The global electric vehicle (EV) market is poised for remarkable growth, with total sales projected to reach 51.6 million by the year 2035, according to insights from data and analytics company GlobalData. This forecast represents a substantial uptick, driven by a compound annual growth rate (CAGR) of 15.9% expected between 2023 and 2035.
Breaking down the projections by vehicle type, the report highlights a robust CAGR of 26.1% for the passenger EV market during this period, while the commercial EV sector is anticipated to experience a growth rate of 15%. The surge in sales is particularly evident in the battery electric vehicle (BEV) segment, with forecasts indicating a staggering 44 million units of battery electric passenger cars sold by 2035, a significant leap from the 7.3 million units reported in 2022. Similarly, the total sale of battery electric commercial vehicles, which reached approximately 400,000 units in 2022, is expected to skyrocket to 7.6 million units by 2035, according to GlobalData’s projections.
The impetus behind this substantial growth is largely attributed to the ongoing electrification of the global transport industry, fueled by a worldwide shift towards low-carbon alternatives in response to environmental concerns and the imperative to reduce reliance on traditional combustion engine vehicles. Many countries and blocs have set ambitious deadlines for the complete phase-out of new fossil fuel-powered road vehicles, contributing to the accelerating pace of EV adoption.
In the United Kingdom, a ban on combustion engine vehicles is scheduled to commence from 2030, and despite fluctuations in other environmental policies, the commitment to this target remains steadfast. Similarly, EU member states plan to implement a comparable ban by 2035, while the U.S. Government has pledged that half of all vehicles sold in the country will be electric or zero-emission by 2030.
Attaurrahman Ojindaram Saibasan, a power analyst at GlobalData, sheds light on the driving forces behind the increasing adoption of EVs worldwide. He cites the rising cost of gasoline, the expanding EV infrastructure, including an increase in charging stations, maintenance hubs, and EV-related facilities, along with growing environmental concerns about pollution as pivotal factors.
China, holding the title of the largest EV market globally, played a pivotal role in this surge with annual sales of five million battery electric vehicles reported in 2022. The Asia-Pacific (APAC) region emerges as the frontrunner in the global EV market, contributing 69.3% of sales in 2022, followed by Europe at 19% and the Americas at 10%. China’s dominance in the APAC region is a critical factor, and the region is anticipated to maintain a significant market share of 41.4% by 2035, with Europe at 31.6% and the Americas at 19.4%.
As the EV landscape evolves, GlobalData’s insights underscore the pivotal role of factors such as government policies, infrastructure development, and environmental consciousness in shaping the trajectory of the electric vehicle market on a global scale. The data paints a picture of a transformative future, where the electrification of transportation takes center stage in the collective effort towards a sustainable and low-carbon future.
