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Electric vehicles to reach price parity with ICE vehicles in 2027, says Gartner

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The analyst company, Gartner, has announced that battery electric vehicles (BEVs) will reach price parity with internal combustion engine (ICE) vehicles by 2027. This will be an important milestone for electric vehicles (EVs) if it comes true because one of the reasons more people don’t buy one is because they’re expensive.

While the prices of EVs may reach price parity with similar ICE vehicles, Gartner warns that the EV networks, which are needed to charge vehicles, could become an inhibitor to the adoption of the technology.

Commenting on this fact, Jonathan Davenport, Senior Director Analyst at Gartner, said:

‘Unless countries take actions to incentivize EV drivers to charge outside peak electricity consumption periods, the switch to EVs may put an additional strain on both the power generation capacity and the distribution infrastructure.’

Aside from reaching price parity, Gartner said that more than 50% of carmaker models will be EVs by 2030. It said this change will come about over time due to governments around the world tightening regulations on the sale of new ICE vehicles.

Three years ago, the UK government announced that the sale of new ICE vehicles would be prohibited after 2030, forcing people to buy EVs. In addition, London and Birmingham have their low-emission zones in place now which means that only newer ICE vehicles can enter the zone without paying a fee.

Actions like these in different countries around the world, especially in developed nations, will push the adoption of EVs.

Gartner also released its forecast on how many EVs will ship next year. In the case of cars, it said 2022 shipments totalled 11.1 million units. In 2023, this is going to jump to 14.9 million shipments, and in 2024, shipments should reach 17.8 million.

The 2024 figure is an increase of 19% year-over-year meaning that adoption is growing at a decent rate. With prices for EVs set to become comparable with ICE vehicles in 2027, this could further speed up adoption.

Source: Gartner

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