Light-duty plug-in electric vehicles (PEVs) are expected to make up half of the global electric vehicle (EV) market by 2024, according to a recent report from Navigant Research.
Navigant’s report details the global market for light-duty vehicles, including light-duty hybrid, plug-in hybrid and battery electric vehicles (HEVs, PHEVs and BEVs), or PEVs, segmented by scenario, region, country, drivetrain and automaker, through the year 2024.
According to the report, light-duty PEVs accounted for about 19% of the global light-duty EV market as of 2015. Both the overall market and the PEV market shares are expected to grow significantly in response to carbon emission reduction initiatives, fuel economy standards, and the increasing variety and quantity of PEV offerings.
“In North America, Europe and developed Asia Pacific markets, PEVs have become well-established thanks to fuel efficiency regulations and purchase incentives,” says Scott Shepard, senior research analyst with Navigant Research. “These factors have helped the market to grow from 30,000 vehicles in 2011 to almost 500,000 in 2015.”
According to Navigant, now that the market has a strong foundation, automakers are developing more technologies and products likely to overcome obstacles to market acceptance, such as cost, charging time and all-electric range. General Motors, Nissan and Tesla are all working on PEVs with cost points below $40,000 and ranges of 150 miles-250 miles.