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Global Electric Vehicle Market Poised for Significant Growth by 2030
The global electric vehicle (EV) market is gearing up for a substantial expansion over the next decade, driven by a combination of factors including net-zero commitments, government policies, technological advancements, and rising consumer demand for sustainable transportation.
Europe emerges as a key region in this transition, with regulatory support propelling higher EV adoption. Here are some key projections and details:
- Global Market Size: By 2034, the EV market is forecasted to swell from around USD 988.7 billion in 2025 to approximately USD 2.3 - 2.5 trillion, representing a strong compound annual growth rate (CAGR) between 11% and 21.8%, depending on the source.
- EV Sales Share: By 2025, electric cars are predicted to account for over 25% of global car sales, surpassing 20 million vehicles sold worldwide. In China, EV sales may reach around 60% of total car sales, while Europe and the UK are also projected to enforce strict emissions standards, boosting zero-emission vehicle sales.
- Europe’s Outlook: Production forecasts for Europe in 2025 and 2026 have been upgraded, reflecting better sales and regulatory impacts from EU standards such as CAFE (Corporate Average Fuel Economy) regulations, which favor EV production over internal combustion engine vehicles. EU policies and emissions targets are a major driver behind Europe’s accelerated EV adoption and production.
- Regulatory Environment: Europe’s regulatory environment is stringent on emissions, which is accelerating the shift towards EVs. This regulatory push is a significant factor underpinning the positive production outlook and adoption rates in Europe.
In summary, electric vehicle production and adoption globally are expected to more than double or even triple within this decade. In Europe specifically, regulatory pressure and improved production forecasts indicate robust growth in both EV manufacturing and market share, reinforcing the continent’s role as one of the leading EV markets by 2030.
For more precise vehicle count forecasts or regional breakdowns by 2030, accessing detailed market reports or updated projections beyond mid-2025 releases may be necessary.
In the US, a major corporation has increased its investments in electric and autonomous vehicles from $20 billion to $35 billion for the period 2020-2025. Automakers worldwide are also making significant investments, with a European automaker presenting a five-year plan worth $86 billion, while a US company is targeting $30 billion over five years.
However, semiconductor supply shortages are currently hampering vehicle production, with US dealer inventories lasting only 23 days due to these shortages, a 35-year low. Despite these challenges, the automotive sector, particularly market leaders in electric vehicle production, boasts strong fundamentals.
In China, the world's largest automotive market, sales are expected to increase by more than 5% compared to the previous year in the current year. For the 2021 fiscal year, global estimates for vehicle production stand at approximately 84 million units, representing a growth of about 10% compared to the previous year. In the US, it is expected that over 16 million units will be produced in the full year 2021, with production continuing to grow in 2022.
Suppliers are focusing on developing their product portfolios to keep up with the increasing adoption of electric vehicles. China has implemented a series of emission reduction regulations, with stricter targets set for 2025, which are expected to further drive the adoption of electric vehicles in the country. Worldwide automobile sales are expected to remain healthy and stable across all regions.
Analysts generally agree that Europe, driven by aggressive emission regulations, will lead the global adoption of electric vehicles. Despite current shortages and higher costs, the automotive sector, particularly the market leaders in electric vehicle production that focus on purely battery-powered vehicles, remains robust. In the full year 2022, global automotive production is expected to return to nearly 89 million units.
By 2030, it is expected that electric vehicles will become a mainstay in the global automotive market, with Europe playing a significant role in this transition.
- The continued growth of the global electric vehicle market by 2030 will present numerous investment opportunities in the renewable-energy industry, particularly for those financing businesses involved in energy storage and charging infrastructure.
- Real-estate developers and commercial property owners in Europe, with the surge in electric vehicle adoption, may consider integrating EV charging stations as an amenity to attract tenants or customers in the automotive and transportation sectors.
- In the finance industry, analysts are recommending diversifying portfolios to include investments in the automotive business, with a focus on companies leading in the development and production of renewable-energy vehicles and technologies.
- With governments worldwide promoting and implementing policies to reduce carbon emissions, the commercial sector, particularly automakers, will need to invest in research and development of electric vehicles to stay competitive in the global market.
- The global electric vehicle market's expansion in the coming years will have far-reaching implications for the transportation industry, as a shift towards cleaner, more sustainable energy sources becomes the norm, affecting everything from automotive design to supply chain management.
