Annual Plug-In Electric Vehicle Sales in North America Is Expected to Grow at a 30% Compound Annual Growth Rate through 2030
Despite significant market growth, near-term rising costs of raw materials used to manufacture lithium batteries pose challenges to the industry
A new report from Guidehouse Insights estimates plug-in electric vehicle (PEV) adoption in the US and Canada on national, state/province, and sub‑state/province levels by examining electric vehicle (EV) technology innovations, incentives, policies, and vehicle availability.
A variety of factors are contributing to accelerated electrification trends in the North American automotive industry, including a COVID-19-related breakthrough in consumer acceptance of EVs, a shifting policy environment that aggressively favors PEVs over gas-powered vehicles, the introduction of several new popular EV models, and increased automaker investment and prioritization of EV technologies. According to a new report from Guidehouse Insights, annual PEV sales in North America will grow at a 30% compound annual growth rate (CAGR) through 2030.
“The economic impacts of the COVID-19 pandemic led to an unprecedented 16% decline in global light duty (LD) vehicle sales in 2020. However, in the same year, PEVs achieved record sales—growing over 40% from 2019 levels,” says Ryan Citron, senior research analyst with Guidehouse Insights. “In 2021, PEV sales continued their rapid expansion in a year that will likely go down in history as an inflection point for the industry.”
However, a combination of inflation and surging demand for PEVs has resulted in near-term rising costs of raw materials to manufacture lithium batteries, creating concern for the PEV industry. Expanding lithium sources will likely be needed to continue PEVs’ progress toward price parity with internal combustion engine vehicles (ICEVs).
The report, Market Data: EV Geographic Forecast – North America, analyzes EV technology innovations, incentives, policies, and vehicle availability to forecast PEV adoption in the US and Canada on national, state/province, and sub‑state/province levels. Guidehouse Insights employs the Guidehouse Vehicle Analytics Simulation Tool (VAST) to generate its estimates. Segmentation of the PEV analysis include passenger car (PC) and light truck (LT) breakouts, as well as powertrain breakout by plug-in hybrid EVs (PHEVs) and battery EVs (BEVs). An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: EV Geographic Forecast – North America, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.