Technology Breakthroughs Forecast to Drive Electric Vehicle Growth

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The growth in the use of electric vehicles depends on the development and convergence of various technologies. Among these are energy storage and solar-power conversion efficiency rates. The makeup of the electric automobile certainly will change in the next 10 years and could be radically different in 20 years. The efficiency of the fossil fuel-fed internal combustion engine, out of which auto manufacturers are seeing dramatic increases in kilometers per liter, is constantly increasing.

The make-up of the hybrid drive train will continue to develop, given that petroleum remains one of the most efficient sources of storing and producing energy.

There are a variety of "clean" vehicle technologies in development and in use, but electric vehicles (EVs) represent one of the most promising technologies for reducing oil use and cutting emissions, according to a trend report by energy and transportation research firm Zpryme.

The worldwide EV market is forecast to grow from just more than 700,000 vehicles in 2014 to more than 12 million vehicles in 2021. That represents an annual growth rate of 66%. The main challenges to a double-digit percentage penetration of EVs in the auto market include government policies, purchase costs and total costs of ownership, range anxiety, and range limitations.

For related information, see April 25, 2013, article - Analysts Ponder Status of Electric Vehicles in 2035.

In order to promote significant and sustainable EV growth in the next decade and beyond, the U.S. should consider continuing or developing policies that include enabling EV companies to sell directly to consumers, according to Zpryme. It also would need to further catalyze and facilitate private-public coordination and communication to address the EV challenges across technology, finance, markets and policy

Manufacturers should make concerted efforts in areas such as developing the EV financing market, which includes the battery and resale markets, and identifying sustainable EV charging infrastructure business models that define clear revenue models and create retail partnerships.

For related information, see March 5, 2014, article - Philippines Targets 1 Million Electric Vehicles on its Roads by 2020.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.