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Report: electric vehicle sales to top 130 million by 2025

By | August 20, 2012, 9:51 PM PDT

Electric vehicle sales are projected to be within the tens of millions in a little over a decade.

Electric vehicle sales are projected to be within the tens of millions in a little over a decade.

The decline of the internal combustion engine will be gradual as cleaner alternatives take hold. A market research company is predicting that annual sales of electric vehicles will reach 130 million units sold annually by 2025, which while encouraging, falls far short of today’s automobile sales.

Global Information Inc. yesterday announced a report that forecasts the electric vehicle market’s outlook over the next ten years. It credits government support for making EVs more affordable and advancing the perception that they are now a viable alternative to gasoline powered vehicles.

130 million units sold might sound impressive, but is comparatively weak next to sales of gasoline-powered vehicles. Over a million new car sales are projected in the United States this year alone. Note that the report’s EV tally includes light electric vehicles such as motorcycles and three wheelers, which are very popular in Asia. The outlook for cars is less clear.

Global Information’s report states that battery electric vehicles will grow at a compound annual growth rate of 15% between 2011-2010 provided that government subsidies continue unabated. Consumer education, infrastructure, and high prices were all flagged as potential restraints on the market.

Those concerns haven’t stopped major automakers including Ford, which last week announced a US$135 technology investment, from betting big on the mainstreaming of EVs. Likewise, utility and public/private partnership programs have been established to plan for the oncoming EV wave(s).

The programs are attempting to assess the impact of mass electric vehicle adoption on power grids and even consumer behavior. For instance, EV owners that charge away from home shop more. Early adopters have become invaluable sources of information on what the future might hold and what challenges remain.

One near certainty is that the national energy mix in the United States will be very different by 2025. That only strengthens the environmental case for adopting EVs, and could help maintain government support.

The Union of Concerned Scientists (UCS) recently analyzed how emissions generated from charging electric vehicles compare to gasoline-powered vehicles in the United States. The conclusion: even coal-fueled electricity is a cleaner alternative. Expect electrics cars to become even cleaner over time.

“By 2025, for 70 percent of Americans, charging their electric vehicle (EV) on the regional electricity grid would result in lower global warming emissions than even today’s most efficient gasoline hybrid, the 50 miles per gallon (mpg) Prius, up from 45 percent today,” Lead author and senior UCS analyst Don Anair said in a follow-up report.

“This improvement is thanks in part to a combination of renewable energy development and the retirement of dirty, coal-fired power plants. The federal Energy Information Administration (EIA) projects renewables increasing their share of national electricity generation from about 11 percent in 2009 to about 15 percent in 2025.”

It appears conditions will be favorable for electric vehicle sales to accelerate from 2025 onward as economies of scale are reached and the consumer experience improves. That’s without factoring in the impact of climate change. Just don’t expect change to happen overnight.

(Image credit: Wikipedia)

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David Worthington

About David Worthington

David Worthington is a contributing editor for SmartPlanet.

David Worthington

David Worthington

Contributing Editor

David Worthington has written for BetaNews, eWeek, PC World, Technologizer and ZDNet. Formerly, he was a senior editor at SD Times. He holds a degree from Temple University. He is based in New York.

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David Worthington

David Worthington

David does not have financial holdings that would influence how or what he covers. Occasionally he consults for other companies; should David cover a topic in which a client is involved, he will disclose this fact in his writing. His views do not represent those of ScaleOut Software.

He writes for SmartPlanet and is not an employee of CBS.

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+4 Votes
+ -
Brown Technology
The common view is that electric vehicles are green technology. The reality may be that they are brown technology and maybe very brown technology. First, the manufacture of electric vehicles and high capacity batteries is frequently very energy intensive because of the use of exotic materials. The mining and recovery of these exotic materials may be environmentally offensive, as well as energy intensive. The energy expended in the manufacture of an electric vehicle may well exceed by a wide margin the energy footprint for the manufacture of a conventional vehicle. Second, depending on the source of electricity and its transmission distance to the vehicle, the efficiency and carbon footprint may well exceed that of conventional fossil fueled vehicles. If the source of electricity is coal and the transmission from the power plant to the vehicle is several hundred miles, using the fossil fuel directly in a vehicle may be more efficient and have a smaller carbon footprint. Third, the disposition or recycling of the electric vehicles -- especially the batteries -- presents a significant energy and environmental challenge.

What electric vehicles are good at is shifting the potential pollution and carbon footprint from one location to another -- even if it comes with a potentially large price.
Posted by SkepticalSystems
21st Aug
+3 Votes
+ -
130 Millions EVs
We're going to need some more powerplants, Lucy...
Posted by bb_apptix
21st Aug
0 Votes
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130 million units sold annually by 2025!
Don't see it happening. not in 2025 not even in 2050! There many other alternatives much cleaner than EV and by all accounts, much cheaper and saver to the environment. Has this research included the impact mining the materials and then disposing of all of that chemical on the environment?

I have seen the EV project be an all good on the front end (now) for the environment but have yet to see any report/research on a solution and impact on the environment of the disposal of these vehicles and batteries.
Posted by luiz@...
21st Aug
+1 Vote
+ -
130 Million INDEED!
130 million is really impressive when you consider that in 2010, the entire world's production of automobiles was only 77 million (that is all types of vehicles and all types of drive trains, gas, diesel, hybrid & electric).
Posted by techsmith@...
21st Aug
-1 Votes
+ -
ELECTRIC / HYBRID VEHICLES & ELECTRIC VEHICLES TO OUT SELL ALL OTHERS
Energy has driven the world for over a thousand years Wind, Hydro and Solar are the oldest forms of energy giving power to all smart enough to use it.

In the last 200 years Coal, Oil and Nuclear has given energy to many worldwide and great power and wealth to only a few. At the cost of many lives in coal Mines, Oil Spills, Radiation, Cancer and Polluting the Air and Water on all of the Earth.

Unfortunately for the wicked there is not an unlimited amount of oil on earth. Just the same as the Forest Trees that clean the air and make Oxygen we breath and all living on earth need to Live. As some in denial are not able to recognize or ever see or live with blinders on.

Doctors and Drug ceo's have been making millions prescribing drugs to many that live near or by High polluted areas that hurt breathing our lungs and harm our children and all. That we all pay for. When all they need is Clean Air and Water, and Clean Cities.

Now common sense would be for all to look for a clean fuel Wind, Hydro, Geothermal and Solar. Renewable Energy is eliminating the need for Dirty Energy Worldwide at a record pace. With Solar Energy Clearly the front runner.

To the fear of some of the richest people on Earth. They to surprisingly are doing
something extraordinary investing in Solar Energy. After years of many of them trying to under mine it.

Fuel that makes energy to ship goods, or make electric for homes and manufacturing. Can transform whole nations into prosperity and wealth or poverty and economic hardships for most all. Just as taxes on taxpayers has done. For over two thousand years. Making slaves of many to the wicked and unjust few. History Lesson Roman Empire, Persian Empire now OIL Empire oh sorry OPEC.

The Freedom to get your own Power from the Wind and Sun, Solar Energy has been there for years. Are Libraries and Schools should have been the first to have gone Solar and Renewable Energy. And why are they not? Churches are all over the Planet. They are going to Solar Energy.

Thank GOD for the Pioneers like John Schaeffer that Started Real Goods The first and Best catalog for Renewable Energy and Scientist Bill Young at the FSEC Florida Solar Energy Center and Monica D. Key Lindbergh for many years wrote to legislators promoting Solar and Renewable Energy and many others.

These Pioneers helped put Wind, Solar And Renewable Energy in the Spotlight for all the World to see. One of The Greatest Scientists ever Albert Einstein Stared it with a Dream that the day would come that all the World would use Solar Energy. His many years of work with the law of the "Photoelectric Effect", and showing this to the World won him the Nobel Prize in Physics. For the "Photoelectric Effect"
Free Energy From the SUN in the heavens above.
We still do not teach this to our young.

Very soon Hybrid Vehicles and (EV's) Electric Vehicles will out number the ones that need oil and gas to go. With the ability to recharge them at home and work from the sun.

Tesla Motors with its new Model S electric sedan, will be one of many the World will see soon. Honda, Nissan, Audi,VW, BMW and Volvo are just some of the Car Companies putting into production Electric Vehicles a EV, and many more are and many are building Electric / Hybrid Vehicles. The DeLorean Motor Company will be putting into production by 2013 a DMC-EV Electric DeLorean, that will have a body and power plant that will last you a life time. Just think you can recharge them at home and work free from the sun Solar Energy.

The Lord's Little Helper
Paul Felix Schott

Now to own a car that will never rust way and runs on the power from the sun that's the one for me.
Posted by Paul Felix Schott
21st Aug
0 Votes
+ -
agree on the trend - high growth
If there was a smarter ICE solution it would have been discovered by now. EVs have taken the "alternative market" lead. V2G also works well with the next evolution of the grid - smart distributed generators coupled with district electricity storage banks - likely located at distribution stations. The good news story has yet to be written - more jobs will be created than destroyed as the economy moves from ICE and centralized grid architectures to EV and distributed power generation with storage.
Posted by bob@...
21st Aug
0 Votes
+ -
I wonder.
Is that 130 million EV's or hybrids like the Chevy Volt?
Posted by Hates Idiots
22nd Aug
0 Votes
+ -
Edits
One nice thing about online publishing is that you can fix your mistakes. Please do so:
"growth rate of 15% between 2011-2010"
"US$135 technology investment"
Posted by whturner
22nd Aug
+1 Vote
+ -
Hmmmm....
They have to come down drastically on price to be accepted by the public. They need to re-charge faster than 12 hours and not take all the available power from your house (using 110 volt would be nice instead of 240 volt). The batteries need to run well even in cold weather. They need to go further than 25-35 miles even using AC/heat and the radio on (may be other things). I currently go 60 miles round trip for work so there is much improvement needed. How much is this going to increase my electric bill ? Cost of electricy is getting up there and gas might be cheaper !). How many power plants will be needed ? The devil is in the details. Lots of things to work out yet !
Posted by pizzaman7
24th Aug
+1 Vote
+ -
I would like to see more editorial guidance
The number of inaccuracies and mistakes in these articles is getting to be quite impressive. Ford making a $135 investment is not very impressive. Maybe you meant to say million. Also, I do not recall the last time 1 million cars were manufactured in the United States. During WWII auto manufacturing for the general public stopped and levels of manufacture above 10 million per year has been commonplace for around the last 50 years. 1 million per year is a dismal production figure.
I would suggest some more editorial guidance here. Thanks.
Posted by Arctic Char
25th Aug
0 Votes
+ -
EVs are waiting on better batteries and charging
In order for Electric Vehicles to really catch on in the U.S. they need to:
1.Be able to charge up as fast as todays gas powered cars can gas up.
2.Have double or triple their current range and
3.Come down in price.

All this requires new battery technologies and charging abilities as shown and described at these links:
(1) Just announced: Wireless Charging Stations For Electric Cars
http://www.zagg.com/community/blog/just-announced-wireless-charging-stations-for-electric-cars

(2) Batteries charge very quickly and retain capacity, thanks to new structure
http://news.illinois.edu/news/11/0321batteries_PaulBraun.html

Its not a reality yet, but it needs to be for the general public to get on board.
Raymond Tarry
Concord, Ca.
Posted by rtarry
28th Aug
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