China and the European Union will lead the growth of electric vehicles in the current decade, according to projections by the International Energy Agency (IEA).
The global fleet of electric vehicles grew 41% to some 7.2 million in 2019, and the IEA forecasts that electric vehicles will grow from 7 million to 140 million by 2030, with government policy being the linchpin for electric vehicle adoption.
In the opinion of the IEA, the existing policies will make China and Europe the main adopters.
For one thing, in China, the government mandated that electric vehicles account for 40% of all car sales by 2030.
Meanwhile, the company Envirotech Vehicles believes that the tightening of emission standards and high fuel taxes in Europe will result in substantial increases in the market share of electric vehicles.
Sales of new electric cars in China grew 47%, or about 830,000 units, in 2019, bringing total ownership to more than 2.5 million vehicles.
In the United States, 310,000 new electric vehicles were sold in the first half of 2021. In all of 2020, approximately 322,000 were sold.
The overall electric vehicle market consists of multiple, discrete markets for various types of vehicles, including passenger cars, buses, two-wheelers, and others.
Envirotech Vehicles reports that passenger cars are the most prominent, but two-wheelers are much more prevalent, particularly in Asia, and buses and trucks, while smaller, are priced significantly higher and often cost less. major corporate customers or government or transit agencies buy them in bulk.
Because light passenger vehicles represent the largest potential market and have received the most attention from analysts and policymakers alike, most global forecasts look at sales of light electric vehicles.
Charging infrastructure is another important factor in EV adoption rates. As of December 2021, there were approximately 46,000 charging stations in the United States.
GuideHouse Insights projects a 25% CAGR globally in the number of charging stations through 2030 and Bloomberg NEF projects the need for charging stations to exceed 290 million by 2040, worth $500 billion worldwide .
President Joe Biden’s Plan for American Jobs includes a transformational investment of $15 billion to build a national network of 500,000 charging stations.