The global EV market is predicted to grow by 25.6 per cent, with 950,000 units sold, research shows.
According to Frost & Sullivan’s Mobility team, the global EV market has increased at an annual growth rate of 72.1 per cent from 2011 to 2016.
The research also noted that it is likely there will be 950,000 electric vehicles sold globally in the coming year.
It suggests that 48V mild hybrids and PHEVs are likely to be key technologies adopted in the European Union (EU), while the Chinese government pushes vehicle electrification.
In addition to this, approximately 25 new electric vehicle models are likely to be launched later this year, including the Chevrolet Bolt and Tesla Model 3.
The availability of incentives and subsidies in the market, significant investment by original equipment manufacturers, new entrants, and lower battery prices are factors believed to be behind the growth.
However, the lack of standardisation in charging technology, absence of a fixed business model, and short-distance range of EVs still need to be addressed, according to the mobility team.
Frost & Sullivan Mobility Industry Manager Prajyot Sathe, said: "Incentives for battery EVs (BEVs) are greater than plug-in hybrid EVs (PHEVs) as governments support emission-free mobility.
"Germany, Ireland, Norway, Sweden, and the United Kingdom will have the highest impact on EV prices due to availability of cash incentives, while the Netherlands EV market declined drastically due to a decrease in incentives."