LONDON--(BUSINESS WIRE)--Demand for electric vehicles is growing, and countries are creating more incentives and infrastructure to support them. According to Infiniti Research, global sales of plug-in electric vehicles (PEVs) totaled 0.41 million units in 2016 and will likely reach 2.6 million by 2021. With a CAGR of almost 45% over the next 5 years, this is a promising market, and countries like Canada are introducing measures to help it along.
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Increasing incentives to switch to electric
Provinces across Canada are introducing and improving incentives for electric vehicle purchases. Ontario, for example, updated its Electric Vehicle Incentive Program (EVIP) in January 2017 to remove several caps on electric vehicle incentives. The province has a goal to increase the share of new electric and hydrogen-powered passenger vehicles sold or leased to 5% by 2020, and has made these updates to support that goal.
Similarly, in British Columbia a non-profit society called B.C. Scrap-It has been offering help to consumers looking to trade in their gas-powered vehicles for electric ones, and recently doubled its incentive to a total of $6,000. Combined with a $5,000 subsidy from the B.C. government’s Clean Energy Vehicles for B.C. program, individuals switching to electric vehicles can receive up to $11,000 to help with their purchase. Quebec, though not offering monetary compensation, has mandated that 3.5% of all auto sales must be of electric, hybrid, and hydrogen vehicles.
With Canada and other countries pushing for greater adoption of electric vehicles, demand for related parts and materials will also rise. For example, Infiniti Research predicts that the global lithium-ion battery market will be valued at $39.62 billion by 2020, growing at a CAGR of 15.43%. With electric vehicles being environmentally friendly and offering long-term cost savings, they are likely to have a significant impact on this market.
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The rapidly evolving electric vehicle market
Policies and political climates are changing all the time. While Canada is increasing its focus on sustainable practices such as electric vehicle adoption, other countries are debating whether to lessen or halt their efforts in this area. For example, with the current uncertainty in the United States, it is difficult to know how much support there will be for environmental programs, and whether this will be a good market to enter or remain in.
Many factors are at work within a particular market, from government incentives and infrastructure to the presence of manufacturers and demand from consumers. It is also important to know what types of products and components are being used, and what gaps in the market are waiting to be filled. Market intelligence can provide important background information necessary to have before deciding whether to enter or leave a market in a particular country or region.
Infiniti Research recently helped an internationally operating automotive supplier assess the automotive lithium-ion battery market to provide actionable insights on how to seize opportunities in the market, capitalizing on its potential. In addition to providing in-depth market intelligence, Infiniti Research analysts worked with the client to identify potential partners for business growth.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 13 years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.