S&P Global Mobility predicts that worldwide sales of battery electric vehicles (BEVs) will hit 15.1 million units by 2025, marking a 30% increase compared to the previous year. This forecast would represent 16.7% of total global light vehicle sales, an increase from 11.6 million units and a 13.2% market share in 2024.
Area Market Evaluation
America
The U.S. market is projected to show strong growth, with battery electric vehicles (BEVs) attaining an 11.2% market share, indicating a remarkable 36% increase compared to the previous year.
China
China, being the largest electric vehicle market globally, is expected to continue its robust adoption trends, with battery electric vehicles (BEVs) expected to hold a 29.7% share of the market, reflecting a 19.7% increase compared to the previous year.
Central and Western European region
The European market is anticipated to experience the most significant growth, with battery electric vehicles (BEVs) expected to capture a 20.4% market share and achieve an impressive 43.4% increase year-over-year.
Obstacles and Factors in the Industry
In 2025, the global electric vehicle (EV) industry encounters numerous major challenges, including the need to address uncertainties related to:
- The development of charging infrastructure
- The capacity of the power grid
- The stability of the battery supply chain
- Trends in global sourcing
- Tariffs and trade restrictions
- The speed of technological advancements
- The necessary policy support for the shift away from fossil fuels
Moreover, political elements, such as possible policy shifts with the new U.S. administration, may greatly influence the growth path of the sector.
Market Implications
Despite challenges such as variable consumer demand and inconsistent policy support, the expected rise in EV sales indicates a strong upward trend.
This expansion underscores the continuous advancement towards vehicle electrification.
This trend continues as key markets adjust to changing economic circumstances and regulatory environments.
Expert Analysis
Colin Couchman, Executive Director of Global Light Vehicle Forecasting at S&P Global Mobility, highlights the difficulties that lie ahead:
2025 is poised to be extremely challenging for the automotive sector, as significant regional demand factors restrict potential demand and the new US administration introduces additional uncertainty from the outset. A major concern is how 'natural' EV demand will perform as governments reconsider their policy support.
This assessment indicates that the upcoming year will be pivotal for the global electric vehicle sector, brimming with considerable prospects. Nevertheless, major obstacles will also necessitate thoughtful management by those involved in the industry.
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