North America Electric Car Market (2024-2031)
The North America Electric Car Market is expected to reach $419.39 billion by 2031, at a CAGR of 22.9% from 2024 to 2031, while in terms of volume, the market is expected to reach 9.4 million units by 2031, at a CAGR of 20.3% from 2024 to 2031.
- Published
- Apr 2024
- Pages
- 200
- Format
- PDF + Excel
- Report ID
- MRAUTO - 104525
- Base year
- 2023
- 2031 · FORECAST
- $419.4B
- 2031
- $419.4B
- CAGR 2024–2031
- 22.9%
2023 baseline · 2024–2031 forecast at 22.9% CAGR · hover a bar for the value
Key highlights
By Propulsion Type: In 2024, the Battery Electric Vehicle Segment to Dominate the North America Electric Car Market
By Power Output: In 2024, the Less Than 100kW Segment to Dominate the North America Electric Car Market
By End Use: The Private Use Segment to Witness Highest Demand During the Forecast Period
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 200 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 22.9% |
| Market Size (Value) | USD 419.39 Billion by 2031 |
| Segments Covered | By Propulsion Type · Battery Electric Vehicles · Plug-in Hybrid Electric Vehicles · Hybrid Electric Vehicles · By Power Output · Less than 100kW · 100kW to 250kW · More than 250kW · By End User · Private Use · Commercial Use |
| Countries Covered | U.S., Canada |
| Key Companies | Tesla, Inc. (U.S.), General Motors Company (U.S.), Ford Motor Company (U.S.), Rivian, LLC (U.S.), Bollinger Motors Inc. (U.S.), Alcraft Motor Company Ltd., (U.K.), Nissan Motor Co., Ltd. (Japan), NIO Inc. (China), AB Volvo (Sweden), and Groupe Renault (France). |
Report overview
Segments covered: propulsion type, power output, end use.
The growth of this market can be attributed to several factors, such as the extension of the tax credit through 2032 in the U.S., changing consumer perception regarding EVs, and supportive government policies. Moreover, the creation of new occupations and job roles, improvements in battery technology, and range improvements are expected to offer growth opportunities for the players operating in this market.
Report infographic
Market dynamics
4 factors across 3 forcesChanging consumer perception regarding EVs
Supportive government policies
Table of contents
11 chapters · 73 sections · 200 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Propulsion Type | Battery Electric Vehicle | Plug-in hybrid electric vehicles |
| By Power Output | Less Than 100kW | — |
| By End Use | Private use | Commercial use |
By Propulsion Type
- The Battery Electric Vehicle Segment to Dominate the North America Electric Car Market
- The battery electric vehicles segment is expected to account for the largest share of approximately 65.0% of the North America electric car market.
- The growth of this segment is attributed to the increasingly stringent emission standards, rising demand for increased fuel efficiency, growing demand for zero-emission vehicles, and a continuous reduction in battery prices.
- In addition, increasing initiatives by local government bodies and automotive players for developing BEVs, the proliferation of fast & ultra-fast charging technologies, and increasing acceptance due to reduced noise & vibrations with no emissions drive the BEVs market.
- However, the plug-in hybrid electric vehicles segment is projected to witness the highest growth rate of approximately 28.1% during the forecast period of 2024–2031.
- The growth of this segment is attributed to the supportive government initiatives for promoting the adoption of hybrid vehicles, increasingly stringent emission norms, and the growing need for improved fuel efficiency.
- PHEVs offer relatively lower lifecycle costs than hydrogen fuel cell cars and internal combustion engine (ICE) cars.
- Also, these vehicles emit less greenhouse gases, making them more environment-friendly than regular gasoline-powered cars.
By Power Output
- The Less Than 100kW Segment to Dominate the North America Electric Car Market
- The less than 100kW segment is expected to account for the largest share of approximately 60.0% of the North America electric car market.
- This segment's large share is mainly attributed to the increasing usage of light electric cars in the central business districts of major cities, demand for electric cars for shared mobility services in the major cities, and falling battery prices.
By End Use
- The Private Use Segment to Witness Highest Demand During the Forecast Period
- The private use segment is expected to account for the largest share of approximately 85.3% of the North America electric car market.
- The segment’s large share is mainly attributed to increasing consumer demand for fuel-efficient and zero tailpipe emission vehicles, major incentive plans by the government, low taxes, reduction in battery costs, and high fuel prices.
- However, the commercial use segment is projected to witness the highest growth rate of approximately 28.4% during the forecast period of 2024–2031.
- The growth of this segment is attributed to the increasing use of electric cars in shared mobility services and corporate taxi fleets, increasing regulations to reduce fleet emissions, growing adoption of mobility-as-a-service (MaaS), and growing demand for energy-efficient commuting, increasing fuel prices, and encouragement by global and state-level regulatory bodies to deploy policies promoting the adoption of electric cars for mobility services.
Geographic analysis
North America
Largest shareIn 2024, the U.S. is expected to account for the largest share of approximately 88.9% of the North America Electric car market, followed by Canada. The large share of this country is mainly attributed to the greater availability of electric car models, the growing number of mass-premium buyers shifting from gasoline cars to electric cars, the increasing adoption of electric cars, and investment by automotive OEMs. The U.S. has always been at the forefront of innovative technology adoption, including electric cars globally. The state and local governments are supporting the growth of the electric car market with attractive incentives and subsidy schemes. States such as California, Colorado, New Jersey, and Washington State are at the forefront of electric car adoption. Moreover, the market in Canada is slated to register the highest growth rate of approximately 32.4% during the forecast period. The Canadian government has introduced numerous policies and incentive programs to increase the adoption of electric cars and reduce transportation emissions in the coming years. The authorities have set targets to achieve 100% zero-emission vehicle sales by 2040. Accordingly, the Canadian government has set targets for automotive OEMs to increase the share of electric cars in new vehicle sales to 10% by 2025, 30% by 2030, and 100% by 2040. The Canadian government has also rolled out attractive incentive plans for consumers purchasing EVs in Canada.
Competitive landscape
- February 2024
AB Volvo acquired the battery business from Proterra Inc. and Proterra Operating Company Inc. for $210 million. The acquisition includes a development center for battery modules and packs in California and an assembly factory in Greer, South Carolina.
- November 2023
General Motors signed a strategic partnership agreement with Niron Magnetics to co-develop Clean Earth Magnet motor technology that can be used in future GM EVs.
- Tesla, Inc. (U.S.)
- General Motors Company (U.S.)
- Ford Motor Company (U.S.)
- Rivian, LLC (U.S.)
- Bollinger Motors Inc. (U.S.)
- Alcraft Motor Company Ltd.
- (U.K.)
- Nissan Motor Co., Ltd. · Japan
- NIO Inc. (China), AB Volvo · Sweden
- Groupe Renault · France
Frequently asked questions
The North America Electric Car Market is segmented based on Propulsion type, power output, and end use. Based on propulsion type, the North America Electric car market is segmented into battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. Based on power output, the North America Electric car market is segmented into less than 100kW, 100kW to 250kW, and more than 250kW. Based on end use, the North America Electric car market is segmented into private use and commercial use.
Cite this report
Meticulous Research. (2024). North America Electric Car Market - Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRAUTO - 104525). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/north-america-electric-car-market-5216