Market Facts
The Electric Vehicle market has grown by ~350% over the last 5 years, and it’s just getting started. What’s driving this meteoric rise? How many EVs will be on the road in the future? Will there be enough charging options to support the increased vehicle production?
Check out the stats and information below to find the answers to these questions and more. See why it’s so important to get your building EV-ready now to avoid getting left behind in a rapidly changing market landscape.
EV Sales
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The EV market has been growing at an astounding rate. Looking forward, the numbers are even more impressive. On top of emerging federal and state-level legislation pushing clean energy use and the adoption of EVs, charging infrastructure is expanding, allowing for more EVs on the roads. In 2020, EVs represented about 2% of total vehicle sales in the US. That share is expected to grow to roughly 40-50% by 2030.
A fast-growing infrastructure of residential EV chargers around the world (including a $7.5 billion boost in the United States via the bi-partisan infrastructure plan) supports continued demand and production of EV technology.
With over 40% of dwellings in our region being multi-family, it’s important to get garages retrofitted to be EV-ready and keep up with existing and future resident demands to maintain and increase property values.
There is a finite supply of oil, and as the supply/demand imbalance grows wider, the EIA forecasts a sharp trajectory toward higher prices.
Conversely, the cost of electricity is getting cheaper. Alternative energy technologies are quickly replacing so-called “dirty” methods at significantly lower costs.
When you consider the price to operate an ICE is going up and the cost to operate an EV is going down, the growing disparity is very compelling.
The life-cycle GHG emissions of average new EVs in the United States are estimated to be 83–103 g CO2 eq./km for the passenger car and 105–133 g CO2 eq./km for the SUV segment. These values are ~68% lower than for the respective gasoline cars. Despite the higher carbon intensity of the average U.S. power grid, the relative GHG emissions benefit of EVs compared to average gasoline vehicles is similar to that in Europe.
This is mostly because the fuel consumption of gasoline vehicles in the United States is also higher. Even in countries where electricity production is more reliant on so-called “dirty” methods (like burning coal), the environmental benefits of EVs to ICEs remains undeniable.
EV Production & Demand
The Electric Vehicle (EV) Market is growing at an astounding rate. For perspective, in the United States there were ~115k EVs sold in 2015, compared to ~230k registered with the DMV in 2020. That’s a 100% increase of just NEW cars being SOLD in 5 years! When it comes to EVs on the road, there were about 1.3 million at the end of 2020. And according to the DMV and the Alternative Fuels Data Center, the top 3 states registering EVs are California, Florida, and Texas.
- Looking forward, the numbers are even more impressive. On top of emerging federal and state-level legislation pushing clean energy use and the adoption of EVs (some examples: President Biden wants 50% of vehicle sales to be EVs by 2030, CA governor Gavin Newsome signed an executive order in 2020 to phase out sales of new gas-powered cars by 2035, charging infrastructure is expanding, allowing for more EVs on the roads. In 2020, EVs represented about 2% of total vehicle sales in the US. That share is expected to grow to roughly 40-50% by 2030.
- And it makes a ton of sense: increased ability to charge in more places, rapidly increasing oil & gas prices, lower greenhouse emissions than traditional internal combustion engines (ICE), and they’re FUN to drive – with quick, quiet, smooth acceleration, sophisticated displays, and smart phone applications. For all these reasons, people want these cars and automakers are desperately trying to fill that demand. In fact, given how high the demand is, production can’t even keep up. Many models have months-long waiting lists (sometimes even 6 months to a year!).
Environmental Benefits
With respect to environmental benefits, there’s an important debate we’d like to put to rest. While we know that EVs release zero tailpipe emissions, there are of course, emissions associated with electricity production. With that said, there has been some rhetoric about whether EVs are actually better for the environment vs ICEs. Not surprisingly, these talking points originated with lobbyists for both the oil/gas industry and major ICE automakers.
However, in July 2021, an exhaustive report from the International Council on Clean Transportation was published that makes crystal clear, over the life-cycle of an EV (from digging up the materials to build the car, to producing electricity to power it’s engine), it will emit 60-68% less greenhouse emissions than an ICE in the United States. Even in countries where electricity production is more reliant on so-called “dirty” methods (like burning coal), the environmental benefits of EVs to ICEs remains undeniable.
Oil vs. Electricity Prices
We already know the price of oil is increasing. To quantify this, take a look at the US Energy Information Association’s (EIA) 2021 Outlook. The price of a barrel of crude oil is in the high $60s-low $70s range, and that is expected to hold for the short term – thanks to existing reserves and OPEC managing the global supply. That said, there is a finite supply of oil, and as the supply/demand imbalance grows wider, the EIA forecasts a sharp trajectory toward higher prices.
Conversely, the cost of electricity is getting cheaper. Alternative energy technologies (think wind turbines, solar energy systems, hydro-electric, geo-thermal, etc) are quickly replacing so-called “dirty” methods at significantly lower costs. Plus, they are substantially better for the environment. Of course, EVs are fueled by electricity, so the cost to operate an EV is lower than internal combustion engine (ICE) vehicles and will continue to decrease as these market dynamics play out.
| Year | Crude Oil($/Barrel) |
|---|---|
|
2021 |
$70 |
|
2030 |
$90 |
|
2040 |
$135 |
|
2050 |
$185 |
To illustrate these figures, the average American drives about 14,664 miles per year, US average fuel-economy is 29.9 miles per gallon (MPG), and the national average price for a gallon of gas is $3.68. That equates to an annual cost to fuel an ICE of $1,805 (and rising). Let’s say the price per gallon jumps to $5/gallon – the annual cost rises to $2,452. Just imagine how expensive this becomes over time given the EIA forecast.
On the EV side, the average efficiency is about 3 miles per kWh and the national average cost per kWh is 14 cents. The annual cost to charge an EV is only $684 (and getting cheaper). Check out our calculator to manipulate these numbers under various scenarios.
When you consider the price to operate an ICE is going up and the cost for an EV is going down, the growing disparity is very compelling.