US electric vehicles market to register nearly five-fold growth by 2025
Incentives and subsidies to drive EV ownership in the country and create new growth opportunities
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, Transitory Trends in the Electric Vehicle Ecosystem in the United States, 2025, finds that the electric vehicle (EV) market in the United States is expected to flourish with government incentives driving EV ownership.
The study also examines various trends in EV sales since 2010, factors contributing to growth, the current charging infrastructure, the road ahead, and much more. The xEV market in the US is estimated to register a nearly five-fold growth, reaching almost 7 million unit sales by 2025 from 1.4 million unit sales in 2020.
“Over 90% of states offer incentives for setting up EV charging infrastructure,” said Prajyot Sathe, industry manager, Mobility Practice at Frost & Sullivan, in a prepared statement. “Only a few states offer the usage of high-occupancy vehicle lanes. However, meaningful quality of life incentives and exemptions are offered across 39 states in the United States, including easier payment plans for the purchase of EVs, limited-time incentives to accelerate EV adoption/conversion and lack of requirements for emission inspections across several states.”
Sathe added: “Mild hybrid electric vehicles (MHEVs) and full hybrid electric vehicles (FHEVs) will account for the maximum market share of 89.6% combined in the xEV market by 2025, with an almost equal split between them. Additionally, battery electric vehicles (BEVs) will witness impressive sales, followed by plug-in hybrid electric vehicles (PHEV) sales over the forecast period.”
According to Frost & Sullivan, market participants should focus on the following trends for success:
Battery-operated Electric Vehicles (BEVs): EV ownership incentives such as being exempt from state motor vehicle emissions inspections in Massachusetts and Colorado are among the primary reasons BEVs are expected to witness increased demand by 2025.