Electric Vehicle Market Outlook:
Electric Vehicle Market size was valued at USD 763.97 billion in 2025 and is expected to secure a valuation of USD 2777.77 billion in 2035, expanding at a CAGR of 13.6% during the forecast period, i.e., 2026-2035. In 2026, the industry size of electric vehicle is assessed at USD 869.66 billion.
The electric vehicle sales are registering substantial growth due to the growing battery production capacity across the world. The battery supply chain manufacturing capacity is rising owing to rapid and extensive developments in EV production. According to the International Energy Agency (IEA), in 2024, China is the leading manufacturer of over three-quarters of the global batteries, and the prices of batteries in the country recorded a fall of 30%, which represents a surge of more than twice. This development results in the affordable prices of electric vehicles in the country, creating lucrative opportunities for market growth.
Additionally, the IEA forecasts the demand for EV batteries will increase by 40% to over 750 GWh in 2023. Consumer-affordable EV pricing stems from the fast-growing number of gigafactories alongside improved battery cell manufacturing productivity. The industrial growth is resulting in a reduction in the price disparity between internal combustion engine vehicles and electric vehicles. The EV market expands into different consumer segments as batteries are becoming accessible at new, affordable price points. Further, this is strengthening the global demand.
