Electric Car Market to Hit $1,982.76 billion by 2032, at a CAGR of 14.5%, says Coherent Market Insights
Electric Car Market Forecast to Reach USD 427.41 Billion by 2025, Driven by Green Mobility Push and Environmental Regulations
Burlingame, CA, June 24, 2025 (GLOBE NEWSWIRE) -- The global electric car market is estimated to be valued at US$ 427.41 Bn in 2025 and is expected to reach US$ 1,982.76 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 24.5% during the forecast period, as highlighted in a new report published by Coherent Market Insights. The global electric car market is projected to experience robust growth over the forecast period, fueled by government regulations and incentives promoting electric vehicle adoption, advancements in charging infrastructure, and increasing environmental awareness.
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Global Electric Car Market Key Takeaways
According to Coherent Market Insights (CMI), the global electric car market size is expected to grow more than 4.6 times, from USD 427.41 Bn in 2025 to USD 1,982.76 Bn by 2032.
Global demand for electric vehicles will likely increase at a prolific CAGR of 24.5% between 2025 and 2032.
By vehicle type, battery electric vehicles segment is projected to account for about USD 294 Bn by 2025.
Lithium ion battery segment is anticipated to account for more than three-fourths of the global electric car market share in 2025.
Based on range, 150-300 miles segment will likely hold a prominent share of 57.7% in 2025.
North America facial is anticipated to retain its dominance, holding more than two-fifths of the global electric car industry share in 2025.
Asia Pacific is projected to emerge as the fastest-growing market for electric cars during the forecast period.
Stricter Emission Regulations and Green Mobility Push Fueling Market Growth
Coherent Market Insights’ new electric car market report highlights prominent factors driving the industry’s growth. Implementation of stringent emission regulations and a global push for green mobility are some major drivers.
Governments worldwide are enforcing stringent CO₂ emission and pollution control regulations. As a result, automakers are transitioning from internal combustion engines to cleaner alternatives like EVs, leading to electric car market growth.
The push for green mobility and sustainable transportation solutions is significantly boosting electric vehicle demand. National incentives, tax breaks, and growing investment in EV infrastructure, such as charging stations, are enhancing consumer confidence and accessibility.
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High Cost of Electric Cars Limiting Market Growth
The prospective electric car market outlook looks promising. However, high cost of electric cars, especially premium models, is limiting market growth to some extent.
Electric vehicles (EVs) are generally more expensive than traditional internal combustion engine (ICE) vehicles. This higher cost deters many consumers from choosing EVs, thereby reducing overall electric car market demand.
Advancements in Battery Technology Unlocking New Growth Opportunities
Battery innovations are revolutionizing electric car market. They are helping electric car companies enhance energy density and lower overall production costs.
Breakthroughs in solid-state batteries and improvements in lithium-ion chemistries are extending driving range and improving vehicle safety. They are making electric vehicles (EVs) more affordable and appealing to consumers.
Ongoing innovations are accelerating EV adoption while also creating new growth opportunities. These advancements benefit both automakers and suppliers in the fast-changing electric vehicle landscape.
Leading battery manufacturers are striving to develop cost-effective, high-performance battery solutions. For instance, in April 2025, CATL unveiled a new sodium-ion battery under the brand ‘Naxtra’. It offers a safer and more cost-effective alternative to traditional lithium-ion batteries.
Impact of AI Trend on the Electric Car Market
Artificial intelligence (AI) is becoming a powerful tool in the electric car industry. It enhances both vehicle performance and user experience.
AI-driven technologies like autonomous driving, predictive maintenance, and intelligent navigation are at the forefront of electric vehicle (EV) innovation. They are gradually making electric cars more popular among the common masses.
Automakers are increasingly integrating AI to optimize battery management, improve energy efficiency, and reduce operational costs. This technological shift boosts consumer confidence in EVs as well as accelerates their mainstream adoption.
Emerging Electric Car Market Trends
Increasing consumer awareness and acceptance is a key growth-shaping trend in the electric car market. People are gradually becoming aware of the environmental and economic benefits of electric vehicles. This is expected to drive demand for electric cars during the forecast period.
There is also a growing trend of developing autonomous electric vehicles integrated with advanced technologies. These vehicles offer enhanced user experience.
Expanding EV charging infrastructure is expected to boost growth of the electric car market during the forecast period. Both government and EV charging companies are focusing on expanding EV charging infrastructure to make electric vehicles more popular. For instance, in April 2025, four EV Charging Giants (Ionity, Atlante, Electra, and Fastned) collaborated to create Europe’s largest and most trusted EV charging network. Such initiatives will positively impact sales of electric cars.
Rising fuel prices are also positively influencing electric car market value. Modern consumers are gradually shifting their preference from gasoline and diesel vehicles to electric alternatives.
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Analyst’s View
“The global electric car market is poised to experience robust growth, owing to rising environmental concerns, implementation of stringent CO2 emission regulations, advancements in battery technology, and expansion of EV charging infrastructure,” said Gautam Mahajan a senior analyst at CMI.
Current Events and Their Impact on the Electric Car Market
| Event | Description and Impact |
| China’s EV Price War Intensifies |
|
| EU Tariff Hike on Chinese EVs |
|
| Global Lithium Market Stabilization |
|
Competitor Insights
Key companies listed in the electric car market research report:
- Ford Motor Company
- Nissan Motor Corporation
- Tesla, Inc.
- Volkswagen AG
- BMW AG
- Hyundai Motor Company
- General Motors Company
- Kia Corporation
- Mercedes-Benz AG
- Audi AG
- Rivian Automotive, Inc.
- BYD Company Limited
- Lucid Motors, Inc.
- Volvo Cars
- Polestar Automotive Holding AB
Key Developments
In May 2025, Xiaomi launched a new electric SUV called the YU7. It is being promoted as a strong competitor to Tesla’s best-selling Model Y.
In May 2025, China’s BYD launched the Dolphin Surf EV to meet growing demand for affordable vehicles in Europe.
In May 2025, Tesla launched a cheaper version of its Model Y vehicle in the United States.
Related Reports:
Electric Vehicle Tire Market Size, Share & Trend Analysis Report (2025-2032)
Hybrid Vehicles Market Size, Share, Trends & Opportunities for 2025-2032
Electric Vehicle Charger Market Analysis and Forecast for 2025-2032
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Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.
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