IEA’s Global EV Outlook: Electric vehicles will capture over 20% of the automotive market in 2024

  • IEA’s Global EV Outlook predicts significant growth, with China, Europe and the US booming in electric car adoption by 2030.
  • Electric vehicles are set to capture over 20% of the global market share in 2024.
  • Challenges like affordability and infrastructure persist, but technological innovation and sustainability efforts are driving the EV revolution forward.

EV adoption is booming, and we can expect huge growth between now and 2030, according to the latest EV Outlook report

- Advertisement -

The latest EV Outlook report from the International Energy Agency (IEA) is here. The report paints a compelling picture of the EV market’s rapid evolution. It paints a promising picture, stating that by 2030, one-third of all cars on China’s roads will be electric. That impressive projection drops to a lesser but still encouraging one-in-five for Europe and the US.

In 2024 alone, electric vehicles are poised to capture more than 20% of the global market share.

This will be a significant milestone in the industry’s journey towards mainstream acceptance. This surge in demand is fuelled by a combination of factors, including environmental awareness, government incentives, and technological advancements.

China, the world’s largest market for electric vehicles, continues to drive growth with a projected 10 million electric car sales in 2024, representing a substantial portion of total vehicle sales. The United States and Europe are also witnessing significant upticks in electric vehicle adoption. Electric cars are expected to account for approximately 25% of sales in Europe and over 11% in the United States.

While established markets dominate current EV sales, emerging economies such as Vietnam and Thailand are taking off. This is thanks in part to the rise of local brands such as VinFast, and its work to expand infrastructure across the region.

Overall electric car sales surged in 2023, with nearly 14 million hitting the roads globally. 

The majority, an impressive 95%, were registered in China, Europe, and the United States. This surge marks a significant 35% increase from the previous year, adding 3.5 million more EVs. The total number of electric cars cruising the streets reached 40 million.

A major shift is evident in consumer preferences, with electric cars accounting for 18% of all car sales in 2023. That’s a sharp rise from a mere 2% just five years ago in 2018. This growth is propelled largely by battery electric cars, which now compose 70% of the electric car stock.

Regionally, sales are concentrated, with China leading the charge at 60%, followed by Europe with 25%, and the United States with 10%. In China alone, new electric car registrations soared to 8.1 million. This indicates a robust 35% jump from the previous year. Meanwhile, the United States witnessed a surge of over 40%, totalling 1.4 million new electric car registrations in 2023.

In Europe, registrations neared 3.2 million, an impressive 20% increase from the preceding year. However, the landscape is not without its nuances. Germany celebrated reaching half a million new battery electric car registrations. However, the phase-out of purchase subsidies slightly dampened overall electric vehicle sales in the country. Similar subsidy transitions were seen in other European countries, albeit with varying impacts.

Despite these shifts, electric car sales continue to gain traction globally. Traditionally, Norway is leading the pack with nearly 95% of sales share. The data signals a paradigm shift in the automotive industry. It indicates a maturing market and growing consumer acceptance of EVs as a viable choice.

Several challenges persist on the path to widespread adoption. 

Affordability remains a significant barrier for many consumers, as electric cars often come with higher price tags compared to their internal combustion engine counterparts. However, declining battery costs and increasing competition are expected to drive down prices in the coming years. Furthermore, the impending introduction of affordable EV models from major manufacturers will help to buck this trend.

Infrastructure also poses a significant challenge, particularly in terms of charging networks. The availability of public charging stations is crucial for an equitable transition. Policymakers and industry stakeholders must work collaboratively to expand charging infrastructure and ensure equitable access for all consumers. The good news is that the number of installed public charging points increased by 40% in 2023 compared to 2022. However, more support is needed on a policy level to accelerate this growth even further.

Technological innovation plays a pivotal role in driving the electric vehicle revolution forward. Advances in battery technology, in particular, are enabling longer driving ranges and faster charging times, enhancing the overall appeal of electric vehicles.

Furthermore, sustainability is a key focus area within the electric vehicle ecosystem. The recycling and reuse of EV batteries are critical for reducing environmental impact and ensuring the long-term viability of emobility. Efforts to develop robust battery recycling infrastructure and promote circular economy practices are essential for achieving a truly sustainable transportation system.

While challenges remain, the rapid growth of the EV market signals a promising shift towards the mainstream. By addressing key barriers, we can accelerate the transition to emobility. The appetite is growing, and it’s set to grow even further. Now, we need to support that momentum with incentives and infrastructure to ensure that the EV transition is equitable for all.

Related Articles