3 Electric Vehicle Trends in the Growing Market

Feb 28

The electric vehicle (EV) market is growing — fast. Just about every available statistic seems to show both growths in the number of EV registrations and their share of the car market. That growth is accelerating, too. 2020, despite the COVID pandemic, saw a 43% increase in global electric car stock, and the sector was more resistant to the overall dip in car sales that came with the pandemic. From 2020 to 2021, that global market share in electric vehicles doubled.

For those interested in getting in on the cutting edge of technological development, it seems that investing, in some way, in the electric vehicle market is a no-brainer.

1. Unequal Growth

Granted, these global statistics don’t represent even growth throughout all countries. Pew has found that growth in the U.S. is slower than in China and Europe. However, these differences are largely explained not by differing culture or terrain — a hard argument to make when comparing such broad, diverse swaths of regions — but by legislation.

This is illustrated by the rate of electric vehicle adoption in California, which leads the United States in EV adoption. In fact, its per-capita numbers are closer to those of Europe and China than to the remainder of the United States, despite having a strong rural population in the Central Valley and a broad array of terrain.

This high rate of EV adoption in California is likely attributable to its widespread legislation — including tax incentives and financial assistance — that help to encourage the creation of EV infrastructure and the purchase of electric vehicles by individuals and businesses.

California, then, provides a case study in how to further increase the already meteoric growth of the electric vehicle market: When you create legislation that incentivizes electric vehicle purchases and infrastructure, the market grows.

2. Legislative Changes

This brings us to the coming legislative changes across the United States. California may have been an early and powerful adopter, but federal and state legislation across the country is promising to help the rest of the nation catch up. Some highlights include an increase in the electric vehicle tax credit that would bring it to $10,000, essentially giving you a 10-grand rebate on an EV purchase. Likewise, while it is being hotly contested, a major part of Biden’s economic plan included a $174 billion investment in electric vehicles across a broad swath of the industry.

The strongest examples, however, come on a state-by-state basis. It would be impractical to try and list all of them. But, at this point, the only states that don’t have incentives to some degree are the Dakotas, Kansas, Kentucky and West Virginia. We could try and list some of the more recent tax incentives, but at the rate they’re going, by the time you read this article, there will already be a new highlight.

3. Technological Improvements

That’s to say nothing of the rapidly improving technology surrounding electric vehicles. Morning Brew did a fantastic article compiling these statistics. The important takeaways are as follows: The cost of EV batteries (which make up about 35% of the vehicle cost) has plummeted since 2008, from $1,200 per kilowatt hour to $157 per kilowatt hour. Both maximum and median range for the vehicles — a common concern for potential buyers and investors — have increased by a factor of 4 in the last nine years. Finally, the lifetime of these batteries has sharply increased to more than 250,000 miles… longer than you can expect many vehicles to last in the first place. Charging speed is increasing, too, but it seems to be at a slower rate, and we have less data on the numbers.

How To Invest in Electric Vehicles

Electric vehicles are a growth industry if there ever was one. Once you add in the increasingly apparent damage of climate change pushing people to adopt them for ethical and environmental reasons, it seems prudent for investors to consider how they want to get involved.

One of the best options, at the moment, is for property owners to widely install EV charging stations. No matter how the industry grows, people will still need to charge their vehicles. What’s more, as we’ve established, the process is cyclical. The more EV infrastructure available, the more EVs wind up on the road, and the more customers you have. Likewise, the financial incentives for EV adoption aren’t limited to drivers, however, incentive programs don’t stay open forever. Many property owners can find a wealth of incentives for EV charging station installation that can minimize the initial investment.

Interested in EV charging stations at your business? Connect with us today to get started.