Electric vehicles market has been showing robust growth despite some headwinds
The global automotive industry has been going through drastic changes. One of the fundamental changes is its shift towards electrifications. The shift is supported by both high environmental standards and generous state-supported EV adoption incentives. So far, most OEMs have introduced their EVs models, though the market has yet to prove itself in the mass market. Despite the fact that around 200 EVs and PHEVs models have been launched since 2011, still, the market accounts for just 1% of the global vehicle sales.
There are 100s of new EVs models under development and sales targets are set for years to come. Indeed the growth is to be notably high in the next decade, though amongst other issues, electric vehicles charging infrastructure would be one of the foremost impeding the EV growth. Some countries are quite lagging behind due to the lack of investment in the charging infrastructure. Developing countries would be the last to enter the race, though will be benefiting from the imported used cars which would be relatively cheaper.
One key trend in the automotive industry is the development of autonomous vehicle technology. Most of the technology developers are using EVs as a prototype for their future driverless cars which will enormously support the EV market in the coming years. Commodity Inside understands that both AI and EVs technology have significant implications for the materials used in the automotive industry. Lightweighting is the essence of such development. Composites have now made their way to the mass market with BMW leading the way, while aluminium and advanced high-strength steels (AHSS) are increasing their market share in the industry.
Commodity Inside automotive analyst John Stanmore writes “Over the past few years the EVs growth remained restrained despite available incentives and ambitious targets. High cost, range anxiety, new technology and steep learning curve were some of the main hurdles OEMs faced. However, these effects have now been dissipating. Battery costs have significantly reduced over the last five years. The average cost of a lithium-ion battery pack is to decline further from $185/kWh in 2017 to around $80/kWh in 2028.”
This article is based on our recently publish report “A Strategic Outlook for the Global Electric Vehicle Market to 2028”.