A new market research report from SEMA shows that sales of alternative power vehicles are expected to reach 45 percent by 2035 — up from just five percent of all U.S. light vehicle sales today.
Eighteen of the top 20 global automakers 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, the SEMA research found.
"While sales are starting to grow, significant hurdles remain around range, charging, and electrical power generation in the shift towards more electrified vehicles," the report said. "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."
Also, alternative power vehicles remain a niche market for the specialty-equipment industry, accounting for just one percent of specialty-equipment retail sales in 2020 at $0.42 billion.
Key findings from the report include:
- There are currently 4.1 million alternative power vehicles on U.S. roads today. This represents one percent of light vehicles in operation.
- 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 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.
