The vehicle industry is a big market. But among all the different types of vehicles, electric vehicles are slowly creeping up as a market with tons of potential. The electric vehicle industry is just at its infant stage. Currently, it is less than 1% of the total vehicle sales. However, it can potentially grow to more than 5% in the next few years. EV industry volumes have been fluctuating, mostly depending on the incentives offered by the government. However, as companies like Tesla and Lucid motors advance their technologies and sales, the EV industry will soon explode into a lucrative and thriving market. In fact, expert predictions see the global Electric Vehicle Market size growing from 8,151 thousand units in 2022 to 39,208 thousand units by 2030. That’s a 21.7% CAGR. So what exactly is the electric vehicle industry, and what makes it so special? This article will take a brief yet comprehensive overview of the EV industry and share some important insights as to why it will become big.
What is the EV Industry?
The electric vehicle industry refers to the manufacturing and sale of vehicles that are powered by electricity. This includes electric cars, buses, motorcycles, and trucks. Electric vehicles have been around for a long time, but they’ve only started to become popular in the last few years.
There are two main types of electric vehicles: all-electric and plug-in hybrid. All-electric vehicles are powered exclusively by electricity, while plug-in hybrids can run on gasoline and electricity.
Why is the EV Industry Growing?
There are a few reasons why the electric vehicle industry is growing. Here are a few reasons why this market is projected to explore in the next few years:
EVs are Becoming More Affordable
As battery technology improves, the cost of electric vehicles is dropping. As a result, the cost of electric vehicles is projected to fall below that of gasoline vehicles by 2030.
Governments Are Supporting EVs
Governments around the world are supporting the growth of electric vehicles. This includes offering incentives like tax breaks and subsidies. In some countries, some laws mandate a certain percentage of vehicles sold must be electric.
The Range of EVs is Increasing
One of the biggest concerns about electric vehicles is range anxiety or the fear that the vehicle will run out of power before reaching the destination. However, as battery technology improves, electric vehicles can travel further on a single charge. The Tesla Model S, for example, has a range of over 400 miles.
EVs Have Low Maintenance Costs
Electric vehicles have far fewer moving parts than gasoline vehicles. This means they require less maintenance and are less likely to break down.
What Are the Challenges Facing the EV Industry?
The electric vehicle industry is not without its challenges. Here are a few of the challenges that the industry is facing:
Infrastructure Costs
One of the biggest challenges facing the electric vehicle industry is the lack of charging infrastructure. To support the growth of electric vehicles, there needs to be a network of charging stations. Unfortunately, the cost of building this infrastructure is estimated to be billions of dollars.
Battery Costs
Another challenge facing the electric vehicle industry is the cost of batteries. Battery costs have fallen in recent years, but they still make up a large portion of the cost of an electric vehicle. As battery technology improves, the cost of batteries is projected to continue to fall.
Consumer Awareness
One of the biggest challenges facing the electric vehicle industry is consumer awareness. Many consumers are unaware of the benefits of electric vehicles or the different types of electric vehicles available.
COVID-19 Impact
The COVID-19 pandemic has impacted every industry. The electric vehicle industry is no different. The pandemic has led to a decrease in demand for vehicles as people are staying home more. The pandemic has also led to a decrease in production as factories have been forced to shut down.
However, as the world slowly recovers and returns to normal, the electric vehicle industry is projected to grow rapidly.
Insufficient Standardization of EV charging Infrastructure
Currently, there are three primary types of charging ports in use: CHAdeMO, CCS (Combo), and Tesla Superchargers. This lack of standardization presents a challenge for both EV manufacturers and consumers.
For manufacturers, it means that they need to support multiple types of charging ports. For consumers, it means that they need to be aware of which type of charging port their vehicle has and make sure that they have access to the right type of charger.
What’s the Future of the EV Industry?
The future of the electric vehicle industry is looking bright. With governments supporting the growth of electric vehicles, the cost of batteries falling, and the range of electric vehicles increasing, the industry is poised for rapid growth.
In the next few years, we will likely see a significant increase in the number of electric vehicles on the road. This will lead to an increase in the number of charging stations and a decrease in the cost of electric vehicles. In addition, as the industry continues to grow, we are likely to see even more breakthroughs in electric vehicle technology.
Why Use DATAMYTE?
For EV manufacturers, the need for a comprehensive and effective workflow is important to ensure the quality of the product. DATAMYTE provides a workflow for electric vehicle manufacturers that can be tailored to the specific needs of each company.
With DATAMYTE’s Digital Clipboard, EV manufacturers can create comprehensive workflows that can be tailored to their specific needs. In addition, the DataMyte Digital Clipboard also offers a wide range of features that can be used to create an effective workflow for electric vehicle manufacturing.
With the DataMyte Digital Clipboard, you also get access to our EV checklist template that can be used to create a comprehensive workflow for your electric vehicle manufacturing process. This template includes all the key steps that should be included in an electric vehicle manufacturing workflow, such as battery testing, range testing, and safety testing.
The DataMyte Digital Clipboard is the perfect tool for electric vehicle manufacturers who want to create a comprehensive and effective workflow. Visit our website to learn more!
Conclusion
This article has only scratched the surface of the electric vehicle industry. There are tons of other nuances and details that need to be discussed. However, this article should give you a good understanding of the electric vehicle industry and why it will become big.
If you want to learn more about how DATAMYTE can help EV manufacturers, visit our website or book a demo with us today! We would be happy to discuss how the DataMyte Digital Clipboard can help your company create a comprehensive and effective workflow for electric vehicle manufacturing.
