The shift towards electric motor vehicles has seen a steady rise in the last few years as more and more people are becoming conscious of the climate change crisis and the impact it has on the environment. According to reports 2.6% (IEA) of all cars sold around the world were electric vehicles in 2019, which is a record breaking 40% rise observed since the EV market came into existence.
The COVID-19 pandemic brought the entire automobile industry to a halt in 2020, and EV growth faced the implications of this as well. The EV growth observed was at -9.87%,(Fortune Business Insights) which means the sales dropped by nearly 10% in 2020.
All is not lost in the world of EV batteries and EV market though. There are noticeable positive signs marking the rise of the EV batteries market as they are being put to use in powering more and more electric vehicles. Hybrid batteries that can be rechargeable and power hybrid electric vehicles are making a comeback this decade as the world goes back to a post-pandemic state of normalcy.
Before getting into more predictions about the EV market growth, let’s first understand the types of electric vehicles that exist today and what is stopping the production of more electric vehicles.
Types of Electric Vehicles
Broadly speaking, there are two types of electric vehicles that make up the EV market today. The first one is powered by EV batteries and the second one is a hybrid electric vehicle that operates on the EV battery once it has been plugged in and charged, and otherwise can operate on diesel or petrol.
The EV batteries for the battery electric vehicles (BEVs) come with an electric motor in the automobile, and these cars produce zero emissions when they are in use. The EV batteries for the plug-in hybrid electric vehicles (PHEVs) run on the batteries when they have been plugged in and fully charged for anywhere between 40 and 50 km with zero emissions. Otherwise the PHEVs can be used like normal cars with motors that use fuel like petrol or diesel to operate.
In 2021, 71% (EV Volumes) of all car sales in the EV market were BEVs and 29% of them were PHEVs. The growth rate of overall sales of vehicles in the EV market observed a 108% rise as compared to the sales in 2020, mainly because of the COVID-19 pandemic, it’s demand in the consumer market, as well as the hiccups with the global supply chain system.
The future looks bright for the sales of EV batteries, EV vehicles and EV power is expected to grow steadily in the coming decade.
What are the main reasons behind this surge in demand for electric vehicles? Let’s find out.
What is making the EV market rise rapidly?
The market for electric vehicles is growing at a high rate due to many reasons. The first of many is the change in the consumer behaviour overall. Consumers are becoming more conscious of the environment and they are getting a better perspective of how their actions are creating a negative impact around them. The increasing rates of deforestation, climate change, increase in the decline of wildlife species, and more are creating irreversible effects, and the human race is the one to blame.
People have begun to take action to try to salvage this situation by opting for greener options in terms of the products they purchase. They choose to engage with corporations that are going out of their way to be more sustainable, buying more sustainable goods, investing in green companies, moving away from fast fashion, and more. This shift in the consumer mindset has led to consumers gravitating towards greener, cleaner sources of energy and consumption, and the shift to electric vehicles is one of them. The number of environmentally conscious people is increasing in number and with it the demand for electric vehicles powered by zero emissions producing EV batteries.
The second reason behind the increase in demand of EV batteries and electric vehicles in general is governmental. Countries from around the world have signed the Paris Agreement to reduce their carbon emissions as a whole, and transportation plays a big role in helping them meet their net zero emissions goal. The transportation sector accounts for nearly 30% (EPA) of all greenhouse gas emissions, making it the largest carbon footprint making sector on the planet. By changing the fuel used to power these vehicles on a large scale, governments can really make an impact on the global emissions rate.
The third reason why electric vehicles are gaining popularity is that companies that choose to invest in EV batteries and propagate EV growth will be offered aid in terms of finances as well as tax exemptions. Those who want to purchase an electric vehicle will also receive benefits in terms of loan payments, interest rates, and other added incentives that will redirect the purchase of new vehicles for private citizens and users to the greener option. Electric vehicles will soon be easily available and affordable for anyone who wishes to buy a new automobile, making it the most sound option in the market for all.
There are predictions that state that there will be a steady rise of usage in PHEVs over BEVs, which has been the trend so far. Even though the BEVs do not require charging stations and offer way more ease of use, people would still go for the plug-in electric vehicles.
Why would people opt for the more inconvenient option where they will have to charge their vehicle if they want to use it? Let’s find out.
Why are hybrid EV batteries for PHEVs gaining popularity in the market?
The reasons why hybrid batteries or hybrid electric vehicles that offer a plug-in method of charging the vehicles are gaining popularity are primarily threefold:
- Increase in the number of charging stations
- Concerns about the disposal and reusability of the EV battery in the market
- Convenience of switching to fuel
Let’s consider them individually.
The main concern behind using EV battery powered vehicles was the lack of charging stations available in the vicinity. If they are as readily available as other fuel stations are, then there won’t be any concerns of individuals having to shift to an exhaustible source of energy to power their vehicles. Governments and private corporations around the world are focused on building more charging stations to make them accessible even in remote areas so that people are encouraged to invest in electric vehicles as their mode of transportation.
The second concern that is growing in nature is the issues with the EV batteries itself. The EV batteries need to be replaced in battery powered electric vehicles after they run out. Every battery that gets replaced gets discarded as waste. There is growing concern about the amount of waste production that takes place around the world already, and having no reusability of these EV batteries is making people more hesitant towards shifting to a fully battery powered electric vehicle. Since the plug-in hybrid electric vehicles have rechargeable batteries, they can be reused for a much longer time period, making them more attractive to the consumers.
The third concern is not really a concern but a matter of convenience. Diesel powered and petrol powered engines offer higher torque and faster speeds in terms of motor performance, and electric vehicles haven’t caught up with the same as of now. People would like the option to make the switch to a faster and more powerful engine as compared to the one offered by the battery electric vehicles, just like with the cars that are compatible with CNG. This option to select between the fuel usage or battery usage makes people prefer the PHEVs over BEVs.
Final Thoughts
Market forecasts have predicted the growth in popularity and usage of electric vehicles, regardless of the type. The state of the environment is now a global concern and governments around the world are pushing the more sustainable and environmentally friendly option to their citizens. The COVID-19 pandemic and its resulting implications on the production and supply chain industries did slow down the adoption of electric vehicles for consumer use but it is ready to take a full blown swing ahead in the coming decade.
By 2025 alone, the EV market is expected to grow and reach a market size of over $38.9 billion (Business Wire). The advancements in EV technologies, adoption of artificial intelligence and smart driving technology in the automobile industry, and the prospects of reusability options for EV batteries will all cumulatively increase the adoption rates of EVs around the world.
Electric vehicles have created a new landscape for themselves altogether, and the EV batteries and hybrid batteries will only continue to evolve as more funding goes into making them the most efficient options available in the market. The more the technology advances, the more affordable it will be to own an electric vehicle, and the more accessible it will become with power charging stations popping up in all locations, even remote around the world.
