What will EV trend be in 2025
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The electric vehicle movement is gaining momentum, and a few trends are reflecting the growing demand for sustainable transportation solutions as well as advancements in technology that keep driving the transition to electric mobility. More EVs are being equipped with more advanced and efficient batteries that allow them to travel longer distances on a single charge, leading to effectively addressing the concerns of range anxiety. EV owners also have fast-charging infrastructure rapidly expanding, enabling them to recharge their vehicles quickly and conveniently. Affordability with key technology advancements makes it easier for consumers to choose electric over conventional vehicles. Improvements in battery technology together with other energy storage solutions have always driven the EV movement.
Companies are hitting new strides and churning out mouth-watering battery packages. Other trends like government support and regulations, advancements in autonomous driving technology, and the electrification of other modes of transportation, like commercial buses and trucks, maritime transport, and aircraft will further contribute to the widespread adoption of electric mobility. With these trends continuing on an upward trend, the EV movement will continue to revolutionize the way we travel while paving the way for a cleaner and more sustainable future.
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1 Increased Average Driving Range
Increased all-electric driving range for electric vehicles is one trend that is set to continue and significantly evolve by 2025. Recent releases like the NIO ET7, NIO ES8, Tesla Model S, Lucid Air, Rivian R1T, and the upcoming Tesla Cybertruck, Roadster, and GMC Sierra Denali EV Edition 1, have showcased the remarkable advancements auto manufacturers have made in battery technology. With battery ranges from and exceeding 400 miles and even reaching up to 620 miles, they push the boundaries of what was previously thought possible.
As battery technology continues to improve, more EVs with 400+ mile ranges will hit the market by 2025. This will further alleviate range anxiety, improving the adoption of EVs, making them a more viable option for consumers, and further fueling the transition to a greener future of transportation.
2 Rapid Increase In Fast-charging Stations
An increase in fast-charging stations for electric vehicles is a trend that's gaining traction and will witness significant growth by 2025. The US government has an ambitious plan to establish a Made-in-America EV national charging network of 500,000 EV chargers by 2030 which is a major step toward expanding charging infrastructure. Also, there's a collaboration between BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis that is working towards developing a high-powered charging network made of 30,000 EV chargers in North America by 2030.
Rivian also plans to build the Rivian Adventure Network of fast-charging stations, further adding to the charging infrastructure expansion. Other companies including Tesla are contributing to the growth and the EV charging network will witness substantial expansion, as early as 2025 for more convenience for EV owners in the coming years.
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3 Affordable EVs With Increased Focus On User Experience
As new iterations of EVs are being released, prices keep reducing steadily. For instance, the Tesla Model 3 saw a price drop of over $3,000, the Chevrolet Bolt had a reduction of $6,000, the Hyundai Kona Electric had a reduction of over $3,000, and the Nissan Leaf's price dropped by over $4,000. This trend of price reduction indicates that EVs will become more accessible to a wider range of consumers.
his trend is also likely to continue, making more affordable EV options available by 2025. With the continuous market growth and competition increase, manufacturers are also enhancing the user experience, for EVs to be more appealing and practical for everyday use. The combination of improved user experience and affordability will further improve the adoption of EVs, and accelerate the transition to a greener future.
4 Improvements In Battery Technology And Energy Storage Solutions
Battery technology and energy storage solutions are rapidly advancing, mostly fuelled by collaborations and partnerships between major players in the market. For example, the partnership between Tesla and Panasonic introduced the groundbreaking 4680 battery cell, which significantly enhanced the battery ranges of the Tesla Model 3 and Model Y. Another example is the collaboration between Mercedes and Sila Nanotechnologies to introduce the revolutionary Titan Silicon battery into the EQG. Nio's partnership with WeLion has also led to the Nio ET7 being fitted with WeLion's remarkable 460-mile all-solid-state battery.
Aside from lithium-ion batteries, advancements in solid-state and hydrogen cell technologies led by companies like Toyota and Nissan are also driving the advancement of energy storage solutions. These collaborations are birthing continued technological progress, creating even more impressive battery technology and energy storage solutions by 2025.
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5 Increased Adoption Of EVs And Government Support
More than 10 million EVs were sold worldwide in 2022 alone, and this number is set to grow by approximately 35-percent in 2023, reaching almost 14 million. This is indicative of a remarkable shift in consumer preference towards sustainable and eco-friendly options. A key propagator of this increase in sales is the growing support and regulations set by governments around the world.
Many countries have been implementing policies to encourage the adoption of EVs, like subsidies, tax incentives, and infrastructure development. This has resulted in the market share of EVs rising from four-percent in 2020 to 14 percent in 2022. It is expected to further increase to 18 percent in 2023. The continued government support as well as the increase in awareness of the need for sustainable transportation, is keeping the adoption of EVs in its upward trajectory.
6 Improvements In Autonomous Driving Technology
In the past few years, automakers and technology companies have invested heavily in developing self-driving systems, to make transportation safer, more efficient, and ultimately, driverless. By 2025, it is expected that even more remarkable strides will be made in this field. For better perception and awareness of their surroundings, increasingly sophisticated sensors, cameras, and radar systems are being installed in EVs. Machine learning algorithms and AIs continue to improve and autonomous driving systems get more capable of handling complex scenarios.
EVs are also receiving improvements in connectivity to facilitate communication with each other and with smart infrastructure, for smoother and more coordinated traffic flow. By 2025, anticipate a more developed and widespread autonomous driving future with higher levels of autonomy available, from advanced driver-assistance systems to fully autonomous vehicles to revolutionize mobility and enhance safety on the roads.
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7 Adoption Of Renewable Energy Processes And Vehicle-to-Grid Technology
Auto manufacturers like Nissan and Mitsubishi have been paving the way for vehicle-to-grid technology by incorporating it into their electric vehicles, such as the Nissan e-NV200, Nissan LEAF, Mitsubishi Outlander PHEV, and Mitsubishi Eclipse Cross PHEV. The V2G technology allows EVs to both charge and discharge energy back into the grid, which makes them valuable assets for energy management.
With the Ford F-150 Lightning providing an onboard generator that provides similar functions and a few other vehicles coming up, this trend is expected to gain more traction as companies increasingly recognize the potential of using EV batteries to balance the grid in order to reduce peak demand and support renewable energy integration. In addition, companies are continually shifting towards renewable energy sources for EV and battery manufacturing, as well as for electricity generation for charging purposes.
8 Superior Luxury Features Even In Base Trims
By 2025, even base models of electric vehicles will offer a level of luxury that surpasses their gas-powered counterparts. This is due to the continuous advancements in autonomous driving, connectivity, fast-charging capability, battery technology, and range. With EV automakers prioritizing the integration of these features, they are ensuring that even base models offer an array of luxurious amenities.
In addition, improvements in vehicular platforms and architecture result in sleek and stylish designs that rival traditional luxury vehicles as well as improvements in power output and performance. There is also a growing emphasis on sustainability in the EV market, ensuring more eco-friendly materials are used in cabin design. With this trend, by 2025, consumers can expect EVs to redefine the meaning of driving in style, as they offer an unmatched level of opulence and comfort.
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9 Electrification Of Commercial Vehicles, Maritime Transport, And Aircraft
The electrification of commercial vehicles, maritime transport, and aircraft will hit new heights in the transportation industry by 2025. Leading battery manufacturer, CATL, just launched a battery with an energy density of 500 Wh/kg in April 2023, aimed at the electrification of passenger aircraft. Tesla's "Master Plan Part 3" outlines their ambitious plan to produce electric commercial buses and trucks as well as maritime and aviation transport.
Other auto manufacturers like Stellantis, General Motors, Nikola Motors, and Volvo are investing in the development of EVs for commercial use. These will lead to further reduction in operating costs, and emissions, as well as improved efficiency in these sectors. It is expected that by 2025, a significant shift towards electrification in commercial transportation will further lead to a more sustainable future for the industry.
10 Increased Adoption Of Recycling And Battery Second Life
As the capacity of EV batteries drops to approximately 80-85 percent of the battery range after a lifespan of eight to ten years, they can still serve a valuable purpose in powering buildings and balancing the local and national energy grids. This has made the global battery recycling market witness remarkable growth, with sources predicting a compound annual growth rate of 37.7 percent from 2023 to 2030.
At a global battery recycling market valuation of $1.38 billion in 2022 and a 37.7 percent annual increase from 2021, it is expected to hit approximately $2.62 billion in market valuation in 2025. By 2030, it is expected that global battery capacity used in grid storage could reach as much as 680 gigawatt-hours, which would be a substantial increase from the 16GWh recorded in 2021.