US Electric Car Market Size
| Icons | Lable | Value |
|---|---|---|
|
Study Period | 2016 - 2029 |
|
Base Year For Estimation | 2023 |
|
|
Market Size (2024) | USD 92.86 Billion |
|
|
Market Size (2029) | USD 211.32 Billion |
|
|
CAGR (2024 - 2029) | 17.88 % |
|
|
Market Concentration | High |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
US Electric Car Market Analysis
The US Electric Car Market size is estimated at USD 92.86 billion in 2024, and is expected to reach USD 211.32 billion by 2029, growing at a CAGR of 17.88% during the forecast period (2024-2029).
- After the COVID-19 pandemic's impact, many original equipment manufacturers (OEMs) became interested in increasing their production capacity to meet the growing demand for electric vehicles. In addition, the government policy banning internal combustion engines (ICEs) helped boost the sales of electric vehicles in 2021. The increase in the price of gasoline and diesel due to various global reasons has also made it easy for EV companies to boost their sales.
- The United States electric car market has experienced significant growth and transformation in recent years, driven by increasing consumer demand, government incentives, technological advancements, and a greater focus on sustainability.
- The US federal government and several state governments have implemented various incentives and policies to promote electric vehicle adoption. These include federal tax credits, rebates, grants, and initiatives aimed at expanding charging infrastructure. Such support has played a significant role in encouraging consumers to switch to electric cars.
- Advancements in electric vehicle technology have significantly improved their performance, range, and charging infrastructure. Automakers are investing heavily in research and development to enhance battery efficiency, reduce charging times, and increase driving range. The introduction of new models with longer ranges and affordable price points has further boosted the market.
- The United States has been witnessing a rapid expansion of charging infrastructure to support the growing number of electric vehicles. Public charging stations, including fast-charging networks, are being deployed across the country, making long-distance travel more feasible for EV owners. Additionally, residential and workplace charging options are becoming more accessible.
- Many major automakers have made significant commitments to electric vehicles, with plans to transition their vehicle lineup towards electric powertrains. These companies are investing in electric vehicle manufacturing facilities, developing dedicated electric vehicle platforms, and expanding their electric vehicle model offerings, which will further accelerate the adoption of electric cars in the United States.
- Increasing awareness of climate change and the need to reduce greenhouse gas emissions have driven consumer interest in electric vehicles. Electric cars produce zero tailpipe emissions, making them a cleaner and more sustainable transportation option. This environmental consciousness has contributed to the growth of the electric car market.
- Growing consumer interest in electric vehicles, driven by factors such as lower operating costs, reduced maintenance requirements, and a desire for advanced technology, has fueled the market. However, the upfront cost of electric vehicles remains a consideration for many consumers, although declining battery prices and government incentives are helping to bridge the affordability gap.
- The United States electric car market is highly competitive, with both established automakers and new entrants vying for market share. Traditional automakers are facing competition from companies specializing in electric vehicles, as well as tech giants exploring the electric vehicle space. This competition is driving innovation, expanding product offerings, and creating more choices for consumers.
- It's important to note that the electric car market is evolving rapidly, with new developments, policies, and market trends emerging.
US Electric Car Market Trends
Passenger Car Will Dominate The Market In Coming Year
- The electric vehicle (EV) market in the United States broke records in 2021, estimated at just under 607,600 light electric vehicle sales. This was approximately 83 percent more than in 2018-the year which marked the beginning of strong demand for Tesla's Model 3. The sedan is one of the best-selling electric vehicles on the U.S. market to date.
- Tesla continues to dominate the United States EV market, with an estimated 302,000 electric vehicles sold in the United States in 2021. However, competition is beginning to gain momentum, and manufacturers such as General Motors are continuing to add new EV models into their range of vehicles offered.
- Chevrolet's Bolt made it into the list of best-selling electric vehicle models in 2021. The model recorded its second largest sales volume that year, just under its sales in 2017-the year the model launched. General Motors intends to only sell zero-emission vehicles by 2035 and was already one of the global plug-in EV market leaders in 2021.
- While Tesla dominated the plug-in electric vehicle market in 2021, it was also followed closely by the Volkswagen Group, whose worldwide electric vehicle sales soared that same year. Overall, manufacturers were looking to increase their research and development expenditure, with electric mobility at the forefront of their investments. This was in part motivated by the United States government's commitment to half of all vehicle sales to be zero emission by 2030.
- In the United States, the minimum annual average fuel cost of all-electric light-duty vehicles was around 550 United States dollars cheaper than gasoline vehicles in 2021, and 1,150 United States dollars more affordable than diesel internal combustion engine vehicles. Considering the above analysis the United state electric market will continuoslly grow in coming year.
Understand The Key Trends Shaping This Market
Download PDF
Straightening The Vehicle Emission Law Will Drive the Market in Coming Year
- Many US states provide numerous attractive incentives to encourage consumers to adopt electric vehicles (EVs). These incentives include free parking, low or zero registration fees, toll reductions, and the convenience of accessible charging infrastructure at various charging stations.
- For instance, California offers discounts on lightweight zero-emission cars and plug-in hybrid electric vehicles (PHEVs), with an additional USD 2,000 incentive for low-income families. In addition, Washington and New Jersey exempt electric cars from vehicle sales and usage taxes. Similarly, Louisiana and Maryland provide tax credits of up to USD 2,500 and USD 3,000 per vehicle, respectively. These factors are expected to drive the growth of the electric vehicle market.
- To reduce carbon emissions from the automotive sector, the US government has implemented strict regulations, and several states are moving towards adopting zero-emission vehicle (ZEV) regulations to promote the adoption of electric cars. In 2020, states with ZEV regulations accounted for about two-thirds of the overall EV sales.
- As a result of these regulations and incentives, automakers have significantly increased their investment in research and development activities to meet electrification objectives. For instance, General Motors has committed to ceasing the production of gasoline-powered sport utility vehicles (SUVs), vans, and passenger cars by 2035, promising a future of new electric cars for American customers.
- This marks a historic turning point for the iconic American carmaker. Consequently, the stringent emission norms are expected to drive the growth of US electric vehicle sales during the forecast period
US Electric Car Industry Overview
The United States Electric Car Market is fragmented, with the top five companies occupying 23.27%. The major players in this market are AB Volvo, Chevrolet, Ford Motor Company, Hyundai Motor Company and Toyota Motor Corporation
In February 2023, Hyundai Motor America announced pricing, packaging, and 53 kWh battery pack options for its highly anticipated IONIQ 6 electric vehicle. Customers can choose from two battery pack options of 53kWh or 77.4kWh and his two motor configurations of the rear motor only or both front and rear motors for all-wheel drive.
US Electric Car Market Leaders
Volkswagen
Ford Motor Company
Nissan Motor Corporation
Chevrolet
Tesla, Inc.
*Disclaimer: Major Players sorted in no particular order
.webp)
Need More Details on Market Players and Competitors?
Download PDF
US Electric Car Market News
- September 2022: The City of Long Beach partnered with Mercedes-Benz Research & Development North America, with assistance from Mercedes-Benz USA Urban Mobility Solutions and Xtelligent, to create transportation technology systems that will enhance liveability and environmental sustainability.
- June 2022: Nissan and Wallbox, a major provider of electric vehicle charging solutions, collaborated to provide Nissan electric car owners with a convenient one-stop shop for their home charging requirements.
US Electric Cars Market Report - Table of Contents
0. INTRODUCTION
0_0. Study Assumptions
0_1. Scope of the Study
1. RESEARCH METHODOLOGY
2. EXECUTIVE SUMMARY
3. MARKET DYNAMICS
3_0. Market Drivers
3_1. Governments worldwide are implementing strict regulations and providing incentives to promote the adoption of electric vehicles
3_2. Market Restraints
3_3. High Initial Costs
3_4. Industry Attractiveness - Porter's Five Forces Analysis
3_4_0. Threat of New Entrants
3_4_1. Bargaining Power of Buyers/Consumers
3_4_2. Bargaining Power of Suppliers
3_4_3. Threat of Substitute Products
3_4_4. Intensity of Competitive Rivalry
4. MARKET SEGMENTATION
4_0. Vehicle Type
4_0_0. Passenger Cars
4_0_1. Commercial Vehicles
5. COMPETITIVE LANDSCAPE
5_0. Vendor Market Share**
5_1. Company Profiles*
5_1_0. Volkswagen
5_1_1. Ford Motor Company
5_1_2. Nissan Motor Corporation
5_1_3. Chevrolet
5_1_4. Tesla, Inc.
5_1_5. Bayerische Motoren Werke AG
5_1_6. Audi AG
5_1_7. Rivian Automotive, Inc.
5_1_8. Lucid Group, Inc.
5_1_9. Polestar
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
6_0. Increasing Demand for Long-Range Evs
6_1. Focus on Sustainability and Environmental Impact
6_2. Growing Infrastructure for EV Charging
List of Tables & Figures
- Figure 1:
- UNITED STATES ELECTRIC CAR MARKET, POPULATION YOY GROWTH RATE, MILLION UNITS, 2016 – 2026
- Figure 2:
- UNITED STATES ELECTRIC CAR MARKET, GDP YOY GROWTH RATE, USD MILLION, 2016 – 2026
- Figure 3:
- UNITED STATES ELECTRIC CAR MARKET, CVP YOY GROWTH RATE, 2016 – 2027
- Figure 4:
- UNITED STATES ELECTRIC CAR MARKET, INFLATION RATE YOY GROWTH RATE, PERCENT, 2016 – 2026
- Figure 5:
- UNITED STATES ELECTRIC CAR MARKET, INTEREST RATE FOR AUTO LOANS YOY GROWTH RATE, PERCENT, 2016 – 2026
- Figure 6:
- UNITED STATES ELECTRIC CAR MARKET, BATTERY PRICES YOY GROWTH RATE, 2016 – 2026
- Figure 7:
- UNITED STATES ELECTRIC CAR MARKET, ELECTRIFICATION IMPACT, VOLUME, YOY GROWTH RATE, PERCENT, 2016 – 2026
- Figure 8:
- UNITED STATES ELECTRIC CAR MARKET, DISTRIBUTION OF GROSS DOMESTIC PRODUCT BY ECONOMIC ACTIVITY, SHARE %, 2021
- Figure 9:
- UNITED STATES ELECTRIC CAR MARKET, NEW XEV MODELS ANNOUNCED, VOLUME, YOY GROWTH RATE, UNITS, 2016 – 2026
- Figure 10:
- UNITED STATES ELECTRIC CAR MARKET, CHARGING STATIONS DEPLOYMENT, VOLUME, YOY GROWTH RATE, UNITS, 2016 – 2026
- Figure 11:
- UNITED STATES ELECTRIC CAR MARKET, VOLUME IN UNITS, 2016 – 2026
- Figure 12:
- UNITED STATES ELECTRIC CAR MARKET, VALUE IN USD, 2016 – 2026
- Figure 13:
- UNITED STATES ELECTRIC CAR MARKET, BY SUB BODY TYPE, BY VOLUME IN UNITS, 2016-2028
- Figure 14:
- UNITED STATES ELECTRIC CAR MARKET, BY SUB BODY TYPE, BY VALUE IN USD, 2016-2028
- Figure 15:
- UNITED STATES ELECTRIC CAR MARKET MARKET, SHARE(%), BY SUB BODY TYPE, 2016 - 2028
- Figure 16:
- UNITED STATES ELECTRIC CAR MARKET MARKET, SHARE(%), BY SUB BODY TYPE, 2016 - 2028
- Figure 17:
- UNITED STATES ELECTRIC CAR MARKET, BY HATCHBACK, BY VOLUME IN UNITS, 2016-2028
- Figure 18:
- UNITED STATES ELECTRIC CAR MARKET, BY HATCHBACK, BY VALUE IN USD, 2016-2028
- Figure 19:
- UNITED STATES ELECTRIC CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VOLUME IN UNITS, 2016-2028
- Figure 20:
- UNITED STATES ELECTRIC CAR MARKET, BY MULTI-PURPOSE VEHICLE, BY VALUE IN USD, 2016-2028
- Figure 21:
- UNITED STATES ELECTRIC CAR MARKET, BY SEDAN, BY VOLUME IN UNITS, 2016-2028
- Figure 22:
- UNITED STATES ELECTRIC CAR MARKET, BY SEDAN, BY VALUE IN USD, 2016-2028
- Figure 23:
- UNITED STATES ELECTRIC CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VOLUME IN UNITS, 2016-2028
- Figure 24:
- UNITED STATES ELECTRIC CAR MARKET, BY SPORTS UTILITY VEHICLE, BY VALUE IN USD, 2016-2028
- Figure 25:
- UNITED STATES ELECTRIC CAR MARKET, BY FUEL TYPE, BY VOLUME IN UNITS, 2016-2028
- Figure 26:
- UNITED STATES ELECTRIC CAR MARKET, BY FUEL TYPE, BY VALUE IN USD, 2016-2028
- Figure 27:
- UNITED STATES ELECTRIC CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
- Figure 28:
- UNITED STATES ELECTRIC CAR MARKET MARKET, SHARE(%), BY FUEL TYPE, 2016 - 2028
- Figure 29:
- UNITED STATES ELECTRIC CAR MARKET, BY BEV, BY VOLUME IN UNITS, 2016-2028
- Figure 30:
- UNITED STATES ELECTRIC CAR MARKET, BY BEV, BY VALUE IN USD, 2016-2028
- Figure 31:
- UNITED STATES ELECTRIC CAR MARKET, BY FCEV, BY VOLUME IN UNITS, 2016-2028
- Figure 32:
- UNITED STATES ELECTRIC CAR MARKET, BY FCEV, BY VALUE IN USD, 2016-2028
- Figure 33:
- UNITED STATES ELECTRIC CAR MARKET, BY HEV, BY VOLUME IN UNITS, 2016-2028
- Figure 34:
- UNITED STATES ELECTRIC CAR MARKET, BY HEV, BY VALUE IN USD, 2016-2028
- Figure 35:
- UNITED STATES ELECTRIC CAR MARKET, BY PHEV, BY VOLUME IN UNITS, 2016-2028
- Figure 36:
- UNITED STATES ELECTRIC CAR MARKET, BY PHEV, BY VALUE IN USD, 2016-2028
- Figure 37:
- UNITED STATES ELECTRIC CAR MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2018 - 2021
- Figure 38:
- UNITED STATES ELECTRIC CAR MARKET, MOST ADOPTED STRATEGIES, 2018 - 2021
- Figure 39:
- UNITED STATES ELECTRIC CAR MARKET SHARE(%), BY MAJOR PLAYERS, 2021
US Electric Car Industry Segmentation
An electric car or EV is an automobile that is propelled by one or more electric traction motors, using only energy stored in batteries.
The United States electric car market is segmented by vehicle type and into passenger cars and commercial vehicles, and fuel type into battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs).
The report offers market size and forecasts for all the above segments in terms of value (USD).
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
Need A Different Region Or Segment?
Customize Now
Market Definition
- Body Type - Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat.
- Engine Type - Hybrid and electric vehicles are vehicles that run on batteries and use one or more electric motors for propulsion.
- Fuel Type - Hybrid and electric vehicles include HEV, PHEV, BEV, and FCEV.
- Sub Body Type - The sub-body type includes Hatchback, Sedan, SUV, and MPV.
- Vehicle Type - Passenger vehicles which includes electric powered cars and vehicles, sports utility vehicles, multipurpose vehicles
Need More Details on Market Definition?
Ask a Question
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. For sales conversion to volume, the average selling price (ASP) is kept constant throughout the forecast period for each country, and inflation is not a part of the pricing.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
Get More Details On Research Methodology
Download PDF
80% of our clients seek made-to-order reports. How do you want us to tailor yours?
