Global EV Sales to Grow by 35% in 2023, Study Shows

Global sales of electric vehicles will grow by more than 35% in 2023, a study shows. By 2030, the US is expected to increase its share of the global electric vehicle market to 20%, while Europe will maintain its current share of 25%. China will occupy 40% of the world market.

Sales of electric vehicles will continue to skyrocket

Electric vehicle sales worldwide will hit 14 million in 2023, up from 10 million last year, the International Energy Agency estimates in its annual Global Electric Vehicle Outlook, according to Autoweek. Globally, electric vehicles accounted for about 4% of new car sales in 2020 and have risen to 14% in 2022. According to forecasts, this year their share will be about 18%. The IEA works with governments and industry to “shape a secure and sustainable energy future for all.”

The US is expected to double its share of the global electric vehicle market to 20% by 2030, “as recent policy announcements drive demand.” Europe is expected to maintain its current 25% share of the global electric vehicle market. The biggest boom will take place in China. It is expected that by 2030, its share of the EV market will be 40%. By 2030, the average share of electric cars in total sales across China, the EU and the United States is set to rise to around 60%.

EVs will replace more than 5 million barrels per day of oil demand by 2030

Governments around the world are trying to accelerate the adoption of EVs. In the US, the Environmental Protection Agency wants electric vehicles to account for 67% of new cars and trucks in the country by 2032. However, ambitious US climate policy is meeting resistance from the oil industry. The report predicts that global demand for oil from road transport will peak around 2025. However, it is expected that “EVs displacing oil demand for more than 5 million barrels a day (globally) in 2030.”

According to the findings in the report, the IEA is not concerned about the lack of batteries needed to increase the number of EVs on the roads. As of March 2023, battery manufacturers around the world have committed to increasing capacity enough to “meet the demand implied by government pledges,” and even surpass them.

More available EV models will hit the market in the near future

Today, in the US, the price of EVs averages around $58,000 compared to the average transaction price for internal combustion engine vehicles of $49,000. The IEA says, “As spending and competition increase, a number of more affordable models are coming to market.” This means car manufacturers will begin to bring more affordable EV models to market, which will provoke an increase in sales and, accordingly, an increase in the market share of EVs in the global automotive market.