Globally the electric and fuel cell vehicle markets were valued at US$655.9 billion in 2023 and are expected to grow from US$758 billion in 2024 to US$1.8 trillion by 2029, according to the latest BCC Research study.
The increase is expected to happen at a compound annual growth rate (CAGR) of 18.6% from 2024 to 2029. Some of the factors that will contribute to this growth include increasing sales of electric vehicles on a global scale (lower costs, incentives, better technology, infrastructure), a decrease in battery costs (helping to lower the cost of an EV), and rising gas prices (making EVs look more attractive to consumers).
Pulling data from the International Energy Agency (IEA), BCC Research said the average cost of lithium-ion batteries slipped 14 per cent to $139 per kWh in 2023 from $161 per kWh in 2022. The IEA also reported that nearly 14 million EVs were sold worldwide in 2023. That is 18 per cent of all vehicle sales, a slight jump from 14 per cent in 2022.
Furthermore, BCC Research said the United States, China, and Europe are the largest markets for electric and fuel-cell vehicles. These three markets together account for over 90 per cent of the global market. However, it is Asia-Pacific that holds the highest share of the global market.
BCC Research’s report covers key aspects of electric and fuel cell vehicles, including propulsion type, vehicle type, and power source. Technology, regulations, and market trends and dynamics analysis are also included, among other things.
