Sales of alternative power vehicles like EVs, while currently representing just 5% of all U.S. light vehicle sales today, are expected to reach 45% by 2035, according to new SEMA market research focused on the landscape of alternative power and electrification in the U.S.

Eighteen of the top 20 global automakers, which together represent around 90% of new car registrations worldwide in 2020, 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. Also, alternative power vehicles remain a niche market for the specialty-equipment industry, accounting for just 1% of specialty-equipment retail sales in 2020.

Filled with an in-depth outlook on the landscape of alternative power and electrification in the United States, the “Emerging Trends: Electrification, Alternative Power and Advanced Technology” report helps companies understand potential implications for the specialty-equipment industry and how advanced technologies are becoming part of the new vehicle ecosystem.

Key findings from the report include:

• There are currently 4.1 million alternative power vehicles on U.S. roads today. This represents 1% of light vehicles in operation.
• While sales are starting to grow, significant hurdles remain – around range, charging, and electrical power generation – in the shift toward more electrified vehicles.
• 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.
• Alternative power currently represents a very small share of the specialty-aftermarket sales but will be more important as their presence grows. In 2020, alternative power accounted for only 1% of specialty-equipment retail sales at $0.42 billion.
• 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% of drivers want more safety features, 86% say they are afraid of fully autonomous vehicles. They cite safety and liability as their biggest concerns.

The full report can be downloaded here.