New research says market changes, incentives and federal grants expected to boost electric & hybrids take-up
Tue 03 August 2010
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New analysis of the world electric vehicle market by Frost & Sullivan finds that there will be growth in demand for electric vehicles in the developing world and strong demand for hybrids vehicles in Europe and America by 2020.
The new analysis - 360 Degree Perspective of the Global Electric Vehicle Market - 2010 Edition, examines the following markets: neighbourhood EVs (NEVs), city EVs (CEVs), extended-range EVs (eREVs) and high-performance EVs (HPEVs).
"Most offices that are expected to move to the first-belt suburbs and city centres will encompass the shopping areas (small-scale deliveries) and living areas for 'double/single income, no kids' households," says Frost & Sullivan's Automotive & Transportation Group Team Leader, Anjan Hemanth Kumar. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favourable environment for EV deployment."
Rising concerns over greenhouse gases and depleting fossil fuel sources are further solidifying the case for EVs. Car manufacturers are working on business models that will make available the car and energy under the same roof, opening up a plethora of opportunities for utilities, suppliers and finance businesses.
"With the advent of lithium ion battery technology and innovative financial models, the automotive industry is all set to witness a revolutionary business case," says Kumar. "Original equipment manufacturers (OEMs) have little choice but to join in the drive to address the energy crisis issue."
In related research, Frost & Sullivan Strategic finds that the hybrid truck, bus and van market is expected to grow from 4.1 thousand units in 2009 to 222 thousand units by 2016. The products covered in the research service were: light commercial vehicles, medium commercial vehicles, heavy commercial vehicles and buses.
“Amongst alternative powertrain technologies and fuels, hybrid commercial vehicles exert the least pressure on the existing energy and transportation infrastructure and require only minimal modification to the current fuelling infrastructure.” said Frost & Sullivan global programme manager, Sandeep Kar. “This aspect of hybrid commercial vehicles is acting as one of the strongest market drivers in North America and Europe, attracting governments, commercial vehicle manufacturers, and potential consumers alike towards supporting and accepting hybrid commercial vehicles.”
Private fleets in North America and Europe have emerged as early adopters of hybrid commercial vehicles. However, robust volume growth can be attained through the penetration of for-hire fleets.
“Standardization of key enabling technologies will not only reduce R&D expenses and complexity but also create a foundation for launching aggressive price reduction strategies that are necessary for stoking market growth,” concludes Kar.
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