Encouraging and accelerating the adoption of passenger electric vehicles is a goal that has wide support from governments, environmental groups, clean air and health advocacy organizations, and more. Here are some of the stakeholders who are working to advance the adoption of electric cars.
- Automotive Manufacturers: Major automotive manufacturers recognize the growing demand for EVs and are investing heavily in the development and production of electric vehicles. They are expanding their EV lineups, improving battery technology, and investing in charging infrastructure to meet the evolving needs of consumers.
- Electric Utilities and Energy Companies: Electric utilities and energy companies are actively involved in supporting EV adoption. They are expanding charging infrastructure networks, collaborating with automakers to develop charging solutions, and offering special electricity rates and incentives for EV owners. Their involvement is crucial in ensuring convenient and widespread access to charging stations.
- Environmental and Climate Advocates: Organizations and individuals advocating for environmental sustainability and combating climate change are strong proponents of EV adoption. They recognize the potential of EVs to reduce greenhouse gas emissions, improve air quality, and mitigate the negative environmental impacts of traditional internal combustion engine vehicles.
- Health, Heart, and Lung Health Advocates: As the evidence widens showing the negative impact of transportation emissions on health effects, groups such as the American Heart Association, American Lung Association, and networks of hospitals and healthcare workers are supporting the transition to zero tailpipe emissions transportation.
- Technology and Infrastructure Providers: Companies specializing in EV charging infrastructure, battery technology, and renewable energy play a vital role in accelerating EV adoption. They are investing in research and development to improve charging speeds, battery capacity, and energy storage solutions, making EVs more practical and convenient for consumers.
- Financial Institutions and Investors: Financial institutions and investors are recognizing the potential of the rapidly growing EV market and are providing funding and support for EV manufacturers, charging infrastructure projects, and clean energy initiatives. Their involvement helps drive innovation, expand production capabilities, and reduce costs associated with EV adoption. Their interest is often associated with risk mitigation tactics to address the inherent instability in the fossil fuel market.
Market Growth Projections
Almost every year since 2018, Boston Consulting Group (BCG) has released a market projection for EV adoption. The analysis is thorough and thoughtful, with thousands of words of supporting detail on how the projections are designed.
Each report shows stacked bar charts that, year after year, demonstrate the accelerating growth of EV sales. The 2022 report is no different. Global EV adoption is projected to multiply by 2025, 2030 and 2035 – fueled by sales in major auto markets like the US and China.
Many of us don’t need detailed analysis to understand this. We can see it on our neighborhood streets, where EV counts are gaining momentum each month. Even two years ago, it was noteworthy to see an EV on my way to the store. Now, I hardly notice anymore.
EV Adoption Models Are Accelerating
It can be easy to get lost in the data and projections from the latest 2022 report. The most interesting thing, however, how the projections compare over the years. In other words, comparing the 2018 report to the 2020 report to the 2022 report. EV projections have continually been revised to increase the rate of adoption. It just goes to show that interest in EVs is accelerating faster than anticipated.
EV projections have continually been revised to increase the rate of adoption. It just goes to show that interest in EVs is accelerating faster than anticipated.
We combined the last 4 projections to demonstrate how they are changing over the years. Since we spend most of our time focused on the American EV market, we broke out US sales projections from each of these BCG reports.
EV sales projections for 2030 changed each year that BCG released a report. Sales projections in the US for 2030 continued to grow to:
- 21% in the 2018 report
- 26% in the 2020 report
- 42% in the 2021 report
- 53% in the 2022 report
In the course of 4 years – from 2018 to 2022 – US EV sales projections for 2030 more than doubled, growing from an estimated 21% to 53%.
What About Tax Credits & Bans on Gas Car Sales?
BCG’s 2022 report was published in June of 2022, months before the new tax credits in the Inflation Reduction Act (signed August 2022) and California’s proposed ban on the sale of gasoline vehicles in 2035 (announced August 2022). These developments will continue to expedite EV adoption in the US, promising that the next BCG report will have more aggressive projections.
Already in 2023, new electric vehicle registrations in the January - April are more than 250,000 - putting the US on target for the first ever million new-EV year. And that says nothing about the nearly million used EVs that changed hands in the past year. According to Experian data, we're looking at 2.7 million electric cars on the road today.
Charts to Analyze EV Trends in the US
Here is some recommended reading on things that will continue to accelerate EV adoption: