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Electric Vehicle Market

Electric Vehicle Market

Electric Vehicle Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



Feb - 2024



Report Code:


Segments Covered
  • By Vehicle Type By Vehicle Type Passenger Vehicles, Commercial Vehicles
  • By Component By Component Battery Cells & Packs, On-Board Charge, Motor, Reducer, Fuel Stack, Power Control Unit, Battery Management System, Fuel Processor, Power Conditioner, Air Compressor, Humidifier
  • By Vehicle Class By Vehicle Class Low-priced, Mid-priced, Luxury
  • By Top Speed By Top Speed <125 MPH, >125 MPH
  • By Vehicle Drive Type By Vehicle Drive Type Front Wheel Drive, Rear Wheel Drive, All Wheel Drive
  • By Vehicle Connectivity By Vehicle Connectivity V2B or V2H, V2G, V2V, V2X
  • By Propulsion By Propulsion BEV, PHEV, FCEV
  • By End Use By End Use Private Vehicle, Commercial Fleets
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 392.4 Billion
Revenue 2032Revenue 2032: USD 1259.4 Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 13.9%
Fastest Growing Region Fastest Growing Region (2024 - 2032) Asia Pacific
Largest Region Largest Region (2023): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Electric Vehicle Market Share

The global Electric Vehicle Market is valued at USD 392.4 Billion in 2023 and is projected to reach a value of USD 1259.4 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 13.9% between 2024 and 2032.

Key highlights of Electric Vehicle Market

  • Asia Pacific accounted for 42.6% of revenue share in 2023 and is expected to maintain the same over the projected period,
  • In 2023, the Passenger Vehicles contributed to the maximum share of 61.7% of the overall revenue share,
  • In 2023, the Mid-priced vehicles held a notable share of 72.3% in Electric Vehicle market,
  • By Vehicle Drive Type, Front Wheel Drive expressed a substantial market share of 51.3% in 2023,
  • Based on Propulsion, the BHV segment is anticipated to have 65.4% of total revenue share in the global Electric Vehicle market in 2023,
  • In 2023, the Private Vehicle segment accounted to show the maximum share of 62.4% in the global Electric Vehicle market,
  • According to the International Energy Agency data, the sales of Electric Vehicles exceeded 10 million in 2022. The sales of these vehicles have more than tripled in three years, from around 4% to 14% in 2022, which in turn, bolster the growth of Electric Vehicle market.

Electric Vehicle Market Size, 2023 To 2032 (USD Billion)

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Electric Vehicle Market: Regional Overview

Asia Pacific accounted for 42.6% of revenue share in 2023 and is expected to maintain the same growth during the forecast period. 95% of all-electric cars worldwide are found in the Asia-Pacific region, with two-wheelers making up a sizable percentage of the fleet. China, a leading player in the region, has observed uncertain decreases in transport emissions amid ongoing lockdowns, while other Asian countries, notably India and Japan, have noticed consistent growth. Recent projections indicate a deviation from pre-2015 estimates in transport emissions growth, posing challenges for accomplishing net-zero emissions or restricting the rise of global temperature. China's dominance in Electric Vehicle production, representing 40% of the worldwide market, positions it well to capitalize on the region's anticipated growth. China's surpassing its 2025 national target for new energy vehicle (NEV) sales share further underscores its pivotal role, with a remarkable 29% share of total domestic car sales in 2022. These trends signify the Asia-Pacific region's significance as a driving force in the EV market, with China shaping its trajectory through strong production abilities and determined targets for NEV implementation.

U.S. Electric Vehicle Market Overview

The U.S. Electric Vehicle Market is valued at USD 46.6 Billion in 2023 and is projected to reach a value of USD 158.7 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 14.6% between 2024 and 2032.

According to the Inflation Reduction Act (IRA), electromobility companies are rapidly expanding their manufacturing operations within the country. From August 2022 to March 2023, there has been a significant surge in investment in Electric Vehicle supply chains, totaling USD 52 billion. Notably, 50% of these investments are directed towards battery manufacturing, indicating a substantial commitment to developing domestic battery production capabilities. Additionally, approximately 20% of the assets are allocated to battery components and EV manufacturing, reflecting a comprehensive approach to strengthening the entire EV supply chain within the United States. This increase in capital expenditure highlights the country's increasing significance as a hub for the production of Electric Vehicles. It highlights the important role of government policies, such as the IRA, in driving investment and advancement in the Electric Vehicle sector.

The global Electric Vehicle market can be categorized as Component, Vehicle Type, Top Speed, Vehicle Drive Type, EV Charging Point Type, Vehicle Connectivity, Propulsion, End Use, and Region.

Parameter Details
Segments Covered

By Vehicle Type

  • Passenger Vehicles
  • Commercial Vehicles

By Component

  • Battery Cells & Packs
  • On-Board Charge
  • Motor
  • Reducer
  • Fuel Stack
  • Power Control Unit
  • Battery Management System
  • Fuel Processor
  • Power Conditioner
  • Air Compressor
  • Humidifier

By Vehicle Class

  • Low-priced
  • Mid-priced
  • Luxury

By Top Speed

  • <125 MPH
  • >125 MPH

By Vehicle Drive Type

  • Front Wheel Drive
  • Rear Wheel Drive
  • All Wheel Drive

By Vehicle Connectivity

  • V2B or V2H
  • V2G
  • V2V
  • V2X

By Propulsion

  • BEV
  • PHEV
  • FCEV

By End Use

  • Private Vehicle
  • Commercial Fleets

By Region

  • North America
    • U.S.
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Ampere Vehicles (India)
  • Benling India Energy and Technology Pvt. Ltd. (India)
  • BMW AG (Germany)
  • BYD Company Ltd. (China)
  • Chevrolet Motor Company (U.S.)
  • Daimler AG (Germany)
  • Energica Motor Company S.P.A. (Italy)
  • Ford Motor Company (U.S.)
  • General Motors (U.S.)
  • Hero Electric (India)
  • Hyundai Motor Company (South Korea)
  • Karma Automotive (U.S.)
  • Kia Corporation (South Korea)
  • Lucid Group Inc. (U.S.)
  • Mahindra Electric Mobility Limited (India)
  • NIO (China)
  • Nissan Motors Co. Ltd. (Japan)
  • Okinawa Autotech Pvt. Ltd. (India)
  • Rivain (U.S.)
  • Tata Motors (India)
  • Tesla Inc. (U.S.)
  • Toyota Motor Corporation (Japan)
  • Volkswagen AG (Germany)
  • WM Motor (China)
  • Xiaopeng Motors (China)
  • Stellantis NV (Netherlands)
  • SAIC Motor Corp. Ltd. (China)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
Pricing and purchase options Avail of customized purchase options to meet your exact research needs. Explore purchase options

Electric Vehicle Market: Vehicle Type Overview

In 2023, the passenger vehicles segment led the market and accounted for a revenue share of 61.7%. Based on Vehicle Type, the Electric Vehicle market is divided into Passenger Vehicles and Commercial Vehicles.

Electric Vehicle Market by Vehicle Type 2023

This growth is attributed to the proliferating shift of the auto industry towards electrification. 2026 marks a pivotal listing point, signaling a rapid increase in Electric Vehicle adoption that will reform automotive electrification trends. Projections indicate that by 2030, more than one in four new passenger cars sold globally will be electric. Major vehicle manufacturers worldwide are implementing this shift, showing the end of the era augmented by internal combustion engines (ICE) as they ramp up production of zero-emission vehicles (ZEVs). By 2030, it is predicted that the top automakers will account for over 70% of global EV production, a sharp increase from their depiction of only 10% in 2022. Despite the growing choices available to EV consumers and remarkable loyalty rates among return buyers, the industry faces the challenge of addressing consumers' range anxiety, particularly those without access to a garage or frequently traveling long distances. Overcoming these challenges will be crucial for further accelerating the adoption of electric passenger vehicles and achieving the ambitious targets set for the EV market's growth and sustainability.

Electric Vehicle Market: Propulsion Overview

The BEV segment accounted for the maximum revenue share of 65.4% in 2023. By Propulsion, the Electric Vehicle market is classified into BEV, PHEV, and FCEV.

The primary difference between the Battery Electric Vehicle (BEV) and conventional Internal Combustion Engine (ICE) motors inside the electric-powered automobile industry resides of their propulsion system. While both types share similarities in their basic structure, comprising a passenger compartment with seats, gauges, steering mechanisms, and attached axles, wheels, brakes, and tires, the key distinction lies in their power sources. Unlike ICE vehicles, which rely on engines fuelled by gasoline and complex transmissions, BEVs utilize motors powered by battery packs and simpler transmissions. Notably, the powertrain, encompassing the motor and associated components, represents a significant portion of the vehicle's cost in both ICE and BEVs. On average, the powertrain accounts for 29% of the cost in ICE vehicles, whereas it constitutes 39% in BEVs. This difference underscores the evolving landscape of automotive propulsion, with BEVs offering a cleaner and more efficient alternative to traditional ICE vehicles. As consumer preferences shift towards sustainability and environmental consciousness, the BEV segment is poised for continued growth and innovation within the broader EV market.

Electric Vehicle Market: Vehicle Class Overview

The mid-priced segment accounted for the largest market share of 72.3% in 2023. Based on Vehicle Class, the Electric Vehicle market is classified into Low-priced, Mid-priced, and Luxury.

A mid-range automobile has few amenities and pays minimal attention to infotainment, instrument panels, and other high-priced features. One of the top markets for products in the middle price range is China. Mid-priced EVs are produced by famous automakers together with Nissan, Hyundai, General Motors, Honda, and Nissan a good way to grow their market stocks. In 2022, BYD Song Pro/Plus was the bestselling mid-priced EV in the Asia Pacific, followed by the Tesla Model 3 in Europe and North America. The need for affordable, low-emission vehicles has led to the biggest projected growth in the Asia Pacific and European Electric Vehicle markets for the mid-priced sector. Top EV models including Nissan Leaf, Renault Zoe, Mitsubishi Outlander, Volkswagen Passat, Hyundai Kona, and so on., fall under this category. These were also some of the largest-selling Electric Vehicles in these regions, excluding Tesla in 2022. Thus, the requirement for mid-priced electric cars has been exceeded within a few years and is predicted to continue growing in the coming decade.

Key Trends

  1. Automakers are rapidly increasing EV options to meet consumer demand and emissions regulations. The Accelerating to Zero coalition, launched in November 2022, targets all global car and van sales to be ZEVs by 2040, with leading markets aiming for compliance by 2035.
  2. Advancements in battery technology are boosting EV performance and affordability. Innovations like solid-state batteries and increased energy density aim to alleviate range anxiety. According to Benchmark Mineral Intelligence, lithium-ion automotive battery manufacturing capacity reached 1.5 TWh in 2022, with plans to expand to 6.9 TWh by 2030.
  3. Global governments are promoting EV adoption through subsidies, tax credits, and emissions regulations to propel the transition to electric mobility and minimize greenhouse gas emissions. In 2022, spending on electric cars surged by 50% to approximately USD 425 billion, with significant consumer contributions and government purchase incentives.
  4. Expanding EV charging infrastructure is crucial for accommodating the rising number of Electric Vehicles. Governments, utilities, and private companies are funding in networks, with 2.7 million global public charging points by the end of 2022, a 55% increase from 2023. China holds about two-thirds of the total, while Europe ranks second with approximately 540,000 chargers, up 50% from the previous year.
  5. Integrating renewables like solar and wind into EV charging infrastructure supports sustainable transport, reducing carbon emissions. India targets 40% renewable energy by 2022-2023 and aims for 500 GW of non-fossil fuel power by 2030, aligning with environmental goals and EV growth.

Premium Insights

The Electric Vehicle (EV) market positions the forefront of the global effort to decarbonize road transport, a critical sector accountable for over 15% of global energy-related emissions. Recent years have witnessed a notable surge in Electric Vehicle sales, accompanied by prominent advancements in range, model availability, and performance. Passenger electric-powered vehicles, specifically, are experiencing splendid popularity, with projections indicating approximately 18% of all new automobile sales in 2023. This surge mentions the exponential growth of EV sales, demonstrated by the monumental leap from around 1 million EV sales in 2017 to over 10 million in 2022. This exponential growth reflects the Electric Vehicle market's rapid evolution and expresses its transformative potential in expanding the automotive industry landscape. Struggling situations like the Net Zero Scenario visualize electric car sales taking around 65% of total car sales by 2030. The Electric Vehicle market is accelerating owing to electric car sales surging by an impressive 55% in 2022 compared to the previous year. While electrification is gaining traction across numerous vehicle segments, including buses and vans, the electrical sales percentage stays quite modest, at around 4% for buses and 1% for trucks in 2022. Nonetheless, these figures underscore the broader trend towards electrification across the entire automotive ecosystem, signaling a transformative shift towards a more sustainable and emissions-free future for transportation.

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Market Dynamics

Rise in EV Spending Signals Transition to Sustainable Transport

The surge in global expenditure on electric cars, which rose by 50% in 2022 compared to 2021, beating approximately USD 425 billion, is propelling the Electric Vehicles (EV) Market. With consumers directly investing in EV purchases and governments allotting around USD 40 billion in direct purchase incentives, the shift towards EVs is gaining traction. This surge in spending accounts for a significant revenue boost for carmakers, encouraging them to prioritize EV manufacturing, R&D, and new model development. Moreover, the lessening reliance on internal combustion engine (ICE) vehicle sales underscores a pivotal shift towards fully electrified road transport. Although government spending has decreased from over 20% to nearly 10% from 2017 to 2022, the gradual phasing out of subsidies in major EV markets suggests a further decline in government spending. Despite these changes, the trajectory points towards continued growth and advancement in the EV sector, marking a crucial step towards sustainable mobility.

The Transformative Role of Electric Vehicles in Regulatory Trends

Environmental and regulatory concerns are driving a dramatic transition in the Electric Vehicle (EV) sector. Despite accounting for less than 0.5% of global electricity consumption in 2022, the EV fleet consumed around 110 TWh of electricity and displaced approximately 0.7 Mb/d (1.3 EJ) of oil. This underscores the growing importance of EVs in reducing emissions and fossil fuel dependency. Recent policy developments fuel this momentum, such as California's ambitious ZEV mandates for cars and trucks, which set clear targets for increasing ZEV sales shares over the coming years. Similarly, the European Union's stringent CO2 standards for cars and vans and proposed revisions for heavy-duty vehicle emissions are pushing automakers towards cleaner technologies. The US EPA is putting up new GHG emissions regulations to keep up, to achieve notable decreases in fleet emissions by 2032. With governments worldwide embracing EV-friendly policies, the stage is set for a paradigm shift towards sustainable transportation solutions.

Competitive Landscape

The Electric Vehicle (EV) market's competitive landscape is evolving rapidly, fueled by regulatory initiatives and key players' strategic investments. The establishment of regulations by the U.S. Federal Register in February 2023 aimed at setting minimum standards for EV charger construction signals a concerted effort to improve charging infrastructure nationwide, thus facilitating greater EV adoption nationwide. Concurrently, the Volkswagen Company of America demonstrated its dedication to broadening its reach in the region by spending an enormous USD 7.1 million in March 2022 to widen its EV product line in North America. This strategic move, which includes plans to introduce 25 new Battery Electric Vehicles (BEVs) by 2030, is projected to double the company's market share. These regulatory advancements and strategic investments exemplify the dynamic competition within the EV market, driving innovation and growth as companies vie for market leadership in the burgeoning Electric Vehicle sector.

The key players in the global Electric Vehicle market include - Ampere Vehicles (India), Benling India Energy and Technology Pvt. Ltd. (India), BMW AG (Germany), BYD Company Ltd. (China), Chevrolet Motor Company (U.S.), Daimler AG (Germany), Energica Motor Company S.P.A. (Italy), Ford Motor Company (U.S.), General Motors (U.S.), Hero Electric (India), Hyundai Motor Company (South Korea), Karma Automotive (U.S.), Kia Corporation (South Korea), Lucid Group Inc. (U.S.), Mahindra Electric Mobility Limited (India), NIO (China), Nissan Motors Co. Ltd. (Japan), Okinawa Autotech Pvt. Ltd. (India), Rivain (U.S.), Tata Motors (India), Tesla Inc. (U.S.), Toyota Motor Corporation (Japan), Volkswagen AG (Germany), WM Motor (China), Xiaopeng Motors (China), Stellantis NV (Netherlands), SAIC Motor Corp. Ltd. (China) among others.

Recent Development

  • In January 2024: Tata Motors plans to launch three additional electric models - the Punch mini SUV, Harrier premium off-roader, and Curvv coupe.
  • In April 2023, Stellantis NV unveiled the 2025 Ram 1500 REV, a state-of-the-art all-electric pickup truck, as part of its Ram Truck lineup. This launch signifies Ram's venture into the Electric Vehicle arena and demonstrates its dedication to delivering inventive and eco-friendly solutions to customers.
  • In March 2023, Stellantis NV revealed plans to switch its Mangualde Production Center in Portugal to produce battery-electric light commercial vehicles by early 2025. This transformation will include manufacturing a range of models such as the Peugeot e-Partner, Citroën ë-Berlingo, Fiat e-Doblò, and Opel Combo-e, available in both commercial and passenger versions.

Frequently Asked Question
  • The global Electric Vehicle valued at USD 392.4 Billion in 2023 and is expected to reach USD 1259.4 Billion in 2032 growing at a CAGR of 13.9%.

  • The prominent players in the market are Ampere Vehicles (India), Benling India Energy and Technology Pvt. Ltd. (India), BMW AG (Germany), BYD Company Ltd. (China), Chevrolet Motor Company (U.S.), Daimler AG (Germany), Energica Motor Company S.P.A. (Italy), Ford Motor Company (U.S.), General Motors (U.S.), Hero Electric (India), Hyundai Motor Company (South Korea), Karma Automotive (U.S.), Kia Corporation (South Korea), Lucid Group Inc. (U.S.), Mahindra Electric Mobility Limited (India), NIO (China), Nissan Motors Co. Ltd. (Japan), Okinawa Autotech Pvt. Ltd. (India), Rivain (U.S.), Tata Motors (India), Tesla Inc. (U.S.), Toyota Motor Corporation (Japan), Volkswagen AG (Germany), WM Motor (China), Xiaopeng Motors (China), Stellantis NV (Netherlands), SAIC Motor Corp. Ltd. (China).

  • The market is project to grow at a CAGR of 13.9% between 2024 and 2032.

  • The driving factors of the Electric Vehicle include

    • Reducing prices of batteries to support demand for cost-effective EVs

  • Asia Pacific was the leading regional segment of the Electric Vehicle in 2023.