The low emission vehicles market in the US is growing, thanks to increasing implementation of stricter emission standards.
The Environmental Protection Agency (EPA) in the US has developed guidelines to help consumers understand the importance of the green vehicles and low emission cars, which is encouraging market growth at an projected CAGR of 5.13% from 2014-2019.
During the forecast period, the US market is expected to surpass 3 million sold units.
Consumers in the US have the option of multiple low emission vehicles including FFVs, PHEVs, CNG vehicles, and EVs that run on alternate fuels. In addition, there are more than 10,000 fuel stations, which provide alternative fuels, and this number is increasing with the growing demand.
Electric vehicles (EVs), whether a hybrid, plug-in hybrid, or a battery EV, are gaining popularity due to increasing environmental concerns. Growing concerns about global warming, rise in fuel prices, and the threat of depleting oil reserves have prompted the need for a more energy-efficient and eco-friendly means of transportation, especially in the area of (hybrid electric vehicles) HEVs. With the development of advanced battery technologies and onboard computer systems, HEVs have become practical, and a large number of popular models such as Honda (Civic and Insight) and Toyota (Prius) have been available since 2000, while Tesla has recently become one of the most loved cars in the United States.
The EV market in the US is the fastest growing segment of low emissions vehicles, with a large presence in both the west and east coasts. The market is expected to grow at a CAGR of 8.34% during the forecast period. The incentives provided by states in the US such as federal tax credits in the range of $2,500-$7,500, depending on the vehicle battery capacity and gross vehicle weight, propel the growth of the market.
While the EV market in the US growing at a very steady rate, the amount of units sold is still on a very small scale. Customer perception plays a crucial role in the purchase of alternate fuel vehicles, especially EVs. The US government is working in collaboration with state legislations to develop the infrastructure (charging stations) required for EVs, but many consumers are still not sure if they should buy them. Many Americans prefer conventional vehicles because of the limitations associated with the use of EVs.
However, the gap in the production and consumption of petroleum in the US has led to an increase in imports to meet the country’s fuel demands, thus, increasing expenditure. An increase in oil prices has a direct impact on the prices of vehicles and if this volatility in oil prices continues, consumers in the US to should be switching to EVs at an even faster rate.
