The Global Electric Vehicle Market In 2022 – Virta

IN THIS GUIDE, WE SERVE YOU THE LATEST FACTS, FIGURES, AND FORECASTS YOU NEED TO KNOW ABOUT THE EV MARKET AND ITS PREDICTED GROWTH FOR 2022 AND BEYOND. icon-search ✕ Theglobalelectricvehiclemarketoverviewin2022:statistics&forecasts Theultimateguide INTHISGUIDE,WESERVEYOUTHELATESTFACTS,FIGURES,ANDFORECASTSYOUNEEDTOKNOWABOUTTHEEVMARKETANDITSPREDICTEDGROWTHFOR2022ANDBEYOND👇 1.Historicaldata 2.GlobalEVmarket 3.Otherelectricvehicles 4.EVcharging 5.Technologicaldevelopment 6.TheenvironmentalimpactofEVs 7.EV-relatedpolicies 8.EVs&theprivatesector 9.2030(andbeyond)forecasts Theglobalelectricvehiclemarketsharehastakenatremendousleapforwardinthepastdecade,andweexpectthetrendtoaccelerateexponentially.Eventhoughwe’vealreadyseensomeincrediblegrowthinthenumberofEVsworldwide,electriccarindustrypredictionswouldsuggestthatwe’veonlyjustscratchedthesurface. Let’sstartbylookingatsomehistoricaldataaboutthedevelopmentoftheglobalEVmarket. 1.HistoricaldataoftheglobalEVmarket TounderstandthecurrentsituationoftheEVsector,let’slookatwhathappenedinthepastcoupleofyears. In2019,thenumberoflightelectricvehiclesgloballywasonly9%higherthanin2018.Thiswasacleardeviationfromthegrowthratesoftheprevioussixyears,whichwerebetween46%and69%. Thereasonsforthisshiftwereduetothedecreaseinsalesinthesecondhalfof2019inthetwolargestmarkets,ChinaandtheUSA.Butevenwiththestagnantgrowthinthetwolargestmarkets,globalEVsalesstillgrew,largelyinparttoEurope,whichsaw44%growth. Theyear2020didnotshowabiggrowthinoverallnewcarregistrations.TheglobalmarketforalltypesofcarswasnegativelyaffectedbytheCOVID-19pandemicandtheeconomicdownturnthatfollowed. Theoutlookfor2020globalEVsaleswasquiteunpredictableatthebeginningoftheyearamidCOVID-19.However,astimeshowed,theyear2020turnedouttobesurprisinglypositivedespitethepandemicanditseffects.TheglobalEVsalesgrewby43%from2019andtheglobalelectriccarindustrymarketsharerosetoarecord4,6%in2020. TheEVtrainisaccelerating. Carriedbyadecarbonisationchallengemostleadingnationsnowtakeseriously,2021isagamechangerinthehistoryofEVsalesanditisexpectedthat6.4millionvehicles(EVsandPHEVscombined)willbesoldgloballybytheendoftheyear.Itwouldthenrepresenta98%yearoveryearincrease. Source:EVVolumes  EVsaretoplayacentralroleintheambitiousobjectiveofzeroemissiontargetssetfor2050,andtheindustryisclearlygearingupforit. AnotherencouragingindicatorishowfasttheEVcarsalesisgrowing.InEuropealone,EVsandPHEVsrepresented14%ofthetotalcarsalesbetweenJanuaryandJune2021(versus7%in2020duringthesameperiod). Sources:EVVolumes&GlobalEVOutlook2021 Ofcourse,whilewe’reheadingintherightdirection,theroadtofullelectrificationisstilllong—butit’sbecomingareality.   2.Globalelectriccarmarketshareandsize Theyear2020wasalreadyamajorleapforwardintermsofelectricvehiclesales.2021isawholenewstory.Themarketisgrowing.It’sgrowingfast.Andit’sgrowingeverywhere. Source: EVvolumes Lookingatthefirstsixmonthsofthefiscalyear(ApriltoSeptember),Europe(1.06millionnewregistrations)andChina(1.149millionnewregistrations)areexpectedtoaccountforthehighestshareofnewelectriccarregistrationsin2021,followedbytheUnitedStates(297000newregistrations). TheincreaseinelectriccarregistrationsinEurope,wherenumbersareacceleratingalotfasterthanelsewheresince2019,canbeattributedtostimulusmeasuresintroducedbymanyEuropeangovernments. Source: EVvolumes   3.Thestateofotherelectricvehicles WhilepassengercarstypicallygetallthecreditfortheEVrevolution,it’sgoodtoalsoconsidertheotherformsoftransportationthataregraduallybecominggreener. Frompublictransportationtoe-scooters:Theentiretransportindustryisturningelectric AninterestingEVtrendin2020andbeyondrelatestopublictransportationandthesharingeconomy.  Electricmicromobilityoptionshaveexpandedrapidlysincetheiremergencein2017.Thankstovariousmeasurestakentopromotemobility,electricmicromobilityacceleratedduring2020,specificallysointhesecondhalfoftheyear.IntheUnitesStatesalone,thesalesofelectric-assistedbicycles(e-bikes)morethandoubledin2020.Atthesametime,Europeisalsowitnessingtheemergenceofelectricscooters(e-scooters).AccordingtotheGlobalEVOutlook2021,morethan100Europeancitiesstartedoperatinge-scooters. Thebiggestconcentrationofprivatelyownedelectrictwo/threewheelersisinAsia,specificallyinChina,accountingfor99%ofregistrations.Globally,thereiscurrentlyaround290milliontwo/threewheelers.ThemarketisalsogrowinginEurope,risingby30%in2020. Whenitcomestoheavy-dutytrucks(HDT),manufacturersareshowingtheircommitmenttoelectrificationofmobility.Manytruckmanufacturersstriveforanall-electricfuture.HDTregistrationswereup10%in2020globally.TurningtheexistingfleetofHDTintroelectricvehiclesmattersbecauseiftheyonlyaccountfor10%ofICEvehicles,theareresponsiblefor70%,ofICECO2emissions. Electricbusesalsogrewinpopularitysince2020.Theglobalstockofelectricbusesin2020was600000.Chinaaloneregistered78000newelectricbusesinthepastyear,holdingdowntheirmarketdomination.InadditiontoChina,oneofthegloballeadersinelectricbusfleetsisChile,aimingtoelectrifyallofitspublictransportby2040.InEuropeanUnioncountries,theCleanVehiclesDirectivealsoprovidesapublicprocurementofelectricbuses.   4.ThestateofEVchargingineurope Themostchargingstillhappensathomeoratwork,butthemoreelectricvehiclesroamingtheroads,themorepublicchargingpointswillbeneededinthefuture. In2019,wecounted175000publiclyavailableEVchargers.Weexpecttoreach1.3millionpublicEVchargersby2025,and2.9millionby2030.  Fast(er)chargingisbecominganorm. Fast(er)chargersmakelongerjourneysalotnicerandmightbeareasonforthosewithoutprivatechargingaccesstobuyanelectricvehicle.Theyarethemostefficientwaytofightrangeanxiety(orhowfarcanonegowithanEVbeforehavingtostopandrecharge). InEurope,slowchargersarebeingreplacedbyrapid,fast,andultrafastchargers. InEurope,onlyGermany,France,theUKandSpainstillcountanimportantpartofslowchargers.TheotherEuropeancountriesaremakingtheirwayintotheworldofEVbyinstallingfast(er)chargers. Anothertrendthat’ssteadilyincreasingintheEVspaceisthesmartchargingofelectricvehicles,i.e.theuseofcloud-connectedchargingdevices.Forbusinessownersandconsumersalike,smartEVchargingallows—amongotherthings—greaterconvenienceandcontroloverelectricityconsumption. Lastly,wecan'tmentionEVchargingtrendswithoutacknowledgingvehicle-to-grid(V2G).V2Gtechnologymakesitpossibleto transfertheelectricitystoredinelectricvehiclebatteriesbacktothegrid,thesamewaystationarystoragesareconnectedtothegrid.V2GservicesarealreadycommerciallyavailableandseveralchargermanufacturersareabletosupplyV2Gchargers. TheV2Gmarketisprojectedtogrowtoover$5billionbetween2020-2024.TheEuropeanstandardforV2Gchargingwillbereadyinlate2020.VirtahasbeenrecognisedasoneofthegloballeadersinV2Gtechnology. WanttolearnmoreaboutV2Gandsmartcharging? Readourquickguideonbi-directionalcharging. Readmore Ifyou'realsointerestedinlearningmoreaboutsmartcharging(includingthedefinition,benefits,practicalhow-tos,andmore),takealookatourcomprehensiveSmartChargingguide.   5.Thedevelopmentofelectricvehicle&chargingtechnology AnotherinterestingperspectiverelatestothedevelopmentofnewEVpartsandchargingtechnologies. Theincreaseinelectriccarregistrationsresultedinanincreasedproductionofautomotivelithium-ionbatteries,whichwasupby33%from2019.Chinaremainstheleadingcountryforbatteryproductionaccountingforover70%ofglobalproductioncapacity.However,Europeisnotstayingbehind.Manynewbatteryplantconstructionswereannouncedin2020,sincethebatterydemandexceededEurope’sproductioncapacityinthepastyear. AccordingtoBloombergNEF,Europe’sshareofglobalbatteryproductioncouldriseto31%by2030.Incomparison,thecontinent’sglobalbatteryproductionwasonly7%in2020. Varietyofdevelopmentsinbatterycharacteristics,drivenbyahighdemandforbatteriesinconsumerelectronicswillprovidemultiplebenefitstotheEVbusiness.FortheEVmarket,furthertechnologicaladvancesinclude: changesinbatterychemistry changesinenergydensity changesinthesizeofbatterypacks Ultimately,thesechangeswillleadtomassivecostreductionsandincreasedproductionefficiency. SeveralEVmanufacturingplantsareplanningtoexpandtheirelectriccarproductioncapacitybecauseofincreasedpolicysupport.Thisis,ofcourse,goodnewsforthemarketatlarge,sinceitmeansthatthesupplyofEVswillbeabletocatchupwiththedemand. Andifthatwasn’tenough,we’realsoworkingonsomeprettyexcitingnewstuffhereatVirta.Forexample,ourproprietaryPlug&Chargefeatureallowsourcustomerstoidentifythemselvesdirectlybyconnectingtheirvehicletoacharger.Nopincodes,RFIDtags,orcreditcardsnecessary. 6.TheenvironmentalimpactofEVs AltogetherEVsconsumedapproximately80terawatt-hoursofelectricityin2020,alargeproportionofwhichcanbeattributedtotwo-wheelersinChina.Onlyabout1%ofthetotalelectricityconsumptiongloballyaccountstoelectricvehiclesin2020,whenEVsalreadyaccountedfor4.6%oftheglobalvehiclefleet. Duringtheyear2020,morethan50milliontonnesofcarbon-dioxideequivalentofGHCemissionsweresavedbyuseofEVs,globally.Inpractice,allemissionsfromEVsarebornasaresultofthemanufacturingprocess,whereasasimilarlogiccan’tbeappliedtointernalcombustionengine(ICE)cars.Inthegrandschemeofthings,itseemssafetoconcludethatthepublicdebateoverEVsvs.ICEcarsenvironmentalimpactisturninginthefavorofEVs. Areelectricvehicles(really)green? Wedebunkedalotofthemisinformationthat’scurrentlycirculatingaboutEVsandwhatittakesto   producethem. Readithere—Mythbuster:Electricvehiclesarenotgreen. Whileit’struethatEVsincreaseelectricityconsumption,thatcanbecomethesavinggraceofenergyutilitiesinthefuture.Bythe2040s,electricvehicleswilladduptoover30TWhofinstalledbatterystoragecapacity.Forutilities,thismeansthatEVsoffercheapenergystorage,winnocapitalcostandrelativelylowoperatingcosts.   7.ThecurrentEV-relatedpolicies It’snosecretthatgovernmentalandlocalpoliciesplayahugeroleintheadoptionofEVs.Now,let’slookatsomeofthemosteffectiveEV-relatedpoliciesfromaroundtheworld. Source: GlobalEVOutlook2021 ThelatestEuropeanagreementsplaceEuropeasaforerunneroftheEVrevolutionand,judgingfromthetableabove,itshouldbeonlyamatteroftimeuntiltherestoftheworldcatchesup.   8.Theprivatesector’sresponsetoEVs Theprivatesector,andcarmanufacturers,inparticular,haveprimarilyrespondedpositivelytotheongoingchangesinthemarket.Forinstance,Volkswagenhasrecentlytakenastrongstancetowardselectrifyingthecarmarket,andmanyJapanese,American,andEuropeanmanufacturersarefollowingsuit. Ontheotherhand,utilitiesandpowercompaniesarecurrentlyincreasingtheirinvestmentinEVcharginginfrastructure. Onthefleetside,DHLhasmadeanambitiouspledgetoreach70%cleanoperationsoflast-milepick-upsanddeliveriesby2025.AndDBSchenkerwantstomakeitstransportactivitiesinEuropeancitiesemission-freeby2030. Whileactionsliketheseareworthyofattentionontheirown,theirfringebenefitisofcoursethattheyactassignallingdevicesfortherestofthemarket.Inotherwords,itispublicpledgeslikethesethatpressurecompetitorsandstakeholderstoactfasterthantheyotherwisewouldhave.   9.Forecasts:EVmarketoutlookby2030 Whenitcomestothefuture,accordingtotheEVMarketOutlook2021,therearetwopossiblescenarios: TheStatedPoliciesScenariosuggeststhatby2030,theglobalelectricvehiclestock(excludingtwo/three-wheelers)willreachnearly145millionvehiclesandwillaccountfor7%oftheglobalvehiclefleet. Thesecond—andmoreambitious—scenarioknownasEV30@30predictsthat30%ofallvehiclesexcepttwo-wheelerswillbeelectricby2030.Inabsolutetermsthatwouldmeanthatglobalsaleswouldreach43millionandthereforealmostdoublethepredictionoftheStatedPoliciesScenario. WhataboutEurope? ThenextcoupleofyearswillbecrucialforEuropetosecureitsleadingstatus.Weexpecttoreachafirstmilestoneof14millionEVsby2025.Afterthat,lowestimatesmention33millionEVsby2030,whenhighestimatestalkabout40millionEVsroamingaroundEuropeatthesametime. From2035onwards,weexpectthat100%ofnewcarssoldinEuropetobeelectric. Ofcourse,onlytime(andnewdata)willtelltellusifthosepredictionsaretobecomerealities.However,thelatesttrendsseemtobeheadingintherightdirection. Inotherwords,thismeansthatthetimeforbusinessestoembarktheEVtrainisnow. Readourcomprehensiveguideforbusinessesifyou’reinterestedinlearningmoreaboutEVchargingandhowtobuildyourownEVchargingactivity.