The market for commercial EVs will be growing because of factors such as the plans of automakers to adopt electrification, tax rebates, government subsidies, and growing demand for zero emissions.
The global market for commercial cars is expected to grow from 350 thousand units in 2023 to 3,140 thousand units by 2030, which is a CAGR of 31%.
Concerns about changing environment because of excessive pollution brought upon by the automobile industry are among the key reasons for global bodies to promote zero-emission cars over diesel or petrol ones.
In fact, OEMs have already started to develop plans to welcome an electric future for upcoming vehicle lineups. That includes the development of electric trucks, pickups, vans, and buses. In order to encourage and attract people to buy EVs, government bodies introduce lucrative incentives and schemes that include lower vehicle acquisition taxes for commercial fleets.
What EVs Are
Electric vehicles are a type of cars powered by electric motors. They don’t have an internal combustion engine. Instead, they depend on rechargeable batteries.
Although electric vehicles have been around for years, recent technological advancements have made them more cost-effective and efficient.
Why EVs are Important
The electric vehicle is a rising trend, and this trend isn’t going anywhere any time soon. This growing popularity is because EVs allow users to move away from using fossil fuels that emit CO2. It helps minimize greenhouse gas emissions contributing to air pollution.
Electrification transport is also providing a promising future to reduce this negative impact on the transport industry. And the world at large is set to minimize emissions by over 30% by 2030, 90% by 2035, and 100% by 2040.
Trends in Electrification Industry
The EV market is projected to hit 40$ billion by the end of this year and $1.5 trillion in the next two years. EV trends are evolving continuously through innovations like the monopolization of electric cars and battery longevity.
With the lithium-ion battery cathodes trend improving continuously, lower-cost batteries can make EVs less costly than gas-powered cars in the next few years. While you won’t see a big price change this year, the price of lithium-ion batteries will drop steadily.
With also the current trend of using cheaper batteries, the costs of vehicles will decline. Plus, the on-trend in the next several years is to design full EVs, taking hybrids completely off the market.
The transportation future is electric. As a matter of fact, most countries have already announced their intentions to ban sales of fuel-powered vehicles in the next few years. This change towards EVs is driven by several factors, including the importance of minimizing dependence on foreign oil, improving air quality, and minimizing greenhouse gas emissions. And as the EV market continues growing, expect to see more innovations, especially in areas such as the following:
- Charging infrastructure
- Autonomous driving
- Battery technology
EVs are the future, and the world is on the right track about decarbonizing the transport industry. But still more actions should be taken. The key goal is to couple economic viability with sustainability through properly guided mobility change and innovative technological advancement.