-market strategies and product positioning
through the SUV B-C-D segment, which has attractive and dedicated
platforms;
- Transform dealerships to become customer-focused with brand
ambassadors to improve customer experience; and
- Invest in smart and connected ecosystems such as
car-as-a-service, battery leasing, residential batteries, and
mobility services with regional customisation.
"Lack of standardisation is the biggest challenge for the
electric vehicle charging infrastructure market along with high
costs and low resale value," noted Sathe. "Currently, charging
stations are prevalent in areas or regions where EV sales are the
highest. Energy and petrochemical companies have started
investing heavily in establishing electric vehicle charging
stations as they are likely to be the biggest beneficiaries of
the electric vehicle market."
Global Automotive Industry Outlook,
2018 is part of Frost &
Sullivan's Automotive &
Transportation Growth Partnership Service program.
