USD 500.48 Billion
Report ID:
SQMIU25A2411 |
Region:
US |
Published Date: March, 2025
Pages:
197
|Tables:
60
|Figures:
70
Electric Vehicle Market size was valued at USD 500.48 Billion in 2023 and is poised to grow from USD 671.47 Billion in 2024 to USD 1,891.08 Billion by 2032, growing at a CAGR of 13.8% in the forecast period (2025-2032).
The US electric vehicle market is experiencing exponential growth, driven by technological advancements, government incentives, and a shift toward sustainable transportation. In 2024, the market witnessed a surge in EV adoption, with passenger vehicles leading the segment, accounting for over 42.0% of the total market share. The widespread acceptance of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) has been fueled by improvements in battery technology, extended driving ranges, and the expansion of charging infrastructure worldwide. Governments across major regions, including the U.S., China, and Europe, continue to incentivize EV adoption through subsidies, tax credits, and stringent emission regulations, accelerating the phase-out of internal combustion engine (ICE) vehicles.
Electric vehicle market growth is anticipated to be fueled by increasing investment in the field of electric mobility. Notable industry players including Daimler AG, Ford Motor Company, BYD, and Renault Group are spending more money on their plans to manufacture EVs. For instance, BYD said in September 2022 that it will begin EV production in Thailand by 2024 with a capacity of 150,000 electric vehicles per year. With assistance from the Thailand Board of Investment, BYD will also construct a facility for EVs with cutting-edge right-hand drive technology at WHA Rayong 36 Industrial Estate. Major corporations are spending extensively on the creation of EVs, including Daimler AG and Mercedes Benz. As a result, during the forecast duration, the market is anticipated to record notable growth.
How Is AI Transforming the US Electric Vehicle Market?
Artificial Intelligence (AI) is revolutionizing the U.S. electric vehicle market by enhancing vehicle safety, optimizing battery performance, and accelerating the design and manufacturing processes. In 2024, AI-driven Advanced Driver Assistance Systems (ADAS) have significantly improved EV safety by enabling features such as adaptive cruise control, lane-keeping assistance, and collision avoidance. AI is also playing a crucial role in battery management by predicting battery lifespan, optimizing charging cycles, and enhancing overall efficiency. A recent survey highlighted widespread dissatisfaction with traditional battery testing methods, emphasizing how AI-driven simulations can accelerate battery validation. Automakers like Ford are leveraging AI and Nvidia GPUs to streamline vehicle design and production, using automation to convert sketches into 3D models and conduct stress tests more efficiently.
Which Startups are Driving Innovation in the US Electric Vehicle Market?
The U.S. electric vehicle market is undergoing a rapid transformation, fueled by technological advancements, government incentives, and increasing consumer demand for sustainable transportation. Startups are playing a pivotal role in this evolution, introducing innovative solutions that enhance battery efficiency, AI-driven automation, and unique business models like subscription-based EV ownership. Companies such as Rivian, Canoo, and Mullen Automotive are disrupting the industry with cutting-edge technologies and strategic collaborations, accelerating the transition toward an electrified future.
Market snapshot - (2025-2032)
Global Market Size
USD 500.48 Billion
Largest Segment
Battery Electric Vehicles (BEVs)
Fastest Growth
Plug-in Hybrid Electric Vehicles (PHEVs)
Growth Rate
13.8% CAGR
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Which Passenger Car Segment Leads the Market in 2024?
As per electric vehicle market analysis, the passenger car segment accounted for more than 42.0% of the market by 2024. This is driven by the growing sales of electric passenger vehicles such as sedans, hatchbacks, SUVs, etc. (XUV, station wagon, minivan). This dominance is primarily driven by the rising adoption of electric sedans, hatchbacks, SUVs, station wagons, and minivans, supported by advancements in battery technology, increasing range, and affordability. The growing awareness of environmental concerns, coupled with government incentives and stringent emission regulations, has further accelerated the shift toward electric passenger vehicles. This dominance is primarily driven by the rising adoption of electric sedans, hatchbacks, SUVs, station wagons, and minivans, supported by advancements in battery technology, increasing range, and affordability.
The two-wheeler segment is expected to grow at the highest CAGR during the forecast period. Currently, two-wheelers are one of the most electrified products on the market. For example, due to the size of the two-wheeler market, India is one of the first countries to promote two-wheeler electric vehicles, which are backed by state and local governments. On the other hand, it is expected that the light commercial vehicle segment will grow at the second highest CAGR during the forecast period. Commercial and light vehicles are also seeing an increase in electrification. Globally, electric light commercial vehicle (LCV) sales increased by more than 90% by 2022, reaching 310,000 vehicles.
Which Segment Leads the Electric Vehicle Market in 2024?
As per electric vehicle market outlook, the battery electric vehicle (BEVs) segment dominated the market and accounted for over 78.0% of the global revenue by 2024. The segment is also expected to grow at the highest CAGR during the forecast period BEV types are fully electric vehicles, with rechargeable battery packs. The increasing popularity of removable rechargeable EV batteries can be attributed to government-sponsored policies aimed at achieving zero emissions soon to enhance consumer satisfaction with BEV types are great. These batteries can be reused many times, thus reducing waste and extending their life, which is necessary to achieve a zero-carbon footprint.
As per electric vehicle market forecast, the plug-in hybrid electric vehicle (PHEVs) segment is expected to grow at a significant CAGR during the forecast period. PHEVs combine electric motors with batteries and other fuel sources to power an internal combustion engine or alternative fuels, such as diesel or gasoline, passenger cars. Although many are hybrid electric vehicles, they are plug-in though, but also available in a variety of commercial products, such as buses, vans and motorcycles, trucks, trains, and military vehicles.
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In the United States, California dominated the electric vehicle market, accounting for nearly 40% of all EV sales in the country in 2024. The state’s leadership is driven by aggressive zero-emission vehicle (ZEV) mandates, strong government incentives, and an extensive charging infrastructure. California’s Advanced Clean Cars II regulations require 100% of new passenger car sales to be electric by 2035, significantly boosting adoption. Tesla, Rivian, and Lucid Motors all have a strong presence in the state, with Tesla’s GigaFactory in Fremont leading U.S. EV production. Additionally, California has the highest number of public charging stations, exceeding 90,000 chargers, making it easier for consumers to switch to EVs.
In 2024, Texas is the fastest-growing region in the market with a 50% increase in EV sales. The growth is fueled by major investments in EV manufacturing, increasing demand, and expanding charging networks. Tesla’s Gigafactory in Austin has played a crucial role in this expansion, producing the Cybertruck and Model Y at a large scale. Texas also benefits from business-friendly policies, lower energy costs, and growing consumer interest in electric trucks and SUVs. The state is rapidly building EV charging stations along major highways, and new incentives are encouraging both individual and fleet electrification. As a result, Texas is positioning itself as a key hub for EV growth in the U.S.
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Drivers
Government Incentives and Policy Support
Advancements in Battery Technology
Restraints
Charging Infrastructure Challenges
High Initial Costs of EVs
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The electric vehicle industry is witnessing intense competition as automakers and technology firms invest heavily in innovation, partnerships, and strategic expansions. Leading players such as Tesla, General Motors, and Ford are focusing on vertical integration, battery technology advancements, and expanding their charging infrastructure to strengthen their market presence. Startups like Rivian and Lucid Motors are challenging incumbents by introducing premium EV models with advanced autonomous driving capabilities and extended battery range. Meanwhile, international automakers such as BYD and Hyundai are increasing their U.S. footprint through strategic collaborations and local manufacturing. For example, in 2024, General Motors and Honda announced a joint venture to develop next-generation EV platforms aimed at producing affordable electric models, reinforcing their commitment to mass EV adoption.
Top Player’s Company Profile
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the electric vehicle market is experiencing rapid growth, expansion of authorities' encouragement, progress in battery technology and charging infrastructure. The reduction in the Inflation Act (IRA) continues to give tax credit up to $ 7,500 for new EV procurement, while federal and state levels push vehicle manufacturers against zero-furnace vehicle production. Battery innovation, especially in solid-state and lithium-iron-phosphate (LFP) technologies, improves EV strength, limit and charging efficiency. However, challenges such as the high initial costs of electric vehicles and the limited charging infrastructure, particularly in rural areas, continue to persist. Lack of supply chain and lack of raw materials also affect production and prices.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 500.48 Billion |
Market size value in 2032 | USD 1,891.08 Billion |
Growth Rate | 13.8% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the US Electric Vehicle Market , our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the US Electric Vehicle Market .
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the US Electric Vehicle Market :
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the US Electric Vehicle Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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