Global Market Intelligence Report Electric Vehicle Industry Overview Q1 2025 Analysis
The global electric vehicle (EV) market continues its remarkable expansion trajectory, with sales reaching 14.2 million units in 2024, representing a 35% year-over-year increase. This growth substantially exceeds industry analysts' initial projections of 28%, indicating accelerating consumer adoption rates and increasingly favorable regulatory environments across major markets.
Market leadership remains concentrated among three dominant players. Tesla maintains its position as the global market leader with a 19.5% share, though this represents a decline from its 23% share in 2023. Chinese manufacturer BYD has emerged as a formidable competitor, capturing 18.2% of the global market through aggressive pricing strategies and rapid expansion into European markets. Traditional automaker Volkswagen Group holds third position with 11.8% market share, having successfully transitioned significant portions of its production capacity to electric platforms.
Regional dynamics reveal interesting patterns. China remains the world's largest EV market, accounting for 59% of global sales, driven by substantial government subsidies and stringent emissions regulations in major cities. Europe represents 26% of global demand, with Norway achieving the milestone of EVs comprising 87% of all new vehicle sales in 2024. The North American market, while growing at 42% annually, still represents only 11% of global EV sales, constrained primarily by limited charging infrastructure and higher average vehicle prices compared to conventional automobiles.
Technological advancements are reshaping market dynamics. Battery costs, historically the primary barrier to EV adoption, have declined by 89% since 2010 and now average $139 per kilowatt-hour. Industry experts project costs will fall below the critical $100 threshold by late 2026, at which point EVs are expected to achieve price parity with traditional internal combustion engine vehicles without requiring subsidies. Additionally, improvements in battery chemistry have extended average range to 412 kilometers on a single charge, effectively addressing the "range anxiety" that previously deterred many potential buyers.
Looking ahead to 2025-2027, our analysis anticipates sustained momentum. We project global EV sales will reach 21.5 million units by 2027, representing a compound annual growth rate of 23%. This expansion will be supported by over $400 billion in announced infrastructure investments, the introduction of more than 130 new EV models across all price segments, and increasingly comprehensive regulatory mandates. However, potential headwinds include raw material supply constraints for critical battery components and the possible reduction of government incentive programs in mature markets.