US Electric Vehicle Market: Industry Analysis and Forecast (2022-2029)

US Electric Vehicle Market size was valued at USD 17.54 Bn in 2021 and the total revenue is expected to grow at 37.1 % through 2022 to 2029, US Electric Vehicle Market is reaching nearly USD 219.05 Bn by 2029.
US Electric Vehicle Market Overview:
An electric drive vehicle, sometimes known as an EV, is a vehicle that propulsion is provided by one or more motors (electric or traction). The amount of electrification in a vehicle varies from one vehicle to the next EVs can also help cities minimize noise pollution. Electric vehicles accounted for about 2.4 % of new car sales in 2020, up from nearly 2% in 2019. The states and towns with the greatest electric vehicle market performance continue to have the strongest and most extensive policy supports, according to this study, which is an update of our prior examination of state, local, and utility company efforts to promote electric vehicles. Electric two-wheelers and electric buses should also be promoted by governments as a strategy to reduce pollution and noise in populous areas where point-to-point charging is available. The electric motor is exceptionally effective in both scenarios, utilizing 90-95 % of the input energy to propel the automobile forward while releasing zero pollutants. The use of batteries, on the other hand, poses two key issues for battery electric vehicles: cost and range.



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Current Trends and Statistics of US Electric vehicle Market –

• Tesla is a major contributor to the growth of the electric vehicle market in the United States – Tesla Model 3 was sold in almost 439,0000 units in 2020. With the addition of the Model S and Model X to the mix, the next year became even more profitable for the corporation. Overall, Tesla accounted for more than half of all plug-in vehicle sales in the United States in 2019.

• The Toyota Camry tops the list of the top five best-selling electric vehicles in the United States – despite having a large number of sales, Tesla was not the best-selling electric vehicle in the United States. Based on December 2019 sales data, the Tesla Model 3 ranked fourth in our Tesla electric vehicle statistics. The Toyota Camry took first place, followed by the Honda Accord and Honda Civic.

• California's strict air-quality regulations are fueling an increase in electric vehicle sales in the United States – California offers a number of rules and incentives for EV users, the most common of which being subsidies for the replacement of vehicle components for electric and hybrid vehicles. Nine other states have enacted Zero Emission Vehicle (ZEV) rules in order to reduce overall emissions, which is expected to contribute to the rise of electric car sales in the United States.
US Electric Vehicle Market Dynamics:
Electric vehicle automobiles (EVs) in the US market can meet personal mobility demands while lowering carbon emissions by utilizing domestic energy supply. However, widespread adoption of light-duty electric vehicles will necessitate a review and maybe change of the electric power generation and distribution infrastructure in the United States. Future advancements in EV technology are expected to enable higher efficiency and reduced energy usage per mile as the EV market grows. Simultaneously, the current consumer trend toward larger automobiles, which are normally less efficient, predicts that energy consumption per mile will rise. Electric vehicles, like any other game-changing new technology, present a slew of economic development obstacles and potential. While the electric vehicle business is still in its infancy, it has the potential to change industries and communities all over the globe. Electric cars in the US market have the ability to reduce, or at the very least moderate, utility rate growth. This may appear counter-intuitive for a technology that will raise total electricity use.

Governments all over the globe have offered tax incentives to encourage the adoption of electric vehicles. For example, qualified applicants in the United States would be reimbursed by the State of California under the Clean Vehicle Rebate Project (CVRP), which would be effective for applications submitted on or after April 23, 2021. Candidates who meet the eligibility criteria will be eligible for payback on a new electric vehicle of their choice. The applicant will get a USD 2,000 cashback on the purchase of a new battery-electric vehicle, and a USD 1,000 cashback on the purchase of a new plug-in hybrid electric vehicle.

The availability of electric car models in the United States in 2020 was similar to that of 2019. From 29 in 2019 to 31 in 2020, the number of electric vehicle models with over 1,000 sales grew. There were 59 models available in 2020, all of which had at least one sale, and 12 of which had more than 4,000 sales. Electric vehicle model availability was three to five times higher in Europe and China, where incentives and regulations promoting electric vehicle sales are stronger: in 2020, Europe and China had 180 and 300 electric vehicle models with at least one sale, respectively, and 77 and 63 models with more than 4,000 sales. 3 It is vital for electric vehicles to be introduced in more segments and in larger volumes. The Tesla Model Y crossover sport utility vehicle, which was introduced in 2020 and soon became the second-best-selling electric vehicle, demonstrates this. The Other new 2020 PHEV vehicle offers, such as the BMW X3, have more limited availability. Sales of the 30e, Toyota RAV4, and Audi Q5 ranged from 2,500 to 4,000 units across the country in the year 2020.

Government regulations are crucial in lowering consumer hurdles such as a shortage of electric vehicle models, greater upfront prices, range and range anxiety, and a lack of awareness and understanding. Despite the uncertainty created by the Trump Administration's reversal of US fuel economy regulations and a lack of federal leadership on electric vehicles, state and local partners in the electrification transition boosted their support operations. A growing number of state and local governments have stated their commitment to all-electric transportation, adopted clean car and zero-emission vehicle legislation and enacted stronger policies to promote infrastructure investment and the electric vehicle market.

Charging Infrastructure – Greater and more widespread adoption of electric vehicles necessitates greater charging infrastructure in a variety of settings, including the home, workplace, and public. To assure driver convenience and improve confidence and knowledge among prospective drivers, infrastructure must be deployed in tandem with the growth of electric vehicles. With 93 to 253 DC fast chargers per million inhabitants, San Francisco, Sacramento, Riverside, and Oklahoma City had the most DC fast chargers. In these locations, public DC fast charging infrastructure is deployed at 1.6 to 4.5 times the average public Level 2 charging per capita in the United States. San Jose, Los Angeles, San Francisco, San Diego, Salt Lake City, and Kansas City have the most public Level 2 charging stations, with 400 to 985 chargers per million people. These localities had public Level 2 pricing rates that were 1.6 to 4 times higher than the national average.

Between 2019 and 2020, total public and workplace charging grew by nearly 30% throughout the 50 metropolitan areas. This annual increase rate corresponds to the expected charging requirements by 2030. Buffalo, Oklahoma City, Providence, and Los Angeles are among the 11 cities with the highest yearly growth rates from 2019 to 2020, ranging from 45 % to 90 %. This surge in infrastructure deployment was matched by a three-fold increase in permitted utility infrastructure spending in 2020 compared to 2019, ensuring that charging infrastructure deployment continues.

Regulations requiring more electric vehicle models to be available are critical for industry growth – Electric vehicle models are hard to come by in many parts of the country. Europe and China both had stricter rules, three to five times the number of electric vehicles on the market, and four times the annual electric car sales of the United States in 2020. In comparison to non-ZEV regulation states, which had a 1.3 % electric vehicle share, 26 states with ZEV rules had a combined new electric car share of 5% and typically at least 13 more electric models available. ZEV-required states accounted for around two-thirds of electric vehicle sales in 2020, but less than one-third of overall light-duty vehicle sales. These achievements highlight the importance of federal greenhouse gas emission and fuel economy rules, particularly state ZEV regulations, in driving electric car models into production.

State, city, and utility support packages are being produced all the time to help the electric vehicle market grow – Various governments, cities, and utilities are aggressively reducing consumer barriers through entire policy packages that include vehicle laws, incentives, infrastructure development, and innovative education efforts, with an increasing emphasis on broadening access more generally. More states, most recently Colorado and Washington, are moving toward adopting the robust ZEV rule to compel rising proportions of electric vehicles, and other states are following suit. Electric vehicle adoption was highest in metropolitan regions with a strong mix of state, local, and utility promotion efforts in 2020. With 31 to 44 actions, eight of the ten greatest electric uptake locations had the most. The locations with the lowest uptake, on the other hand, had less than half of this quantity.

US Electric Vehicle Market Segment Analysis: the US Electric Vehicle Market is segmented into Type and Vehicle type.

Based on type, the market is sub-segmented into BEV, PHEV, and HEV. In 2020, the BEV segment had the largest revenue share of almost 75%, and this dominance is expected to continue from the forecast period. The significant revenue share is partly due to increased environmental awareness and benefits of BEV among end-users. From 2021 to 2028, the PHEV segment is expected to grow at a CAGR of more than 40% in terms of revenue. This increase can be linked to government programs in the United States and Canada to promote the usage of electric vehicles. Larger vehicle sectors, such as electric trucks and buses, are more likely to provide PHEVs. Over the forecast period, the developing transportation and logistics industry is expected to see segmented growth. Also, corporations such as the Volkswagen Group are concentrating their efforts on expanding sales of plug-in electric vehicles. In January 2020, the firm reported a 60.0 % rise in plug-in electric car sales over the previous year.



The objective of the report is to present a comprehensive analysis of the US Electric Vehicle Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the US Electric Vehicle Market dynamics, structure by analyzing the market segments and projects the US Electric Vehicle Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the US Electric Vehicle Market make the report investor’s guide.
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 US Electric Vehicle Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
USD 17.54 Bn


Forecast Period 2022 to 2029 CAGR:
37.1 %
Market Size in 2029:
USD 219.05 Bn


 Segments Covered:
by Type
• BEV
• PHEV
• HEV


by Vehicle Type
• Two-wheeler
• Passenger car
• Commercial vehicle



US Electric Vehicle Market Key Players
• BMW
• Mercedes Benz
• Bollinger
• Bollore
• Microlino
• Mistubishi
• Nissan
• Tesla
• Volkswagen.
• Alstom‎
• PSA Group‎
• General Motors
• Lucid Motors
• Rivian Vehicles
• National Motor Vehicle Company
• Nikola Corporation

Frequently Asked Questions:

1) What was the market size of the US Electric Vehicle Market in 2021?
Ans - US Electric Vehicle Market was worth USD 17.54 Bn in 2021.

2) What is the market segment of the US Electric Vehicle Market?
Ans -The market segments are based on Type and Vehicle Type

3) What is the forecast period considered for US Electric Vehicle Market?
Ans -The forecast period for US Electric Vehicle Market is 2022 to 2029.

4) What is the US Electric Vehicle market size in 2029?
Ans – US Electric Vehicle Market is estimated as worth USD 219.05 Bn in 2029.

5) Who are the top 5 Key players in US EV Market?
Ans –Eaton, BMW, Mercedes Benz, Rivian vehicle, AVL, and Tesla.