As EV Sales Surge New EY Report Identifies Six Keys To Accelerating Mainstream eMobility Adoption

• Electric vehicles expected to reach 55% of total global vehicle sales by 2030, but lack of collaboration between eMobility stakeholders could impact adoption and decarbonisation goals
• Accessible and equitable charging infrastructure and the key role of electrical utilities highlighted as two of six key issues that will play a pivotal role in enabling a smooth transition to eMobility

A new report from EY and Eurelectric has found that Electric Vehicle (EV) adoption is accelerating faster than predicted, with global EV sales doubling in 2021 and up 55% in 2022 to account for 13% of all vehicles sold last year. To unlock mainstream EV adoption over the coming years, the study has now identified the six key areas to be prioritised by industry, utilities, policymakers and other key stakeholders in the eMobility ecosystem.

The six key areas of prioritisation are: Increasing accessible charging infrastructure; Developing sufficient clean and green power production; Promoting the integration of EVs with smart grid technology; Securing resilient supply chains and vital raw materials; Developing digital platforms and mobile applications to optimize EV charging; and finding and training the next-generation workforce. 

The study undertaken by EY was informed by Eurelectric and its members and includes insights drawn global industry leaders across the ecosystem, including automotive, utilities, fleet management, city planning and charging infrastructure.

The study highlights that in 2022, EV sales in China reached 27% of total vehicles sold; in Europe, they made up just over 20%; and in the US, EV sales increased to more than 7% of all vehicles sold. These trends are very positive, particularly as countries stretch to reach ambitious, but essential, carbon reduction goals. With these increasing consumer adoption pieces, however, the question is now are conditions right for EVs to take off in the mass market? 

Julia Ann Corkery, EY Government and Infrastructure Advisory Director, said:

“Globally EV adoption is beating predictions, and the trajectory is steep. The global adoption rate currently stands at 13% of all vehicle sales but EVs could make up 55% of total global vehicle sales by 2030. EV adaption in Ireland has actually outpaced global and European averages, with 33% adopting EVs in 2022, 11% of which were pure EVs*."

"To continue this mass market adoption of EVs over the coming years – here in Ireland and globally – requires taking the necessary actions and creating the right conditions. This will involve a collaborative and coordinated response across the eMobility ecosystem - from the auto industry to utilities, policymakers to planners. Addressing these requirements will help us to achieve key climate targets, deliver a real return on investment and power the next generation of transportation. Global failure to act now, however, could mean missed climate targets, wasted investment and a delayed transition timetable.”

Accessible charging infrastructure for all

As the EV-buying demographic shifts from early adopters to a larger group of consumers with more mainstream values and expectations, accessible charging infrastructure for all is critical. The study calculates that by 2040, the total number of residential, private and public chargers needed in Europe will top 140 million (88% will be destined for home charging) to service an estimated 239 million EVs. In the US, a total of 91 million chargers (85% for home charging) will be required to serve 152 million vehicles in the same timeframe.

To quickly and equitably roll out charging infrastructure, the study recommends incentivizing, via regulation, installation in the spaces and places where people live and work. Cooperation between network operators and public authorities in preparing for network development, understanding the EV uptake, and assessing infrastructure needs and investments is also key.

Utilities play a pivotal role

Utilities come to the transition with electric-engineering acumen and deep knowledge of load on distribution and transmission lines. The study cites that in the transition to eMobility, they must take on a much more customer-facing and technology-dependent role. To be successful, utilities must engage proactively with city planners and continue building out networks that allow renewables, and other forms of distributed assets, to connect to the grid. Furthermore, they must manage new load at the point of charging and pursue new technologies that enable the two-way flow of energy across the system.

View the Report: The six essentials for mainstream EV adoption

                                                                                        -ENDS- 

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organisation, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organisation that also does not provide any services to clients.