Global EV sales to reach 5.3 million units in 2021: Frost & Sullivan
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Intensifying electrification and fuel economy targets are set to propel EV market growth, according to a new Frost & Sullivan report.
Global electric vehicle (EV) sales in 2021 are estimated to reach 5.3 million units, with battery electric vehicles (BEV) leading the market with a 66% share and 6.1% penetration (BEV and plug-in hybrid electric vehicles) in the passenger car market, a new report from Frost & Sullivan says.
Tesla will continue to lead the overall EV market, the report said, China remains the leading country, and Europe is the leading region in terms of EV sales in 2021.
“Consumers’ increasing preference toward EVs, economies’ commitment to lower carbon emissions, and the surging installation rate of EV charging stations worldwide are key factors driving the global EV market,” said Prajyot Sathe, Frost & Sullivan’s research manager, mobility practice. “The global push toward electrification and fuel economy leads to ever-stringent emissions norms, which have resulted in some regions such as Europe already committing to internal combustion engine (ICE) bans, while others are working toward specific commitments.”
The world of batteries is changing rapidly, Sathe noted, which makes it hard to predict the most promising battery chemistry. “However, original equipment manufacturers (OEMs) are also working on extending the charging rates of vehicles with the introduction of new-generation Li-ion battery technology, which allows ultra-fast charging up to 400 kW,” he said.
Currently, the typical charging rate of an electric vehicle is twice the battery capacity (50 kWh battery will have a 100 kW charging rate). “However, by 2025, the charging rate will increase to thrice the battery capacity due to technological advancements allowing a 100 kWh battery pack to charge at 300 kW, which is called ultra-fast charging,” Sathe noted.
EVs will constitute approximately 10% to 15% of the total overall passenger car segment by 2025. To tap into the growth prospects brought about by EVs, Frost & Sullivan said, market participants need to focus on:
- EV with advanced battery packs for improved efficiency and lower cost: Battery manufacturers and OEMs need to work together to develop and implement advanced batteries to enable ultrafast charging in future EVs.
- Electrification of flagship models with a preference toward BEV with ultra-fast charging capability: All BEVs should have DC charging capability, including ultra-fast charging, to reduce the charging time from 30 minutes to 15 minutes.
- Evolving business models: Utilities need to act fast and take a customer-centric approach toward service delivery to leverage the evolving e-Mobility trends.