US ELECTRIC VEHICLE MARKET

 

KEY FINDINGS

1. The US electric vehicle market has witnessed exponential growth in recent years, driven by increasing environmental consciousness, government incentives, and advancements in battery technology.
2. Sales of electric vehicles in the US have surged, with a notable increase in both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
3. Tesla remains a dominant player in the US electric vehicle market, with its Model 3 and Model Y being among the top-selling electric vehicles in the country.
4. Traditional automakers have significantly ramped up their electric vehicle offerings, with several major manufacturers introducing new electric models to compete in the growing market.
5. The US government has implemented various incentives and initiatives to promote electric vehicle adoption, including tax credits, rebates, and investment in charging infrastructure.
6. Range anxiety and charging infrastructure continue to be key challenges hindering widespread adoption of electric vehicles in the US.
7. Despite these challenges, the US electric vehicle charging infrastructure has expanded significantly in recent years, with the number of charging stations steadily increasing across the country.
8. The shift towards electric vehicles is not limited to passenger cars, as the market for electric trucks, vans, and SUVs is also experiencing rapid growth in the US.
9. Increasing concerns about air pollution and greenhouse gas emissions have led to greater awareness and acceptance of electric vehicles among consumers and policymakers in the US.
10. Looking ahead, the US electric vehicle market is poised for continued growth, driven by ongoing technological advancements, supportive government policies, and evolving consumer preferences towards sustainable transportation options.

 

MARKET OVERVIEW

The US electric vehicle (EV) market has experienced significant growth and innovation in recent years, driven by a combination of technological advancements, government incentives, and shifting consumer preferences towards sustainable transportation. With a growing emphasis on reducing greenhouse gas emissions and combating climate change, EVs have emerged as a key solution to decarbonize the transportation sector.

 

The market has seen a surge in the availability of electric cars, trucks, and SUVs from both traditional automakers and new entrants, offering consumers a wider range of options to choose from. Additionally, advancements in battery technology have led to improvements in driving range and charging infrastructure, addressing key concerns such as range anxiety and charging convenience.

 

Government policies and incentives at the federal, state, and local levels have played a crucial role in stimulating the adoption of electric vehicles in the US. Tax credits, rebates, and subsidies for EV purchases, along with investments in charging infrastructure development, have incentivized consumers and businesses to transition towards electric transportation.

 

Moreover, initiatives to promote clean energy and sustainability, coupled with regulatory measures to phase out internal combustion engine vehicles in some states, have further accelerated the growth of the EV market. As a result, the US electric vehicle market is poised for continued expansion, with projections indicating a significant increase in EV adoption in the coming years, driving a transformational shift towards a cleaner and more sustainable transportation ecosystem.

 

INTRODUCTION TO US ELECTRIC VEHICLE MARKET

The US electric vehicle (EV) market has experienced significant growth and transformation in recent years, driven by technological advancements, environmental concerns, and government incentives promoting clean energy adoption. With increasing awareness of climate change and a shift towards sustainable transportation solutions, electric vehicles have emerged as a viable alternative to traditional internal combustion engine vehicles.

 

The market has witnessed a surge in electric vehicle sales, propelled by a growing network of charging infrastructure, improved battery technology, and a diverse range of EV models offered by automakers. Additionally, government initiatives, such as tax incentives, rebates, and emission regulations, have further incentivized consumers and businesses to adopt electric vehicles, contributing to the market’s rapid expansion.

 

As the US continues to prioritize decarbonization efforts and transition towards a low-carbon economy, the electric vehicle market is poised for continued growth and innovation, shaping the future of transportation in the country.

 

USA is one of the most prominent automobile markets in the world with 14-16 million units yearly. The market is mainly based on trucks with Ford F-150 holding the most sold vehicle tag. SUVs and crossovers are other segments popular among vehicle owners in this region.

 

USA is also home to prominent global OEMs such as the Detroit 3 – Ford,GM and Stellanis groups. Nissan, Toyota, and Honda are some of the foreign OEMs who have established manufacturing facilities in USA to develop and manufacture vehicles for the American customers

 

 

To know more about Global Electric Car Market, read our report

 

US ELECTRIC VEHICLE MARKET SIZE AND FORECAST

 

The US Electric Vehicle market is estimated to be worth $ XX billion by 2030, and is expected to grow at a compound annual growth rate (CAGR) of YY%. Another report projects that the market will reach $XX billion by 2030, growing at a CAGR of YY% from 2024 to 2030.

 

TREND IN US ELECTRIC VEHICLE MARKET

In the US Electric Vehicle (EV) market, a significant trend gaining momentum is the rapid expansion of electric vehicle adoption across various vehicle segments. As concerns about climate change and environmental sustainability continue to grow, consumers are increasingly opting for electric vehicles as a cleaner and more eco-friendly alternative to traditional internal combustion engine vehicles. This trend is further fueled by advancements in EV technology, including improvements in battery range, charging infrastructure, and vehicle performance, making electric vehicles more accessible and practical for everyday use.

 

Moreover, government incentives and regulations aimed at reducing greenhouse gas emissions and promoting clean transportation are driving the adoption of electric vehicles. Federal tax credits, state rebates, and incentives for EV purchases, along with stricter emission standards, are encouraging consumers to make the switch to electric vehicles. Additionally, investments in charging infrastructure expansion, including public charging stations and fast-charging networks, are addressing range anxiety concerns and enhancing the convenience of owning an electric vehicle.

 

Furthermore, the US automotive industry is witnessing a surge in electric vehicle offerings from both traditional automakers and new entrants, further accelerating the growth of the EV market. Established automakers are investing heavily in electric vehicle development and production, while startups and technology companies are introducing innovative electric vehicle models with advanced features and technologies.

 

This influx of electric vehicle models across different price points and vehicle segments is broadening consumer choice and driving competition in the EV market, ultimately contributing to its continued expansion and evolution.

 

US ELECTRIC VEHICLE MARKET NEW PRODUCT DEVELOPMENT

In the ever-expanding US Electric Vehicle (EV) market, recent developments have brought forth innovative new products aimed at catering to the growing demand for electric mobility solutions. One notable advancement is the introduction of next-generation electric vehicles equipped with cutting-edge technology and enhanced features to address consumer needs and preferences.

 

Major automotive manufacturers, as well as startups and tech companies, are unveiling an array of electric vehicle models across various segments, including sedans, SUVs, trucks, and even electric bikes and scooters. These new EV offerings boast extended range capabilities, rapid charging capabilities, and advanced driver assistance systems, making electric vehicles more practical and appealing to a wider range of consumers.

 

Furthermore, significant investments in charging infrastructure and battery technology are driving further product developments in the US EV market. Companies are focusing on improving charging infrastructure to alleviate range anxiety and enhance the convenience of electric vehicle ownership.

 

Additionally, advancements in battery technology, including solid-state batteries and improved energy density, are paving the way for electric vehicles with longer ranges and shorter charging times. These developments signify a pivotal shift towards mainstream adoption of electric vehicles in the US automotive market, driving innovation and competition among manufacturers while accelerating the transition towards sustainable transportation solutions.

 

US ELECTRIC VEHICLE MARKET SEGMENTATION

Market Segmentation of the US Electric Vehicle Market:

 

By Application:

1. Passenger Electric Vehicles
2. Commercial Electric Vehicles (including buses, trucks, vans)
3. Electric Two-Wheelers (such as motorcycles, scooters)
4. Electric Three-Wheelers (such as tricycles, rickshaws)
5. Others (such as electric bicycles, golf carts)

 

By End-Use Industry:

1. Automotive OEMs (Original Equipment Manufacturers)
2. Electric Vehicle Charging Network Operators
3. Government and Municipalities
4. Commercial Fleets (such as delivery companies, taxi services)
5. Others (such as rental car companies, ride-sharing platforms)

 

By Type:

1. Battery Electric Vehicles (BEVs)
2. Plug-in Hybrid Electric Vehicles (PHEVs)
3. Fuel Cell Electric Vehicles (FCEVs)
4. Hybrid Electric Vehicles (HEVs)
5. Others (such as Extended Range Electric Vehicles)

 

By Technology:

1. Level 1 Charging (Standard AC Charging)
2. Level 2 Charging (Fast AC Charging)
3. Level 3 Charging (DC Fast Charging)
4. Wireless Charging
5. Vehicle-to-Grid (V2G) Technology

 

US ELECTRIC VEHICLE MARKET DYNAMICS

There is a $7,500 credit for EV owners in the USA currently and there is a push for raising it to $12,500. President Joe Biden has proposed $174 billion for electric vehicles and charging stations, including $100 billion for consumer rebates.

 

Multiple states have an extra tax benefit on top of the federal tax benefit for EVs. California is the largest market for EV sales mainly due to the incentives offered as well as the higher purchasing power in the state. In California, on top of $7,500 there is a $2,000 tax credit which decreases the overall price by $10,000 for the consumer.

 

The fastest-selling used cars in the United States in July 2021 were all EVs, according to iSeeCars.com analysis of used-car sales for vehicles from model years 2016 to 2020.

 

The Tesla Model 3 topped the charts, at an average 15.7 days to sell, while the average transaction price across model years was $46,982, according to the analysis. Even Model 3 sedans from the 2018 model year—its first—sold for $45,291.

 

The Chevrolet Bolt EV came in second place, averaging 20.8 days to sell, with an average transaction price of $22,005. The Tesla Model S completed the podium, at an average 21.3 days to sell, with an average transaction price of $64,205.

 

While all three models are among the most popular EVs, it’s still notable that used examples are selling so fast.

 

Bolt EV demand seems to have remained strong despite fire issues that have triggered multiple rounds of recall efforts, as well as the introduction of a refreshed 2022 Bolt EV and new Bolt EUV model.

 

Tesla buyers who choose a used Model S risk missing out on some of the latest features or performance upgrades, but it seems that the introduction of the Model S Plaid just served to generate more interest in this big electric fastback as a used car.

 

This is the fifth consecutive month the Model 3 has appeared on the list of fastest-selling used cars. Perhaps more remarkable, though, are the average transaction prices of the Tesla sedan.

 

New-vehicle prices increased $2,125 (up 5.4%) from May 2020, while increasing $493 (up 1.2%) from April 2021.

 

Despite a large gap in average transaction prices for luxury and non-luxury segments in May 2021, non-luxury vehicles had a larger year-over-year price increase at 4.9% (up $1,805), while luxury vehicles climbed 2.9%, or $1,597, from this time last year.

 

Standard full-size SUVs and pickup trucks contributed to the growth among non-luxury segments. The third and fourth highest-priced models within the segment include the GMC Yukon XL ($79,695) and Yukon ($77,031), both priced substantially above the industry and segment average.

 

However, as one of two segment outliers, the other being high-performance cars, the average price for EVs dropped 10.8% from May 2020 to May 2021, from $58,863 down to $52,486. On a month-to-month basis, the average EV price in May 2021 rose 1.9% from $51,518 in April 2021.

 

By utilising the domestic energy source, electric vehicles (EVs) in the US sector can satisfy personal mobility needs while reducing carbon emissions.

 

The infrastructure for the generation and distribution of electric power in the United States will need to be reviewed and maybe changed in order for light-duty electric vehicles to become widely adopted.

 

As the EV industry expands, improved efficiency and lower energy consumption per mile are anticipated to be made possible by future developments in EV technology.

 

At the same time, the current consumer trend towards larger cars—which are often less efficient—predicts an increase in energy usage per mile. Like any other revolutionary new technology, electric vehicles provide both opportunity and challenges for economic development.

 

Although the electric vehicle industry is still in its infancy, it has the potential to transform a variety of global sectors and communities. The US market for electric cars has the potential to limit or at the very least mitigate the growth of utility rates.

 

This may seem counter-intuitive given that the technology will increase overall electricity consumption.  In addition to adopting clean car and zero-emission vehicle legislation and tougher policies to encourage infrastructure investment and the electric vehicle industry, an increasing number of state and municipal governments have declared their commitment to all-electric transportation.

 

Charging Facilities – Greater infrastructure for charging is required in a number of locations, including the home, office, and public, as electric vehicle use increases and becomes more prevalent.

 

The COVID-19 pandemic and the ensuing supply chain bottlenecks haven’t stopped the significant expansion of the Electric Vehicles (EV) market. In spite of these recent difficulties and rising production costs brought on by rising raw material prices, EV sales are nevertheless increasing quickly.

 

They are on track to outsell conventionally driven car sales if this trend holds.  The demand for electric vehicles has grown significantly, but only in a small portion of the world.

 

The lack of a public charging infrastructure and the higher prices of electric vehicles in those areas are the two main explanations for the slow progress seen in certain parts of the world, in addition to the fact that government subsidies are still lacking or have just recently been established.

 

US ELECTRIC VEHICLE MARKET CHARGING INFRASTRUCTURE

 

There are about 5,192 DC Fast chargers present across USA with 18,643 connectors

 

• Tesla runs 10,555 of the connectors (56% of the overall connectors) out of its 1,068 stations
• Electrify America and EV Go are the other prominent networks across USA for DC fast chargers
• 5,694 of the charging outlets are in California alone (30%) of the fast chargers

• The Cherokee Nation’s EV Initiative claims after the installation the solar site’s electric vehicle charging capacity will be doubled to 16. 
  • It will include four DC fast chargers and additional level 2s, installed or planned for tribal lands throughout the area, as well as a significant investment in public transportation.
  • The present solar canopy, completed in 2017, houses eight, free, public level 2 electric car charging outlets at the Cherokee Nation’s main administrative complex. It generates up to 58,000 kilowatt-hours per year and augments grid power supplied to the buildings when not used for charging vehicles.

 

• Biden administration has proposed $15 Billion to deploy charging stations across the country and to reach 500,000 charging stations by 2030. 

                                

US ELECTRIC VEHICLE MARKET SEGMENTATION

 

 

US ELECTRIC VEHICLE MARKET COMPETITIVE LANDSCAPE

Tesla leads the way for EV sales in the USA. They began with Roadster in 2008 and now have Model 3,S,X and Y. Tesla Semi, Roadster and Cybertruck will also hit the market soon. The dominance of Tesla will remain as they increase their production capacity with a new Gigafactory in Texas.

 

GM launched the Ultium platform with more than 20 models to be launched by 2025, with Hummer SUV and Truck being the first models followed by Cadillac Lyriq and Chevrolet Bolt EV. LG Chem will be one of the biggest associates for GM in their electrification journey.

 

GM announced a $2.2 Billion investment at its Detroit-Hamtramck assembly plant to produce a variety of all-electric trucks and SUVs along with $800 Million for supplier tooling and other projects related to the launch of the new electric trucks. GM and LG Chem announced plans to build a $2.3 billion plant in Lordstown, Ohio to mass produce battery cells for electric vehicles

 

Ford launched Mustang Mach E and is one of the best sellers in 2021 across USA among EVs. They also announced the electric version of their most selling vehicle Ford F-150 and has 70,000 pre orders. Ford is investing ~$30 Billion for electrification of their models and this will include a battery plant in association with SK Innovation.

 

Stellantis, the consolidated group of FCA and PSA, will launch multiple BEVs and PHEVs across the USA mainly along the brands of Chrysler and Jeep. PSA’s stronghold in the European market will allow it to make inroads in the USA with technological knowledge as well as FCA’s consumer understanding.

 

USA is also home to multiple electric vehicle startups. Rivian showcased their truck and SUV and have already received large orders from Amazon and other firms for electric vans etc. Ford is also an investor in Rivian.

 

Lucid motors showcased their electric vehicle and is expecting to take on Tesla in terms of performance and dominance among luxury electric vehicles in the country.

 

General Motors will increase its EV and AV investments from 2020 through 2025 to $35 billion, representing a 75% increase from its initial commitment announced prior to the pandemic.

 

Comprising three interconnected initiatives, Nissan EV36Zero brings together electric vehicles, renewable energy and battery production. The project has been launched with an initial £1-billion (US$1.4-billion) investment by Nissan and its partners battery-maker Envision AESC and Sunderland City Council.

 

The Detroit Big Three, Ford, GM, and Stellantis, announces a joint goal for electric vehicles to achieve 40% to 50% of their sales in the US by 2030. Over the last year of 2020, Ford, GM, and Stellantis each independently announced their plans to accelerate the electrification of their respective vehicle portfolio.

 

The electric vehicle sales grew 95% between January and April 2021 compared to 36% for the overall US new car market.

 

Porsche significantly expands its electric car sales in the U.S., delivering a record number of 3,359 Taycans. The growth rate from a low base of 818 (affected by COVID-19-related lockdowns) is 313% year-over-year.

 

Volkswagen announces strong sales results in the second quarter of this year in the U.S.  The company sold 120,520 vehicles, which is the highest quarterly results since 1973 and the sales rebounded 72% from the weak last year. The Volkswagen ID.4 sales resulted at 5,756. In Q2 2021, the ID.4 was also responsible for a noticeable 4.8% of the total Volkswagen sales.

 

Mitsubishi reports that its U.S. sales in the second quarter of 2021 rebounded by 106% compared to Q2 2020, reaching 25,146. The plug-in hybrid Mitsubishi Outlander PHEV remains a marginal model with just 385 units (up 35% year-over-year) sold. Its share out of Mitsubishi’s total volume decreased to 1.5%.

 

The new Toyota RAV4 Prime sold 6,875 units in Q2 and 9,667 YTD. The brand reports strong sales results in the U.S. as its overall sales in Q2 amounted to 605,353 (up 74% year-over-year) and 1,134,166 YTD (up 46% year-over-year).

 

US ELECTRIC VEHICLE MARKET COMPANY PROFILES

• Tesla, Inc.
• General Motors (GM)
• Ford Motor Company
• Rivian Automotive, Inc.
• Lucid Motors
• NIO Inc.
• Fisker Inc.
• Lordstown Motors Corp.
• Canoo Inc.
• Bollinger Motors

 

REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What are the current trends driving the growth of the US electric vehicle market?
2. How does government policy, such as tax incentives and emissions regulations, impact the adoption of electric vehicles in the US?
3. What are the key challenges facing the US electric vehicle market, and how are stakeholders addressing them?
4. How does the availability of charging infrastructure influence consumer confidence and adoption of electric vehicles in the US?
5. What role do automakers play in shaping the landscape of the US electric vehicle market, and what are their strategies for expansion?
6. How does consumer awareness and education affect the acceptance and uptake of electric vehicles in the US?
7. What are the growth prospects for different segments of the electric vehicle market, such as passenger cars, buses, and commercial vehicles, in the US?
8. How are advancements in battery technology impacting the range, performance, and affordability of electric vehicles in the US?
9. What are the opportunities for innovation and investment in the US electric vehicle market ecosystem, including infrastructure, technology, and services?
10. How do consumer preferences and lifestyle choices influence the selection of electric vehicles over traditional gasoline-powered vehicles in the US?
11. What are the implications of electric vehicle adoption for the US energy grid, and how are utilities preparing to accommodate increased demand?
12. What are the regulatory challenges and barriers to entry for electric vehicle manufacturers and suppliers in the US market?
13. How does the total cost of ownership of electric vehicles compare to internal combustion engine vehicles over the vehicle’s lifespan in the US?
14. What are the implications of electric vehicle adoption for the US automotive aftermarket industry, including maintenance, repairs, and spare parts?
15. How are electric vehicle manufacturers addressing concerns about battery recycling and environmental sustainability in the US?
16. What are the forecasts and projections for the growth of the US electric vehicle market in the coming years, and what factors are driving these predictions?