By 2022 there will be more than 35 million EVs on roads worldwide, according to a new report from Navigant Research.

"With gasoline prices remaining high, acquiring an EV is becoming an economic decision for many consumers," saif Scott Shepard, research analyst with Navigant Research. "The initial purchase price premiums for EVs, compared to conventional gasoline- and diesel-powered internal combustion engines, are substantial. Yet, operational cost savings due to reduced refueling and maintenance costs are proving that, when considered over the life of the vehicle, EVs are cost-competitive with internal combustion engine vehicles."

Helping to reduce the cost of ownership are additional value streams that are emerging from innovations in EV technologies, such as vehicle-to-grid (V2G) systems that allow plug-in EV (PEV) owners to utilize battery power not only for driving, but also for emergency backup power and grid balancing.

Test fleets are being used to examine the revenue potential of V2G services, and electricity providers are looking into ways to shift PEV charging to off-peak hours through demand response programs. Developments in both areas promise to strengthen the business case of PEV technologies for fleet and individual owners, the report concludes.

An Executive Summary of the report, "Electric Vehicle Market Forecasts," is available for free download on the Navigant Research website.