Electric Vehicles Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on the component, the market is segmented into battery pack & high voltage component, motor, brake, wheel & suspension, body & chassis, and low voltage electric component.

Trends in the Component:

• The rising shift towards adoption of regenerative braking in electric vehicles due to reduced maintenance and improved life span of braking is driving the brake component segment.
• The increasing focus towards faster charging and improved vehicle performance is driving the adoption of low voltage electric component, in turn boosting the electric vehicles market trends.

The battery pack & high voltage component accounted for the largest revenue share in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.

• The battery pack & high voltage component store and deliver the necessary electrical energy to power the electric motor and other systems, which enables efficient, zero-emission, in turn, driving the electric vehicles market share.
• Additionally, the advantages of battery pack & high voltage component include efficient power delivery, faster charging, and increased range, as well as promoting lighter and more compact designs.
• For instance, in December 2024, Škoda Auto achieved a milestone of producing one million battery system at its main plant in Mladá Boleslav. Additionally, the company is focused on producing larger batteries for fully electric vehicles.
• Thus, according to the electric vehicles market analysis, the increasing focus towards improving efficiency with zero emissions is driving the battery pack & high voltage component segment progress.

By Vehicle Type:

Based on the vehicle type, the market is bifurcated into passenger car and commercial vehicle.

Trends in the Vehicle Type:

• The shift towards rapid growth charging infrastructure across the globe is paving the way for progress of passenger car.
• The e-commerce expansion is paving the way for progress of commercial vehicles, which in turn is driving the electric vehicles market growth.

Passenger car accounted for the largest revenue share in the year 2024.

• The rising fuel cost is shifting consumers towards sustainable mobility solution, paving the way for progress of passenger cars.
• Further, the increasing focus towards eco-friendly solution as well as sustainability is driving the adoption of passenger cars across the globe.
• For instance, according to International Organization of Motor Vehicle Manufacturers (OICA), global passenger car sales increased from 3% in 2022 to 11% in 2023, in turn driving the progress of passenger cars.
• Thus, according to the electric vehicles market analysis, the increasing focus towards eco-friendly solution as well as sustainability is driving the electric vehicles market demand.

Commercial vehicle is anticipated to register the fastest CAGR during the forecast period.

• The commercial vehicle offers lower operating costs, which in turn reduces fuel and maintenance expenses, thereby, driving the adoption of commercial vehicles.
• Additionally, the rising adoption of electric buses is paving the way for progress of commercial vehicles segment.
• Further, the commercial vehicles contribute to Scope 3 emissions offsetting, enabling companies to meet stringent sustainability targets.
• For instance, in March 2025, Volvo Buses launched new electric bus in Mexico. The bus is available in two models, Volvo 7800 Electric bi-articulated and articulated with a capacity of 250 kWh.
• Therefore, the rising adoption of electric buses as well as lowered operating costs are anticipated to boost the market during the forecast period.

By Propulsion Type:

Based on the propulsion type, the market is bifurcated into battery electric vehicle (BEV) and hybrid electric vehicle (HEV).

Trends in the Propulsion Type:

• The improvement in battery technology drives faster charging times and longer drive range, in turn fueling the battery electric vehicles market trends.
• The shift towards growing focus on optimizing and improving the efficiency of vehicles driving the hybrid electric vehicle industry.

Battery electric vehicle (BEV) accounted for the largest revenue in the market in the year 2024.

• The battery electric vehicles have lower running costs compared to gasoline vehicles, propelling the adoption of battery electric vehicle segment.
• Further, the increasing investment by the government in the promotion of electric vehicles is driving the battery electric vehicle segment progress.
• For instance, according to International Energy Agency (IEA), BEV sales in United States reached 1.1 million in 2023, increasing from 0.8 million in 2022.
• Thus, rising government support for electric vehicle is driving the battery electric vehicle segment progress.

Hybrid electric vehicle (HEV) is anticipated to register significant CAGR during the forecast period.

• Hybrid electric vehicles offer significant improvements in fuel economy and lower emissions due to a combination of gasoline engines with high-voltage batteries.
• Additionally, the better fuel economy benefits provided by HEV is driving the electric vehicles market share. Also, the adoption of advanced technologies such as regenerative braking is driving the HEV segment progress.
• For instance, Toyota offers HEVs in its product portfolio. The HEVs are available in several models including 4Runner, Corolla Hybrid, and Toyota Crown, among others.  
• Therefore, the better fuel economy benefits as well as adoption of advanced technologies are anticipated to boost the market during the forecast period.

By Drive Type:

Based on the drive type, the market is segmented into all-wheel drive, front wheel drive and rear wheel drive.

Trends in the Drive Type:

• The increased grip and stability offered by all-wheel drive in application such as rainy roads, uneven terrain, and others is driving the market trend.
• The all-wheel drive adopted traction control systems for regulating power distribution is boosting the market trend.

The front wheel drive accounted for the largest revenue share of 47.28% in the year 2024.

• The vehicles with front wheel drive offers better traction in slippery conditions, and reduced weight, in turn driving the segment development.
• Additionally, the front wheel drive offers better fuel economy, which is paving the way for the progress of electric vehicles market size.
• For instance, in December 2024, Toyota launched bZ4X BEV offering both front-wheel drive (FWD) and all-wheel drive (AWD) capabilities with other advanced features and benefits.
• Thus, as per the market analysis, the ability to offer better traction as well as improved fuel economy is driving the front wheel drive segment.

The rear wheel drive is anticipated to register the fastest CAGR during the forecast period.

• The rear wheel drive offer advantages such as improved handling, potentially better acceleration, and more balanced weight distribution, in turn driving the rear wheel drive segment progress.
• Additionally, the rear wheel drive has quicker acceleration as compared to front wheel drive due to less weight over the front wheels.
• Further, RWD avoid the energy losses associated with sending power to all four wheels, in turn improving efficiency.
• Therefore, factors such as improved handling and more balanced weight distribution are anticipated to boost the electric vehicles market expansion during the forecast period.

By Range:

Based on the range, the market is segmented into up to 150 miles, 151-300 miles and above 300 miles.

Trends in the Range:

• The trend towards exploration in new battery chemistries such as solid-state and silicon anode batteries for improving the vehicle range is driving the above 300 miles segment development.
• The rising adoption and demand of electric public buses for commute in cities is driving the progress of up to 150 mile range segment.

The 151-300 miles accounted for the largest revenue in the market in the year 2024.

• The vehicles with 151 to 300 miles range offers a balance for daily commuting and longer trips, driving the segment development.
• Additionally, the advancing battery technology is paving the way for progress of battery range, which is driving the segment evolution.
• Further, the vehicles with 151 to 300 miles offers lower running costs, reduced maintenance, and environmental advantages, thereby, driving the market progress.
• Thus, as per the market analysis, factors including lower running costs, reduced maintenance, and environmental advantages are driving the adoption of vehicles with 151 to 300 miles range.

Above 300 miles is anticipated to register the fastest CAGR during the forecast period.

• The vehicles with mile range above 300 offers lowered fuel cost, reduced maintenance cost and improved trip range, in turn driving the demand for above 300 mile range EVs.
• Additionally, the larger battery capacity offers instant torque and quick acceleration, paving the way for consumer with performance requirement towards electric powered vehicles.
• For instance, in January 2025, Stellantis launched STLA large platform for BEV with 500 mile range for driving applications in car, crossover and SUV vehicle types.
• Therefore, as per the market analysis, the vehicles with more than 300 mile range offer lowered fuel cost with instant torque, which is anticipated to boost the market during the forecast period.