Key Trends in the Electric Vehicle Industry

Please join us for the next installment of the Morgan Lewis Automotive Hour Webinar series, focused on key trends in the electric vehicle industry.

Key Takeaways

Despite early pessimism, data from 2024 shows that the electric vehicle (EV) industry is growing steadily. The following key trends outline the current automotive transportation landscape, the industry’s pressing concerns, as well as recommendations for EV automakers and mobility service providers:

• Market Growth: Compared to the same period in 2023, EV sales increased by 14% in Q2 2024. In 2023, over 1.2 million fully electric vehicles were sold in the United States, accounting for 7.6% of all vehicle sales, up from 5.9% in 2022. This upward trend continues into 2024 with projections suggesting that EV sales could reach 4.8 million annually by 2030, driven by regulatory policies and incentives for zero-emission vehicles. Companies should anticipate continued market expansion, but the industry should work to dispel misconceptions to maintain momentum.
• Range Anxiety: Range anxiety remains a major barrier to EV adoption. Nearly half of surveyed consumers express concerns about inadequate charging infrastructure. By 2030, the United States will need approximately 1.2 million public charging ports, up from the current 180,000. Investments from both private and public sectors, including $7.5 billion in National Electric Vehicle Infrastructure (NEVI) program funding, are essential to close this gap. Reliable charging infrastructure and robust networks should be the focus of investors, automakers, and EV companies.
• Infrastructure Investment and Monetization: Charging infrastructure expansion presents challenges and opportunities. Business models for charging station ownership vary, including fully funded, hybrid, and business-funded approaches. Monetization depends on utility rate designs that support efficient operation while providing accessible charging services. Public sector involvement in the form of grants as well as private investment are critical for scaling infrastructure, particularly in underserved areas. Automotive and mobility companies should assess how they can invest in and monetize charging infrastructure, including additional revenue streams from advertising and data monetization. Public-private partnerships will be key to achieving widespread EV adoption.
• Cybersecurity and Regulatory Compliance: As EV infrastructure expands, it becomes increasingly important to ensure cybersecurity for charging stations. Though no comprehensive cybersecurity regulations currently exist, guidance from the National Institute of Standards and Technology and the Joint Office of Energy and Transportation offers best practices for mitigating risks. Compliance with accessibility standards, like the Americans with Disabilities Act and the Architectural Barriers Act, is also crucial for future public-facing charging stations. EV industry companies should monitor policy changes at all levels of government and align their strategies with emerging regulations.

Companies in the EV industry that address these challenges and leverage new opportunities can contribute to making electric transportation more viable and accessible by driving innovation and sustainability in automotive and mobility. For more information, read our earlier Insight, Charging Ahead: Top Issues and Opportunities Facing the EV Industry.

Questions? Please contact Octavia Litvinov.

Morgan Lewis Automotive Hour is a series of automotive and mobility industry–focused webinars led by members of the Morgan Lewis global automotive team. The 2024 program is designed to provide a comprehensive overview on a variety of topics related to clients in the automotive and mobility industry.