Electric Vehicle Market Challenges & Opportunities
Today, the electric vehicle market is one of the fastest growing markets with a projected vehicle sales growth from 1.5 million units in 2018 to 10.79 million units in 2025 – roughly 32.57% CAGR (Compound Annual Growth Rate). Though attractive, the EV market faces a range of unique challenges and has equally lucrative opportunities in store!
Current high cost of EVs is attributed mainly to its expensive battery technology, which accounts for almost 25% of its total cost. It is the prime reason why most consumers are reluctant to opt for EVs.
With advancement in technology in the form of high-performance lithium-ion batteries built in the Gigafactory of Tesla Motors, battery costs are predicted to come down to US$200 per kilowatt-hour in 2020 from US$1000 in 2007.
2.Range and Infrastructure
For a traditional car, it’s as easy as “Fill it, shut it and forget it for a long distance!”. Even if you need to refill, it’s not much of a hassle. However, it is still not valid for EVs. Most of them go up to around 160 km when fully charged. Beyond this limit, it requires a recharge that can take up to 8 long hours. Thus, currently, only those who need to travel around 64 km or less one way in a day can think of going for EVs. Majority of them even give it a second thought as they have to plan for an alternative in case of a potential emergency commute after coming home.
Lack of adequate charging stations is another important challenge for this industry as people without off-street parking or living in shared residences have no means to recharge their EVs and hence will be reluctant to go for one.
Fast chargers and charging stations can certainly be helpful to overcome the range anxiety and will be helpful in convincing those who cannot charge their vehicles at their homes. The assurance that you can recharge your vehicle on the way within a short time itself is a great relief and will work in favor of EVs.