Connected services and commercial electric vehicle subscriptions for consumers are expected to rise by 270 per cent from 2020 to 2024, to an estimated 7 million subscribers by the end of that period — propelled in part by deadlines to end the sale of internal combustion engine vehicles, according to ABI Research firm.
Examples of subscriptions include charging-station locators, eco-routing, and EV telematics. The combined revenue opportunity from these various sources (within connected services and commercial EV subscriptions) could reach as much as US$378 million (CA$510.59 million) by 2030.
“EV sales have presented slow market growth in the past years. However, the increasing number of countries setting up deadlines to end the sale of Internal Combustion Engine (ICE) vehicles will propel higher EV adoption,” said Maite Bezerra, Smart Mobility and Automotive Analyst at ABI Research.
Bezerra said Norway intends to end the sale of internal combustion engine vehicles by 2025, while Germany, Sweden, India, and China (among other countries) are seeking to ban these types of vehicles as of 2030. It is anticipated that 27 million (of consumers) and 1 million of commercial Plug-In Electric Vehicles (PEV) will be sold by 2030.
Bezerra said the increase of EV adoption is still being hindered by factors such as a lack of charging infrastructure and range anxiety. Adding more charging stations would help improve the situation, as it has done before — and resulted in a substantial growth in the past years. For example, China and Japan now have more than 40,000 charging stations — each.
“Yet, there is a general perception of deficient charging infrastructure due to a lack of communication between vehicles and charging stations,” said Bezerra.
ABI Research said connected services (think HERE’s EV Charging Stations and TomTom’s EV Routing Services) could help change that perception by displaying information such as charging station location, compatibility, and real-time availability.
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