The global electric vehicle (EV) sector is expected to expand at a compound annual growth rate (CAGR) of 15.9% between 2023 and 2035, according to new report from data and analytics company GlobalData, Power Technology’s parent company.

Broken down by vehicle type, the report finds that the passenger EV market is expected to register a CAGR of 26.1% during this period, while the commercial EV sector is predicted to grow 15% during the same time frame.

The sale of battery electric passenger cars is forecast to reach 44 million units by 2035, representing huge growth compared with the 7.3 million units sold in 2022. The total sale of battery electric commercial vehicles reached approximately 400,000 units in 2022 and is expected to grow to 7.6 million units by 2035, according to GlobalData. The report finds that total EV vehicles sales globally are forecast to reach 51.6 million in 2035.

Strong growth in the sector is attributed largely to the electrification of the global transport industry, as the world shifts to low-carbon alternatives to traditional combustion engine vehicles. In many countries and blocs, deadlines have been imposed for the complete phase-out of new fossil fuel-powered road vehicles.

In the UK, a ban on combustion engine vehicles is set to begin from 2030. Despite U-turns on various other environmental policies, the UK’s Prime Minister Rishi Sunak confirmed at the end of July that this target still stands. For EU member states, a similar ban will come into effect in 2035. The US Government has pledged that by 2030, half of all vehicles sold in the country will be electric or zero-emissions.

Attaurrahman Ojindaram Saibasan, power analyst at GlobalData, said: “The increasing prices of gasoline, growing EV infrastructure, including the number of charging stations, maintenance hubs and facilities related to EVs, and growing concern about environmental pollution are the major reasons behind the increasing adoption of EVs worldwide.

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“China is the largest EV market in the world, with annual sales of battery electric vehicles of five million units in 2022… The Asia-Pacific (APAC) region is leading the EV market in terms of annual sales globally, followed by Europe and the Americas,” he added.

“In 2022, APAC accounted for 69.3% of the sales, followed by Europe with 19% and the Americas with 10%. The presence of market leader China in the APAC region is the key factor for its major share. The region is anticipated to hold the major share of the market of 41.4%, followed by Europe with 31.6% and the Americas with 19.4% by 2035.”