In recent years, purchases of electric vehicles and plug in hybrid vehicles have been increasing due to government incentives, increasing gas prices, and environmental concerns. HEV sensors are present in full hybrid, plug-in hybrid, battery electric, and fuel cell electric motor vehicles, and control or monitor functions such as pressure, speed and motion, temperature, etc. The production of HEV sensors has been on the rise in recent years despite supply chain and production cost challenges, and it is expected to continue to grow in the coming years.

Government Incentives

“The Federal Government has set a goal to make half of all new vehicles sold in the U.S. in 2030 zero-emissions vehicles, and to build a convenient and equitable network of 500,000 chargers to help make EVs accessible to all Americans for both local and long-distance trips.”
 – US Department of Transportation

Various federal tax credits have been introduced to incentivize consumers to purchase both new and used electric and plug in hybrid vehicles. Some government initiatives specifically prioritize the increased use of electric vehicles in rural communities. Consumers in rural areas typically drive more than those in suburban areas, and generally spend more money on fuel. Federal programs want to promote electric vehicle use in rural areas so rural consumers have the opportunity to reap their increased benefits.

Fuel Economy

With heightened gas prices around the country, now is a good time for consumers to consider alternative options. Switching to electric transportation could save the average consumer household $1,000 a year. According to Duke Energy, “The cost to fully charge a 60-kilowatt-hour (kWh) EV with more than 230 miles of range at home is less than $8. Plus, energy prices are not as volatile as oil, which makes budgeting for an EV more consistent each year.” When it comes to budgeting, consumers can rely on electricity costs remaining lower and more consistent than oil prices.

Charging Infrastructure

                Development to the functionality and availability of charging stations is critical for the integration of electric and plug in hybrid vehicles. This is especially important for companies switching to electric fleet vehicles. Currently, the most efficient charging system is DC fast charging. According to the U.S. Department of Energy, DC fast charging can provide 100 to over 200 miles of range per 30 minutes of charging. DC fast charging systems make up about fifteen percent of the EV charging stations in the United States; this percentage is expected to grow rapidly with the projected increase in electric fleet vehicles.

To read more about the factors affecting the EV and HEV sensor market, check out Freedonia Group’s new report, “Global HEV Sensors”!