According to an updated report released by Frost & Sullivan, the emergence of megacities in developing nations will drive demand for electric vehicles (EVs) up dramatically by 2020. The study – aptly titled "360 Degree Perspective of the Global Electric Vehicle Market - 2010 Edition" – provides an overview of the EV market while also focusing on trends such as urbanization, car sharing, personal mobility and city development. The study concludes:
Most offices that are expected to move to the first-belt suburbs and city centers will encompass the shopping areas (small-scale deliveries) and living areas for double/single income, no kids households. In mega cities, offices and homes are likely to be adjacent to each other, creating a favorable environment for EV deployment.
Frost & Sullivan suggests rising concerns over pollution and greenhouse gases will drive residents of the newly-emerging megacities to adopt EVs as a primary means of transportation. Megacities, defined as metropolitan areas that exceed 10 million residents with a minimum population density of 2,000 persons per square kilometer, could have a profound impact on the EV industry due to their massive population, but residents must first be convinced or coerced into buying EVs. Follow the jump to learn how megacities might influence the EV industry.

[Source: Frost & Sullivan via Green Car Congress | Image: Emrank – C.C. License 2.0]

PRESS RELEASE

Electric Vehicle Market Moves into Higher Gear with the Emergence of Mega Cities, Finds Frost & Sullivan


LONDON. - 11 August, 2010 - Electric vehicle (EV) manufacturers and dealers will be pleased with the rising trend towards de-urbanization polarization of vehicle sizes. By 2020, the emergence of mega super cities in developing economies will affect personal mobility, driving the demand for EVs.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), 360 Degree Perspective of the Global Electric Vehicle Market - 2010 Edition, examines the following markets: neighbourhood EVs (NEVs), city EVs (CEVs), extended-range EVs (eREVs) and high-performance EVs (HPEVs).

"Most offices that are expected to move to the first-belt suburbs and city centres will encompass the shopping areas (small-scale deliveries) and living areas for 'double/single income, no kids' households," says Frost & Sullivan's Automotive & Transportation Group Team Leader, Anjan Hemanth Kumar. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favourable environment for EV deployment."

Rising concerns over greenhouse gases and depleting fossil fuel sources are further solidifying the case for EVs. Car manufacturers are working on business models that will make available the car and energy under the same roof, opening up a plethora of opportunities for utilities, suppliers and finance businesses.

Manufacturers are building sleek and sporty EVs to create interest among customers who would be early adopters. Giving an EV distance capability of more than 100 miles (160km) and enhancing the range and safety of batteries are the key focus areas of development for EV manufacturers. However, the prices of the initial EVs are likely to be prohibitive.

To counter this cost challenge, federal and local governments have passed a series of legislation, benefits and rebates to help manufacturers offer their vehicles at affordable prices.

"With the advent of lithium ion battery technology and innovative financial models, the automotive industry is all set to witness a revolutionary business case," notes Kumar. "Original equipment manufacturers (OEMs) have little choice but to join in the drive to address the energy crisis issue."

Associations and close participation among OEMs, battery manufacturers and energy utilities will accelerate the introduction of EVs. Market participants could also collaborate with environmental advocates and lobby for benefits.

If you are interested in more information on this study, please e-mail Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

360 Degree Perspective of the Global Electric Vehicle Market - 2010 Edition is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: 360 Degree Analysis of the European Electric Scooters and Motorcycles Market and Sustainable and Innovative Personal Transport Solutions - Strategic Analysis of Carsharing Market in Europe. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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