Trystan Casey
Electric vehicles (EVs) are becoming increasingly popular, with the global EV market projected to grow from USD 396.49 billion in 2024 to USD 620.33 billion by 2030. In the US, there were about 3.3 million electric cars on the road in 2023, accounting for 9.3% of the roughly 286 million cars on the road that year. This number has been steadily increasing, with more than 1 million EVs sold in 2023 for the first time. In the second quarter of 2024, electric and hybrid vehicles accounted for 18.7% of total new light-duty vehicle sales in the US, with Tesla holding the largest market share. While EVs are gaining traction, they still have a long way to go before catching up to gas-powered vehicles, which make up the majority of cars on the road.
| Characteristics | Values |
|---|---|
| Percentage of electric vehicles in the U.S. in 2023 | 9.3% |
| Number of electric vehicles in the U.S. in 2023 | 3.3 million |
| Number of gas-powered vehicles in the U.S. in 2023 | 286 million |
| Percentage of electric vehicles in California in 2023 | 19.6% |
| Percentage of electric vehicles in Washington in 2023 | 18.8% |
| Percentage of electric vehicles in Oregon in 2023 | 15.4% |
| Percentage of electric vehicles in Colorado in 2023 | 15.1% |
| Percentage of electric vehicles in the U.S. in Q1 2024 | 7.9% |
| Percentage of electric vehicles in the U.S. in Q2 2024 | 18.7% |
| Percentage of electric vehicles in the U.S. in 2033 | 30% (estimated) |
| Percentage of electric vehicles in the U.S. in 2040 | 80-100% (estimated) |
| Global electric vehicle market size in 2024 | USD 396.49 billion |
| Global electric vehicle market size in 2030 | USD 620.33 billion (estimated) |
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What You'll Learn
Electric vehicles as a percentage of all cars in the US
Electric vehicles are gaining popularity in the United States, with sales figures and market share on the rise. According to an Experian Automotive Market Trends report from the fourth quarter of 2023, there were approximately 3.3 million electric cars on US roads, constituting about 9.3% of the total 286 million cars. This figure represents a notable increase from previous years, with 2 million electric vehicles in 2022 and 1.3 million in 2021.
In the first quarter of 2024, electric vehicles accounted for 7.9% of all new car registrations, indicating a continued upward trend. California leads the way with approximately 35% of electric vehicles nationwide, followed by Florida and Texas. The top EV manufacturers in the US include Tesla, Ford, Hyundai, and Chevrolet, with Tesla dominating the market but experiencing a decrease in market share due to emerging competitors.
While the electric vehicle market is expanding, it still has a long way to go to catch up with gas-powered vehicles, which account for the remaining 288.5 million cars on US roads. In 2023, electric vehicles and hybrids combined made up 16.3% of total new light-duty vehicle sales, with this figure rising to 17.9% in the second half of the year. This increase was driven by various factors, including the introduction of new BEV models, price cuts, and government incentives like the Clean Vehicle Credit.
Looking ahead, projections for electric vehicle adoption in the US vary. Some estimates suggest a minimum of 50-60% adoption in the coming years, while others predict a more conservative figure of around 30% by 2033. The transition to electric vehicles is influenced by various factors, including government subsidies, new models, expanding charging networks, and battery plant developments.
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Electric vehicle sales projections
Electric vehicles (EVs) are an essential part of the transition to a cleaner, greener economy. While there are challenges to their adoption, they are gaining traction. In 2023, there were 3.3 million electric cars on US roads, up from 2 million in 2022 and 1.3 million in 2021. This represented 9.3% of the roughly 286 million cars on the road in 2023, a record high. In the first quarter of 2024, 7.9% of all new car registrations were for electric vehicles.
Projections for the US market vary. Forecasts for 2025 estimate that EVs will make up 13.5% of overall US light-vehicle sales, up from 10.3% in 2024. This figure is expected to rise to 39.7% by 2030. Other estimates are more conservative, with one suggesting that EVs will make up 36% of the total US retail market by 2030.
There is a consensus that by 2035, the majority of vehicles sold will be electric. Forecasts for this year range from 58% to 71.8% of the market. One estimate suggests that by 2035-2040, EV adoption will be around 80-100% in first-world countries.
In the near term, several factors are expected to drive EV sales. These include the increasing availability of electric models, the expected drop in EV prices, the expansion of government incentives, and the continued growth of the national public charging infrastructure.
However, there are also challenges to the widespread adoption of EVs. The industry is still relatively new, and sales growth has slowed in 2024 due to increased competition from alternative fuel vehicles. Additionally, there are concerns that changes in government can impact incentives for consumers to purchase EVs. For example, the IRA (brought forward by the Biden administration) introduced significant tax credits for EV buyers, but these benefits may be reversed under a different administration.
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Electric vehicle market share by state
Electric vehicles (EVs) are becoming increasingly popular in the United States, with a record 9.3% of all vehicles on the road being electric in 2023. This is a notable increase from the 1.3 million electric vehicles on US roads in 2021, which rose to 2 million in 2022, and 3.3 million in 2023.
While this is a positive trend, it is worth noting that EVs still have a long way to go before they catch up with gas-powered vehicles, which make up the vast majority of the remaining 288.5 million cars in operation.
Market Share by State
California and Washington, D.C., lead the way in EV adoption, with a market share of 19.6% and 18.8%, respectively, in 2023. Washington state, Oregon, and Colorado follow closely behind, with market shares of 15.4%, 15.1%, and 15.1%, respectively. These states have embraced the shift towards electrification, and their efforts are reflected in their high EV sales figures.
While these states are leading the charge, it is important to recognize that EVs are still relatively rare in most parts of the country. However, this is expected to change in the coming years due to several factors. Firstly, the increasing availability of electric models and the anticipated drop in EV prices will play a significant role. Secondly, the expansion of government incentives for EV purchases and the continued development of the national public charging infrastructure will also contribute to the growing EV market share.
In terms of specific models, Tesla has dominated the EV market for the past five years, with a market share of nearly 80% in 2019. However, as of June 2024, their market share has decreased to about 52% due to the emergence of competitors like Ford, Hyundai, Mercedes-Benz, and Rivian.
Looking ahead, projections for EV adoption vary, with some estimates placing it at 50-60% within the next decade. However, by 2035-2040, it is expected that the majority of vehicles in first-world countries will be electric, with infrastructure scaling to accommodate this shift.
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Electric vehicle market share by manufacturer
Electric vehicles (EVs) have gained significant traction in the global market, with sales data indicating a positive trend. In the United States, the EV market share is nearing 9% of all new car sales, with a record 1 million EVs sold in 2023. While Tesla has dominated the US EV market, its market share has decreased from 75% in 2022 to 44% in 2024, due to rising competition.
In 2024, General Motors reported a 50% increase in EV sales year-over-year, compared to a 38% increase for Ford, with the latter maintaining second place in market share at 8.2%. Hyundai Motor Group, which includes Kia, has also seen significant growth, with Hyundai and Kia EVs soaring in 2024. Honda has also entered the EV market, with over 33,000 sales in 2024.
Other manufacturers are also making strides in the EV market. Fiat, BMW, and Porsche have EV sales shares of at least 5% in the US. Mercedes-Benz (4.6%) and Rivian (4.2%) are also in the top five EV manufacturers by market share as of June 2024.
The global EV market is expected to continue its positive trajectory, with electric vehicles becoming a mass-market product in several countries. Government incentives, increasing model availability, and the expansion of charging infrastructure are key drivers of EV adoption. While there are concerns about the pace of growth, the number of EVs on US roads has increased significantly, from 1.3 million in 2021 to 3.3 million in 2023, with a projection of 30% of passenger cars on US roads being electric by 2033.
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Electric vehicle market size
The electric vehicle (EV) market is experiencing significant growth worldwide due to customer preferences for greener transportation options, government initiatives and incentives, and advancements in battery technology. The EV market size was valued at USD 500.48 billion in 2023 and is projected to grow to USD 671.47 billion in 2024 and USD 1,891.08 billion by 2032, exhibiting a CAGR of 13.8% during the forecast period (2024-2032). The Asia Pacific region dominated the global market with a share of 51.24% in 2023, with China accounting for the largest share in terms of sales volume and passenger cars.
In the United States, there were about 3.3 million electric cars on the road in 2023, out of approximately 286 million cars, which means that 9.3% of all cars on the road were electric vehicles, a record high according to Experian. California and Washington, D.C., had the highest percentage share of electric vehicles in 2023, with 19.6% and 18.8% respectively. While EVs are gaining traction, they still have a long way to go to catch up with gas-powered vehicles, which make up the remaining 288.5 million cars in operation.
The EV market in the United States is projected to grow significantly, reaching an estimated value of USD 233.70 billion by 2032, driven by favorable government subsidies and policies. In the first quarter of 2024, 7.9% of all new car registrations were for electric vehicles, according to Experian. Tesla has enjoyed the highest market share over the past five years, although its dominance has dwindled recently as other automakers have entered the market.
The global EV market growth is propelled by favorable government subsidies, strict emission regulations, and growing consumer demand for sustainable mobility. The development of the 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, with revenue projected to reach US$828.6 billion worldwide in 2025 and US$1,084.0 billion by 2029.
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Frequently asked questions
As of 2023, approximately 18% of vehicles are electric.
As of 2023, 9.3% of vehicles in the US are electric.
In 2023, Norway led the world with 93% of new car sales being electric vehicles.
Iceland, with 71% of new car sales being electric vehicles in 2023.
New Zealand, with only 14% of electric car sales in 2023.
