Electric vehicles (EVs) are emerging as an increasingly important part of the transportation industry. So, what does this mean for the world mobility market?
The global market for EVs is estimated to be worth $163.01 billion by 2020 and may increase to $823.75 billion by 2030. The worth of the electric car market alone has already reached around $105 billion in 2021.
By 2028, the common annual growth rate of electric cars sales is expected to reach around 19% during the year of 2022 to 2028. In addition, with the use of alternative energy sources in more industries, including transport and building services, the total demand for alternative energy will grow as well. As a result, the market share of electric vehicles will continue to grow, with China currently leading as the global venture investor.
Moreover, many different factors are contributing to the development of this market. For example, governments worldwide are taking measures aimed at reducing carbon emissions and reducing dependence on fossil fuels.
A significant portion of these measures is dedicated to promoting alternative energy sources such as solar and wind power.
All these factors have made electric vehicles an increasingly popular choice among consumers and in many countries. New rules have been introduced which allow them to be used on public roads without restrictions or special permits. Recently, Paris has signed the implementation of 5,000 e-scooters. Not too far in the corner of Europe, Norwegia has accomplished 66% adoption of the passenger electric vehicles.
This makes EVs a potential alternative for transportation both for individuals and businesses who wish to cut costs and improve efficiency without having a major impact on their environment.
However, despite all these advantages, there are still some major challenges facing the market. The first and most important of these is the need for a more flexible infrastructure to support this kind of transport.
For example, the lack of charging stations in some countries means that electric vehicles are often not able to cover the distances between their home and workplace.
In addition, they may face difficulties if they are unable to travel between cities by public transport due to restrictions on access or their lack of a charge. There is also the issue of infrastructure limitations in urban areas. As an example, there are currently only 374,000 public chargers available in Europe while at least 60% of them are concentrated in only five countries (the Netherlands, France, Italy, Germany, and the United Kingdom). This number means there is a serious need to plant more charging stations in Europe, let alone in other continents.
Finally, consumers are not familiar with EVs, and there is a lack of information about how they work. As a result, they may be reluctant to buy them or try them out in their homes or workplaces.
This is why many experts consider the lack of adequate infrastructure to be one of the main challenges facing this market. As a result, many companies are working on improving the charging stations and electric car infrastructure.
Despite the challenges, more and more key players are showing up and investors have offered generous investments into their sustainable mobility industry. Companies such as ChargeNET Stations, GTA Semiconductor, Monarch Tractor, and Hozon have been working on creating more flexible infrastructure for EVs and electric vehicles.
It does not yet include the influence of more famous companies such as Tesla, Arrival, ChargePoint, Nikola Motor Company, and Northvolt. In the third quarter of 2021, Tesla alone has received 36% stock return and 10.5x expected increase of revenue in 2022. Seeing more and more companies such as these show up, it is clear that the electric mobility market is growing and that the future is bright.