Annual Sales of Plug-In EVs (PEVs) in North America Estimated to Grow at a Compound Annual Growth Rate of 23% by 2031
Inflation Reduction Act of 2022 brings a revised clean vehicle credit program that will provide a tailwind to PEV sales this year
A new report from Guidehouse Insights examines the market for sales of plug-in EVs (PEVs) in North America.
Global automotive sales rebounded in 2021, but total volume remains below pre-pandemic levels. Sales of PEVs, meanwhile, saw significant increases, resulting in another year of record sales. This trend holds when looking specifically at North America, with PEV sales in the US more than doubling (up 105%) from 2020 to 2021 against an overall market increase of 3.6%, while sales in first three quarters of 2022 have already surpassed the 2021 total. According to a new report from Guidehouse Insights, annual PEV sales in North America are projected to grow from roughly 1.2 million units in 2022 to 7.6 million in 2031, at a compound annual growth rate (CAGR) of 22.9%.
“The Inflation Reduction Act of 2022 will bring a revised clean vehicle credit program starting this year that will provide a tailwind to PEV sales, especially as local battery production and new raw material supply chains, which are required to qualify for these credits, come online,” says Mike Austin, senior research analyst with Guidehouse Insights. “Automakers and suppliers are accelerating their plans to increase battery production in North America and establish new supply chains outside of current logistics that are largely reliant on components from China.
New cars and trucks in North America are still limited by supply, and the automotive chip shortage is expected to continue into 2023. Guidehouse Insights expects new models, and specifically PEVs, to be prioritized by automakers and impacted to a lesser degree. Inflation and volatility of battery raw material costs are an increasing concern, leading many automakers to raise prices on PEV models midyear in 2022 in response.
The report, Market Data: EV Geographic Forecast - North America, analyzes EV technology innovations, incentives, policies, and vehicle availability to estimate PEV adoption in the US and Canada on national, state/province, and sub-state/province levels. The analyses are driven by battery pack and technology innovations, fuel prices, model availability, and zero-emissions vehicle (ZEV) mandates. The analyses include passenger car and light truck breakouts in addition to powertrain breakouts 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.
Contact:
*The information contained in this press release concerning the report, Market Data: EV Geographic Forecast - North America, 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.