Hybrid vehicles are becoming the norm in the U.S. and Europe, but fully electric plug-in vehicles are still slowly gaining traction. The reasons for this slow adoption are many, including a low install base of public charging stations and battery technology that doesn’t yet match the milage needed for some people. These factors will change in the coming decade, however, and the electric car market is forecasted for major growth in the coming years.
Market research firm ABI Research today released a new report predicting that 2.36 million fully-electric vehicles will be shipped in the year 2020. Thhis represents a 48% compound annual growth rate from this year’s estimated 150,000 electric vehicle shipments.
“Overall, EV sales have been disappointing so far due to a lack of choice and perceived personal benefits, high purchase prices, and most importantly, consumer anxiety about range, maximum speed, recharging times, and the lack of public charging infrastructure,” said Dominique Bonte, practice director at ABI. “However, with many car OEMs recently dropping prices and offering more choice and improved performance, full electric vehicles are on the verge of leaving their eco niche of environmentally aware and socially responsible buyers, illustrated by car OEMs such as BMW, Daimler, and Volkswagen investing heavily in electrification. Importantly, a range of emerging automotive technologies such as carbon-fiber materials, wireless in-car networking technologies, active safety including pedestrian detection and autonomous driving, connectivity, car sharing, and smart grid demand response features will support the electric automotive revolution as all new paradigms are mutually reinforcing each other,”
According to Bonte, continued government support for the electric vehicle industry will be essential to ABI’s prediction coming true. ABI also envisions that electric vehicle infrastructure will bring with it other improvements in technology, such as smart grids and intelligent roads.
(Image courtesy Tesla Motors)