Recent developments in the plug-in electric vehicle(PEV) market, including the rollout of long-range battery EVs (BEVs) at sub-$40,000 price points, have positioned the segment for robust growth, according to report from Navigant Research. Since PEVs were introduced in 2011, sales have experienced annual growth of 40% or more, and continued growth is expected.
In fact, the report says global PEV sales surpassed 1 million in 2017, and the market is projected to experience annual growth around 38% through 2020.
“Battery costs have shrunk dramatically in the last five years and promise to shrink further with the commercialization of solid-state batteries on the horizon,” says Scott Shepard, senior research analyst with Navigant Research. “In addition, increasing regulatory pressure in Europe and China may well push the PEV market to the aggressive end of the forecast range regardless of oil prices.”
While most of the global market can expect robust growth in the near term, the report notes the outlook in the U.S. is less certain based on the potential for federal-level policy changes. According to the report, if U.S. fuel efficiency policies and government subsidies are relaxed or removed, the country will find it difficult to keep pace with other markets.