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03/31/2022

The Current State of the EV Industry and What Comes Next

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4 MIN. READ

The electric vehicle industry is growing at a rapid pace with automakers actively expanding their EV lineup, federal incentives supporting the development of strong charging infrastructure, and consumers opting for greener forms of transportation.

The state of the EV industry

The EV industry has come a long way since the first electric vehicles.

History of EVs

The concept of electric vehicles isn’t new. The first EVs date back to the 19th century, and at one point, EVs made up a third of all vehicles on the roads. However, the rise of the mass-produced gas-powered car in the 1920s quickly made EVs obsolete.

Interest rose again in the 1960s with a few concept cars. The battery-powered lunar rover used during the Apollo 15 mission in 1971 was briefly considered as a potential response to the energy crisis that defined the 1970s and 1980s.

During the 1990s, California’s efforts to push for lower emissions prompted automakers to focus on EVs. However, the technology of the time limited the applications to neighborhood vehicles with a small range.

As the battery technology improved, so did the range and performance of EVs. Nissan reached a landmark in 2010 with the Nissan Leaf, the first mass-produced EV from a major brand.

EV adoption is accelerating

EV adoption is accelerating at a rapid pace with a predicted 6 million EVs shipped in 2022, another strong year after 2021. That year saw year-over-year sales increase by 94% during Q3.

Several factors are driving adoption, including battery technology becoming higher performing and more affordable, EVs featuring better ranges, the rising cost of gasoline, and federal and state incentives.

Plus, there is a growing awareness of environmental issues, especially among younger generations. While only 32% of Baby Boomers are somewhat to very likely to consider an EV purchase, this percentage increases to 42% for Gen Z, suggesting that rates of EV adoption will continue to climb with new generations of consumers.

What does the global EV market look like?

Overall, the number of EVs on the roads doubled in 2021 on a global scale. In spite of strong sales, the U.S. represents only 4.5% of the market shares. Europe, with 16% of market shares, and China, with 14%, are the two largest markets. Strict environmental regulations are pushing manufacturers to prioritize EVs in Europe, and China has adopted mandates that require EVs to make up 40% of all sales posted by automakers. Due to its size, the Chinese market is playing an important role in bringing the cost of batteries down.

New EV offerings in the U.S.

The diverse EV lineup presented by auto manufacturers is another factor driving adoption in the U.S. Cadillac and Lexus will offer an all-electric lineup by 2030, while GM will achieve this goal by 2035. Ford announced that 40% to 50% of its global sales would be electric by 2030.

Consumers have a wide range of options to choose from, including electric pickup trucks with Ford’s upcoming F-150 Lightning, heavy-duty vehicles like the GMC Hummer EV, and SUVs like the Audi e-tron or the Ford Mustang Mach-E. Luxury sedans already have a strong presence in the Tesla Model S or the Mercedes-Benz EQS Class, and smaller, more affordable EVs like the Chevrolet Bolt and the Hyundai Ioniq 5 are transforming mobility in cities.

The charging infrastructure is expanding

As EV adoption continues to increase, there is a strong demand for a charging network capable of supporting this transformation.

Federal and state funding for developing the charging infrastructure

The Biden administration has an ambitious plan to overhaul the infrastructure, including creating a nationwide network of public charging stations. The National Electric Vehicle Infrastructure Program is going to distribute $5 billion in funding as part of the Bipartisan Infrastructure Law.

States have to submit plans for developing their charging infrastructure to qualify for funds. Texas already received around $60 million and will receive a total of $400 million over the next five years. California will receive $383 million to meet a predicted sharp increase in demand for charging.

Michigan has received $16 million to install charging stations along alternative fuel corridors, while New Jersey is getting $15 million to build charging stations in urban and rural areas.

Home charging is gaining momentum

These efforts to develop a nationwide charging network are promising, but for now, home charging remains prevalent. EV drivers do 70% to 80% of their charging at home or in a workplace parking lot. Those who rely on the public charging infrastructure typically use three or fewer stations.

With most EV drivers charging their vehicles daily or every other day, at-home charging is a convenient option. Plus, with only 43,000 public stations currently available, not everyone is within close range of a station.

Innovations in battery technology

At-home charging is a viable solution thanks to high-performing Level 2 Charging Stations and innovations in battery technology that make charging at home safe and effective.

Besides, battery innovations have significantly extended the range of EV batteries. Now that the median EV range exceeds 250 miles, the average EV owner can wait until the end of the day to charge their vehicle.

Charge at home with Qmerit

With a nationwide network of professional installers, Qmerit is an innovative installation partner for all EV owners. While some exciting projects are in progress to develop the public charging infrastructure, access to a Level 2 Charging Station at home will continue to be an affordable and convenient option for EV owners. Contact us today to learn more about upgrading your home with a Level 2 Charging Station for fast overnight at home charging!

Lowry Stoops President, Qmerit Network