A recent report from Navigant Research details the global market for light duty vehicles, including light duty hybrid, plug-in hybrid, and battery electric vehicles, or plug-in electric vehicles (PEVs), segmented by scenario, region, country, drivetrain, and automaker, through 2024.
The end of 2015 marks the completion of the fifth full year of plug-in electric vehicle sales to key markets from major automakers. The market for plug-in electric vehicles has changed significantly over this time period, but the expected changes during the next 5 years will be even more impactful to the global automotive and energy industries.
The PEV market is now well-established in North America, Europe, and developed Asia Pacific markets. This has largely been a function of strong government support for PEV technologies through vehicle fuel efficiency regulations that affect the supply of PEVs, as well as incentives for PEV purchases that affect demand. As a result of the two-pronged approach to PEV market development, this market has grown from around 30,000 in 2011 (the first full year of sales) to nearly 500,000 in 2015, a compound annual growth rate (CAGR) of 102%.
As of 2015, light duty PEVs accounted for about 19 percent of the global light duty EV market. Both the overall market and the PEV market share are expected to grow significantly in response to carbon emission reduction initiatives, fuel economy standards, and the increasing variety and quantity of PEV offerings.
According to the Navigant Research report, light duty PEVs are expected to make up half of the global EV market by 2024.
“In North America, Europe, and developed Asia Pacific markets, PEVs have become well-established thanks to fuel efficiency regulations and purchase incentives,” says Scott Shepard, senior research analyst with Navigant Research. “These factors have helped the market to grow from 30,000 vehicles in 2011 to almost 500,000 in 2015.”
According to the report, now that the market has a strong foundation, automakers are developing more technologies and products likely to overcome obstacles to market acceptance such as cost, charging time, and all-electric range. General Motors, Nissan, and Tesla are all working on PEVs with cost points below $40,000 and ranges of 150-250 miles. In line with these plans, many automakers are strategizing how to encourage the development of direct current fast charging networks for both inter- and intra-city travel.
Additionally, companies within the electric power sector of leading global markets are determining how best they can take part in encouraging PEV market growth. Options include vehicle purchase incentives, charging equipment subsidies or deployments, and the development of charging services that provide reduced electricity costs to the vehicle owner in return for managed charging.