Electric Vehicles - Worldwide | Statista Market Forecast

In 2024, the revenue in the Electric Vehicles market is projected to reach a staggering US$786.2bn worldwide.
Looking ahead, it is expected that the market will demonstrate a steady annual growth rate (CAGR 2024-2029) of 6.63%.
This growth will ultimately lead to a projected market volume of US$1.1tn by 2029.
Moreover, the unit sales of Electric Vehicles market are anticipated to reach 18.84m vehicles units by 2029.
When examining the market in 2024, it is predicted that the volume weighted average price of Electric Vehicles market will amount to US$57.5k.
From an international perspective, it is evident that China will generate the highest revenue, with an estimated US$376bn in 2024.
This showcases the significant presence of Electric Vehicles market in the Chinese market segment.
Electric vehicle adoption is rapidly increasing worldwide, with countries like Norway leading the way in terms of market share.

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 is experiencing significant growth and development worldwide.

Customer preferences: One of the main reasons for the growing popularity of Electric Vehicles is the increasing concern for the environment and the need to reduce carbon emissions. Customers are becoming more conscious of their ecological footprint and are opting for greener transportation options. Electric Vehicles offer a cleaner and more sustainable alternative to traditional gasoline-powered cars, making them a preferred choice for environmentally conscious consumers. Additionally, the rising cost of fuel and the desire for energy efficiency have also contributed to the increasing demand for Electric Vehicles.

Trends in the market: The Electric Vehicles market is witnessing several trends that are driving its growth. Firstly, there is a growing number of government initiatives and incentives to promote the adoption of Electric Vehicles. Many countries are offering subsidies, tax benefits, and other incentives to encourage consumers to switch to electric cars. These initiatives are not only aimed at reducing carbon emissions but also at boosting the local economy by supporting the development of the Electric Vehicle industry. Another trend in the market is the improvement in battery technology. As battery technology continues to advance, Electric Vehicles are becoming more affordable, efficient, and have longer driving ranges. This has addressed one of the major concerns of consumers - range anxiety. With the development of fast-charging infrastructure, the charging time for Electric Vehicles has significantly reduced, making them more convenient for everyday use.

Local special circumstances: The Electric Vehicles market is developing differently in each country, depending on various local circumstances. For example, in countries with high population density and limited space, such as Japan and some European countries, the demand for compact Electric Vehicles is higher. These countries also have well-established charging infrastructure, making it more convenient for consumers to own and use Electric Vehicles. On the other hand, in countries with vast landscapes and long distances between cities, such as the United States and Australia, the demand for Electric Vehicles with longer driving ranges is higher. These countries are also investing in the development of charging infrastructure along highways and major routes to support long-distance travel.

Underlying macroeconomic factors: The development of the Electric Vehicles market is also influenced by underlying macroeconomic factors. For example, the availability of raw materials such as lithium, cobalt, and nickel, which are essential for battery production, can impact the growth of the Electric Vehicle industry. Countries with abundant reserves of these minerals, such as Australia and Chile, have an advantage in the production of Electric Vehicles. Additionally, government policies and regulations related to emissions standards and fuel efficiency also play a significant role in the development of the Electric Vehicles market. Stricter regulations and targets for reducing carbon emissions are driving the adoption of Electric Vehicles as automakers strive to meet these requirements. In conclusion, the Electric Vehicles market is experiencing significant growth worldwide due to customer preferences for greener transportation options, government initiatives and incentives, advancements in battery technology, and local special circumstances. The development of the market is also influenced by underlying macroeconomic factors such as availability of raw materials and government policies and regulations. As the demand for Electric Vehicles continues to rise, it is expected that the market will further expand and evolve in the coming years.

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.