As we step into 2024, big changes are happening in the EV industry and the electrification of transportation. EV trends for 2024 include lower electric car prices, an expansion of EV charging stations, and greater charging plug compatibility. Read on to learn about electric vehicle industry trends and how they're shaping the future of the electric vehicle market in the coming year.
EV Sales Will Continue Rising in 2024
Sales are expected to keep growing in 2024, despite some reports suggesting a decline in 2023. Even though more battery electric vehicles are sitting unsold at dealerships, the actual electric car sales numbers are still strong, and the EV market share is growing. There will be nearly 1.9 million EV sales in the U.S. in 2024, according to projections.
The third quarter of 2023 showed the best market growth in EV sales since late 2021, and by September, over 1 million new EVs were sold in 2023. Though EV sales estimates for 2024 were adjusted down a bit, they still predict a 20% increase from 2023. Cox Automotive also thinks that in 2024, more than 10% of all vehicle sales will be electric, and when including hybrid vehicles, almost 24% of 2024 vehicle sales will be electric or hybrid.
Global EV Industry Sales Trends
EV sales in 2024 are expected to be highest in China, followed by Europe, North America, South Korea, and Japan. In fact, six out of every ten EV sales globally are from China, where intensifying competition is driving down costs and manufacturer profits. Historically, EV sales have increased annually, and this trend is expected to continue throughout 2024.
Declining Prices Will Make the EV Market More Affordable
There are numerous EVs available for under $40,000 in 2024, especially after applying the federal EV tax credit. Although some car shoppers are priced out of the EV market, prices of electric passenger cars will continue to decrease for some models due to technology advancements. For example, as automakers enhance their battery technologies and formulations, it's anticipated that EV battery prices will decrease.
This improvement allows for both extended battery ranges and reduced costs. Considering that batteries make up around 40% of an EV’s total cost, reducing battery expenses is likely to significantly decrease the overall price of EVs, contributing to increased electric car sales. Thus, increasing affordability is an important electric vehicle industry trend for 2024.
EV Industry Challenges and Consolidation in 2024
As the EV industry and market continue to grow at a rapid pace, challenges are expected to arise, leading to potential consolidation and restructuring among companies operating in this sector.
One primary driver of this trend is the increasing competition within the EV market. As more automakers invest in and launch their own electric vehicles, the market becomes more crowded, intensifying the competition for EV market share and consumer attention. Smaller or less established companies may struggle to compete with larger, more established players, leading to potential acquisitions, mergers, or even bankruptcies.
The EV industry also requires significant investments in research and development, manufacturing capabilities, and charging infrastructure. As the sector matures, the financial pressures of scaling up production and meeting customer demands could become challenging for some companies, particularly those with limited resources. This could contribute to the need for EV industry consolidation as companies seek to secure financing and strategic partnerships.
Consolidation in the EV industry can also be driven by a desire to enhance technological capabilities. Acquiring or partnering with other companies can help EV manufacturers gain access to new technologies, patents, or expertise, enabling them to stay at the forefront of innovation. By consolidating resources and expertise, companies can improve their position in the market and better compete against rivals.
Charging Stations Will Advance Boosting EV Industry Growth
Indeed EV charging station infrastructure isn’t evenly distributed across the U.S., and California leads the way in the amount of EV charging stations, with more than 10,000 DC fast chargers. Yet, studies show that many Americans are wary of buying an EV due to charging issues.
“Consumers need access to safe, reliable, convenient and affordable charging to drive and own an EV, and our research shows real concerns remain,” said Marc Coltelli, EY Americas eMobility Energy Leader. “At the EY organization, we are predicting 82 million EVs will be on US roads by 2035. To scale adoption, the challenge confronting America’s transition to EVs is instilling charging confidence among consumers. The energy industry has a massive role to play in this transition and is seizing the opportunity by collaborating cross-sector to build and power a resilient EV charging network.”
Some achievements during 2023 will lay the groundwork for advances in charging infrastructure for the EV industry. These efforts will shape electric vehicle trends for 2024.
More EVs Will Become Compatible With Tesla Supercharging Network
One major advancement in EV charging relates to the charging ports on EVs, but a series of announcements in 2023 show signs of progress. A joint announcement by seven automakers, including Ford, General Motors, Honda, Mercedes, Nissan, Rivian, and Volvo, reveals plans to adopt Tesla's North American Charging Standard (NACS) for their electric vehicles.
This move will make the Tesla Supercharger network available to customers of these automakers from 2024 onwards. While most electric vehicles in the United States currently use the Combined Charging Station (CCS) charger plug, this shift signifies broader accessibility to Tesla's robust EV charging network.
Tesla’s Supercharger is the largest rapid EV charging station network, with over 45,000 chargers in the U.S. A 2023 J.D. Power study on EV charging infrastructure shows that Tesla owners are relatively happy with the Supercharger network, but their satisfaction declines considerably when using EV charging stations outside the Tesla network.
However, Superchargers have historically only been compatible with Tesla vehicles, and the user experience may change when the network is opened up to non-Tesla drivers. It’s difficult to predict if non-Tesla EV drivers will have the same smooth vehicle charging experience when the network becomes available to them.
Automakers Partner to Create Massive EV Charging Station Network
Seven major automakers unveiled plans last year for a collaborative effort to establish a high-powered electric vehicle charging network spanning North America, featuring 30,000 chargers. BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz Group, and Stellantis NV are joining forces to enhance the convenience, accessibility, and universal compatibility of EV charging.
These EV industry partnerships aim to provide seamless charging experiences, leverage existing networks, and build customer loyalty through exclusive benefits. They strive to locate chargers in convenient locations with amenities, such as shopping malls and restaurants, and help mitigate range anxiety with conveniently located charging stations.
Positioned to rival Tesla Superchargers, this EV charging station network aims to capitalize on charger subsidies under the Biden administration and corporate investments. The electric car charging network, set to be operational in 2024 in the U.S. and later in Canada, will be open to any battery electric vehicle using either Tesla’s NACS or CCS charger plugs and will exclusively rely on renewable energy to combat climate change.
Gas Stations Evolve, Embracing the EV Industry
Shell and BP, renowned for their presence in the traditional oil and gas industry for internal combustion engines, are indeed embracing the transition to electric vehicles by venturing into the EV charging market. These companies recognize the need to adapt to changing consumer behavior and the growing demand for electric transportation. This EV trend means they are leveraging their existing gas station infrastructure to provide convenient and accessible EV charging infrastructure.
Shell, for example, has been actively expanding its EV charging network globally. In the Netherlands, Shell aims to install 200 high-powered fast-charging stations at its gas stations by 2025. To accelerate its presence in the EV market, Shell has also acquired numerous EV charging companies, such as NewMotion and Greenlots. By integrating EV charging infrastructure into its gas stations, Shell is seeking to offer customers a one-stop-shop experience, providing fuel for conventional vehicles and charging options for EVs.
Similarly, BP is investing in its EV charging infrastructure through its subsidiary, BP Chargemaster. BP has set a goal to operate 70,000 charging points across the United Kingdom by 2030. They plan to increase the number of EV chargers at their existing gas stations while also deploying charging infrastructure at new locations. BP Chargemaster aims to combine fast-charging capabilities with a user-friendly experience to encourage EV popularity through convenient charging.
Challenges for EV Charging Station Installers & Contractors
The growth of the EV industry is creating opportunities for contractors. As the demand for EV charging infrastructure installers continues to grow, contractors face several challenges in this dynamic landscape:
EV Charging Station Technology: EV charging technology is evolving rapidly with new standards and protocols. Installers must stay updated on the latest trends to effectively install and maintain EV charging station infrastructure.
Permitting, Code, and Zoning Requirements: Installing multi-family residential and commercial EV charging stations usually involves permits and compliance with local regulations. Installers need to be well-versed in the permitting process to avoid delays and ensure regulatory adherence, or else partner with GreenLancer for permitting and engineering services.
Competition: With the rising demand for EV charging stations, more players are entering the market. EV infrastructure installers must differentiate themselves through competitive pricing, excellent customer service, and expertise.
Opportunities for EV Charging Station Installers & Contractors
Despite the challenges, the future holds promise for EV charging station installers, making it a key EV industry trend for 2024.
Emerging EV Charging Station Market: The demand for EV charging stations is expected to grow significantly, creating a vast market for installers.
Skilled Contractor Workforce: The EV industry's expansion will increase the need for skilled professionals, providing job opportunities for electricians and technicians.
Opportunities for Partnerships: EV charging station installers can explore partnerships with EV manufacturers, utilities, and GreenLancer to expand their reach and offer comprehensive EV charging solutions.
Electric Vehicles Eligible for Tax Credits Change in 2024
The eligibility requirements for federal tax credits for battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles have changed for vehicles placed in service between January 1 and December 31, 2024. Beginning in 2024, eligibility will be assessed on a per-vehicle basis rather than by model. Also, EV buyers must meet eligibility requirements, including income eligibility.
Automakers will submit the Vehicle Identification Numbers (VINs) of qualifying plug-in electric vehicles to the IRS, ensuring that only those specific vehicles are eligible for a tax credit. Car shoppers can obtain information from dealerships regarding the specific eligibility status of individual electric cars.
One of the best ways to determine if a specific electric vehicle is eligible is to refer to the Treasury Department list.
Electric Vehicles Eligible for $7,500 Tax Credit in 2024
Chevrolet Bolt and Bolt EUV (2022 and 2023 EV models, priced at or below $55,000, the Bolt was discontinued for the 2024 model year)
Chrysler Pacifica Hybrid PHEV (2022 to 2024 models, priced at or below $80,000)
Ford F-150 Lightning (2022 to 2024 models, priced at or below $80,000)
Tesla Model 3 Performance (2023 and 2024 models, priced at or below $55,000)
Tesla Model X Long Range (2023 and 2024 models, priced at or below $80,000)
Tesla Model Y All-Wheel Drive (2023 and 2024 models, priced at or below $80,000); Performance (2023 and 2024 models, priced at or below $80,000); and Rear-Wheel Drive (2024 model year only, priced at or below $80,000)
Electric Vehicles Eligible for $3,750 Tax Credit in 2024
Ford Escape Plug-In Hybrid (2022 to 2024 models, priced at or below $80,000)
Jeep Grand Cherokee 4xe Plug-In Hybrid (2022 to 2024 models, priced at or below $80,000)
Jeep Wrangler 4xe Plug-In Hybrid SUV (2022 to 2024 models, priced at or below $80,000)
Lincoln Corsair Grand Touring Plug-In Hybrid (2022 to 2024 models, priced at or below $80,000)
Rivian R1S and R1T (2022 to 2024 models, priced at or below $80,000)
EV Industry Growth in 2024 Creates Opportunities for Contractors
The electric vehicle market is experiencing significant growth. This trend towards sustainable transportation is motivated by various factors, including heightened environmental concerns and the imperative to reduce greenhouse gas emissions, widespread governmental incentives and policies supporting EV adoption, continuous advancements in battery technology resulting in longer driving ranges, and the decreasing costs of electric vehicles.
As the demand for electric vehicles intensifies, the necessity for fortifying the EV charging infrastructure becomes increasingly evident. Drivers depend on a robust network of electric car charging stations to ensure the continuous operation of their vehicles, presenting abundant opportunities for professionals within the EV charging station industry.
GreenLancer works with contractors to simplify the EV charging station permitting and engineering process. Our services include EV charging station plan sets, PE stamps, and engineering reviews.
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