This year, electric vehicles are expected to begin a slow entry into the automotive mainstream sector, according to ABI Research.
The firm published a whitepaper (68 Technology Trends That Will Shape 2021) that identified 37 trends that will shape the technology market, and 31 that are unlikely to “move the needle” over the next year. One of those trends is about EVs and how 2021 is projected to kickstart a decade of growth towards its adoption.
“This transition from niche to mainstream will be built on the introduction of low-cost EV models that satisfy the typical mileage requirements at an acceptable price point,” said James Hodgson, Smart Mobility & Automotive Principal Analyst at ABI Research.
EV owners are shifting from environmentally conscious and “enthusiastic technology first-adopters” to a more typical automotive consumer, which means automakers will need to come up with more innovative approaches to the life cycle management of these vehicles.
“Smart charging technologies, support for occasional Direct Current (DC) fast charging, and battery management will be critical in supporting mainstream consumers in their transition from ICEs to EV ownership,” said Hodgson.
One of the things that are unlikely to “move the needle” is that new vehicle shipments will not return to business as usual this year. According to Hodgson, 2020 gave way to reduced new vehicle sales resulting from the crisis and subsequent lockdowns on an “already faltering automotive market,” which in turn led to a disruption in supply chains and deprived the sector of its typical physical retail environment.
But many OEMs experienced a return to growth in Q3 last year thanks to an offset in consumer demand from the first half of 2020, which arrived during the summer period when many governments lifted restrictions and allowed dealerships to reopen partially or fully.
“Moving into 2021, however, the automotive industry should not expect a return to the new vehicle sales volumes of recent years,” said Hodgson. “The market size is expected to remain subdued until 2024 given the prospect of repeated lockdowns, long-term remote working, and a bleak macroeconomic outlook.”
Dealers can download the full report here.
