According to a new report from IDTechEx Research the electric vehicle (EV) market is expanding far beyond the electric car segment and is expected to grow at “breakneck” speed over the next decade.
The analyst firm has just released a new study detailing Electric Vehicle Forecasts, Trends and Opportunities from 2016 to 2026.
The electric vehicle market is much stronger in many other parts of the world than in Australia, where the government has done little to foster the market segment and as a result there are few EVs sold ion Australia.
“Batteries, super-capacitors, energy harvesting, wireless charging, power electronics and structural electronics are all evolving and breakthroughs are appearing more commonly in other vehicles such as boats and planes, before cars,” IDTechEX said.
The report predicts the electric car market will continue to expand rapidly, but it also expects industrial and commercial electric vehicles to provide a larger and more profitable market for the next eight years.
For example, the market for hybrid and pure electric buses is expected to top US$72bn by 2025 as a growing number of cities switch to zero emission bus fleets.
Similarly, EVs in the construction and agriculture, micro EV, industrial on-water craft, and drones markets are expected to deliver compound annual growth of between 20 per cent and 65 per cent over the next decade.
“The market for electric industrial vehicles is already large because, by law, forklifts have to be electric when used indoors,” the report states.
“Little growth remains in this market but outdoors almost all earthmoving and lifting vehicles use the conventional internal combustion engine.
“Hybrids increasingly perform better as well, with more power from stationary, ability to supply electricity to other equipment and other benefits including less noise and pollution.”
The report argues EVs targeting industrial and commercial markets are also likely to be less exposed to policy uncertainty than the electric car market.
“The size and growth of the industrial and commercial sector is less dependent on government funding and tax breaks than the more fragile market for electric cars, particularly pure electric ones,” the company said.
“Excitingly, most of the electric vehicle technologies are changing and improving hugely and innovation often comes here before it is seen in the more publicised electric vehicle sectors such as cars.”