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Sales of Light-duty Vehicles to Total Over 2.1 B. from 2015 to 2035: Navigant Research

2015/12/29 | By Quincy Liang

Global sales of light-duty vehicles (LDVs) are expected to total more than 2.1 billion units from 2015 to 2035, according to a recent report from Navigant Research.

The enormous dependency on crude oil derivatives in the LDV market has pushed governments worldwide to implement policies and programs that encourage the adoption of various fuel-efficient and alternative fuel technologies, however, the research firm says. Other changes in the LDV market include higher variety in transportation options, including vehicles with various levels of drivetrain electrification and vehicles that run on alternative fuels entirely. 

Global sales of light-duty vehicles (LDVs) are expected to total more than 2.1 billion units from 2015 to 2035, according to Navigant Research. (photo from Internet)
Global sales of light-duty vehicles (LDVs) are expected to total more than 2.1 billion units from 2015 to 2035, according to Navigant Research. (photo from Internet)

“The global market for LDVs is changing rapidly, with younger generations looking for options like car-sharing or carpooling as alternatives to buying a car,” says Scott Shepard, research analyst with Navigant Research. “The vast majority of growth in the LDV market over the forecast period is expected to come from developing countries in the Asia Pacific, specifically China and India.”

High purchase price premiums and low infrastructure availability are expected to limit the adoption of alternative fuel vehicles (AFVs) globally, according to Navigant Research's report. However, utilities are expected to play a larger role in AFV adoption over the forecast period, as these vehicles present opportunities to increase electricity demand and to help manage grid operations.

PEVs

Another report from Navigant Research shows that the PEV market, including light- duty hybrid, plug-in hybrid, and battery electric vehicles (HEVs, PHEVs, and BEVs), market has become well-established in North America, Europe, and in the developed parts of Asia Pacific, largely due to government support and purchase incentives, so automakers are focusing on offerings that will attract a wider range of customers. Meanwhile, companies within the electric power sector of global markets are also studying how they can best take part in encouraging PEV market growth.

A new report from Navigant Research says that light duty EV sales are expected to grow from 2.6 million in 2015 to over 6.0 million by 2024. (photo from Internet)
A new report from Navigant Research says that light duty EV sales are expected to grow from 2.6 million in 2015 to over 6.0 million by 2024. (photo from Internet)

According to a new report from Navigant Research, light-duty EV sales are expected to grow from 2.6 million in 2015 to over 6.0 million by 2024.

“The end of 2015 marks the completion of the fifth full year of PEV sales to key markets for major automakers,” says Scott Shepard, research analyst with Navigant Research. “The market for electric vehicles has changed significantly over this time period, but the expected changes during the next five years will be even more impactful to the global automotive and energy industries.”

One of those changes, according to the report is an expected increase in luxury electric vehicles. Luxury manufacturers have gradually become more comfortable with PEV technologies, and today make up about 23 percent of the market. This is expected to increase to about 50 percent by the early 2020s.