Worldwide, electric vehicles (EVs) market is forecasted to grow from just over 700,000 vehicles in 2014 to more than 12 million vehicles in 2021, demonstrating an average annual growth rate of 66 percent, says the latest report from Zpryme.
Electric vehicles represent one of the most promising technologies for reducing oil use and cutting emissions. However, the market is still in the nascent stage and faces many challenges especially with technology integration, optimization and scalability. EV adoption has not achieved double digit percentage penetration in most countries.
Main challenges to the growth of the industry include unfavorable government policies, EV purchase costs and total cost of ownership. Range anxiety and range limitations are also worrisome to customers.
In order to promote significant and sustainable EV growth in the next decade and beyond, Zpryme suggests the United States should consider continuing or developing policies that include enabling EV companies to sell directly to consumers, and further catalyzing and facilitating private-public coordination and communication to address the EV challenges across technology, finance, market and policy.
Manufacturers should make concerted efforts in areas such as developing the EV financing market which includes the battery and resale markets, and identifying sustainable EV charging infrastructure business models that define clear revenue models and create retail partnerships, the report said.