Electric Vehicles - North America

The Electric Vehicles market in North America is projected to generate a revenue of US$138.1bn in 2024.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 9.99%, resulting in a projected market volume of US$222.3bn by 2029.
By 2029, unit sales of Electric Vehicles market in North America are expected to reach 2.63m vehicles.
The volume weighted average price of Electric Vehicles market in North America in 2024 is projected to be US$85.4k.
From an international perspective, it is observed that China is expected to generate the highest revenue in the Electric Vehicles market, amounting to US$376bn in 2024.
In the United States, the adoption of electric vehicles is steadily increasing as consumers prioritize environmental sustainability and embrace government incentives.

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 North America is experiencing significant growth and development. Customer preferences for environmentally friendly and cost-effective transportation options, along with government incentives and regulations, are driving the increased adoption of electric vehicles in the region.

Customer preferences: Customers in North America are increasingly concerned about the environmental impact of traditional gasoline-powered vehicles and are seeking more sustainable transportation options. Electric vehicles offer a cleaner and greener alternative, as they produce zero tailpipe emissions. Additionally, the rising cost of gasoline and the desire for long-term cost savings are driving customers to consider electric vehicles, which have lower operating and maintenance costs compared to traditional vehicles.

Trends in the market: One of the key trends in the North American electric vehicle market is the increasing availability and variety of electric vehicle models. Major automakers are investing in electric vehicle technology and expanding their electric vehicle offerings to meet the growing demand. This trend is driven by improvements in battery technology, which have resulted in longer driving ranges and faster charging times for electric vehicles. As a result, customers now have more options to choose from, ranging from compact electric cars to electric SUVs and trucks. Another trend in the market is the development of a robust charging infrastructure. To address the range anxiety of potential electric vehicle buyers, governments and private companies are investing in the installation of charging stations across North America. This infrastructure expansion is crucial for the widespread adoption of electric vehicles, as it provides customers with the confidence that they can easily find a charging station and charge their vehicles conveniently.

Local special circumstances: One of the unique factors influencing the electric vehicle market in North America is the presence of government incentives and regulations. Many states and provinces in the region offer financial incentives, such as tax credits and rebates, to encourage the purchase of electric vehicles. These incentives help to offset the higher upfront costs of electric vehicles and make them more affordable for customers. Additionally, some jurisdictions have implemented regulations that require automakers to sell a certain percentage of zero-emission vehicles, further driving the adoption of electric vehicles.

Underlying macroeconomic factors: The North American electric vehicle market is also influenced by broader macroeconomic factors. The region has a strong and growing economy, which provides consumers with the purchasing power to invest in electric vehicles. Additionally, advancements in technology and manufacturing processes have made electric vehicles more affordable and accessible to a wider range of customers. As the cost of electric vehicles continues to decrease, and the charging infrastructure improves, the market is expected to continue its growth trajectory in North America.

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.