The International Energy Agency (IEA) has forecast that one in five cars sold globally will be electric in the near future. This surge in electric vehicle (EV) adoption is largely driven by the Chinese market, which continues to lead the world in EV sales. In 2023, the IEA anticipates that EV sales will reach 17 million units, a significant increase from the 14 million units sold in 2022. This growth is expected to continue in the coming years, with the IEA projecting that EVs will account for 45% of all car sales in China by 2025.
Europe is also experiencing strong growth in EV sales, but at a slower pace compared to China. The IEA attributes this slower growth to a weak outlook for overall passenger car sales and the phasing out of government subsidies in some countries. Nevertheless, EVs are expected to account for a significant portion of car sales in Europe in the coming years.
The United States is another key market for EVs, with sales expected to grow to 11% by 2025. However, the IEA emphasizes the need for the US to expand its EV market six-fold by 2035 in order to meet its climate goals.
Despite the overall positive outlook for the EV sector, the IEA also highlights some challenges that could hinder growth. These challenges include lower profit margins for automakers, the instability of raw material prices for batteries, and the termination of government subsidy programs.
Additionally, the growth of the second-hand EV market is contributing to the lowering of electric technology access. This factor could pose a challenge to the widespread adoption of EVs, particularly in developing countries.
Overall, the IEA’s forecast suggests that the global EV revolution is gaining momentum. The agency expects the share of EVs on the roads to continue to climb rapidly in the coming years, driven by advancements in battery technology, government incentives, and consumer demand for more sustainable transportation options.
