2024 is an exciting time for the electric vehicle (EV) market. According to the Boston Consulting Group, 70% of U.S. drivers are considering purchasing an EV, and nearly 40% of consumers say they plan to purchase one as their next vehicle.
There’s an enormous opportunity for manufacturers and charging operators who can leverage this momentum. And that requires an understanding the factors driving EV market growth.
The keys to EV market growth in 2024
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The electric vehicle industry has long been stuck in a “chicken and egg” paradox. For EVs to take off and hit mainstream adoption rates within the innovation-adoption curve, more consumers need to see that they’re a worthwhile alternative to traditional vehicles. Doing so means manufacturing more EVs, making them more affordable, and building the infrastructure to support them. But if consumers aren’t buying EVs, there’s no drive to manufacture more vehicles, which leads to consumers sticking with what they already know.
While it’s hard to say if we’re within mainstream-market territory just yet, EV production rates are trending in that direction. A mere decade ago, fewer than 20 electric vehicle models were on the global market. Now, projections show that by the end of 2024, that's shot up to at least 130 EV models available. And there are over 20 new EV models coming soon from major manufacturers like Ford, BMW, and Honda that we're really excited about.
So EV market growth is definitely on the uptick. The International Energy Agency (IEA) reports that electric car sales saw a 35% year-over-year increase between 2022 and 2023—a six-fold increase over a mere five years ago—accounting for nearly 20% of all car sales in 2023.
Greater access
Another factor that drives current EV adoption reluctance is access to easy-to-use and cost-effective charging stations... and even more importantly, the perception of easy access.
For traditional vehicles, refueling is simple. Gas stations are on nearly every block in major cities and the freeways connecting between them. Meanwhile, range anxiety—the fear of running out of charge while driving—is still a genuine concern among current and potential EV owners.
Those perceptions are changing. Nearly 20% of EV owners say they no longer have any range anxiety when driving. Part of this shift is likely due to getting used to the peculiarities of managing EV charge consumption and planning trips more efficiently. But credit must also be given to the fact that there are far more chargers available now than there were even a few years ago—with many more to come.
In 2021, the National Electric Highway Coalition announced plans for a coast-to-coast EV charging network. The Biden administration has injected funds into similar charging network expansion, including a January 2024 announcement of $624 million in funding designed to fill gaps in the U.S. EV charging grid. Likewise, Canada is investing $680 million into the nation’s charging network through the Zero-Emission Vehicle Infrastructure Program. Many of these funding efforts also include tax rebates that make buying electric vehicles more affordable for the average consumer.
All of these funds create more recharging opportunities for current EV owners, alleviate potential owners' fears that might keep them from making the switch, and give them financial incentives to do so. They also create opportunities for new and emerging EV charging business owners to expand their operations.
Better standardized tech
As governments and manufacturers invest in building infrastructure and creating more cars, they’re also funding research and development to provide technological solutions for enhancing EV efficiency.
Battery technology is one area that is seeing rapid improvement, allowing for shorter charge times, longer ranges, and greater longevity. Lithium iron phosphate (LFP) batteries are set to replace lithium-ion batteries in North America as the technology has proven itself viable in the Chinese market. While LFP batteries have typically held less density than other chargeable batteries, improvements in the technology have significantly closed the gap while offering greater safety and durability than lithium-ion batteries.
Other battery technologies are on the horizon and quickly coming within reach. Hydrogen fuel cell batteries are starting to show up in electric buses, as their wide range and fast charging capabilities make them a much better fit for public transit than lithium-ion. Meanwhile, Toyota recently announced a deal to produce solid-state batteries for consumer vehicles by 2028, which the company expects to reach a range of up to 932 miles on a single charge with charge times of under ten minutes.
Meanwhile, charging technology standardization is long overdue, and we’ll finally see the fruits of these efforts in the coming months. For example, drivers will no longer need to worry about whether their EV plug fits nearby public chargers once NACS port standardization begins hitting EV models by 2025.
Be a part of a growing market
All of these factors combine to form a bright outlook for a growing market. If you’re looking for an opportunity to dive in, there’s no better time to get started. And ChargeLab is here to get your EV charging business up and running smoothly.
At ChargeLab, we help EV charging businesses operate and maintain their charging stations with ease. Our hardware-agnostic charging station management software (CSMS) allows network operators to control all of their charging stations from a single hub. We’ll help you offer stellar service to your customers with automatic grid monitoring, built-in revenue collection systems, and 24/7 end-user support.
Want to learn more about what we do? Say hello.
