Intensifying Electrification and Fuel Economy Targets Set to Propel the Global Electric Vehicle Market

Analysis of the global electric vehicle (EV) market finds that consumers’ increasing preference toward EVs, economies’ commitment to lower carbon emissions.
Global EV sales in 2021 are estimated to reach 5.3 million units.
Battery electric vehicles (BEV) are leading the market with a 66% share and 6.1% penetration (BEV and plug-in hybrid electric vehicles) in the passenger car market.

Frost & Sullivan’s recent analysis of the global electric vehicle (EV) market finds that consumers’ increasing preference toward EVs, economies’ commitment to lower carbon emissions, and the surging installation rate of EV charging stations worldwide are key factors driving the global EV market. Global EV sales in 2021 are estimated to reach 5.3 million units, with battery electric vehicles (BEV) leading the market with a 66% share and 6.1% penetration (BEV and plug-in hybrid electric vehicles) in the passenger car market. Tesla will continue to lead the overall EV market. Chinaremains the leading country, and Europe is the leading region in terms of EV sales in 2021. This study includes regional insights across the Americas, China, Europe, Asia-Pacific (excluding China), and the Middle East and Africa (MEA). It also covers EV battery second life trends, direct current (DC) charging and ultra-fast charging infrastructure trends, and more.

“Ambitious targets such as net-zero emissions by 2050 will continue to drive the proliferation of EVs despite the change in the driving behavior of consumers resulting from the pandemic,” said Prajyot Sathe, Research Manager, Mobility Practice, Frost & Sullivan. “The global push toward electrification and fuel economy leads to ever-stringent emissions norms, which have resulted in some regions such as Europe already committing to internal combustion engine (ICE) bans, while others are working toward specific commitments.”

Sathe added: “The world of batteries is changing rapidly, making it hard to predict the most promising battery chemistry. However, original equipment manufacturers (OEMs) are also working on extending the charging rates of vehicles with the introduction of new-generation Li-ion battery technology, which allows ultra-fast charging up to 400 kW. Currently, the typical charging rate of an electric vehicle is twice the battery capacity (50 kWh battery will have a 100 kW charging rate). However, by 2025, the charging rate will increase to thrice the battery capacity due to technological advancements allowing a 100 kWh battery pack to charge at 300 kW, which is called ultra-fast charging.”

EVs will constitute approximately 10% to 15% of the total overall passenger car segment by 2025. To tap into the growth prospects brought about by EVs, market participants need to focus on:

EV with advanced battery packs for improved efficiency and lower cost: Battery manufacturers and OEMs need to work together to develop and implement advanced batteries to enable ultrafast charging in future EVs.

Electrification of flagship models with a preference toward BEV with ultra-fast charging capability: All BEVs should have DC charging capability, including ultra-fast charging, to reduce the charging time from 30 minutes to 15 minutes.

Evolving business models: Utilities need to act fast and take a customer-centric approach toward service delivery to leverage the evolving e-Mobility trends.

To read more, please visit https://www.frost.com.