Electric Vehicle Market Trends
Electric car sales are on track to outpace internal combustion engine (ICE) vehicle sales by 2035. This shift is driven by trends indicating that regulatory measures and growing sustainability efforts will make electric vehicles (EVs) a favorable choice among original equipment manufacturers (OEMs) and consumers. Continued innovation in battery technology, charging infrastructure, and other aspects of EV technology is expected to further boost the EV market.
Recent EV Figures and Stricter Regulations
In 2023, approximately 90 million vehicles were sold worldwide, with 14.4 million being electric vehicles. This number jumped to 18.1 million in 2024, highlighting a rapidly growing market. The desirability for EVs is amplified by growing awareness of sustainable technologies and various regulations across economies pushing to reach net zero. For instance, the EU has set an ICE ban for 2035, with tightening regulations in 2025 and 2030.
Trends for the Future of the EV Market
The IDTechEx report “Plug-in Hybrid and Battery Electric Cars 2025-2045: Technologies, Players, Regulations, Market Forecasts” explores the potential for 2025 to bring new opportunities for steady market growth. The report notes that lower-cost EV models are expected to emerge, making EVs more accessible to the mass market. Currently, EVs outside of China are mostly in the premium luxury segment, but this landscape is likely to change as battery and production costs stabilize.
Charging Infrastructure Growth
Charging infrastructure for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) is growing, with almost 4 million public charging points worldwide in 2023. However, approximately 219 million will be necessary by 2035 to meet the demands of the growing number of electric vehicles. Global investments in charging infrastructure are expected to exceed $104 billion by 2035.
Outlook for EVs and Manufacturers
PHEVs have seen significant uptake in China, the largest EV market globally, while electric pickup trucks are gaining traction in the US. Manufacturers will need to increase their EV shares over the next decade, particularly in Europe, to meet decreasing carbon emission goals. This shift may come with initial challenges, including potential decreases in profits, but is necessary for achieving sustainability targets.
