Umair Gaines
Electric vehicles (EVs) are becoming increasingly popular globally, with global sales set to surge and expand their share of the overall car market. In 2022, more than 10 million electric cars were sold worldwide, and sales are projected to grow by 35% in 2023. This explosive growth has seen the electric car market share rise from 4% in 2020 to 14% in 2022 and is expected to reach 18% in 2023. In the US, electric vehicles accounted for 5.8% of new car sales in 2022, up from 3.2% in 2021, and EVs are projected to make up 19% of the market by the end of 2024. While electric vehicles are gaining popularity, they still face challenges, such as the higher cost compared to conventional cars and the lack of charging infrastructure in some areas.
| Characteristics | Values |
|---|---|
| Percentage of new vehicles that are electric worldwide | 14% in 2022 |
| Projected percentage of new vehicles that are electric worldwide in 2023 | 18% |
| Global electric vehicle market size in 2024 | USD 396.49 billion |
| Projected global electric vehicle market size in 2030 | USD 620.33 billion |
| Percentage of electric vehicles in the US | 16.7% in 2023 |
| Projected percentage of electric vehicles in the US by the end of 2024 | 19% |
| Number of electric vehicles in California | 4 million |
| Number of electric vehicles delivered by Tesla in the first quarter of 2022 | 114,000 |
| Number of electric vehicles delivered by Ford in the first quarter of 2022 | 7,400 |
| Number of electric vehicles delivered by Hyundai in the first quarter of 2022 | 7,000 |
| Percentage of all vehicles in the US that were electric in 2019 | 1% |
| Percentage of electric vehicles in India in 2022 | 50% of three-wheeler registrations |
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What You'll Learn
Electric vehicles' share of the overall car market
Electric vehicles (EVs) have become increasingly popular, not only in the United States but worldwide. In 2022, global sales of electric cars reached a record high of over 10 million, and sales are expected to grow by 35% in 2023. This explosive growth has resulted in electric cars' share of the overall car market rising from 4% in 2020 to 14% in 2022 and is projected to increase to 18% in 2023. This expansion of the electric car market is leading to a significant transformation of the auto industry, particularly in the energy sector, as the demand for oil decreases.
In the United States, the electric vehicle market is dominated by companies such as BYD, Tesla, Volkswagen AG, Geely-Volvo, and SAIC Motor. While Tesla was the largest EV manufacturer in the world in 2021, BYD surpassed it by the end of 2023, accounting for 28% of the market share compared to Tesla's 18%. In 2022, Tesla delivered about 114,000 vehicles in the first quarter, while Ford delivered slightly over 7,400 electric vehicles in the same period. However, Ford has received over 200,000 orders for its new electric Ford Lightning pickup truck, indicating a strong demand for its electric vehicles.
The electric vehicle market in the United States is also growing, with electric and hybrid vehicle sales increasing significantly in 2020. In 2021, electric vehicles accounted for 3% of vehicle sales, with hybrids making up 5%. In 2022, electric car sales increased to 5.8% of new car sales in the United States, with over 800,000 electric vehicles sold. This growth is expected to continue, with projections estimating that one in four vehicles on the road will be electric by 2035.
Europe is projected to be the fastest-growing electric vehicle market region due to strong government support for reducing emissions through policies, subsidies, and regulations. Similarly, California, New York, and other states are encouraging the use of electric cars over traditional fossil-fuel vehicles. However, the lack of charging stations remains a challenge, especially in California, which has the highest number of registered EVs but struggles with a low charger-to-EV ratio.
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Electric vehicle market size
The electric vehicle (EV) market is experiencing significant growth worldwide due to customer preferences for environmentally-friendly transportation options, government initiatives and incentives, advancements in battery technology, and local special circumstances. The EV market is also influenced by underlying macroeconomic factors such as the availability of raw materials and government policies and regulations. As demand for EVs continues to rise, the market is expected to further expand and evolve in the coming years.
In 2023, the global electric vehicle market size was valued at USD 500.48 billion, with the Asia Pacific region dominating the global market with a share of 51.24%. China, in particular, accounted for the largest share in terms of passenger cars and other automobiles. The US electric vehicle market is also projected to grow significantly, driven by favourable government subsidies and policies.
The EV market is expected to continue its growth trajectory, with a projected market volume of USD 1,084.0 billion by 2029. This growth will be driven by increasing consumer demand for sustainable mobility, advancements in battery technology, rising investments from key players, and global net-zero commitments. By 2030, the global electric vehicle stock (excluding two/three-wheelers) is predicted to reach nearly 250 million vehicles, with sales share potentially surpassing 50%.
However, there are still challenges to be addressed in the EV market. Battery longevity and replacement costs remain significant restraining factors. Concerns about limited driving range due to battery degradation, known as "range anxiety", persist among potential EV buyers. While battery technology continues to improve, the uncertainty around battery lifespan and the high upfront cost of replacement batteries can be deterrents for some consumers.
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Electric vehicle market growth
Electric vehicles (EVs) are experiencing significant growth and development worldwide. In 2022, global sales of electric cars reached a record high of over 10 million, with sales projected to grow by 35% in 2023. This explosive growth has resulted in electric cars' share of the overall car market rising from 4% in 2020 to 14% in 2022 and is expected to increase further to 18% in 2023. This growth is driven by various factors, including increasing environmental concerns, rising fuel costs, government initiatives and incentives, and advancements in battery technology.
In the United States, electric vehicle sales are also witnessing a positive trend. In 2022, electric vehicle sales grew by 65%, with 5.8% of new cars purchased being electric, up from 3.2% in 2021. This growth is attributed to strong incentives from automakers, attractive lease deals, and federal and state incentive programs. Additionally, the presence of new models, such as the Ford F-150 Lightning and the Kia EV6, has contributed to the increasing popularity of electric vehicles in the US market.
While the electric vehicle market is expanding, it is important to note that electric vehicles still represent a small portion of total vehicles on the road. In the US, electric vehicles account for less than 1% of the 250 million vehicles, SUVs, and light-duty trucks. This is partly due to the high cost of electric vehicles, with the average price of an EV being $61,448 in 2022, although prices are decreasing.
Looking ahead, the electric vehicle market is projected to continue its growth trajectory. By 2025, revenue in the electric vehicle market is expected to reach US$828.6 billion worldwide, with a steady annual growth rate leading to a projected market volume of US$1,084.0 billion by 2029. This growth will be influenced by various factors, including government policies, advancements in technology, and consumer preferences for environmentally friendly options.
In conclusion, the electric vehicle market is experiencing significant growth, with sales and market share increasing year over year. While there are challenges, such as the high cost of electric vehicles, the overall trend indicates a positive outlook for the widespread adoption of electric vehicles in the coming years.
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Electric vehicle market leaders
Electric vehicle sales are booming, with global sales expected to grow by 35% in 2023 after a record-breaking 2022. This explosive growth means that electric vehicles' share of the overall car market has risen from 4% in 2020 to 14% in 2022 and is projected to increase to 18% in 2023.
In 2022, electric car sales increased by 5% as multiple new electric models reached the market. Electric vehicles are one of the driving forces in the new global energy economy, bringing about a historic transformation of the car manufacturing industry worldwide.
In the United States, electric vehicles account for less than 1% of the 250 million vehicles, SUVs, and light-duty trucks sold. However, in 2022, electric vehicle sales grew by 65% and topped 800,000 for the first time. Tesla, the longest-running pure electric brand, tops electric car sales in the United States, delivering about 114,000 vehicles in the first quarter of 2022. Ford is third, with slightly over 7,400 electric vehicles delivered in the United States in the first quarter, mainly due to the popularity of the Ford Mustang Mach-E.
In the Asia-Pacific region, China is leading the way in innovation for electric cars, setting the global standard. China's leadership in production technology and battery-recharging infrastructure has significantly enhanced its stake in the worldwide adoption of electric vehicles. The Chinese government is working to improve its electric vehicle systems by establishing far-flung charging networks and other initiatives to introduce new energy vehicles to cities and villages. In 2023, BYD was ranked as the best-selling electric vehicle manufacturer worldwide, selling over three million units and overtaking Tesla as the best-selling electric vehicle manufacturer in the previous year.
Other electric vehicle market leaders include SAIC, Bayerische Motoren Werke (BMW), and the Volkswagen Group, which produce both battery electric and plug-in hybrid electric vehicles.
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Electric vehicle market trends
Electric vehicle (EV) sales are experiencing explosive growth, with global sales of electric cars set to surge to record numbers and expand their share of the overall car market. This growth is leading a major transformation of the auto industry, particularly in the energy sector.
In 2022, more than 10 million electric cars were sold worldwide, and sales are expected to grow by 35% in 2023 to reach 14 million. This means that electric cars' share of the overall car market has risen from 4% in 2020 to 14% in 2022 and is projected to increase further to 18% in 2023. This growth is driven by ambitious policy programmes in major economies, such as the Fit for 55 package in the European Union and the Inflation Reduction Act in the United States. By 2030, the average share of electric cars in total sales across China, the EU, and the United States is expected to rise to around 60%.
In the United States, electric vehicle sales are also experiencing significant growth. In 2022, total new vehicle sales fell by 8%, but electric vehicle sales grew by 65%, with 5.8% of new cars purchased being electric, up from 3.2% in 2021. This growth is attributed to strong incentives from automakers, excellent lease deals, and federal and state incentive programs. Tesla, Ford, and Hyundai are major players in the US market, with Tesla's Model Y and Model 3 being the best-selling electric vehicles.
While the electric vehicle market is growing, it still faces challenges. Electric vehicles generally have higher upfront retail prices than their internal combustion engine (ICE) equivalents, which can be a barrier to sales. Additionally, the transition to electric vehicles is a gradual process due to the long lifespan of conventional vehicles and the time required to change the vehicles from gas-powered to electric. However, as the number of charging stations increases and the price difference between electric and conventional vehicles narrows, electric vehicle sales are expected to continue rising.
Looking ahead, the global electric vehicle market is expected to continue its positive trend, with sales anticipated to reach over 1 million units in emerging markets in 2024 and electric cars potentially accounting for 20% of total car sales. By 2035, it is predicted that EV sales could climb to 95% of all vehicle sales to achieve Net Zero by 2050.
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Frequently asked questions
In 2022, electric vehicles (EVs) made up 5.8% of new car sales in the US, up from 3.2% in 2021. In 2023, the market share of EVs rose to 9%.
The global electric vehicle market size was valued at USD 396.49 billion in 2024 and is projected to reach USD 620.33 billion by 2030.
California has the highest number of registered EVs in the US. Globally, China has the largest share of electric vehicles, with over 35% of exports in 2022.
