Electric Vehicles - NAFTA | Statista Market Forecast

The Electric Vehicles market, within the country in North American Free Trade Agreement (NAFTA), is predicted to generate a significant amount of revenue in the coming years.
According to projections, the revenue in this market is expected to reach US$138.1bn by 2024.
Moreover, there is an anticipated annual growth rate of 9.99% (CAGR 2024-2029), which will contribute to a projected market volume of US$222.3bn by 2029.
In line with the growth in revenue, it is also expected that the unit sales of Electric Vehicles market will increase.
By 2029, it is projected that the number of unit sales will reach 2.63m vehicles.
Additionally, the volume weighted average price of Electric Vehicles market in 2024 is estimated to be US$85.4k.
This figure provides insight into the average price of Electric Vehicles market in the market.
From an international perspective, it is noteworthy that China is expected to generate the highest revenue in the Electric Vehicles market.
In 2024, China is projected to generate US$376bn in revenue.
This highlights the prominence of China in the global Electric Vehicles market.
The United States is experiencing a surge in electric vehicle adoption, with increasing government incentives and a growing charging infrastructure.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in NAFTA has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the Electric Vehicles market in NAFTA is the increasing concern about environmental sustainability. Customers are becoming more conscious about the impact of traditional gasoline-powered vehicles on the environment, and are therefore opting for electric vehicles as a greener alternative. Additionally, the rising cost of fuel is also influencing customer preferences, as electric vehicles offer a more cost-effective solution for transportation.

Trends in the market: One major trend in the Electric Vehicles market in NAFTA is the increasing availability and variety of electric vehicle models. As technology continues to advance, automakers are introducing new and improved electric vehicle models with longer battery ranges and faster charging times. This has made electric vehicles more practical and convenient for everyday use, which has contributed to their growing popularity among customers. Another trend in the market is the expansion of charging infrastructure. The availability of charging stations is crucial for the widespread adoption of electric vehicles, and governments and private companies in NAFTA countries are investing in the development of charging infrastructure. This is helping to alleviate range anxiety among customers, as they have more confidence in the availability of charging options.

Local special circumstances: In the United States, the federal government has implemented various incentives to promote the adoption of electric vehicles. These incentives include tax credits and grants for the purchase of electric vehicles, as well as funding for the development of charging infrastructure. These initiatives have played a significant role in driving the growth of the Electric Vehicles market in the country. In Canada, the government has also introduced incentives to encourage the adoption of electric vehicles. These incentives include rebates for the purchase of electric vehicles, as well as funding for the installation of charging stations. Additionally, some provinces in Canada offer additional incentives, such as free parking and access to high-occupancy vehicle lanes for electric vehicle owners.

Underlying macroeconomic factors: The growing Electric Vehicles market in NAFTA can also be attributed to favorable macroeconomic factors. The region has seen a steady increase in disposable income levels, which has made electric vehicles more affordable for a larger segment of the population. Additionally, advancements in battery technology have led to a decrease in the cost of electric vehicle production, making them more competitive with traditional gasoline-powered vehicles. Furthermore, government regulations and policies aimed at reducing greenhouse gas emissions have also played a role in the growth of the Electric Vehicles market in NAFTA. As governments in the region continue to prioritize environmental sustainability, they are implementing stricter emissions standards and promoting the use of electric vehicles as a means of reducing carbon emissions. In conclusion, the Electric Vehicles market in NAFTA is experiencing significant growth due to customer preferences for greener and more cost-effective transportation options, as well as the availability of a wider range of electric vehicle models and the expansion of charging infrastructure. Local special circumstances, such as government incentives and favorable macroeconomic factors, have also contributed to the growth of the market.

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).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.