The global electric vehicle market continues to expand (international perspective)

A recent report from the Solar and Hydrogen Research Center in Baden-Württemberg, Germany, reveals that by 2023, the global electric vehicle (EV) stock—including battery electric vehicles, plug-in hybrid electric vehicles, and range-extended electric vehicles—has reached nearly 42 million units, marking an approximate 50% increase from the previous year. Notably, China holds about 23.4 million EVs, accounting for over half of the global total. According to data from Statista, the global electric vehicle market revenue is projected to reach $786.2 billion in 2024, with a steady CAGR of 6.63% expected from 2024 to 2029. Industry experts suggest that the growing commitment to environmental sustainability and rapid technological innovations in the electric vehicle sector will contribute to continued strong sales growth in 2024.

Impressive Overall Sales Data

The report highlights that, globally, there were 14.8 million newly registered electric vehicles in 2023. China led the way with over 9 million registrations, followed by the European Union at 2.5 million, making it the second-largest market, and the U.S. in third place with 1.5 million registrations. A report by ABI Research indicates that the global electric vehicle sales surged by 506% from 2019 to 2023. Moreover, the International Energy Agency’s “Global Electric Vehicle Outlook 2024” forecasts that global EV sales could reach 17 million units in 2024, representing over one-fifth of total global car sales. In China, EV sales are expected to rise to around 10 million, constituting approximately 45% of domestic car sales, while in Europe and the U.S., the percentages are projected to be about one-fourth and one-ninth, respectively.

Additionally, a McKinsey survey targeted at European consumers revealed that 38% of prospective car buyers who have not yet purchased an electric vehicle indicated their next car would be electric. A Bloomberg market analysis emphasizes that demand for electric vehicles in emerging markets is accelerating, identifying them as crucial for 2024 sales growth, with countries like Thailand and Indonesia potentially seeing significant increases in commercial electric vehicle sales.

According to S&P Global’s report, the automotive industry is rapidly transitioning towards electrification. With considerable potential for sales growth in the electric vehicle segment, the market outlook is promising, forecasting that by 2030, over one-fourth of newly sold passenger cars will be electric.

Broad Future Prospects for the Industry

An article in the World Economic Forum suggests that as battery life, vehicle costs, and charging infrastructure continue to improve, global market demand for electric vehicles is poised for further explosive growth. Various favorable factors—such as government incentives, technological innovations in the industry, advancements in charging infrastructure, and shifting consumer preferences—are fueling the rapid expansion of the global electric vehicle market.

The International Energy Agency reports that as market competition and large-scale production drive prices down, demand for electric vehicles is expected to grow exponentially. Electric vehicles are a key component of countries’ efforts to reduce emissions. Continuous innovations in battery and charging technologies, alongside integrations with transformative technologies like artificial intelligence and big data, will create new market opportunities.

The “Global Electric Vehicle Outlook 2024” highlights the critical importance of ensuring the availability of public charging facilities to align with electric vehicle sales for stable market expansion. Global installations of public charging stations have increased by 40% in 2023 compared to 2022, with rapid chargers seeing even faster growth. To meet government targets for electric vehicle deployment, the charging network is anticipated to need a six-fold increase by 2035.

The International Energy Agency predicts that the next decade will see sustained and strong growth in global electric vehicle demand. Increased demand will reshape the global automotive industry and significantly lower oil consumption in the transportation sector. Studies show that the automotive industry links numerous upstream and downstream sectors and plays an irreplaceable role in green transition and low-carbon development. In 2023, electric vehicle usage reduced global greenhouse gas emissions by over 220 million tons, a substantial increase from 80 million tons in 2022.

Chinese Manufacturing Supporting the Green Transition

An article from the World Economic Forum notes that with the advent of smart electric vehicles, changing consumer perceptions, and advancements in new technologies, the global automotive market is undergoing significant transformation, with China standing out in the electrification process. In the future, China is expected to maintain a strong growth trajectory in the electric vehicle sector.

Data from the China Association of Automobile Manufacturers shows that in 2023, the production and sales of new energy vehicles in China grew rapidly, reaching 9.587 million and 9.495 million units, respectively, marking year-over-year increases of 35.8% and 37.9%. Currently, Chinese manufacturers account for over half of the global electric vehicle production.

According to a report from the German business newspaper Handelsblatt, battery and charging technologies have become focal points for research and development in the global electric vehicle domain, with China playing a significant role. China holds a considerable number of patents in charging technologies, demonstrating impressive innovation in terms of volume and specialized technology. A dense network of automotive manufacturers, suppliers, universities, and startups in China leads in charging technology patents, prompting ongoing collaborations with German manufacturers. Companies like BMW, Audi, and Volkswagen are partnering with Chinese suppliers, forming joint ventures with Chinese EV firms, and co-developing new electric vehicle technologies.

To meet carbon neutrality targets, the International Energy Agency estimates that global new energy vehicle sales will need to reach around 45 million by 2030, more than triple the 2023 figures. Current production capacities are far from meeting global market demands. According to Suro Soni, vice president of the Electric Vehicle Association of Thailand, the global push for new energy industries is an unstoppable trend. As a leader in the electric vehicle sector, China has made significant contributions to addressing global climate change. “In the context of economic globalization, enhancing cooperation with China in the field of electric vehicles can benefit all nations, especially developing countries, from advancing new energy industries,” Soni stated.