The global electric vehicle market is accelerating at a rapid pace, fueled by sustainability trends and new government incentives, according to a new report released by The Insight Partners.
The market was valued at $909 billion in 2024 and is projected to more than double to $2.49 trillion by 2031, the company said in a recent news release. Analysts expect the market to grow at a compound annual growth rate of 15.5% from 2025 to 2031.
The report defines the electric vehicle market as the manufacturing, sale and adoption of vehicles powered primarily by electricity. These include hybrid electric vehicles, plug-in hybrids and battery electric vehicles.
Shift in consumer demand
The report highlights a major shift in consumer behavior. Sales of plug-in hybrid vehicles, once popular in many regions, are declining. At the same time, demand for fully electric cars is climbing sharply, particularly in Europe. Tighter emissions standards and growing public awareness about sustainability are driving the change, the company said. Automakers are responding by focusing more on battery electric models.
Registrations on the rise
New registrations of electric vehicles rose 25% in 2024 compared with the previous year, adding nearly 4 million vehicles to global roads. Total EV sales hit 17 million in 2024, up from 10 million in 2022.
Government initiatives are playing a major role in this growth. In September 2024, India approved $1.3 billion in funding to boost EV adoption through incentives. Across Europe, 19 of 25 EU countries now offer tax breaks and other benefits for new electric vehicle purchases, according to the report.
Charging infrastructure expands
The report also underscores how investments in charging infrastructure are supporting market growth. The International Energy Agency projects the United Kingdom will install about 300,000 public chargers by 2030. In the United States, the federal government announced $46 million in January 2024 for charging projects in 16 states, part of a broader plan to reach 500,000 public EV ports by the end of the decade.
Industry analysts say these developments collectively point to a strong future for electric vehicles as automakers, governments and consumers push toward cleaner transportation.
The Insight Partners is a global market research and consulting firm that provides syndicated and customized reports across a range of industries.
The news and editorial staffs of Southern California News Group and The San Diego Union-Tribune had no role in this post’s preparation.