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.
“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.
“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.”