Emerging Market Demand for EVs
A report recently released by the Solar and Hydrogen Energy Research Center in Baden-Württemberg, Germany, shows that in 2024, the global stock of EVs (including battery EVs, plug-in hybrid EVs, and extended-range EVs) reached nearly 42 million, growing by approximately 50% YoY. Among them, the stock of EVs in China was about 23.4 million, accounting for more than half of the global total.
According to statistics from the German Statista data platform, in 2024, the global revenue of the EV market is expected to reach USD 786.2 billion, and it will maintain a stable compound annual growth rate of 6.63% from 2024 to 2029. Industry insiders believe that with the increasing popularity of environmental protection and low-carbon concepts across the world and the rapid iterative innovation of technologies in the EV field, the global sales of EVs are expected to continue to grow strongly throughout 2024.
Considerable Rise in Overall Sales Data
According to this latest report, in 2023, a total of 14.8 million EVs were registered globally. Among them, China led significantly with the registration of over 9 million EVs. The European Union became the second-largest market globally with 2.5 million newly registered EVs, and the United States ranked third with 1.5 million EVs. A report by the market research firm ABI Research shows that from 2019 to 2023, the global sales of EVs increased by 506%.
The "Global EV Outlook 2024" report previously released by the International Energy Agency predicted that the global sales of EVs are expected to reach 17 million in 2024, accounting for more than one-fifth of the total global vehicle sales. In 2024, the sales of EVs in China will increase to around 10 million, accounting for approximately 45% of the domestic vehicle sales in China; in Europe and the United States, the sales of EVs are expected to account for about 1/4 and 1/9 respectively. A 2024 survey of European consumers by McKinsey shows that among car buyers who have not yet purchased an EV, 38% said that their next car will be an EV. Market analysis reports believe that the demand for EVs in emerging markets is growing rapidly and will become an important market for EV sales in 2024. The annual sales of commercial EVs in countries such as Thailand and Indonesia are likely to surge. A report released by S&P Global believes that the global automotive industry is accelerating its electrification transformation. The future sales of EVs are expected to have considerable increment, and the market prospects are broad. By 2030, EVs will account for more than one-fourth of newly sold passenger cars.
Broad Prospects for Industrial Development
An article in the World Economic Forum, which has broad prospects for industrial development, said that with the continuous optimization and solution of battery life, automobile cost, charging infrastructure and other issues, the global market demand for EVs is expected to further generate. Driven by multiple favorable factors such as the introduction of incentives in various countries, iterative innovation of industrial technology, development of charging infrastructure and changes in consumer preferences, the global EV market is accelerating. According to a report of the International Energy Agency, the demand for EVs is expected to increase exponentially as market competition and large-scale production lead to a gradual decline in the price of EVs. EV is an important emission reduction measure that countries are vigorously promoting. The continuous updating of battery technology and charging technology, and the integration of EVs with artificial intelligence, Internet, big data and other revolutionary technologies will continue to open up new market space.
The "Global EV Outlook 2024" shows that ensuring the availability of public charging facilities is crucial for steadily expanding the EV market in line with EV sales. The number of public charging piles installed globally increased by 40% in 2023 over the previous year, and the growth rate of fast charging piles is even faster. To achieve the EV deployment targets committed by governments around the world, the charging network is expected to grow sixfold by 2035.
The report also said that in the next 10 years, the demand for EVs will continue to grow rapidly. If EVs are sold more, the global automotive industry will have to change, and the cars on the road will use much less oil. The automotive industry is connected to many upstream and downstream industries, and it plays a great role in green transformation and low-carbon development, and no one can replace it.
The International Energy Agency predicts that the global demand for EVs will continue to grow strongly in the next 10 years. The surge in demand for EVs will reshape the global automotive industry and significantly reduce the consumption of oil in the road transportation sector. Relevant research shows that the automotive industry connects many upstream and downstream industrial chains and plays an irreplaceable important role in green transformation and low-carbon development.
In 2023, the use of EVs reduced global greenhouse gas emissions by more than 220 million tons, compared with 80 million tons in 2022!
Made in China Facilitates Green Transformation
An article by the World Economic Forum states that with the advent of the era of smart EVs, changes in consumer concepts, and technological progress, the global auto market is experiencing an important transformation, in which the Chinese auto industry has performed outstandingly in the electrification transformation. In the future, China will continue to maintain a rapid growth momentum in the EV field. According to statistics from the China Association of Automobile Manufacturers, in 2023, the production and sales of new energy vehicles in China maintained rapid growth, reaching 9.587 million and 9.495 million respectively, increasing by 35.8% and 37.9% year-on-year. Currently, the production of EVs by Chinese automakers accounts for more than half of the global production of EVs.
According to a report in the German business newspaper Handelsblatt, battery and charging technology have become the focus of R&D in the global EV field, and China occupies an important position in this regard. China has many charging technology patents, and its "quantity and know-how in patent applications are impressive." A dense network composed of Chinese automakers, suppliers, universities, and startups takes the lead in the field of charging technology patents. This has prompted German manufacturers to continue to cooperate in China. Automakers such as Mercedes-Benz, BMW, and Volkswagen are carrying out cooperation by seeking Chinese suppliers, establishing joint ventures with Chinese EV companies, and jointly developing new models. According to calculations by the International Energy Agency, to achieve the goal of carbon neutrality, the global sales of new energy vehicles need to reach about 45 million in 2030, more than three times that in 2023. The current production capacity is far from meeting the global market demand. Surapong Suebwonglee, vice president of the EV Association of Thailand, said that the development of the new energy industry globally is the general trend. As a leader in the global EV field, China has made important contributions to addressing global warming. "Under the background of economic globalization, strengthening cooperation with China in the EV field can enable countries around the world, especially developing countries, to benefit from the development of the new energy industry," Surapong said.
