Market Study Report projects that in five years the low-speed electric vehicle (VEBV) market will register a compound annual growth rate of 10.8% in terms of revenues.
Thus, he expects the size of the global market to reach 8.9 billion dollars by 2024, up from 4.8 billion in 2019.
One segment of the electric vehicle market, VEBVs, which are low-speed vehicles, but cannot run on gasoline or diesel, are becoming increasingly popular as eco-friendly options for consumers and business entities.
VEBVs are powered by electric motors powered by a variety of different batteries, such as lithium-ion, molten salt, zinc-air, and various nickel-based designs.
In 2017, the global market for low-speed electric vehicles was valued at approximately $ 2.4 billion, according to Allied Market Research, and global sales of those vehicles have only continued to grow over the past two years, with sales expected to reach 1.5 million units in 2021.
According to the company AYRO, trends such as increasingly stringent government regulations aimed at reducing vehicle emissions, urban population growth and social pressure to adopt sustainable lifestyles create a demand for more environmentally and economically friendly transportation methods. sustainable.
This demand continues to drive technological advances and the growth of the VEBV market.
In particular, the expansion of rules and regulations governing vehicle emissions has contributed to the growth of the VEBV market.
For example, the United States, Germany, France and China have implemented strict laws and regulations governing vehicle emissions, requiring automakers to use advanced technologies to combat high levels of emissions in vehicles.
To incentivize the use of clean energy, many governments are increasingly instituting substantial incentives for consumers to purchase electric vehicles, such as:
- Credits, rebates and tax exemptions; reduced vehicle registration fees.
- Reduced utility rates.
- Parking incentives.
Additionally, governments are setting infrastructure benchmarks to support the growth of the electric vehicle industry.
AYRO highlighted an excellent example of government involvement in the development of the electric vehicle industry. This is a recent New Jersey bill that aims to have 330,000 electric vehicles on state highways by the end of 2024 and a total of 2.0 million by 2035.
To facilitate this goal, the bill requires the state to have 400 fast-charging stations and another 1,000 slow-charging stations, both by 2025.
30% of all apartment, condo and townhome developments in New Jersey would need to have chargers by 2030, while half of all franchise hotels would need to have chargers by 2050.