Electric vehicles (EVs) have been gaining popularity in recent years, as people become more aware of the environmental impact of traditional gasoline-powered cars. The International Energy Agency collates and publishes data on global EV sales, and recently published a report with some interesting findings:
- 6 million EVs were sold worldwide in 2021, doubling the amount sold in 2020. In 2012, only 120,000 EVs were sold.
- 2 million EVs were sold in the first quarter of 2022 alone.
- 10% of global vehicle sales in 2021 were electric, compared to about 3% in 2019.
The data is clear that EV adoption is at its highest point ever and continuing to accelerate as the infrastructure needed to support them becomes more available and consumers become more educated about EVs and their use cases compared to traditional internal combustion engines.
The impact of EVs on the semiconductor industry
The EV boom has been a boon for the semiconductor industry. As electric vehicles require more advanced electronics, microprocessors and semiconductors to run their various components, manufacturers have seen a huge increase in demand for their products. With electric vehicles requiring double the chip content of traditional gasoline-powered cars, this has translated into a surge in profits and opportunities in the semiconductor industry. Furthermore, electric car batteries also contain their own onboard computers that require further semiconductor technology for power optimization and quick charging capabilities — thus creating an additional opportunity for growth in the semiconductor sector. All of these trends point towards an incredibly bright future for this segment of the tech industry.
Who is at the forefront of the industry right now?
Due to the numerous disciplines involved in manufacturing EVs, traditional vehicle manufacturers as well as semiconductor and software companies have had to work together to drive the market forward. Leading the charge are companies like Tesla, who have invested heavily in research and development to create some of the most advanced electric vehicles on the market. Other major players include Nissan, Volkswagen, BMW, and Honda, all of whom are investing huge amounts of resources into EV technologies that will improve performance and efficiency while reducing emissions. Technology companies like Intel and Qualcomm have also invested heavily in electric vehicle components and infrastructure.
On a percentage basis, Nordic companies dominate EV ownership, with Norway and Iceland leading the pack at 86% and 72% of all vehicle sales in the country as of 2021. Legislation aimed at phasing out new gas-powered cars has been a primary driver of EV sales, which has been mirrored by California’s strong EV sales demonstration in light of their own push to do the same. In contrast, African nations have struggled to adopt EVs due to less energy availability to power the charging infrastructure needed to support them and less capital and financing available to build that infrastructure, as well as competing costs as Africa continues to develop and urbanize.
Challenges and barriers to overcome
The electric vehicle industry faces a number of challenges that must be addressed in order for EVs to truly reach their full potential. One of the biggest challenges is the limited range of electric vehicles. To improve this range, new battery technologies need to be developed with higher energy densities and lighter materials, so that electric cars can travel longer distances without needing to stop and recharge. Planning a road trip or long distance drive in an electric vehicle requires much more planning and forethought, as downtime to let a vehicle charge becomes a major consideration.
While electric cars are becoming more affordable due to advancements in battery technology and economies of scale, they still remain significantly more expensive than traditional gasoline-powered cars. In order to make electric cars more accessible to a wider range of consumers, manufacturers must continue to reduce EV prices by exploring new production processes and materials, as well as looking into incentives such as tax breaks or subsidies on electric vehicle purchases.
Finally, electric vehicles require extensive infrastructure in order for them to be used efficiently and safely. This includes charging stations located throughout public areas like shopping centers and parking lots, as well as dedicated networks that ensure that electricity is available when needed. Additionally, efforts need to be made to increase public awareness about electric vehicles so people understand their benefits over traditional combustion engine cars. Whether it is intentional or not, there is a great deal of adverse misinformation published regarding electric vehicles, as well as exaggerations about the drawbacks and considerations required to own one.
So What Does the Future Hold?
The future of electric vehicles is getting brighter every year. The electric vehicle market is incredibly strong and continuing to grow, but there are still challenges that need to be addressed to avoid potentially plateauing in the future. Efforts should be focused on reducing technical and economic barriers to entry to owning a vehicle. Governments also play an important role by providing incentives or subsidies on electric vehicle purchases, as well as building out public infrastructure networks needed to support electric car use. With continued innovation from both industry players and governments alike, electric vehicles will continue to flourish and eventually overtake the use of internal combustion engines.
Partstack’s editorial team is made up technical writers and engineering folks from around the world.
