While battery power won’t fully overtake traditional internal combustion engines anytime soon, battery electric vehicles are set to climb in popularity from 2014-2019, with a CAGR of 59.42 percent over the projected period.
The major reason for this upsurge in popularity is increasing pressure on governments and individuals to control their emissions. In the EU alone, pollution from road traffic increased by about 23 percent from 1990-2013, with passenger cars accounting for 12 percent of CO2 emissions.
There have been similar increases worldwide over the past few years. This has prompted governments to prioritize the reduction of motor vehicle emissions by promoting uptake of electric vehicles. Governments in many countries have extended benefits in the form of financial incentives to the buyers of battery electric vehicles, and some countries even exempt operators of the more basic EVs from having a full driver’s license.
Types of Electric Vehicles
Generally speaking, battery electric vehicles refer to any vehicle powered by the electricity stored in the on-board battery, including cars, rail cars, buses, forklifts, trucks, and bicycles.
Neighborhood EVs
According to the US DOT classification, the vehicles in the Neighborhood EVs segment weigh less than 3,000 pounds and have a top speed of 25 miles per hour. These vehicles are allowed to operate within a speed limit of 35 miles per hour or less in the neighborhood of the consumer.
Extended-range EVs
Vehicles in the extended-range EVs segment use an internal combustion engine to power an electric generator to charge the batteries, with the electric motor being solely responsible for powering the wheels of these vehicles. The Chevrolet Volt is one example of an extended-range EV.
Light Duty Hybrid EVs
The engines of the vehicles in the light duty hybrid EVs segment automatically turn off during idling and restart on acceleration. This auto-start-stop mechanism reduces emissions and prevents the fuel wate, ensuring better fuel economy.
These vehicles are also designed to be capable of capturing energy from the automobile’s braking system and supporting higher loads such as active chassis technologies and air conditioning. The installed battery in these vehicles is charged by the ICE and regenerative braking.
Plug-in Hybrid EVs
The size of the battery in the vehicles of the plug-in Hybrid EVs segment is larger than that of a light duty hybrid EV and smaller than in strictly battery-powered EVs. The installed battery can be charged using an external source of electricity, such as a power grid. The electricity stored in the battery can be used to drive short distances only. These vehicles have lower maintenance and operating costs and pollute the air to a lesser extent compared to ICE vehicles.
High Performance EVs
Vehicles in the High Performance EVs segment are sporty plug-in hybrid EVs or battery electric vehicles with top speeds exceeding 100 miles per hour and driving range exceeding 100 miles. These vehicles are generally priced above US$100,000.
Despite the aggressive growth rate, the Global Battery EV Market is still experiencing some growing pains. Challenges for both manufacturers and consumers run the gamut, from issues with range and performance, high initial cost and lack of infrastructure, to overall low customer perception of these vehicles.
However, more and more vendors in the automotive sector are developing and marketing battery EVs. The overall market is characterized by the presence of a limited number of global, regional, and local vendors. Currently, these vendors are focused on providing high-tech, highly customized battery electric vehicles to the North American and Western European markets.
That being said, the high growth rate of the market is expected to attract many new vendors worldwide, which will ultimately contribute to better consumer perception and increased market growth.
