The 4 drivers of electric vehicle market growth

EV growth is mainly driven by four factors, in addition to global and local incentives. Prices are falling and vehicles becoming better, faster and stronger. These main drivers are a strong signal of rapid development at the current EV market.

1. Price

Price comparability is a barrier for many consumers, since EVs still cost about one third more than similar ICE vehicles. But prices are declining — wildest estimates predict prices in Europe becoming even already in 2018.

2. Range

We all know Tesla is the boss when it comes to range. However, other car manufacturers are investing heavily on battery technology development. Also faster chargers and totally new ways of charging are being developed intensively. More comprehensive charging infrastructure will help with range anxiety as well. When the network of fast chargers gets wider, even the current ranges of most cars are enough to enable long-distance traveling.

3. EV models 

Not everyone wants to drive a sports car nor station wagon. In order to fulfill our current needs for vehicles, EVs need to be available in all shapes and sizes. Luckily this has been noticed by car manufacturers and the car selection is getting much more diverse every year.

Picture by Bloomberg New Energy Finance

4. Charging infrastructure

EVs and the charging infrastructure are often compared to a chicken-or-the-egg dilemma: no cars without chargers and vice versa. But like all new things, the change needs early adapters to buy EVs and install charging devices. Both governments and companies are globally investing on charging infrastructure.