The global electric vehicle (EV) market size is expected to grow to US$343.01 billion and reach a Compound Annual Growth Rate (CAGR) of 13.51% from 2024-2028, according to Technavio.
In its latest updates, the company said increased concern over emissions from fossil fuel vehicles is pushing the demand for low-emission and fuel-efficient vehicles across the globe. That shift, they said, is primarily driven by rising fuel prices and geopolitical tensions affecting oil exports.
“As a result, consumers are increasingly turning towards electric vehicles (EVs) to enhance energy security, cut fuel costs, and mitigate air pollution-related health issues,” said Technavio. “The forecast for the EV market remains optimistic, driven by the collective efforts of governments and consumers to curb emissions and combat climate change.”
However, the company did cite a few market challenges, including the lack of proper charging infrastructure. (They said the disparity between vehicles and charging stations in the United States is “stark.”)
The need for more robust charging systems is also an issue, as is the high costs of establishing charging stations. Technavio said residential AC chargers range from $250 to $1,500, while commercial AC chargers will cost anywhere from $6,000 and up. And DC fast chargers are even more expensive.
Furthermore, the company said that despite government support through funding and tax rebates, “the gradual reduction of such incentives negatively impacts the EV charger market. Without substantial support, the growth of the EV market will be constrained by the limited charging infrastructure.”
