September 26, 2013
While hybrid vehicles (which pair a conventional internal combustion engine with an electric motor) have become an established segment of the overall automotive market, the limited availability of plug-in electric vehicles (PEVs) – including plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) – has inhibited sales growth in a number of major markets. Major automakers including Honda, Volkswagen, Hyundai, and others will be launching PEVs in a large number of countries over the next 2 years, however, adding to the list of available models, sparking increased consumer interest, and accelerating sales opportunities. According to a recent report from Navigant Research, worldwide sales of light duty hybrid and plug-in electric vehicles will reach 6.6 million units annually in 2020, representing almost 7 percent of the total light duty vehicle market.
“Electric vehicles, including plug-in models, are becoming an increasingly important part of the global automotive market,” says Dave Hurst, principal research analyst with Navigant Research. “This growth is being driven not only by the inherent appeal of the vehicles, but also by consumer demand for vehicles that cost less to operate than traditional internal combustion engine vehicles, government incentives, and a rebounding economic climate.”
Falling prices are also driving demand for electric vehicles. The cost of battery packs, which can account for as much as half of PEV costs, will continue to decrease significantly during the forecast period, according to the report. Hybrids and PHEVs are anticipated to see a 10 percent and 26 percent decline in battery pack costs by 2020, respectively, while BEVs will likely remain flat, but see improvements in vehicle range and performance during the same period.
The report, “Electric Vehicle Market Forecasts”, provides forecasts, market sizing, and market share analysis for hybrid, plug-in hybrid, and battery electric light duty vehicles. The report includes comprehensive data for sales along with underlying forecast assumptions for the consumer and fleet markets. Forecasts for annual vehicle sales by electric vehicle drivetrain, with comparisons to competing drivetrains, extend through 2020, segmented by world region and key countries. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Electric Vehicle Market Forecasts,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.