Worldwide electric vehicle sales expected to set a fresh milestone in 2024
The electric vehicle (EV) market is on the brink of a major expansion, with strong growth predicted across the US, Europe, and China over the next decade. This growth is driven by government policies, technological advances, and increasing consumer demand, despite challenges such as high EV prices and rising raw material demand.
According to projections, worldwide electric and plug-in hybrid car sales are expected to reach 17 million units by the end of 2024, a 20% increase compared to 2023. This growth is fueled by environmental regulations and policies promoting sustainability and energy efficiency.
In Europe, one in four cars is predicted to be electric by 2030, with battery electric vehicle (BEV) sales jumping over 37% in early 2025 despite a slight overall decline in new car registrations. Policy measures such as stringent emissions regulations and subsidies contribute significantly to this growth.
China, which accounted for more than 70% of global EV production in 2024, sales remain robust with over 10 million EVs sold in 2024 (over 60% of global sales). The country continues to lead due to strong governmental support, infrastructure development, and a large manufacturing base.
The US EV market benefits from federal and state incentives and regulatory mandates aiming to electrify fleets and reduce carbon emissions, supporting steady market expansion. In the US, around one in nine cars sold is expected to be electric.
However, challenges remain: the high prices of EVs, largely due to costly raw materials such as lithium, cobalt, and nickel used in batteries, may slow consumer uptake. Additionally, increasing raw mineral demand raises supply chain concerns impacting production costs.
Despite these challenges, the EV market is expected to continue growing. Technological advances in electric drive units (EDUs) — compact modules integrating motors, power electronics, and transmissions — are improving efficiency and driving market growth, with the EDU market expected to grow at a CAGR of 23.2% (2025–2035).
The electric vehicle testing equipment market, vital for ensuring safety and compliance, is projected to grow at a CAGR near 9.8% from 2025 to 2035, reflecting increased focus on product reliability as EV adoption expands globally.
The battery recycling industry is also growing fast, with battery recycling capacity reaching 300 gigawatt-hours (GWh) in 2023 and may exceed 1,500 GWh by 2030, with 70% based in China.
However, the European Court of Auditors (ECA) warns that high prices of EVs in Europe may jeopardize environmental goals. To address this, governments must work towards reducing costs and increasing affordability to encourage widespread adoption of EVs.
The IEA predicts that two out of three cars sold could be electric by 2035 if countries meet their climate and energy targets on time. The transition to electricity will rely on affordability and may not be consistent.
Charging networks need to increase sixfold by 2035 to keep up with the goals set by governments. The IEA Executive Director Fatih Birol states that the global EV revolution is gearing up for a new phase of growth.
In summary, all three regions—US, Europe, and China—are projected to see significant EV market growth driven by government policies and technology, though the pace may be tempered by high vehicle prices and raw material supply challenges. China leads in production and sales, Europe follows rapidly with strong policy support, and the US market is growing steadily with incentivization and regulation fostering adoption. The key to success lies in addressing the challenges head-on and ensuring affordability and accessibility for consumers.
[1] [Market Research Report] [2] [Industry Analysis] [3] [Government Report] [4] [Technology Report]
The data-and-cloud-computing industry plays a crucial role in supporting the rapid expansion of the electric vehicle (EV) market, as advancements in technology help improve efficiency and drive market growth. The finance sector is also engaged, with various governments offering incentives and regulatory mandates to reduce carbon emissions and promote EV adoption in the US, Europe, and China. Amidst this growth, the energy industry is also becoming increasingly involved in battery recycling to meet the rising demand for raw materials, such as lithium, cobalt, and nickel, essential for the production of EV batteries. [1] [2] [3] [4]
