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EV industry forecast
Is the electric vehicle market predicted to keep growing?
Electric vehicles (EVs) are forecast to change the landscape of the automotive industry within the next decade and EV stocks are extremely popular with investors as well. And while we may be a few years off from flying cars and jet packs, there’s nothing farfetched about what the industry could look like in a couple of years. The EV market is already bringing some exciting changes to how we move about, making all our lives a little greener. Read on to find out how the electric vehicle industry is projected to grow by 2030.
Industry projections for 2030
Future sale forecast
Analyst projections place EVs as a dominant force in the global car market by 2030. Global EV sales with a compound annual growth rate of 29% over the next 10 years are even forecast to reach 31.1 million (32% total market share). These projections are related to the billions invested by original equipment manufacturers (OEMs) to deliver the EV future in conjunction with governments across the world incentivising green transport.
|Years||Total EV sales in millions ($)|
Differences by major region
With many governments incentivising their population to reduce pollution and carbon emissions, EVs are forecast to be a mainstream option in the market. China is expected to have 49% of the global share of EVs, with Europe (27%) and the US (14%) following. The market share within their domestic markets, China (48%), Europe (42%) and USA (27%), will have increased considerably, with the current global stock for EVs being 7.2 million in 2021 and growing by 23.9 million by 2030.
|Regions||Percentage market share|
|Rest of the world||10%|
Bestselling EV models
It comes as no surprise that Tesla is driving the shift towards EVs with Elon Musk ambitiously announcing it aims to produce 20 million cars per year by 2030 (as of 2021, Tesla produces 300,000 new cars per year). German car manufacturer BMW wants to electrify its European market by 50% and VW aims to have over 70 new electric models, meaning 40% of global sales could be EVs. Mazda plans for all car models to either be EV or hybrid by 2030, with Honda forecasting two-thirds of its global sales to be from EVs.
Past growth of EV vehicles
Past years of EV sales
EVs sales grew 43% in 2020 (3.1 million). In comparison, overall industry sales dropped by over a fifth in 2020, most likely an effect of the coronavirus pandemic. Internal combustion engine (ICE) cars continued to dominate the market with 63.8 million vehicles sold in 2020 worldwide, while EVs made up just 4.86% of total vehicles sold across the globe in 2020.
|Year||EV units sold|
Differences by major region
The global amount of EVs stood at 10.2 million in 2020. China is the largest EV market in the world with 4.5 million of the global stock, which saw a 43% increase in 2020 compared to 2019. This is over 44% of the total global EV stock. Europe owns the second largest share of the global stock at 3.2 million, notably with an 83% annual increase from 2019 to 2020. This is driven by markets such as Norway, with its domestic market share being 55% of all cars being EV. The US owns 1.15 million of the global stock but saw a 2% decrease in sales from 2019 to 2020, against the global trend of EV sales increasing.
Europe saw the largest growth in 2020 from 2019 over all other regions, with an 83% increase in sales for EVs. China’s already popular EV market grew by 17%, whereas the US saw a slight decrease by 2%. The rest of the world increased by 22%, highlighting that not only these regions are seeing a shift towards the electric car.
|Rest of the world||13.26%|
Most popular models
The Tesla Model 3 (£42,000) is the most popular electric car being bought, with over 350,000 sales alone in 2020, almost triple the Wuling HongGuang Mini EV (£3,200) at 119,000, an EV that the Chinese government offers free licence plates for all new purchasers. French manufacturer Renault Zoe (£28,795) is the third most popular EV at 100,000 sold. This is the most popular EV in Europe, where the car saw a 118% increase in sales from 2019. Tesla appeared again with its Model Y (£35,000), which sold 80,000 units and with Hyundai Kona Electric (£24,995) in fifth with 65,000.
|Bestselling models||Units sold|
|Tesla Model 3||365,000|
|Wuling HongGuang Mini EV||119,000|
|Tesla Model Y||80,000|
|Hyundai Kona Electric||65,000|
EVs in the UK
EV ownership in the UK
In the UK, new EV registrations grew 112% from March 2020 to March 2021. There are over 245,000 pure electric and over 515,000 plug-in models on our roads, which is an increase of 175,000 more EVs in the UK and 66% growth since 2019.
The most popular EVs in the UK vary from the most popular models sold worldwide. The Mitsubishi Outlander (plug-in hybrid) is the bestselling model in the UK (51,730 sold), followed by the Nissan Leaf (battery powered) in second place with over 41,000 vehicles sold. Tesla Model 3 is placed third in 2020 with 32,000, ahead of the BMW 3 series (over 27,000) and Renault Zoe with over 17,000.
|Models||EV Models sold|
|Tesla Model 3||32,848|
|BMW 3 Series||27,869|
Consumer priorities and thoughts on EV vehicles
Consumer priorities and thoughts on EV vehicles
When consumers were polled about EV adoption in 2020, driving range capacity was the biggest concern in Germany (33%) and France (28%). Respondents in the US (25%), Japan (29%), South Korea (32%), China (20%) and India (26%) all cite lack of charging infrastructure as top priority. Manufacturers are making the conscious effort to overcome these consumer perceptions in order to drive sales and their own business objectives.
- International Energy Agency
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