Eighteen of the top 20 global automakers plan to widen their portfolio of alternative power models
Diamond Bar, Calif.—Sales of alternative power vehicles, while currently representing just 5 percent of all U.S. light vehicle sales today, are expected to reach 45 percent by 2035, according to new SEMA market research.
Eighteen of the top 20 global automakers, which together represent around 90 percent of new car registrations worldwide in 2020, plan to widen their portfolio of alternative power models and scale up their production of electric vehicles.
However, three-quarters of Americans still prefer gas or diesel and have concerns about charging infrastructure, driving range, and price. Also, alternative power vehicles remain a niche market for the specialty-equipment industry, accounting for just 1 percent of specialty-equipment retail sales in 2020.
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. Key findings from the report include:
- There are currently 4.1 million alternative power vehicles on U.S. roads today. This represents 1 percent of light vehicles in operation.
- While sales are starting to grow, significant hurdles remain — around range, charging, and electrical power generation — in the shift toward 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 more than 12 years.
- Alternative power currently represents a very small share of the specialty-aftermarket sales but will be more important as their presence grows. In 2020, alternative power accounted for only 1 percent of specialty-equipment retail sales at $0.42 billion.
- 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 percent of drivers want more safety features, 86 percent say they are afraid of fully autonomous vehicles. They cite safety and liability as their biggest concerns.
To learn more about SEMA’s outlook on electric vehicles and emerging trends and technology, download the new “Emerging Trends: Electrification, Alternative Power and Advanced Technology” report at www.sema.org/research.