Over 75 million electric vehicles (EVs) expected on European roads by 2030

EMOTION NEWSLETTER - Daily Mobility Update - May 08, 2024

In a recent joint report by EY and Eurelectric, it's projected that over 75 million electric vehicles (EVs) will be on European roads by 2030. Global electric vehicle sales are surging, yet multiple barriers still impede their widespread adoption. Amid an increasingly competitive landscape and a tight race among the European Union, the United States, and China for EV production and adoption, data interoperability among various e-mobility ecosystem players has emerged as the sector's next significant frontier.

Accelerating EV Adoption with Expanding Charging Infrastructure and Improved Cost-Efficiency

According to EY and Eurelectric's latest report, the rise to 75 million EVs by 2030 is bolstered by a growing array of electric market options and improved cost-benefit ratios compared to combustion vehicles. Additionally, after unprecedented price hikes in 2022, battery costs are declining again, further boosting EV availability.

Adoption momentum has been slow but reached significant milestones in 2023, with EV sales accounting for 25% of all vehicle sales in Europe (European Union plus the UK, Norway, and Switzerland)—a four-point increase in just one year. In Spain, however, EVs (battery and plug-in hybrids) make up just 12% of vehicle sales.

The adoption of electric vehicles is coupled with the simultaneous expansion of the public fast-charging network. In Europe, the number of non-residential charging points rose over 40%, from approximately 530,000 in 2022 to 744,000 in 2023. The rollout of direct current (DC) fast and ultra-fast chargers also accelerated, with an increase of 77% to more than 100,000, while alternating current (AC) charger construction jumped 36%, according to the European Commission. Technological advances have also increased the power of fast chargers tenfold over the past five years, significantly reducing charging times.

As infrastructure progresses rapidly and is expected to accelerate further, the adoption of the Regulation on Alternative Fuels Infrastructure (AFIR) will mandate the installation of public fast-charging stations for cars and vans every 60 kilometers along major EU transport corridors (RTE-T). The power targets set by this regulation are based on the number of EVs registered in each country, so as EV adoption speeds up, there will be a continuous and proportional increase in the number of public charging stations available.

Meanwhile, 'democratization' remains a challenge for the sector. To make charging infrastructure work for everyone, the installation of charging points outside the RTE-T needs to be accelerated. Access must extend to workplaces, apartment blocks, and commercial areas.

Interoperability as a Catalyst for Innovation

The electric mobility ecosystem consists of highly interconnected players: manufacturers, distribution system operators (DSOs), charging station operators, and electric mobility service providers. All depend on system interoperability and secure access to relevant data to optimize their services.

Despite concerns about data sharing among different parties, such as privacy issues and the loss of competitive edge, real-time data sharing among various players can optimize user experience, enhance service quality and customization, and facilitate purchasing decisions.

Data exchange will enable specific services, such as predictive maintenance and remote diagnostics, improving vehicle safety or personalized charging based on individual vehicle use. According to a report by the International Energy Agency, new services could save the global electric vehicle sector over $4 billion by 2030 through cost reductions and efficiency gains.

Addressing the challenges of data interoperability in the e-mobility ecosystem through complete sector digitalization is essential. Data must be interoperable across the entire value chain, and Europe, with its operational and legislative framework, is uniquely positioned to standardize data interoperability across the continent, potentially giving European companies a competitive edge.

Solving the data challenge is a critical factor in encouraging widespread EV adoption that will give Europe a renewed advantage over other countries. If achieved, the future digital ecosystem of electric mobility will be fully connected, integrated, and interoperable, enhancing consumer choice, service improvements, cost savings, competition among providers, innovation, and scalability.

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