Market Insights Mobility Electric Vehicles

Battery Electric Vehicles - United States

United States

The Battery Electric Vehicles market (BEV) segment in the United States is projected to generate a revenue of US$76.2bn in 2024.
This segment is expected to experience an annual growth rate (CAGR 2024-2029) of 11.76%, resulting in a projected market volume of US$132.8bn by 2029.
By 2029, it is anticipated that the unit sales of Battery Electric Vehicles market in the United States will reach 1.96m vehicles.
In 2024, the volume weighted average price of Battery Electric Vehicles market in the United States is expected to be US$67.9k.
Comparatively, China is projected to generate the most revenue in the BEV segment internationally, amounting to US$210,800m in 2024.

"Despite a growing interest in Battery Electric Vehicles in the United States, the lack of widespread charging infrastructure remains a major hurdle for widespread adoption."

Key regions: United Kingdom, Japan, Netherlands, France, United States

Market

Region

Region comparison

Currency

Analyst Opinion

The Battery Electric Vehicles market in the United States has seen significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the United States are increasingly opting for Battery Electric Vehicles (BEVs) due to their numerous advantages. BEVs are known for their environmental friendliness, as they produce zero tailpipe emissions, leading to reduced air pollution and a smaller carbon footprint. Additionally, BEVs offer lower operating costs compared to traditional internal combustion engine vehicles, as electricity is generally cheaper than gasoline. The growing awareness and concern for climate change and the desire to reduce dependence on fossil fuels have also contributed to the increased demand for BEVs.

Trends in the market: One of the key trends in the BEV market in the United States is the expansion of charging infrastructure. As the adoption of BEVs grows, there is a need for a reliable and widespread charging network to support the vehicles. This has led to the establishment of more public charging stations across the country, making it easier for BEV owners to charge their vehicles while on the go. Additionally, there has been an increase in the installation of home charging stations, allowing BEV owners to conveniently charge their vehicles overnight. Another trend in the market is the introduction of new and improved BEV models. Automakers are investing heavily in research and development to enhance the performance, range, and affordability of BEVs. This has resulted in the introduction of models with longer driving ranges, faster charging capabilities, and competitive pricing. As a result, consumers have a wider range of options to choose from, making BEVs more appealing to a larger customer base.

Local special circumstances: The United States has a diverse geography, with varying climate conditions across different regions. This has led to the emergence of local special circumstances in the BEV market. For example, states with a higher population density and shorter average commuting distances, such as California, have seen a higher adoption rate of BEVs. The availability of incentives and subsidies, such as tax credits and rebates, in certain states has also played a role in driving the demand for BEVs.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the BEV market in the United States. Government regulations and policies aimed at reducing greenhouse gas emissions and promoting clean energy have provided a favorable environment for the growth of BEVs. In addition, advancements in battery technology and decreasing costs of battery production have made BEVs more affordable and practical for consumers. The increasing investment in renewable energy sources, such as solar and wind power, has also contributed to the growth of the BEV market, as it provides a cleaner source of electricity for charging the vehicles. In conclusion, the Battery Electric Vehicles market in the United States is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for environmentally friendly vehicles, the expansion of charging infrastructure, the introduction of new and improved BEV models, and favorable government regulations and policies have all contributed to the growth of the BEV market in the United States.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).