The Electrifying Opportunities for EVs in 2024
As we enter a new year the electric mobility revolution feels like it is finally gaining good momentum to drive real change and innovation in 2024. We saw vehicle sales worldwide starting to grow towards the end of 2023 with falling costs, improved technology, and serious government support in several markets supporting the shift to electric vehicles. As charging infrastructure expands, longer-range vehicles will come onto the market, and the new agreement from COP28 to transition away from fossil fuels by 2050 we expect to see a huge push towards EV sales growth in the coming year. As well as an increase in EV sales we also expect to see other changes in the EV sector and here are our top five predictions for the year to come:
01. US EV acceleration to overtake Europe
The EV opportunity is ultimately a global one, but several markets are likely to continue leading in 2024. In recent years, the US government has committed unprecedented investment to electrifying the US vehicle fleet, exceeding funding in European markets.
For example, the US EPA Clean School Bus Program has invested $5 billion to replace existing school buses with zero-emission and low-emission models. With around 600,000 school and transit buses in the US, implementing a reliable charging infrastructure will be crucial to its deployment and success.
02. Industries will push forward with Net Zero progress despite government pushback
The UK's commitment to a government-set deadline for phasing out the sales of petrol and diesel vehicles has been a crucial driver for EV adoption. So, the decision in September to push back this deadline to 2035 was not received positively, casting a shadow over progress already made to electrification. However, the industry is driven to ensure this doesn’t slow progress, so in recent months, we’ve seen energy companies launch free EV charging schemes that will encourage EV sales. We expect to see increased schemes and offers as energy providers, OEMs, and car manufacturers battle it out to adopt the best discounts and schemes to move to an electric vehicle.
03. Energy management ecosystem will become a reality
Meeting the growing demand for EVs in 2024 means addressing the infrastructure challenge and developing the best technology solutions for energy management. EV charger load management is a crucial piece of the puzzle, ensuring that the adoption of electric vehicles is both practical and sustainable, so this will become more of a market focus this coming year.
Load management helps guard against sudden spikes in electricity demand that can overload the grid by rapidly reducing output in response to requests from grid operators. By spreading out the charging load over time, it maintains grid stability, reducing the risk of blackouts or a drop in power supply voltage, which can hamper charging and the availability of vehicles.
It also plays an important role in helping fleet operators reduce their energy costs, both financially and environmentally. In the future, EV charging infrastructure will also create new revenue opportunities for fleet operators. Load management systems will integrate with demand response programmes, enabling a two-way interaction between the electricity grid and EV chargers.
04. Innovation and investment in battery storage will pick up pace
Battery energy storage has become an increasingly important feature of the energy ecosystem for businesses with EV fleets, with many looking to support grids with flexibility services. According to a recent McKinsey report, the global battery energy storage system market is expected to reach between $120 billion and $150 billion by 2030, more than double its size today.
EO is actively engaging with more and more customers on installing batteries to play a part in their supply and load management solutions, offering an alternative to conventional grid connections. We expect demand for battery storage elements to grow strongly over the coming year.
05. An open ecosystem will become ever more important in 2024
Making the move to EVs should be simple, reliable, and accessible, and why industry standards and regulations will become ever more important in the coming year.
In recent years, we‘ve seen the introduction of new industry standards like the Open Charge Point Protocol (OCCP). OCCP is an open-source communication standard for EV charging stations and network software companies. It is designed to be a free, open-source, and easy-to-implement protocol that ensures all participants are speaking the same language.
As a result, it has become the global benchmark for interoperability throughout the EV charging industry. At EO, we believe open standards are now critical for effective and scalable infrastructure. Open protocols have typically been a more reliable foundation to apply new innovative functionality to technology in the future, without necessarily needing to replace legacy systems.
There’s a real complexity risk without the standardisation of protocols, device management, transaction handling, security, and smart charging functionalities. The future of the EV industry lies in open-source collaboration, which will be a key focus in supporting progress across the global EV sector in 2024.