US Electric Vehicle Market:Industry Analysis and Forecast (2024-2030)

The US Electric Vehicle Market size was valued at USD 38.18 Billion in 2023 and the total Anime revenue is expected to grow at a CAGR of 25.4% from 2024 to 2030, reaching nearly USD 233.46 Billion by 2030.

The U.S. electric vehicle (EV) industry has experienced remarkable growth in recent years, with electric car sales expanding from a mere 0.2 percent of total car sales in 2011 to an impressive 4.6 percent in 2021. Despite an overall contraction of the new vehicle market by approximately 8% in 2022, EV sales outpaced the industry, reaching over 800,000 units for the first time, marking a substantial 65% increase from 2021. This surge in EV adoption is expected to continue, with estimates suggesting that the market is on track to surpass 1 million units by November 2022.

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Several factors contribute to the US electric vehicle market growth is the growing popularity of electric vehicles. Consumer demand has soared, driven by environmental concerns, greater vehicle choices, improved battery capacity, and cost savings. According to MMR analysis surveys indicate that protecting the environment is a top motivator for potential EV buyers, reflecting a broader societal shift towards sustainability. The number of EVs on U.S. roads has grown significantly, from 22,000 to over 2 million over the past decade, showcasing the increasing acceptance of electric vehicles among consumers.

US electric vehicle market manufacturers have played a crucial role in fostering this growth by diversifying their EV offerings. While compact cars dominated the US electric vehicle market initially, the introduction of larger vehicles, including trucks and SUVs, has contributed to EVs capturing 78 percent of new vehicle sales in 2021. The trend towards larger EVs is set to continue, with numerous new models expected to debut by 2024, providing consumers with a broader range of options.

Addressing a key concern for potential EV buyers, improvements in battery technology have significantly increased vehicle range, alleviating range anxiety—the fear of running out of battery power before reaching a charging location. From a median range of 68 miles on a single charge in 2011, the figure has risen to 234 miles in 2021 and is expected to further increase with ongoing advancements in battery technology.

Cost savings have emerged as another compelling factor driving EV adoption. Studies indicate that switching to EVs results in significant long-term savings, with about $8,000 to $12,000 in maintenance cost savings over the vehicle's lifetime. Additionally, as battery pack costs continue to decline, the prices of EVs are expected to converge with those of conventional cars, making them more financially attractive to a broader consumer base.

Looking ahead, optimistic projections foresee electric vehicle sales potentially surpassing 50 percent of total passenger car sales in the United States by 2030. With a combination of environmental consciousness, expanded vehicle choices, improved range, and compelling cost savings, the U.S. electric vehicle market is poised for continued growth and widespread adoption in the coming decade. The US electric vehicle market report covered a detailed analysis of US electric vehicle market demand-supply, top US electric vehicle market leader investment and new launch of vehicle, marketing and manufacturing strategy, and detailed competitive analysis and competitive benchmarking of US Electric Vehicle Market players and future of US electric vehicle industry growth.

US Electric Vehicle Market Competitive Landscapes:

The U.S. electric vehicle (EV) market is undergoing significant changes, driven by a combination of Tesla's continued dominance and the emergence of new players targeting niche markets. Tesla, with a staggering US electric vehicle market cap of over $760 billion, stands out as the undisputed leader. The company's ability to consistently lower prices and maintain a strong US electric vehicle market position is attributed to its unique supply chain strategy, in-house software management, limited SKUs, and manufacturing agility. Tesla's use of silicon carbide in its EV chips further distinguishes its technology.



Rivian, a California-based company, has successfully carved out its niche in the EV market with a market cap of $18 billion. Notably, Rivian's strategic deals, such as the partnership with Amazon for electric delivery vehicles, contribute to its success. The introduction of innovative features like "camp mode" for electric trucks also showcases Rivian's commitment to meeting diverse customer needs. Other automakers, including Hyundai, Kia, Mercedes-Benz, Volvo, and BMW, are making strides in the U.S. EV market, gaining traction with consumers to increase US Electric Vehicle Market demand.

General Motors (GM) aims to achieve profitability in its North American US Electric Vehicle Market portfolio by 2025, anticipating a surge in EV adoption. The company plans to aggressively pursue EV leadership, introducing multiple EVs in key segments and launching a digital retail platform with U.S. dealers to enhance customer experience and reduce costs. GM is strategically utilizing five assembly plants, BrightDrop's EV and software solutions, and its battery cell joint venture Ultium Cells to secure a leading position in the EV market. The company has also secured raw materials and focused on sustainability, all while maintaining profitability in traditional vehicle segments. GM's comprehensive strategy positions it as a strong contender in the competitive US Electric Vehicle Market.

Several states have taken the lead by passing laws or issuing executive orders to ban the sale of new gasoline passenger cars by 2035. If this trend becomes national, it could lead to a significant shift in the U.S. electric vehicle market, with most passenger cars on the road by 2050 being electric. The competitive landscape is evolving as automakers adapt to changing consumer preferences, legislative requirements, and technological advancements. This dynamic environment creates opportunities for both established players like Tesla and newer entrants like Rivian to capture specific segments of the growing US electric vehicle market.


US Electric Vehicle Market Dynamics:
United States Electric Vehicle Market Trade Analysis

In September 2023, the United States faced a challenging trade scenario in the Cars sector, with exports totaling $5.52 billion and imports soaring to $17.9 billion, resulting in a notable trade deficit of $12.4 billion. Analyzing the trends between September 2022 and September 2023 reveals a 9.75% growth in car exports, reaching $5.52 billion, while imports experienced a substantial 35.5% surge, reaching $17.9 billion. Noteworthy destinations for US Electric Vehicle Market exports in September 2023 included Canada, Germany, Mexico, the United Arab Emirates, and China, with Canada being the leading market at $1.33 billion. Conversely, major sources of car imports comprised Mexico, Japan, Canada, South Korea, and Germany, with Mexico leading at $4.28 billion.

In the broader context of 2021, the United States emerged as the third-largest exporter of cars globally, with exports amounting to $55.4 billion. Cars also held the position of the fourth most exported product from the United States that year, which drive the US Electric Vehicle Market demand. Key export destinations included Canada, China, Germany, South Korea, and Mexico. The fastest-growing export markets from 2020 to 2021 were Canada, Mexico, and South Korea, reflecting a robust expansion in these regions to drive the US Electric Vehicle Market. On the import side, the U.S. became the world's largest importer of cars in 2021, importing a staggering $139 billion worth of vehicles. Cars claimed the top spot as the most imported product in the United States, with major import sources being Japan, Mexico, Canada, South Korea, and Germany. Notable growth in import markets between 2020 and 2021 occurred in South Korea, the United Kingdom, and China.



The US Electric Vehicle Market report covered a detailed trade analysis highlighting the significant role of the automotive sector in the U.S. trade landscape, with persistent trade imbalances and substantial growth in both exports and imports. The dynamics of the US Electric Vehicle Market, a key driver of the automotive industry, could potentially reshape these trade patterns in the future, with factors such as technological advancements, environmental concerns, and shifting consumer preferences playing pivotal roles. The global push towards sustainable transportation and the increasing emphasis on electric vehicles may present opportunities for the U.S. to leverage its position as a major player in the automotive industry and navigate towards a more balanced and sustainable trade scenario.

U.S. Accelerates Electric Vehicle Revolution with Groundbreaking Policies and Investments

The current surge in electric vehicle (EV) adoption represents a pivotal transformation in the American transportation landscape, promising substantial advantages for individuals, businesses, and communities nationwide, which drive the US electric vehicle market growth. The Federal Government, recognizing the myriad benefits of EVs, has established ambitious goals, including making half of all new vehicles sold in the U.S. by 2030 zero-emission vehicles. Additionally, the government aims to construct a comprehensive and equitable network of 500,000 chargers to ensure accessibility for all Americans. The recently enacted Bipartisan Infrastructure Law allocates $7.5 billion for EV charging stations, fostering both urban and rural development.

Tax credits, a pivotal US electric vehicle market driver, play a crucial role in incentivizing EV adoption across vehicle types. The Inflation Reduction Act has extended the Section 30D tax credit for light-duty vehicles, introduced a new commercial EV credit (Section 45W), and implemented a used EV credit (Section 25E). These incentives signal the nation's commitment to prioritizing an electric future, encouraging manufacturers, consumers, and fleet operators.

To address the critical need for charging infrastructure, the government has allocated significant funds, including $5 billion for highway charging networks and an additional $2.5 billion in competitive grants, prioritizing low-income and rural communities. However, there remains a need for programs like rest stop electrification, promoting the commercialization of rest stops along interstate highways.



The increasing demand for US electric vehicle market is due to, US the government is leading by example through the electrification of the federal fleet, with a goal to electrify all new light-duty vehicles by 2027. The Inflation Reduction Act earmarked $3 billion for electrifying the federal fleet, emphasizing the importance of transitioning the U.S. Postal Service fleet to electric vehicles. Additionally, adopting a Total Cost of Ownership (TCO) methodology for government fleets, including the military, would ensure a balanced evaluation of upfront costs against the long-term benefits of EVs. In parallel, policies in the Bipartisan Infrastructure Law and the Inflation Reduction Act prioritize the U.S. manufacturing and supply chain for clean vehicles. This includes substantial funding for battery processing, manufacturing, recycling, and various tax credits to bolster the production of EVs and critical components. Collectively, these measures position the United States at the forefront of the global electric vehicle market, driving sustainable and eco-friendly mobility solutions.
US Electric Vehicle Market Scope: Inquiry Before Buying



 US Electric Vehicle Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 38.18 Bn


Forecast Period 2024 to 2030 CAGR:
25.4 %
Market Size in 2030:
USD 233.46 Bn


 Segments Covered:
by Type
BEV
PHEV
HEV


by Vehicle Type
Two-wheeler
Passenger car
Commercial vehicle



US Electric Vehicle Market Key Players:
1. BMW
2. Mercedes Benz
3. Bollinger
4. Bollore
5. Microlino
6. Mistubishi
7. Nissan
8. Tesla
9. Volkswagen.
10. Alstom‎Mitsubishi
11. PSA Group‎
12. General Motors
13. Lucid Motors
14. Rivian Vehicles
15. National Motor Vehicle Company
16. Nikola Corporation

FAQs:

1. What are the growth drivers for the US Electric Vehicle Market?
Ans. The growth of charging infrastructure in the United States is emerging as a pivotal market driver, strategically supporting the surge in electric vehicles (EVs). A widespread deployment of public charging stations, incorporating efficient fast-charging networks, is actively underway throughout the nation. This development is significantly enhancing the feasibility of long-distance travel for EV owners, fostering increased consumer confidence in the electric vehicle market. Moreover, the increasing accessibility of residential and workplace charging options is contributing to the market's expansion, catering to the evolving needs of electric vehicle users and further driving the demand for electric vehicles in the country.

2. What is the major restraint for the US Electric Vehicle Market growth?
Ans. Stringent government regulations are expected to be the major restraining factor for the US Electric Vehicle Market growth.

3. Who is the largest EV seller in the US?
Ans. Tesla now dominates just half of the market, down from the 62% it held in the first quarter, despite a price war started by the Elon Musk-led company to solidify its foothold in the competitive EV arena.

4. What is the projected market size and growth rate of the US Electric Vehicle Market?
Ans. The US Electric Vehicle Market size was valued at USD 38.18 Billion in 2023 and the total Anime revenue is expected to grow at a CAGR of 25.4% from 2024 to 2030, reaching nearly USD 233.46 Billion.

5. What segments are covered in the US Electric Vehicle Market report?
Ans. The segments covered in the US Electric Vehicle Market report are Type, Vehicle Type and Region.