CHARGED UP: SHIFT TO E-MOBILITY AND THE EVOLUTION OF TRANSPORTATION

EV demand to grow with EV Battery Price Reduction

The reduction in prices of EV batteries has been a significant factor in making electric vehicles more cost-effective, leading to increased demand. As the cost of batteries continues to decrease, the overall price of electric vehicles becomes more competitive with traditional internal combustion engine vehicles, making them an attractive choice for consumers. This affordability factor, combined with the benefits of lower operating costs, including reduced fuel expenses and maintenance requirements, has propelled the E-Mobility Market adoption. For instance, the prices of EV batteries fell significantly in the last decade, from USD 1,200/kWh in 2010 to USD 135/kWh in 2024 and is expected to decrease in the coming years. Moreover, faster charging speeds have addressed one of the key concerns regarding EVs: the time it takes to charge the vehicle. With advancements in charging technology, plug-and-charge use of EVs has become more convenient, eliminating the need for lengthy charging sessions. The rising prices of petroleum and the volatility of fuel prices have also played a crucial role in the growing demand for EVs. As traditional fuel costs continue to increase, electric vehicles offer a more cost-effective alternative fueled by electricity. This shift to electricity as a fuel source provides consumers a stable and relatively lower-cost option, especially when combined with the potential for renewable energy sources to power EVs.

However, the EV batteries market is grappling with a shortage caused by the soaring demand for electric vehicles (EVs) and a crucial scarcity of raw materials, particularly lithium. The surge in demand for EVs has outpaced the capacity of lithium mining companies to ramp up production, resulting in a supply-demand imbalance. Furthermore, there is also a shortage of graphite, a vital component in anodes, further adding to the challenges faced by the battery industry. As the demand for EVs continues to grow, addressing these raw material shortages becomes crucial for sustained growth and development in the battery market.

Technological advancements in EV Batteries to create new opportunities for EVs

The advancements in electric vehicle (EV) battery technology have propelled the widespread shift to E-Mobility Market. Emerging trends in EV batteries include breakthrough technologies like solid-state batteries, lithium-sulfur batteries, and the recycling and repurposing of batteries for second-life applications. Solid-state batteries utilize solid electrolytes, enhancing safety and efficiency. Lithium-sulfur batteries offer higher energy density and cost-effectiveness. Furthermore, the recycling and repurposing of EV batteries address sustainability concerns. As the demand for EVs continues to grow, these technological trends pave the way for improved performance, longer ranges, faster charging times, and more sustainable practices in the EV industry. These technological developments promise higher energy density, longer ranges, improved charging efficiency, and enhanced sustainability, driving the continuous evolution of the EV industry and paving the way for a greener future of transportation.

EV Battery Market - Global Forecast 2033

Electric buses steering transit E-Mobility adoption

With continuous advancements in battery technologies, OEMs have managed to increase the operating range of electric buses. Increasing demand for emission-free public transport options in developed and developing countries is projected to boost the electric bus segment in the near future rapidly. For instance, RATP, the Paris transit authority, and EDF France have formed a three-year partnership to replace all the buses of the Greater Paris network with emission-free buses by 2025. China is the world’s largest electric bus market. As of 2023, more than 77% of all buses in operation in China were NEVs. This was a considerable shift from the situation in 2015, when 78% buses in use were still Diesel or gas powered. The government subsidizes half of the cost of these electric buses, and to keep the fleet going, more than 40,000 charging points were built in the city. BYD, Proterra, AB Volvo, VDL, and Solaris are among the companies that offer fully electric buses. The rise in electric bus sales in countries like France, Germany, Spain, and the United Kingdom can be attributed to implementing national and city-level targets focused on transitioning to zero-emission buses in public procurement. Additionally, the EU Clean Vehicles Directive has significantly driven this increase by setting regulations and guidelines for member states to adopt clean vehicles, including electric buses, in their public transportation fleets.

Electric Bus Market - Global Forecast 2030

Electric Pick-ups have high demand, especially in the North American Market

E-Mobility Market for LCVs is expected to be led by Electric Pickups, especially in the North American market. Ford, Rivian, General Motors and Tesla are some companies offering electric pick-up trucks. Chinese OEMs also have produced economically priced electric pick-up trucks that can carry a considerable amount of load. Based on the total cost of ownership (TCO), these trucks could be on par with diesel and alternative powertrains in 4-5 years. Their adoption is also being enabled by the regulatory environment, including country-level emission regulations (for example, potential carbon dioxide fleet targets) and local access policies (for example, emission-free zones). There is a large market for pick-up trucks in North America due to the general populace’s affinity toward such vehicles for daily use. Hence, renowned OEMs from the region, such as Ford and GMC, have introduced powerful electric pick-up trucks since 2022.

Electric Light Commercial Vehicle Market - Global Forecast 2030

E-Mobility for trucks to help reduce emissions from the logistics sector

EMOSS, Volvo, and Daimler are among the players supplying fully electric trucks. With the advancements in battery technology, the range of these trucks will greatly improve; they will be able to carry heavier loads and travel longer distances. Worldwide, government pressure to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions is pushing vehicle manufacturers to invest in developing electric trucks. OEMs and component manufacturers are working together to develop Electric and Fuel cell trucks for the market. Bosch, for instance, is integrating heavy-duty fuel cell power modules into Nikola trucks. Such developments are expected to fuel the demand for electric trucks and help reduce emissions from the logistics sector.

Electric Truck Market - Global Forecast to 2030

Electric Vans to grow in demand with the need for Zero Emission Last Mile Delivery in Europe

Major players operating in the global electric van market include Renault, Daimler AG, Nissan Motor Corporation, Stellantis, Toyota Motor Corporation, IVECO S.p.A., London Electric Vehicle Company, AB Volvo, BYD Company Limited, and Volkswagen AG. These companies have already started providing or working on electric vans. For instance, in January 2021, PEUGEOT expanded its electric vehicle range with the new PEUGEOT e-Partner, the latest light commercial vehicle (LCV) in the brand’s line-up to be offered as a full electric vehicle. Similarly, Suzuki and Toyota launched a BEV van in May 2023 in Japan. Further, in October 2023, Stellantis announced a new lineup of electric vans. The growth of the logistics and e-commerce sectors is expected to drive the market for electric vans for various applications, such as last-mile delivery and distribution services. Electric vans will see increasing demand due to their lower operating costs, negligible harmful emissions, and various forms of government support.

Electric Light Commercial Vehicle Market - Global Forecast 2030

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