Demand for xEVs to Stay Hot in 2016 with Global Sales Forecast at 700K, According to TrendForce

Global sales of xEVs (x-electric vehicles) have soared in 2015 owing to strong market demand in China and Europe. The latest report from global market research firm TrendForce reveals that worldwide sales of xEVs for the first three quarters of this year reached 330,000 units, up 31% year on year. This year’s total sales are expected exceed 450,000 units, and next year’s sales may even achieve a historic high of more than 700,000 units.

“Thanks to China and Europe’s leadership, the global xEV market has been booming this year,” said Eric Chang, TrendForce automotive electronics analyst. “The chief factor behind the accelerated pace of development is the subsidies provided by governments to encourage purchases. China furthermore has become the world’s largest xEV market in 2015.”

Here are some important trends to watch out for in next year’s xEV market:

Strong sales of xEVs will continue as fuel vehicles begin their inevitable exit from the market

The replacement of fuel vehicles by xEVs is certain as countries around the world implement tighter emission control standards in response to worsening smog problems in their urban areas. Moreover, xEVs with intelligent features will constitute a well-defined niche segment within the overall xEV market. Therefore, the global xEV market in 2016 will enjoy the same robust growth as in previous years.

China and Europe will continue to encourage purchases with various subsidy programs

China and Europe have been the growth drivers in the 2015 xEV market because the governments there offer generous incentives to consumers such as rebates, tax credit and other forms of subsidies. New business models for personal transportation have also emerged this year, making xEVs more suited for everyday use. In sum, government subsidies and business innovations are the two major factors that will encourage the adoption of xEVs.

Industries related to charging facilities will further expand

Markets related to xEV parts and periphery products have seen rapid development corresponding to the rising vehicle sales. TrendForce expects industries participating in production of xEVs and charging equipment to enter a high-growth period in the next 2~3 years, especially for suppliers of charging piles, charging connectors and energy storage systems for vehicles.

Autonomous driving emerges as a major development trend

The development of xEVs will accelerate and be in tandem with the development of autonomous driving technologies. Electric vehicles with autonomous driving capabilities can be used to transport people in a closed circuit or on a fixed route. Mass transportation services can adopt these “smart” xEVs to help lower the risk of accidents. Furthermore, these vehicles are likely to become the ideal transportation tool in countries with an aging population.