It’s no secret we’ve seen an increasing number of electric cars on the roads, but how is the shift to electric motors affecting specialty dealerships like yours? Let’s take a look at recent developments in various industries.

RV/Trailer

Market Insights

RVs have been around since the early 1900s, but you won’t find any electric RVs (ERVs) being driven down the street or set up on campsites. This will likely change in the near future as prototypes like Lightship, Pebble, and the eRV2 are set to become some of the first to hit the road.

Although ERVs haven’t quite hit the market yet, the RV Industry Association reports that 22% of leisure travelers who own an electric vehicle plan to purchase an electric motorhome. Additionally, 30% of leisure travelers who plan to purchase an electric vehicle are also interested in purchasing an electric motorhome.

Obstacles

To further the growing interest, the RV industry needs to provide a smooth ERV experience. Consumers expect ERVs to be compatible with campsites, have efficient charging capabilities, and have a substantial driving range before running out of charge.

For example, there are over 138,100 charging ports across the U.S., but a significant number are found in California. Without guaranteed access to a nearby charging station, apprehension surrounding ERVs will remain. In addition, THOR’s North American Motorized Electric RV Study revealed that 45% of current and potential electric vehicle owners expect an electric motorhome to travel five or six hours (about 300 miles) before needing to recharge, 31% expect a full recharge to take 45 to 59 minutes, and 34% expect the price to range from $41 to $60.

Marine

Market Insights

Electric boats have been on the market for over 100 years. However, the gas engine proved to be more successful at propelling heavier boats to faster speeds and ultimately became the go-to choice.

Since then, electric boat capabilities have significantly improved, and the global electric boats market now sits at $5.6 billion. By 2033, this number is predicted to reach $15.1 billion. According to a recent survey, 39% of respondents are exclusively interested in electric boats for their next purchase. The appeal comes from quieter engines, reduced gas costs, and less impact on the environment.

As consumer interest grows, leadership advocacy is increasing as well. In September 2023, the International Electric Marine Association (IEMA) launched and has already gained membership from 40 organizations across the globe. Aiming to accelerate sustainability throughout the marine industry, the IEMA plans to continue advocating for the use of electric boats.

Obstacles

Electric boat support will rise as the recreational boating industry and The White House work toward lowering carbon emissions, but the cost is one of the greatest deterrents. Along with a larger buy-in cost, consumers are skeptical about how long it will take to charge the boat, the weight of the battery, and the lack of infrastructure to support electric boats.

Powersports

Market Insights

According to Global Market Insights, the electric powersports (e-powersports) market is expected to grow from $9.2 billion to $15.6 billion by 2032. In terms of unit numbers, Guidehouse Insights expects e-powersports sales to reach 896,600 vehicles by 2031. Major contributors to the increase in demand include the desire for noise reduction, increased sustainability efforts, and rising interest in adventurous activities.

Obstacles

Many powersports consumers are aware of the current electric options, but a majority are reluctant to make the switch. In fact, a study conducted by EPG Specialty Information found that only 18% of consumers are considering an electric or hybrid powersports purchase. This hesitation comes from the common perception that electric alternatives wouldn’t have the caliber of performance and value as gasoline-powered models.

Bus

Market Insights

The U.S. electric bus market is anticipated to increase from $1.06 billion to $2.5 billion by 2029. Between 2022 and 2023, the number of battery-electric buses (BEBs) and fuel cell electric buses (FCEBs) grew 10% and 76%, respectively. South Carolina was the first state to launch an all-electric bus fleet, but California currently houses the most electric buses of all the states, with more than 650 active vehicles.

Additionally, there are 8,682 committed electric school buses across the United States. College campuses like the University of Montana and the University of Michigan have also begun adopting electric fleets to provide more environmentally friendly student transportation.

Obstacles

Successful operation of electric buses requires substantial planning. The U.S. Department of Transportation explains that transit agencies will need to account for upfront and additional costs for installation and modifications, new staff or training opportunities to ensure correct use of the vehicles, and expected battery range of the BEBs.

Heavy Truck

Market Insights

In 2022, there were 840 zero-emissions models available and over 60,000 medium and heavy-duty units sold globally. In the U.S., electric heavy trucks — although rare — are starting to be implemented into daily trucking operations. For example, Amazon has deployed electric trucks in 1,800 U.S. cities, and a lot of drivers prefer the trucks’ lightweight feel. And with the United States Environmental Protection Agency’s proposal for stricter emissions standards for heavy-duty vehicles, the number of units on the road will continue to grow.

Obstacles

Not only can the cost of an electric heavy truck reach $400,000, but a fleet of electric trucks can take enough energy to power an entire city. The American Trucking Association has expressed concern that challenges such as sourcing, reliability, and cost could put many trucking companies out of business. In addition, local utility officials in Illinois and California prevented two companies from electrifying their fleets because of the sheer amount of energy it takes.

Conclusion

The RV, trailer, marine, powersports, bus, and heavy truck industries have already made substantial progress in the electric specialty vehicle market. As government legislation, sustainability efforts, and charging stations increase, consumer demand will continue to rise. By staying updated on industry trends, your dealership will be fully charged and ready to adapt to future developments.

Related Posts