Strongly growing EV market also has its challenges

Ambitious climate targets and changing consumer preferences, combined with technological innovation, ensure that the European electric driving market is growing rapidly and will continue to grow. Challenges also exist in the coming years and decades, especially in terms of available charging infrastructure, grid congestion, regulation and whether the EV market will be sufficiently profitable over time.

This and more emerges from a recent study by Accuracy, reports Consultancy.nl. It was already known that the Netherlands leads the way in Europe when it comes to electric driving and this study confirms it. Our country has proportionally the most charging points and EVs, followed by Germany and France. Germany in particular does have very strong ambitions; for instance, the country wants to have 1 million charging points in five years’ time.

Annual growth

The growth of the EV market will continue in the coming years, according to Accuracy, but somewhat more moderately than we have seen in recent years. The 2020-2023 period saw annual growth of around 50 per cent in the charging market. In the current and upcoming years, average growth is expected to be around 20 per cent.

In addition, the Netherlands’ role as a guiding country gives an idea of the challenges that may also come into play in other countries. “For instance, several charging companies in our country are facing financial problems due to a combination of high operational costs, fierce competition, dependence on subsidies, regulatory hurdles and other problems, such as the capacity of the electricity grid,” summarises Consultancy.nl.