Global Electric Vehicles (EVs) Market Growth 2025-2031

The global Electric Vehicles (EVs) market size is predicted to grow from US$ 508390 million in 2025 to US$ 1267920 million in 2031; it is expected to grow at a CAGR of 16.5% from 2025 to 2031.

An electric vehicle (EV) is a vehicle that uses an electric motor as a drive system and a battery pack as a power source. Unlike traditional internal combustion engine vehicles (ICE), electric vehicles do not have a fuel engine. Instead, they have a battery pack and an electric drive system that stores electrical energy through batteries and drives the motor for power output. The core technologies of electric vehicles involve battery technology, electric drive systems, charging infrastructure, and power electronic control systems.

The core components of electric vehicles:

Battery packs: Usually lithium-ion batteries or solid-state batteries are used as the main carrier for storing electrical energy. The energy density, cycle life, and charging speed of the battery pack directly affect the range and efficiency of electric vehicles. Batteries with high energy density help to improve battery life, while fast charging technology solves the problem of charging time.

Electric motors: As the core of the drive system, electric motors have extremely high energy efficiency and can usually convert more than 85% of electrical energy into mechanical energy, which is much higher than the 20%-30% efficiency of traditional internal combustion engines. The advantages of electric motor drive are zero emissions, high efficiency, fast torque response, and extremely low noise.

Power electronic control system: used to regulate the energy flow between the battery and the motor to ensure the smooth and efficient power output of the electric vehicle, mainly including the battery management system (BMS), inverter, charging system, etc. The battery management system (BMS) ensures the health of the battery and balances the power of the battery cells through real-time monitoring to avoid overcharging or over-discharging.

Charging system: The charging system of electric vehicles mainly relies on charging piles for power replenishment. At present, charging facilities are gradually becoming popular. DC fast charging and AC slow charging are the main charging methods. The charging method, charging speed and coverage of charging infrastructure of electric vehicles directly affect the consumer's experience.

Vehicle control and intelligent system: With the development of electric vehicles, more and more electric vehicles are equipped with technologies such as intelligent driving, vehicle networking, and automatic driving. These systems enhance the safety, convenience and intelligence of driving by integrating sensors, AI algorithms and cloud computing.

Global electric vehicle sales will continue to grow, and China will continue to lead the electric vehicle market. China has become the world's first country with an annual production of electric vehicles exceeding 10 million, and has rapidly grown into the world's largest electric vehicle market. The European automotive industry is accelerating its transition to zero-emission vehicles to achieve the goal of carbon neutrality in 2050. Various incentives for electric vehicle purchases, such as subsidies and tax cuts, have been introduced, and new electric vehicle models have been launched one after another, so electric vehicle sales have grown steadily. However, since the second half of 2023, the subsidy plan has ended or been reduced, the economic situation has deteriorated, and electric vehicle deliveries have begun to slow down. In the US market, the IRA Act makes it more difficult to obtain electric vehicle tax credits, and political uncertainty may affect the sales of electric vehicles. The biggest opportunities for new energy vehicles in the future are in the Asia-Pacific region and emerging regions. As the world's largest electric vehicle market, China's policy promotion, infrastructure construction and the rise of independent brands have provided strong impetus for its market growth. Emerging markets such as India, Southeast Asia and Latin America are also gradually promoting the electrification process. Government support and environmental protection needs have made these regions a rapid growth point for new energy vehicles. Although the current penetration rate of electric vehicles is low, with the advancement of battery technology, the popularization of charging facilities and the increase in policy support, the electric vehicle market in these regions is expected to usher in explosive growth in the next few years and become a key driving force for the global electrification transformation.

As the global automotive industry transforms to electrification, BEV (pure electric vehicle) and PHEV (plug-in hybrid vehicle) have become the two main models in the new energy vehicle market. BEV accounts for more than 70% of the production market share. With the maturity of battery technology, the popularization of charging infrastructure and the support of government policies, the share of BEV in the global new energy vehicle market has gradually increased, among which the penetration rate of BEV is particularly prominent in the European and Chinese markets. China and Europe have strong policy support, especially subsidies and incentives for zero-emission vehicles, which makes consumers prefer pure electric models when choosing. The market share of PHEV is slightly lower, but it is also growing, especially in some transitional markets, such as those where the infrastructure is not yet perfect and consumers have a high demand for long driving range. PHEV accounts for less than 30% of the global new energy vehicle market, but still maintains a certain market share in some regions (such as North America and Japan). The advantage of PHEV models is that they can use both internal combustion engines and batteries, solving the problem of range anxiety. However, as the global charging facility network improves and battery technology continues to break through, the market share of PHEVs is expected to gradually decline in the next 10 years, especially when the range of pure electric vehicles is sufficient to cover the daily use of most consumers.

The world's major electric vehicle manufacturers include Tesla, BYD, BMW, Volkswagen, Mercedes-Benz, Stellantis, Volvo, Hyundai Kia, Renault, SAIC, Ford, Weilai, ONE, Xiaopeng, Toyota, GAC Motors, GM, JAC, Nissan, Great Wall Motors, Chery, Geely, Honda Motors, etc. Tesla and BYD will maintain their leading position in electric vehicle sales, while traditional automakers are still relatively backward.

The electric vehicle market continues to expand, and the advancement of battery technology, the decline in costs, and the increasing availability of charging infrastructure are expected to drive further growth in the next few years. As the electric vehicle market develops, monitoring policy changes, technological advances, and consumer preferences in various countries are key factors that will affect the development of electric vehicles in the future.

LP Information, Inc. (LPI) ' newest research report, the “Electric Vehicles (EVs) Industry Forecast” looks at past sales and reviews total world Electric Vehicles (EVs) sales in 2024, providing a comprehensive analysis by region and market sector of projected Electric Vehicles (EVs) sales for 2025 through 2031. With Electric Vehicles (EVs) sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Electric Vehicles (EVs) industry.

This Insight Report provides a comprehensive analysis of the global Electric Vehicles (EVs) landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Electric Vehicles (EVs) portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Electric Vehicles (EVs) market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Electric Vehicles (EVs) and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Electric Vehicles (EVs).

This report presents a comprehensive overview, market shares, and growth opportunities of Electric Vehicles (EVs) market by product type, application, key manufacturers and key regions and countries.

Segmentation by Type:
BEV
PHEV

Segmentation by Application:
Home Use
Commercial Use

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
Tesla
BYD
BMW
Volkswagen
Mercedes-Benz
Stellantis
VOLVO
Hyundai & Kia
Renault
SAIC
Ford
NIO
ONE
XPeng
TOYOTA
GAC Motor
GM
JAC
Nissan
Great Wall Motors
Chery
GEELY
Honda Motor

Key Questions Addressed in this Report

What is the 10-year outlook for the global Electric Vehicles (EVs) market?

What factors are driving Electric Vehicles (EVs) market growth, globally and by region?

Which technologies are poised for the fastest growth by market and region?

How do Electric Vehicles (EVs) market opportunities vary by end market size?

How does Electric Vehicles (EVs) break out by Type, by Application?

Please note: The report will take approximately 2 business days to prepare and deliver.