The United States Electric Car Market is segmented by Vehicle Configuration (Passenger Cars) and by Fuel Category (BEV, FCEV, HEV, PHEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

Electric Vehicle Market Outlook

Based on our latest research, the global electric vehicle (EV) market size reached an impressive USD 623.4 billion in 2024, marking a pivotal year for the industry. The sector is exhibiting robust momentum with a compound annual growth rate (CAGR) of 18.6% from 2025 to 2033. By the end of 2033, the global electric vehicle market is forecasted to surpass USD 2,261.7 billion, driven by escalating consumer demand, stringent emission regulations, and rapid advancements in battery technology. The surge in governmental incentives, coupled with the expansion of charging infrastructure and growing environmental consciousness, are the primary catalysts underpinning this remarkable growth trajectory.

The electric vehicle market is being propelled by a confluence of transformative factors. Chief among these is the global shift toward sustainable transportation, prompted by mounting concerns over climate change and air pollution. Governments worldwide are instituting stringent emission norms and offering lucrative subsidies and tax incentives to encourage both manufacturers and consumers to embrace electric mobility solutions. These policy initiatives, combined with urbanization trends and rising fuel prices, are compelling automakers to accelerate the development and deployment of advanced EV models across diverse segments, from passenger cars to commercial fleets. The proliferation of public and private sector investments in research and development is further catalyzing innovation, particularly in battery chemistry and vehicle design, which is crucial for enhancing driving range and reducing costs.

Another significant growth driver is the rapid evolution of battery technology, specifically the widespread adoption of lithium-ion batteries. These batteries offer superior energy density, longer cycle life, and faster charging capabilities compared to traditional alternatives such as lead-acid or nickel-metal hydride batteries. The declining cost of lithium-ion batteries, coupled with improvements in supply chain logistics and manufacturing efficiency, is making electric vehicles increasingly affordable for mass-market consumers. Furthermore, the emergence of next-generation battery technologies, including solid-state batteries and alternative chemistries, promises to further extend vehicle range, reduce charging times, and improve overall safety, thereby addressing some of the most persistent barriers to EV adoption.

The expansion of charging infrastructure is another pivotal factor fueling the electric vehicle market’s upward trajectory. Governments and private enterprises are investing heavily in the development of both normal and supercharging networks, aiming to reduce range anxiety and make EV ownership more convenient. Innovative solutions such as ultra-fast chargers, wireless charging, and vehicle-to-grid integration are being deployed in urban and rural settings alike. These advancements are not only enhancing the user experience but also supporting the electrification of commercial fleets and public transportation systems. As charging infrastructure becomes more ubiquitous and technologically advanced, it is expected to play a decisive role in accelerating the transition to electric mobility on a global scale.

Regionally, Asia Pacific continues to dominate the electric vehicle market, accounting for the largest share in 2024. This dominance is attributed to the presence of leading EV manufacturers, supportive government policies, and a rapidly growing middle-class population with increasing purchasing power. China, in particular, stands out as the largest EV market globally, with aggressive targets for new energy vehicle adoption and significant investments in charging infrastructure. Meanwhile, Europe and North America are also witnessing substantial growth, driven by robust regulatory frameworks, ambitious decarbonization goals, and heightened consumer awareness. Emerging markets in Latin America and the Middle East & Africa are gradually catching up, spurred by urbanization and government-led sustainability initiatives, although their market shares remain comparatively modest.

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Electric Vehicle (EV) Market Size 2025-2029

The electric vehicle (ev) market size is valued to increase by USD 446.4 billion, at a CAGR of 16.4% from 2024 to 2029. Growing demand for low-emission vehicles will drive the electric vehicle (ev) market.

Market Insights

APAC dominated the market and accounted for a 59% growth during the 2025-2029.
By Type - BEV segment was valued at USD 173.00 billion in 2023
By Charging - Normal charging segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 202.70 billion 
Market Future Opportunities 2024: USD 446.40 billion
CAGR from 2024 to 2029 : 16.4%

Market Summary

The market is experiencing significant growth driven by increasing global concerns over climate change and the need for sustainable transportation solutions. Governments worldwide are implementing policies to reduce carbon emissions, leading to a surge in demand for EVs. Furthermore, advancements in battery technology have improved EV range and reduced charging times, making them a more viable alternative to traditional Internal Combustion Engine (ICE) vehicles. However, the EV market faces challenges, primarily the insufficient charging infrastructure. As the number of EVs on the road increases, the demand for charging stations grows, and current infrastructure struggles to keep pace. This issue is particularly acute in rural areas and developing countries, where charging stations are scarce. A real-world business scenario illustrates the importance of addressing this challenge. A logistics company, aiming for operational efficiency and compliance with emissions regulations, invests in a fleet of EVs. However, the lack of charging infrastructure forces the company to frequently divert trucks to cities to recharge, increasing operational costs and delivery times. To mitigate this issue, the company collaborates with local governments and utilities to expand charging infrastructure, ensuring efficient and sustainable operations. In conclusion, the EV market is poised for growth, driven by environmental concerns and technological advancements. However, the insufficient charging infrastructure poses a significant challenge that must be addressed to fully realize the potential of this market.

What will be the size of the Electric Vehicle (EV) Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free SampleThe market continues to evolve, with automotive battery technology at its core. Companies are investing heavily in battery cell manufacturing to improve energy density and reduce charging time. Charging time optimization is a significant concern for consumers, and advancements in high-power battery chargers and smart charging algorithms are addressing this issue. Furthermore, vehicle-to-grid integration and powertrain electrification components are transforming the EV landscape, enabling energy efficiency and grid stability. Electric vehicle infrastructure development is accelerating, with an increasing focus on vehicle electrification technology, electric motor controllers, and power semiconductor devices. Range-extending generators and battery recycling processes are also gaining traction, ensuring the sustainability of the EV market. As businesses navigate this dynamic industry, they must consider electric vehicle regulations and battery management algorithms to ensure compliance and optimize their product strategy. Lithium-ion battery packs remain the dominant technology, but research and development in alternative battery types, such as solid-state batteries, are ongoing. The EV market's growth is driven by the need for cleaner transportation and the increasing availability of charging infrastructure. With continuous advancements in battery technology and charging infrastructure, the future of the EV market looks promising.

Unpacking the Electric Vehicle (EV) Market Landscape

Electric Vehicles (EVs) represent a significant shift in the global automotive landscape, with battery electric vehicles (BEVs) leading the charge. According to industry data, BEVs accounted for 3.1% of global new passenger car sales in 2020, marking a 40% increase from the previous year. This trend is driven by several business-critical factors.

Range anxiety mitigation through advanced energy storage systems and fast charging infrastructure has improved electric vehicle architecture, enabling longer ranges and shorter refueling times. Lightweight materials and powertrain efficiency enhancements have led to a 10% reduction in energy consumption per mile compared to conventional internal combustion engine vehicles. Furthermore, the integration of onboard charger design, solid-state batteries, and motor drive inverters has resulted in electric motor efficiency improvements of up to 95%.

Battery life cycle management and power

The Electric Vehicles Market report segments the industry into Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers), Fuel Category (BEV, FCEV, HEV, PHEV), and Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). It provides five years of historical data and five-year market forecasts.

The global industrial electric vehicle market size was valued at $52.2 billion in 2025 and is projected to reach $163.7 billion by 2033, exhibiting a CAGR of 15.7% during the forecast period. The rising awareness regarding environmental sustainability, coupled with stringent government regulations to curb carbon emissions, is driving the growth of the market. Industrial electric vehicles offer a zero-emission solution for material handling and transportation within warehouses, manufacturing facilities, and other industrial settings. The growing adoption of automation and robotics in industrial processes is further propelling the demand for industrial electric vehicles. These vehicles can be seamlessly integrated with automated systems to optimize material flow and enhance productivity. The increasing focus on safety and ergonomics in the workplace is also contributing to the adoption of industrial electric vehicles, as these vehicles reduce the risk of accidents and injuries compared to traditional internal combustion engine vehicles.

The global industrial electric vehicle (IEV) market is experiencing robust growth, driven by increasing environmental concerns, stringent emission regulations, and the decreasing cost of battery technology. The market size in 2025 is estimated at $15 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 18% from 2025 to 2033. This significant expansion is fueled by the rising adoption of IEVs across various sectors, including transportation, agriculture, and material handling. The transition towards sustainable logistics and operations is a key catalyst, with businesses actively seeking to reduce their carbon footprint and improve operational efficiency. Furthermore, advancements in battery technology, offering increased range and reduced charging times, are significantly contributing to market expansion. The segment breakdown reveals a strong demand for four-wheel IEVs, predominantly in the transportation sector, followed by two-wheel and three-wheel vehicles used extensively in logistics and last-mile delivery. The market's growth trajectory is anticipated to be influenced by several factors. Continued technological innovations leading to improved battery performance and reduced costs are expected to accelerate adoption. Government incentives and subsidies aimed at promoting electric vehicle adoption will play a crucial role in stimulating market demand. However, challenges remain, including the high initial investment cost of IEVs compared to their internal combustion engine counterparts, limited charging infrastructure in certain regions, and the need for skilled workforce to maintain and repair these vehicles. Despite these restraints, the long-term outlook for the industrial electric vehicle market remains highly positive, with substantial growth opportunities across diverse geographical regions and application segments. Key players such as Crown Equipment Corporation, Hyster-Yale, and Jungheinrich AG are strategically investing in research and development, expanding their product portfolios, and establishing strategic partnerships to capitalize on the market’s growth potential.

The Used EV Market is estimated to be valued at USD 206.9 billion in 2025 and is projected to reach USD 463.5 billion by 2035, registering a compound annual growth rate (CAGR) of 8.4% over the forecast period.

The Electric Vehicle Market size is expected to reach a valuation of USD xx billion in 2033 growing at a CAGR of xx%. The Electric Vehicle Market research report classifies Market by share, trend, demand, forecast and based on segmentation.

According to Cognitive Market Research, the global Electric Car market size was USD 415422.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 166169.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 124626.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 95547.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 20771.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 8308.45 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The 100 to 125 MPH category is the fastest growing segment of the Electric Car industry

Market Dynamics of Electric Car Market

Key Drivers for Electric Car Market

Lower operating and maintenance costs of electric vehicles are a key driver of growth in the market.

Electric cars use electricity to charge their batteries, instead of using fossil fuels like petrol or diesel, making the running cost of an electric vehicle much lower. The charging costs are not dependent on global oil markets, freeing them from price shocks, disruptions and supply shortages. Using renewable energy sources at home, such as solar panels can further reduce the cost of charging a battery powered car. Electric cars have fewer moving parts, unlike an internal combustion vehicle, resulting in less frequent servicing, thereby reducing maintenance costs, making the yearly cost of running an EV significantly low.

For instance, as of March 2022, driving an electric car was dramatically cheaper than driving a gas-powered car. Electric cars are 3-5 times cheaper to drive per mile than gas-powered vehicles.
A consumer survey showed that EV drivers tend to spend about 60 percent less each year on fuel costs compared to drivers of gas-powered cars.

(Source:https://www.zeta.org/news/electric-vehicles-are-delivering-marked-cost-savings-for-drivers-and-surging-gasoline-prices-are-making-the-cost-savings-increasingly-apparent )

(Source:https://www.nrdc.org/stories/electric-vs-gas-cars-it-cheaper-drive-ev#:~:text=A%202020%20Consumer%20Reports%20study,drivers%20of%20gas%2Dpowered%20cars. )

Rising concerns of environmental impact is driving demand for electric vehicles.

Electric vehicles were introduced due to a variety of factors, environmental concerns being one of them. Initially Electric cars gained popularity not only for their quiet operation and ease of use but also because of the lack of noxious fumes compared to fuel-based vehicles. As concerns around the environmental impact grew, battery powered cars gained a significant advantage. Gas-powered cars contribute significantly to air pollution and greenhouse gas emissions, causing environmental problems, while EVs offer a cleaner alternative, producing zero emissions. The rise in awareness of climate change and higher pollution motivates individuals to adopt for EVs, which offer zero tailpipe emissions. Unlike petrol or diesel-based motors, EV motors are almost silent, especially when driven at a lower speed. This results in creating a quieter environment, making it more peaceful and pleasant for both people as well as wildlife.

Restraint Factor for the Electric Car Market

Inadequate charging infrastructure remains to be a challenge in the global EV market

Limited adequate charging infrastructure is a major restraint, hindering the growth of the global electric vehicle market. Despite increasing consumer interest and rapid growth in the market, the lack of readily available and easily accessible charging stations can deter potential consumers. This can create range anxiety for consumers as many EVs have limited driving ranges, making long trips challenging. The cost of installing EV chargers is also a barrier. Equipment,...

The industrial electric vehicle (IEV) market is experiencing robust growth, driven by stringent emission regulations, escalating fuel costs, and a growing focus on sustainability across various industries. The market, encompassing two-wheel, three-wheel, and four-wheel vehicles for transportation, agriculture, and other applications, is projected to witness significant expansion over the forecast period (2025-2033). While precise market size figures are unavailable, considering a plausible CAGR of 15% (a reasonable estimate based on the growth observed in related EV sectors) and a 2025 market value of $50 billion (this is a hypothetical figure but within the plausible range for a significant industrial sector), we can project substantial growth. Key drivers include government incentives promoting electric vehicle adoption, advancements in battery technology leading to increased range and reduced charging times, and the rising demand for efficient and environmentally friendly material handling equipment within warehouses and logistics centers. Furthermore, the agricultural sector's increasing integration of automation and electrification contributes to IEV market expansion. However, challenges remain. High initial investment costs, limited charging infrastructure, particularly in remote areas, and concerns about battery lifespan and disposal pose restraints on widespread adoption. Nevertheless, ongoing technological innovations, including the development of more affordable and durable batteries, coupled with expanding charging infrastructure and supportive government policies, are expected to mitigate these challenges. Market segmentation, with transportation likely dominating followed by agriculture and other specialized applications, will significantly influence growth patterns across various regions. North America and Europe are currently leading the market, owing to robust environmental regulations and substantial investment in electric vehicle infrastructure. However, rapid economic growth and industrialization in Asia-Pacific are expected to drive significant market expansion in these regions in the coming years. Companies such as Crown Equipment, Hyster-Yale, and John Deere are playing key roles in shaping market trends through continuous innovation and expansion.

Electric Vehicles Market size is set to expand from $ 376.59 Billion in 2023 to $ 1186.52 Billion by 2032, with an anticipated CAGR of around 13.6% from 2024 to 2032.

Industrial Electric Vehicle Market Outlook

The global industrial electric vehicle market size is projected to grow from USD 5.8 billion in 2023 to USD 12.3 billion by 2032, exhibiting a CAGR of 8.9% during the forecast period. This growth is driven by increasing environmental regulations and the need for more sustainable industrial operations. Several factors contribute to the robust growth of this market, including technological advancements, rising fuel costs, and heightened awareness about the environmental impact of traditional industrial vehicles.

One of the primary growth factors of the industrial electric vehicle market is the increasing stringency of environmental regulations. Governments around the world are implementing stricter emissions standards and offering incentives for adopting electric vehicles, not just in the consumer segment but also in industrial applications. The shift towards reducing carbon footprints and achieving sustainability goals has prompted many industries to invest in electric vehicles, leading to substantial market growth. Additionally, technological advancements in battery technology and charging infrastructure are making electric vehicles more viable for industrial use, further driving market expansion.

The rising cost of traditional fuels is another significant factor contributing to the growth of the industrial electric vehicle market. As fuel prices continue to fluctuate and generally trend upwards, industries are looking for cost-effective alternatives to maintain their operational efficiency. Electric vehicles offer a lower total cost of ownership due to reduced fuel costs and maintenance requirements. This economic advantage is encouraging more industries to transition from conventional vehicles to electric alternatives, thereby boosting the market. Moreover, the energy efficiency of electric vehicles is higher compared to internal combustion engine vehicles, offering better performance and lower operational costs.

Heightened awareness about the environmental impact of traditional industrial vehicles is also fostering growth in the market. Industries are increasingly recognizing the importance of adopting green technologies to minimize their environmental footprint. Electric vehicles, with zero emissions and lower noise pollution, are becoming the preferred choice for many industrial applications. This shift is not only beneficial for the environment but also enhances the corporate image of companies, making them more attractive to environmentally-conscious consumers and investors. These factors collectively contribute to the sustained growth of the industrial electric vehicle market.

In the context of industrial electric vehicles, Electrical Utility Task Vehicles are gaining attention for their versatility and efficiency in various industrial settings. These vehicles are designed to handle a range of tasks, from transporting materials to providing support services in large facilities. Their electric nature not only reduces operational costs but also aligns with the growing emphasis on sustainability and environmental responsibility. As industries seek to minimize their carbon footprint, the adoption of Electrical Utility Task Vehicles is becoming increasingly attractive. These vehicles offer the dual benefits of operational efficiency and environmental stewardship, making them a valuable addition to any industrial fleet. Furthermore, advancements in battery technology and charging infrastructure are enhancing the performance and viability of these vehicles, encouraging more industries to integrate them into their operations.

The regional outlook for the industrial electric vehicle market indicates significant growth potential across various regions. North America and Europe are expected to lead the market due to their stringent environmental regulations and strong focus on sustainability. The Asia Pacific region is also anticipated to witness substantial growth, driven by rapid industrialization, urbanization, and supportive government policies. Latin America and the Middle East & Africa regions are gradually adopting industrial electric vehicles, supported by increasing awareness and government initiatives. Overall, the global market presents a promising landscape for industrial electric vehicles.

Vehicle Type Analysis

The industrial electric vehicle market is segmented by vehicle type, including forklifts, aerial work platforms, utility vehicles, tow tractors, and others. Forkli

The global electric vehicle (EV) market is experiencing robust growth, projected to reach a market size of $246.71 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 14.2% from 2025 to 2033. This surge is driven by several key factors. Government incentives aimed at reducing carbon emissions and promoting sustainable transportation are significantly boosting EV adoption. Furthermore, technological advancements leading to increased battery range, faster charging times, and improved vehicle performance are enhancing consumer appeal. The decreasing cost of batteries is also making EVs more price-competitive with traditional internal combustion engine vehicles. Growing environmental concerns and the rising awareness of climate change are further fueling demand, particularly in developed nations with stringent emission regulations. The market is segmented by vehicle type (Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs)) and application (home use and commercial use), offering diverse opportunities for manufacturers and related industries. The market's rapid expansion is not uniform across all regions. North America and Europe are currently leading in EV adoption due to well-established charging infrastructure and supportive government policies. However, the Asia-Pacific region, particularly China, is anticipated to witness the most significant growth in the coming years owing to its massive population, burgeoning middle class with increasing disposable income, and government initiatives promoting domestic EV production. While challenges remain, such as the need for further development of charging infrastructure, especially in less developed regions, and concerns about battery lifespan and recycling, the overall outlook for the EV market remains exceptionally positive, promising considerable growth and transformation in the global automotive landscape throughout the forecast period. Key players like Tesla, BYD, Volkswagen, and others are constantly innovating and expanding their product portfolios to capitalize on this rapidly evolving market.

The global Light Electric Vehicles (LEVs) Market size is expected to reach USD 191.45 Billion in 2032 registering a CAGR of 9.3% Discover the latest trends and analysis on the Light Electric Vehicles (LEVs) Market. Our report provides a comprehensive overview of the industry, including key players,...

The industrial electric vehicle (IEV) market is experiencing robust growth, driven by stringent emission regulations, escalating fuel costs, and a rising focus on sustainability across various industries. The market, estimated at $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching an estimated value of $45 billion by 2033. Key drivers include government incentives promoting the adoption of cleaner transportation solutions, advancements in battery technology leading to improved range and performance, and increasing demand for efficient and cost-effective material handling within warehouses and manufacturing facilities. Emerging trends like autonomous driving capabilities and connected vehicle technologies are further fueling market expansion. However, challenges such as high initial investment costs, limited charging infrastructure in certain regions, and concerns regarding battery lifespan and recycling remain as restraints. The market is segmented by vehicle type (forklifts, trucks, buses), application (logistics, manufacturing, construction), and battery technology (Lithium-ion, lead-acid). Leading players like Hyster-Yale, Crown Equipment Corporation, and Jungheinrich AG are actively investing in research and development, expanding their product portfolios, and establishing strategic partnerships to consolidate their market positions. The regional distribution of the IEV market shows a significant presence across North America, Europe, and Asia-Pacific, each exhibiting distinct growth trajectories based on regional regulations, economic conditions, and technological advancements. North America, with its mature industrial infrastructure and early adoption of electric vehicles, holds a significant market share, closely followed by Europe driven by stringent emission norms. Asia-Pacific is also exhibiting rapid growth due to increasing industrialization and government support for electric mobility initiatives. The competitive landscape is characterized by both established manufacturers of industrial vehicles diversifying into electric models and emerging companies focusing specifically on electric vehicle technologies. This dynamic interplay is fostering innovation and accelerating the overall adoption of IEVs.

Neighborhood Electric Vehicle Market Outlook

According to our latest research, the global Neighborhood Electric Vehicle (NEV) market size reached USD 7.8 billion in 2024, demonstrating solid momentum with a recorded CAGR of 9.4% from the previous year. This market is set to experience robust growth, with the forecasted market size projected to reach USD 18.1 billion by 2033, as per our CAGR calculations. The primary growth drivers include increasing urbanization, heightened environmental awareness, and the implementation of favorable government policies supporting sustainable mobility solutions. The NEV market is evolving rapidly, shaping the future of urban transportation and last-mile mobility.

One of the most significant growth factors for the Neighborhood Electric Vehicle (NEV) market is the global push towards sustainability and emission reduction. Governments worldwide are introducing stringent emission regulations, incentivizing the adoption of electric vehicles, including NEVs, to combat urban air pollution and reduce carbon footprints. These vehicles, with their low-speed capabilities and minimal emissions, are ideal for urban centers, gated communities, and campuses. The surge in eco-consciousness among consumers and organizations alike is further accelerating the shift towards NEVs, as they offer a practical solution for short-distance commuting without compromising environmental values. Additionally, the rising cost of fossil fuels and the volatility of the global oil market are compelling both individuals and businesses to seek efficient and cost-effective alternatives, positioning NEVs as a preferred mobility option.

Technological advancements in battery technology and vehicle design are also propelling the NEV market forward. The integration of advanced lithium-ion batteries has significantly improved vehicle range, charging efficiency, and overall performance, making NEVs more appealing to a broader customer base. Innovations in lightweight materials, smart connectivity features, and enhanced safety systems are further enhancing the user experience and expanding the applications of NEVs beyond traditional uses such as golf courses. These advancements have led to the development of multi-functional NEVs suitable for residential, commercial, and industrial environments. As manufacturers continue to invest in research and development, the market is witnessing the introduction of more versatile and cost-effective models, catering to the diverse needs of modern urban mobility.

Another crucial factor contributing to market growth is the increasing adoption of NEVs in commercial and industrial sectors. Companies are leveraging NEVs for intra-facility transportation, last-mile delivery, and logistics operations, owing to their low operational costs and maneuverability in congested areas. The hospitality industry, airports, resorts, and large industrial complexes are increasingly deploying NEVs to enhance operational efficiency and reduce their environmental impact. Furthermore, the proliferation of smart cities and integrated mobility solutions is creating new opportunities for NEVs, as they seamlessly fit into multimodal transport networks. The growing trend of shared mobility and ride-hailing services in urban areas is also expected to drive market expansion, as NEVs offer an economical and sustainable alternative for short-distance travel.

From a regional perspective, Asia Pacific continues to dominate the global NEV market, driven by rapid urbanization, large-scale infrastructure development, and proactive government initiatives supporting electric mobility. North America and Europe are also witnessing significant growth, fueled by increasing investments in smart city projects and heightened consumer awareness regarding sustainable transportation. Latin America and the Middle East & Africa are emerging markets, with growing adoption of NEVs in urban centers and tourist destinations. The overall regional outlook remains optimistic, with each region contributing uniquely to the global market’s expansion through tailored policies, technological innovation, and evolving consumer preferences.

The Alternatively Fuelled Vehicle (AFV) Manufacturing industry has expanded in recent years, driven by technological advancements, government incentives and rising concern over environmental issues. These trends have encouraged traditional manufacturers to increasingly focus on the production of pure electric and hybrid electric vehicles. The UK’s plug-in car grant, which provides subsidies towards consumer purchases of AFVs, has spurred demand for electric and hybrid electric vehicles in recent years. Rising fuel prices and a sharp drop in demand for diesel and petrol vehicles have provided further growth opportunities for AFV manufacturers. Revenue is forecast to climb at a compound annual rate of 5.1% to £12.6 billion over the five years through 2024-25, including a projected revenue jump of 4.1% in the current year. UK AFV manufacturers have pumped money into developing new models in recent years to take advantage of a rapidly growing market. According to the Society of Motor Manufacturers and Traders, AFVs accounted for 25% of new car registrations in 2022. UK registrations of BEVs, PHEVs and HEVs accounted for 37.3% of new car registrations in the first five months of 2024, compared to 2023 – as the appetite for electric cars grows. The pandemic dampened the industry's success as production was suspended for prolonged periods because of repeated lockdowns. Revenue has since expanded, with customers becoming more environmentally conscious and government policies driving them towards AFVs. Revenue is forecast to expand at a compound annual rate of 7.9% to £18.4 billion over the five years through 2029-30, despite operating on slim margins. AFVs still account for a small share of car registrations, indicating future growth opportunities. However, reduced funding or an end to the plug-in car grant could restrict industry expansion in the coming years. The significant level of trade between the UK and EU will provide openings for car makers to sell more cars to Europe. Government efforts to boost the uptake of electric vehicles, such as investment in charging infrastructure, will drive industry growth.

The Europe Electric Vehicle Market report segments the industry into Vehicle Type (Commercial Vehicles, Passenger Vehicles, Two-Wheelers), Fuel Category (BEV, FCEV, HEV, PHEV), and Country (Austria, Belgium, Czech Republic, Denmark, Estonia, France, Germany, Ireland, Italy, Latvia, Lithuania, Norway, Poland, Russia, Spain, Sweden, UK, Rest-of-Europe). Get five years of historical data as well as five-year forecasts.

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