Electric Passenger Cars Market Size

Electric Passenger Cars Market size was USD 384.6 billion in 2024 and is estimated to reach USD 16.45 trillion by the end of 2037, expanding at a CAGR of 35.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of electric passenger cars is evaluated at USD 513.4 billion.

The strict regulations on carbon emissions and favorable government policies on eco-friendly vehicle adoption are expected to boost the sales of electric passenger cars in the coming years. The Paris Agreement, for instance, focuses on limiting greenhouse gas emissions by 43% by 2030. As electric vehicles effectively help to mitigate carbon emissions, manufacturers are continuously focused on advancing their EV performance and design.

As per the International Energy Agency (IEA), if EV sales increase substantially in the coming years, the CO2 emission by cars can be reduced effectively aligning with the Net Zero Emissions by 2050 initiative. Furthermore, it is estimated that Europe, China, and the U.S. are set to experience high sales of electric vehicles including battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles in the foreseeable future.