Electric vehicles are an auto industry trend that is here to stay. They’re increasingly popular with consumers, automakers, and federal governments around the world. As we look at the performance of the EV sector in recent years, we can begin to predict how electric passenger vehicles will trend going forward, particularly in the remainder of this decade. Watch out for these trends in EV manufacturing.
The number one trend in EV manufacturing is simply growth. It’s straightforward but true. Around the world, the popularity of electric vehicles is ever-increasing. The projected compound annual growth rate (CAGR) is 26.8%. By 2030, the number of electric vehicles on the road will have increased exponentially over the current figures.
2. A Shift in Market Share Dominance
A more specific trend is that much of the exponential growth we’ll observe over the next decade will be in Western Markets. China has long remained dominant when it comes to the number of electric passenger vehicles on the roads. However, Europe overtook China in 2020 with the largest annual increase of registered electric vehicles. The US EV market took a significant hit due to the COVID-19 pandemic but is recovering strongly and anticipating significant growth. Overall, western markets are finally giving China, Japan, India, and other major Asian markets a bit of competition for EV dominance. Don’t expect Asia-Pacific markets to stagnate, though. EV growth in Asia remains significant.
3. New Manufacturing Hubs
There are a few reasons behind EV market growth in Europe and North America. One factor is legislation passed by European governments that is pushing automakers, car dealers, and consumers toward EV. Another major factor, and the third trend of note, is the increase in European and North American-based manufacturing. Historical EV prominence in Asia has largely been due to the major major OEMs based there, particularly in China, Japan, South Korea, and Taiwan. However, many major automotive manufacturers are opening manufacturing facilities in Western countries. This will shorten the supply chain and encourage potential car-buyers who are motivated by domestically-made branding and advertising.
4. BEVs Reign Supreme
A fourth trend to look out for is the impending market dominance of battery-powered electric vehicles. There are several different types of EV, each defined by their respective non-gasoline power source. BEVs currently account for two-thirds of the electric passenger vehicles on the roads. Efforts from OEMs and other institutions are making battery charging stations more commonplace and accessible. The portion of EVs that’s composed of BEVs is likely to continue to rise over the next several years.
Across these trends, the common theme is that the automotive industry and automotive manufacturers specifically are innovating and looking toward the future. Lintec Auto is a supplier of cutting-edge automotive adhesive technology. Build a more durable and efficient electric vehicle with Lintec Auto. Contact us today for a quote.