Electric vehicles cost set to match fuel cars by 2027: report

The cost of electric vehicles is expected to match that of fuel-powered cars of similar size and configuration by 2027, according to a new report from research firm Gartner Inc.

The report forecasted an accelerated global adoption of EVs in the coming years but also outlined potential obstacles relating to power infrastructure.

Gartner’s research anticipates global battery electric vehicle shipments to grow by 22.22 percent to reach 11 million units by 2023, up from 9 million units in 2022.

Additionally, the report expects nearly 15 million battery electric and plug-in hybrid cars to be shipped worldwide in 2023, rising 19 percent year-on-year to 17.9 million units in 2024.

The plug-in hybrid vehicles market is also expected to expand, albeit at a slightly slower pace, growing from 3 million units in 2022 to 4 million units in 2023.

Despite the promising numbers, Gartner’s report indicated potential challenges with regard to power generation and distribution.

“Unless countries take actions to incentivize EV drivers to charge outside peak electricity consumption periods, the switch to EVs may put an additional strain on both the power generation capacity and the distribution infrastructure,” said Jonathan Davenport, senior director analyst at Gartner.

By 2024, nearly 18.5 million EVs — including cars, buses, vans, and heavy trucks — are projected to be shipped, with electric cars constituting 97 percent of these shipments.

In the Gulf region, primarily the UAE and Saudi Arabia, significant steps are being taken to promote electric mobility, the report noted.

Saudi Arabia’s Public Investment Fund owns over 60 percent of California-based EV maker Lucid and has committed to purchasing up to 100,000 Lucid vehicles over the next 10 years.

Among other developments, Ceer, the Kingdom’s first EV brand, recently received an industrial license from the Saudi Ministry of Industry and Mineral Resources.

In the UAE, the Minister of Energy and Infrastructure recently announced the launch of the Global EV Market, a comprehensive project that saw the forming of several partnerships with major industry stakeholders such as Audi, Siemens, BMW, and General Motors.

The UAE also secured fourth place in a global ranking for affordable EV charging infrastructure, as assessed by Compare the Market Australia.

According to a report by management consultancy Arthur D. Little, the UAE’s EV market is expected to grow at an annual rate of 30 percent between 2022 and 2028.