Global New Energy Car Market Size, Share, Opportunities, And Trends By Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Others), By End-User (Individual, Enterprise), And By Geography - Forecasts From 2025 To 2030

New Energy Car Market Size

The global new energy car market size is evaluated at US$1,022.777 billion in 2025 and is estimated to reach US$1,849.049 billion by 2030, growing at a CAGR of 13.12%. 

New energy refers to all alternative energy other than fossil fuels. New energy cars are four-wheelers that run with the help of alternative energy sources that do not burn fossil fuels and even cause less or no harm to the environment, such as electricity, solar, and biogas. The new energy cars market is projected to witness rapid growth over the forecast period, primarily due to the growing government focus on adopting and promoting vehicles with greener energy technologies. Furthermore, the constantly growing adoption of electric vehicles (EVs) in both developed and developing economies is owing to the growing disposable income, increasing fuel prices, and government spending to set up the necessary infrastructure for the easy deployment of electric vehicles.

The market is expected to experience significant growth due to increasing investments from existing automotive manufacturers aiming to enter the market, indicating the potential for further development over the next five years. Additionally, the growing efforts by transport providers for adopting the electric fleet is also one of the key factors significantly shaping the market growth in the coming five years. Moreover, the considerably lower maintenance and running costs of these vehicles are also key factors supplementing the adoption of new energy cars globally.

What are the Global New Energy Car Market drivers?

• Increased Government efforts are driving the market growth.

The new energy car market is primarily driven by the governments of several countries worldwide implementing various policies and regulations in the automotive sector to curb carbon emissions and protect the environment. This has further led to increased spending by the governments of different countries to set up the necessary infrastructure, enabling them to deploy NEV cars hassle-free.

Furthermore, the policies implemented by several countries' governments to promote EV sales are also significantly driving market growth in the next five years. For example, the Electric Vehicle Initiative, a multi-government policy launched under the Clean Energy Ministerial (CEM), is a high-level dialogue among the Energy ministers of the major economies worldwide.

The main aim of this policy is to accelerate the introduction and adoption of EVs worldwide. For example, in June 2017, EV30@30 by the CEM began to accelerate the deployment of electric vehicles by 30% by 2030, thereby positively influencing the market growth over the next five years. Similarly, in developing economies like India and China, among others, governments are taking all the necessary steps to promote sales and producing electric vehicles.

Additionally, several policies supporting the EV infrastructure are anticipated to fuel the market in the projected period. In February 2023, the Biden-Harris Administration announced its latest set of actions to build a convenient, reliable, and Made-in-America electric vehicle charging network so that the great American road trip can be electrified. These steps will support the United States in achieving President Biden's ambitious goals for addressing the climate crisis. Key objectives include building a national network of 500,000 EV chargers along highways and communities and ensuring that EVs account for at least 50 percent of new car sales by 2030. Additionally, these efforts will promote an industrial strategy aimed at strengthening the domestic EV and EV charging industry. The way to net-zero emissions by 2050 is by creating good-paying manufacturing and installation jobs.

• Electric cars have been gaining much traction lately, boosting market growth

According to the International Energy Agency (IEA), the share of electric cars in total sales has risen from about 4% in 2020 to 18% in 2023. EV sales are expected to continue strongly through 2024. Over 3 million electric cars were sold in the first quarter, about 25% more than in the same period last year.

Additionally, according to the IEA, electrical vehicle sales are likely to continue growing at an excellent pace till 2024, with an astonishing 3 million sales in the first quarter alone, a 25% increase from the previous year. Total sales are expected to reach about 17 million at the year's end, with strong year-over-year growth as purchases increase in the second half of 2024. The increase might put electric cars at one in five vehicles sold annually. Factors including favorable national policies, incentives, and stiffening price competition continue to increase adoption and market expansion.

Segment analysis of the Global New Energy Car Market:

• BEVs to hold a decent market share in the projected period

By type, battery electric vehicles are anticipated to hold a healthy market share throughout the next five years. The primary factor supplementing this segment’s growth includes the presence of a large variety of cars offered by numerous manufacturers under this segment. The growing focus on adopting zero-emission vehicles, coupled with the rising government focus on deploying EVs, is one of the additional factors bolstering this segment’s expansion throughout the next five years.

The plug-in hybrid vehicle segment is expected to witness notable growth during the forecast period. These hybrid EVs are electric vehicles that use batteries to power up the electric motor and alternative fuels, such as gasoline or diesel, to power other propulsion sources, such as internal combustion engines. These vehicles can run on electricity and fuel, offering a higher fuel economy than conventional vehicles. The market is poised to grow because of the increasing penetration of PHEVs in various countries. The entry of new players in this segment is also a key factor supplementing the growth over the forecast period.

• Enterprise segment to witness considerable growth in the forecasted period

By end-user, the individual segment is expected to hold a substantial market share. The major factors supporting the share and growth of this segment include the increasing purchasing power of the people, especially in developing economies, along with the growing awareness among the users towards the adoption of low-emission vehicles. The benefits of subsidies and low running costs are some of the additional factors that have led to an upsurge in demand for new energy cars for individual usage.

Geographical outlook of the New Energy Car Market:

• APAC to show promising growth in the coming years

Geographically, North America and Europe are anticipated to hold noteworthy market shares throughout the next five years. The presence of a well-established infrastructure and strict pollution policies are key factors supplementing the share of the North American region in the new energy cars market throughout the forecast period. However, the market in the Asia Pacific region is expected to show robust growth during the forecast period. This is owing to the increased government spending on the promotion of sales of electric vehicles in countries like India, China, and South Korea, among others.

Key developments in the Global New Energy Car Market:

According to a news statement by Toyota dated May 17, 2022, Air Liquide, CaetanoBus, and Toyota Motor Europe signed a Memorandum of Understanding to develop integrated hydrogen solutions. The three companies will pool their efforts to manage the whole hydrogen mobility value chain, from sustainable or low-carbon hydrogen production through distribution and refueling systems and vehicle deployment. Buses, light commercial vehicles, and automobiles will be the primary emphasis to boost the heavy-duty truck category.

New Energy Car Market Scope:

Report Metric	Details
New Energy Car Market Size in 2025	US$1,022.777 billion
New Energy Car Market Size in 2030	US$1,849.049 billion
Growth Rate	CAGR of 13.12%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Type End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the New Energy Car Market	BYD Company Ltd Tesla, Inc. BAIC Automotive Group Co., Ltd. General Motors Company Honda Motor Company, Ltd.
Customization Scope	Free report customization with purchase

 

The Global New Energy Car market is analyzed into the following segments:

• By Type
  • Battery Electric Vehicle
  • Plug-In Hybrid Electric Vehicle
  • Others
• By End-User
  • Individual
  • Enterprise
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Others
  • Middle East and Africa
    • UAE
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. NEW ENERGY CAR MARKET BY TYPE

5.1. Introduction

5.2. Battery Electric Vehicle

5.3. Plug-In Hybrid Electric Vehicle

5.4. Others

6. NEW ENERGY CAR MARKET BY END-USER

6.1. Introduction

6.2. Individual

6.3. Enterprise

7. NEW ENERGY CAR MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. UK

7.4.4. Italy

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. India

7.6.3. Japan

7.6.4. South Korea

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES 

9.1. BYD Company Ltd

9.2. Tesla, Inc.

9.3. BAIC Automotive Group Co., Ltd.

9.4. General Motors Company

9.5. Honda Motor Company, Ltd.

9.6. Ford Motor Company

9.7. Hyundai Motor Company

9.8. Volkswagen AG

9.9. Mercedes-Benz Group AG

9.10. TATA Motors Limited

9.11. Suzuki Motor Corporation

9.12. Bayerische Motoren Werke AG

9.13. The Volvo Group

9.14. Groupe Renault

9.15. The Nissan Motor Company, Ltd

BYD Company Ltd

Tesla, Inc.

BAIC Automotive Group Co., Ltd.

General Motors Company

Honda Motor Company, Ltd.

Ford Motor Company

Hyundai Motor Company

Volkswagen AG

Mercedes-Benz Group AG

TATA Motors Limited

Suzuki Motor Corporation

Bayerische Motoren Werke AG

The Volvo Group

Groupe Renault

The Nissan Motor Company, Ltd