In European countries, owning and driving electric vehicles has become popular and this trend is growing stronger. Vehicles such as bicycles and electric scooters are also increasingly appearing on the streets. At the same time, cities are making efforts to electrify public transportation , and even e-commerce delivery services are gradually switching to using electric trucks and vans. This shows that the transition to electric vehicles is happening quickly and comprehensively across Europe.
Electric vehicle market share: Outstanding development
According to Allego, a company specializing in providing electric vehicle charging solutions in Europe, there are more than 7 million passenger electric vehicles rolling on the roads in this continent. This development has just begun and the electrification of road transport is in full swing. According to forecasts, by 2025, about 10% of global passenger vehicle sales will be electric vehicles. This number is expected to increase to 28% in 2030 and reach 58% in 2040. In particular, Europe is expected to have a higher electric vehicle penetration rate than many other regions, except China, The country is currently leading the global market. However, Europe is gradually closing this gap and by 2040, both regions will account for 72% of total global electric vehicle sales.
This rapid growth in Europe is largely thanks to strict CO2 emissions regulations and urban policies restricting internal combustion vehicles. The key moment in the transition from internal combustion vehicles to electric vehicles in Europe is expected to occur between 2030 and 2035. By then, half of all passenger cars sold will be electric and This proportion could increase to nearly 70% by 2040.
Factors driving the growth of the electric vehicle market
There are many factors influencing the development of the electric vehicle market, but one of the most important factors is the price parity between electric vehicles and internal combustion engine vehicles. In Europe, by the mid-2020s, prices will be parity in most market segments. Until then, government incentives, such as CO2 emissions regulations, will play an important role in promoting the growth of the electric vehicle market. Once the cost of electric vehicles reaches parity with internal combustion vehicles, electric vehicle sales are expected to skyrocket.
Additionally, the availability of electric vehicles is also a key driver. As more and more new and attractive electric vehicle models are launched, consumer interest in electric vehicles is also increasing. In particular, the cost of producing electric vehicles is decreasing, thanks to battery prices continuing to fall. Forecasts show that by 2024, battery prices will drop below 100USD/kWh thanks to new technologies in battery production. The availability of public charging stations is another important factor, especially for those who cannot install a charging station at home or at work. With an ever-expanding network of public charging stations, owning and using an electric vehicle will become easier than ever.
Prospects for electric vehicle charging infrastructure
The availability of charging stations has a major impact on the market share of electric vehicles. According to forecasts, by 2040, the world will need 290 million charging stations to support the development of the electric vehicle fleet. Among them, charging at home and in the office will account for the largest proportion. It is expected that an additional 12 million public charging stations will be needed as the number of electric vehicle drivers able to charge at home reaches saturation. As of now, nearly 1 million public charging stations have been installed globally, with much faster growth in Europe and China than in other regions.
Home, workplace and commercial private charging stations account for 78% of total investment, as the majority of electric vehicles will be charged at home at night or in the office during the day. For public charging stations, the majority of connectors will have a capacity of 11kW. Meanwhile, 150kW fast charging is expected to become the norm, with 350kW ultra-fast chargers playing a smaller role. This suggests that fast charging on the go will only be necessary when the electric vehicle's range is insufficient and the majority of public charging stations will cater for overnight charging.
In the short term, Europe's CO2 emission reduction targets are driving new electric vehicle models to rapidly enter the market, creating a positive impact on consumer availability and accessibility. . New electric vehicle registrations surged in 2020, partly because automakers took advantage of the transition from 2019 to 2020 to meet new CO2 targets.
