APVs Could Account for 45% of U.S. Light Vehicle Sales by 2035
While they currently represent just 5% of all U.S. light vehicle sales, new market research by SEMA suggests that sales of alternative power vehicles (APVs) are expected to reach 45% by 2035.
Eighteen of the top 20 global automakers (which together represented around 90% of new car registrations worldwide in 2020) plan to widen their portfolio of APV models and scale up their production of electric vehicles.
However, three-quarters of Americans say they still prefer gas or diesel and have concerns about charging infrastructure, driving range and price. Also, APVs remain a niche market for the specialty-equipment industry, accounting for just 1% of specialty-equipment retail sales in 2020 ($0.42 billion).
Filled with an in-depth outlook on the landscape of alternative power and electrification in the United States, the “Emerging Trends: Electrification, Alternative Power and Advanced Technology” report helps companies understand potential implications for the specialty-equipment industry and how advanced technologies are becoming part of the new vehicle ecosystem.
Among the key findings, there are currently said to be 4.1 million alternative power vehicles on U.S. roads today. This represents 1% of light vehicles in operation.
While sales are starting to grow, significant hurdles are said to remain around range, charging and electrical power generation in the shift towards more electrified vehicles. "As sales of electric and other alternative energy vehicles increase in coming years, it will take a while for current vehicles to cycle out of operation. The average age of a vehicle today is just over 12 years.
"Alternative power currently represents a very small share of the specialty aftermarket sales, but will be more important as their presence grows. Automakers continue to integrate vehicles with advanced technology to increase safety and comfort on the road. This opens potential growth opportunities for the aftermarket industry in older vehicles.
"While 58% of drivers want more safety features, 86% say they are afraid of fully autonomous vehicles. They cite safety and liability as their biggest concerns."
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