Market Insights

Charging Ahead: EV Industry Reshaping Automotive Landscape

May 26, 2023 by Mohsin Naveed

Incentives, awareness, and efforts to advance electric vehicles a driving a boom in the industry, but a lack of charging infrastructure threatens its continuing adoption.

Electric vehicles (EVs) have unmistakably transitioned from a concept of the distant and fictional future to a prevailing norm. Government incentives, increasing awareness, and ongoing efforts toward advancing EVs fuel the industry’s boom, yet the lack of charging infrastructure seriously threatens its adoption.


U.S. EV charging station

U.S. EV charging station. Image used courtesy of Pexels

This challenge has been addressed by federal authorities through a $51 million investment by the Biden Administration aligning with the installation of 500,000 EV charging stations nationwide. This pivotal move is expected to lay a robust foundation for a bright electric future and amplify the sales of electric vehicles in the United States. Globally, sales are projected to reach the $14 million mark by the end of 2023, according to the International Energy Agency (IEA).


In the News

In recent developments, the U.S. government has demonstrated its commitment to reducing emissions and pursuing a greener America. In a revolutionary move transforming transportation, electric vehicles are set to account for two-thirds of vehicle sales. 

According to MIT Technology Review, manufacturers must ensure that EV sales make up 60% of total sales by 2030 and up to 67% by 2032, per a recent directive. To support this transition, the Biden Administration has set a goal to upgrade the existing 130,000 public EV charging stations. 

To achieve this goal, a national network of 500,000 EV charging ports is in the works to assist the 3 million growing convoy of EVs on American roads. To facilitate the installation, multiple limiting factors need to be considered in detail, like location, proximity to high-traffic roads, population, grid integration, etc. 

To tackle these limitations, the Biden-Harris Administration has invested $51 million into the Ride and Drive Electric funding initiative that will go toward improving the performance, reliability, efficiency, and endurance of the charging ports, as well as create jobs for deprived communities by providing opportunities and training resources. The initiative will develop innovative strategies for shared mobility and fleet management. ConsortiumX, led by national labs from the U.S. Department of Energy, will lead the project, collaborating with other industry experts and stakeholders.


Single charging unit

Single charging unit. Image used courtesy of Pexels


With more than 500,000 sales in 2021, U.S. EVs set a record high, a significant increase from past years, demonstrating growing consumer interest. However, with only three percent in new car sales, EVs still make up a relatively small share of the overall U.S. car market. That said, the EV market is still growing rapidly as awareness increases.


Overcoming Barriers to EV Adoption

The widespread adoption of electric vehicles depends on the availability of a reliable network of charging infrastructure nationwide. There are many other challenges to upping EV sales, such as a lack of standardization, high upfront costs, insufficient incentives, and uneven geographical distribution. These barriers can only be overcome with combined efforts from government, private companies, and other stakeholders. 

As an example, in Singapore, most of the taxi drivers have switched to EVs. The government plans to install 60,000 chargers at the end of the decade and, in line with sustainability goals, will change entirely to EVs from internal combustion engines by 2040.