The global electric vehicle (EV) market is charging into a high-growth phase, projected to surge from USD 1.46 trillion in 2025 to USD 2.73 trillion by 2029, according to the latest report by Mordor Intelligence. With a compound annual growth rate (CAGR) of 16.90%, this sector is being transformed by bold government policies, technological advancements, and rising consumer demand.
Governments Powering the Shift
Countries like China, India, the United Kingdom, and France are spearheading the transition away from internal combustion engine (ICE) vehicles, setting 2040 as the target for complete phase-outs. France, for instance, offers EUR 5,000 subsidies for EVs under EUR 47,000, making electric mobility more accessible than ever.
The passenger vehicle segment dominates the EV landscape, commanding 67% of total global EV sales, thanks to increased model variety and competitive pricing. Automakers continue to pour investment into battery technology, charging infrastructure, and advanced driver assistance systems (ADAS) to enrich the EV ecosystem.
UK: Leading the Charge in Europe
The UK EV market, valued at USD 57.13 billion in 2025, is expected to more than double to USD 121.7 billion by 2029, growing at an impressive 20.81% CAGR. Government plans to ban ICE vehicles by 2035, coupled with subsidies up to GBP 2,500 and plans for 300,000 public charging points by 2030, are fueling this acceleration.
India: Ambitious Targets Backed by Policy
In India, the EV market is projected to reach USD 110.7 billion by 2029 from USD 54.41 billion in 2025, recording a 19.44% CAGR. With programs like FAME India and the Vehicle Scrappage Policy, the government aims to electrify 30% of all vehicles by 2030, encouraging both manufacturers and buyers to go electric.
Africa: A Market on the Move
Though still nascent, Africa’s EV market is gaining momentum. Valued at USD 17.41 billion in 2025, it’s expected to grow to USD 28.30 billion by 2030 at a 10.2% CAGR. Countries like Cape Verde aim for 100% electric new vehicle sales by 2035, as policy support and foreign investments begin to reshape the continent’s auto sector.
Australia: Fastest Growth Globally
Australia is emerging as a surprise leader in EV growth, projected to rise from USD 11.30 billion in 2025 to USD 47.12 billion in 2030, reflecting a staggering 33.06% CAGR. Government incentives and next-gen innovations like solar-powered EVs are attracting consumers and setting the stage for a green auto revolution.
As environmental concerns, policy mandates, and consumer interest converge, the global EV market is poised to redefine transportation worldwide. With technology evolving and infrastructure expanding, the electric future is not just near—it’s now accelerating.
