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Electric vehicles' global market share projected to reach 29% by 2025

- Covid-19 relief packages resulted in new policy support for EVs, making them more affordable compared to ICEs, expert says

home > Electricity, World 21.10.2021 12:13 Ebru Şengül

Electric vehicles' global market share projected to reach 29% by 2025

The global market share of electric vehicles (EVs) is expected to reach as much as 29% by 2025, driven by demand from China and Europe, according to Marius Kluge Foss, senior vice president at Rystad Energy on Thursday.

With fuel supply issues and surging oil and gas prices dominating the news globally, the public interest in electric vehicles has witnessed a massive surge last month, increasing site searches by as much as 1,600% in September.

New models entering the market and decreasing costs have also caused extensive market growth in the past year. According to the International Energy Agency's Global EV Outlook 2021, worldwide 368 electric car models were available in 2020, marking an increase of 328% compared to 2015 when there were only 86.

China has the widest choice as the world’s largest EV market. But in 2020, the biggest increase in the number of models was in Europe where it more than doubled, the IEA noted.

These numbers were also reflected in the recent EV uptakes in Europe, where EVs and plug-in hybrid cars outsold diesel in August 2021 for the first time, according to data released by auto industry analyst JATO Dynamics.


- Race for battery investments

Over the past year, automakers have become keen to invest heavily in EV battery production to meet the projected demand growth in the coming years.

Japanese automotive giant Toyota announced a $13.5 billion investment in battery development and production across the world by 2030, while US automaker Ford and its South Korean battery partner SK Innovation will invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the US.

Formed in 2021 as a result of a merger between Italian-American Fiat Chrysler and France’s PSA Group, Stellantis also entered the battery race with its South Korean battery maker partner, LG Energy Solution to form a joint venture to produce battery cells and modules for North America as part of a $35.3 billion investment plan by 2025.

With plans of eight global gigafactories, including four in Europe, Mercedes-Benz joined Stellantis and Total in taking 33% shares in Automotive Cells Company, with plans to further expand battery cell production and regional supply chains in Europe.

General Motors recently announced similar investments, including the expenditure of $35 billion through 2025 to bring 30 new EVs to the global market and to build additional assembly capacity for electric models. As part of this investment, the company is preparing to spend $4.6 billion on two battery factories in the US with its partner LG Solutions.


- Technology companies enter the scene

Meanwhile, technology firms have also started to enter the race for a share of the EV market, including Apple, Sony, Xiaomi and Foxconn. Xiaomi recently confirmed that it would start mass-producing EVs in the first half of 2024 and invest up to $10 billion in its EV division by the turn of the decade.

Known for building consumer electronics for Apple, Taiwan tech giant Foxconn also exhibited three electric vehicle prototypes on Oct. 18, confirming company plans to invest $35 billion for EVs in the next five years.

While Japanese electronics company Sony introduced its Vision-S electric vehicle last year, it revealed that Sony has no plans to mass-produce EVs. Apple is working on an autonomous EV venture called 'Project Titan' and is expected to introduce its EV in 2024.


- "Public perception improving"

Foss told Anadolu Agency in an interview of the many factors playing out in recent EV sector developments that are making EVs a viable alternative to conventional vehicles. "Continued cost decline in lithium-ion batteries over the past decade has made EVs more and more affordable, and certain models are already at cost parity with internal combustion engine (ICE) vehicles," he said.

He noted that the steady increase in available and attractive EV models continues to expand the addressable market for EVs. "At the same time, as new models enter the market, the overall specs of all EV models continue to improve, with increased range and improved charging speed probably being the most important."

These developments improve public perception of EVs in general, as price, range and charging have been the main barriers preventing people from switching to EVs, according to Foss.

"The last 1-2 years have also demonstrated a massive shift in the communication from the legacy auto manufacturers, with all basically trying to outcompete each other with ambitious EV sales targets, and most have also set a target year for when they plan to phase out ICE vehicles completely, ranging from the mid-2020s to mid-2030s. Lastly, Covid-19 relief packages, particularly in Europe, resulted in new policy support for EVs, making them more affordable compared to ICEs," Foss explained.

With the EV market share at 9% globally in the second quarter of 2021, Foss projected that this would surpass 10% in the third quarter of the year, driven largely by Europe and China, while the US still lags.

He said Rystad Energy forecasts that the overall global market share of EVs for 2021 will reach 8% in the base case and 9% in the high case, and these shares are expected to be 23% and 29%, respectively by 2025.

"China and Europe are currently taking the lead on EV sales and are likely to continue to do so, with the US and Japan lagging behind. Japan is still focused on fuel cell electric vehicles [FCEVs] and does not seem to have decided on which technology to pursue. Consumers in the US typically favor large vehicles and they often require longer range than other regions, which results in a somewhat delayed adoption of EVs," he said.

Foss noted that other developed countries, especially in Asia, are also moving to electric, but developing countries are expected to lag behind, in part due to tough competition from very cheap ICE models in these countries that make the added battery cost still too much of a barrier for mass adoption.

Regardless, he said that this would likely change as battery costs continue to decline over the next decade.

Foss noted that from a policy perspective, EVs would need continued support to close the price gap to their ICE peers, with support alleviating over the coming years as the gap diminishes.

"Developed countries, where EVs must compete with cheaper ICE models, will likely need to maintain this support for a longer period. Facilitating investments in charging infrastructure is obviously also important to make the transition to EVs convenient for the population," Foss concluded.

By Ebru Sengul Cevrioglu

Anadolu Agency

energy@aa.com.tr




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- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.69 billion Turkish liras
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Oil prices rise on supply concerns after Trump's Russia remarks

- Investors remain cautious amid uncertainty over tariff policy
11.07.2025 Electricity

Türkiye's daily power consumption down 0.2% on July 10

- Electricity exports amount to 13,434 megawatt-hours and imports total 7,225 megawatt-hours
13.07.2025 Electricity

Spot market electricity prices for Friday, July 11

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.04 billion Turkish liras
10.07.2025 Electricity

Türkiye's daily power consumption up 1.9% on July 9

- Electricity exports amount to 14,370 megawatt-hours and imports total 6,335 megawatt-hours
11.07.2025 Electricity

Spot market electricity prices for Thursday, July 10

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.10 billion Turkish liras
09.07.2025 Electricity , Finance

Türkiye's daily power consumption up 3.6% on July 8

- Electricity exports amount to 15,138 megawatt-hours and imports total 4,131 megawatt-hours
09.07.2025 Electricity

Spot market electricity prices for Wednesday, July 9

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.30 billion Turkish liras
08.07.2025 Electricity

Türkiye's daily power consumption up 19.5% on July 7

- Electricity exports amount to 14,656 megawatt-hours and imports total 4,004 megawatt-hours
09.07.2025 Electricity

Spot market electricity prices for Tuesday, July 8

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.20 billion Turkish liras
07.07.2025 Electricity

Türkiye's daily power consumption down 9% on July 6

- Electricity exports amount to 16,880 megawatt-hours and imports total 2,649 megawatt-hours
08.07.2025 Electricity

Spot market electricity prices for Monday, July 7

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.04 billion Turkish liras
06.07.2025 Electricity

Türkiye's daily power consumption down 4.1% on July 5

- Electricity exports amount to 13,869 megawatt-hours and imports total 4,905megawatt-hours
07.07.2025 Electricity

Spot market electricity prices for Sunday, July 6

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.34 billion Turkish liras
05.07.2025 Electricity

US ready to fund viable nuclear energy projects in Türkiye, official says

- Washington and Ankara are ‘deep friends and good partners,’ says US State Department advisor
08.07.2025 Nuclear , Energy Diplomacy

Türkiye's daily power consumption down 7% on July 4

- Electricity exports amount to 13,762 megawatt-hours and imports total 2,920 megawatt-hours
08.07.2025 Electricity

Spot market electricity prices for Saturday, July 5

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.80 billion Turkish liras
04.07.2025 Electricity

Türkiye's daily power consumption down 1.5 % on July 3

- Electricity exports amount to 13,479 megawatt-hours and imports total 3,415 megawatt-hours
04.07.2025 Electricity

Spot market electricity prices for Friday, July 4

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.91 billion Turkish liras
03.07.2025 Electricity

Türkiye's daily power consumption up 0.2% on July 2

- Electricity exports amount to 13,681 megawatt-hours and imports total 3,309 megawatt-hours
03.07.2025 Electricity

Türkiye's Akkuyu nuclear plant attracts investor interest as energy production nears

- Selection of potential partners must be approved by Türkiye under the Russia-Türkiye agreement, project's top executive says
05.07.2025 Nuclear

Spot market electricity prices for Thursday, July 3

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.62 billion Turkish liras
02.07.2025 Electricity

Akkuyu Nuclear says commissioning underway for 1st reactor unit

- 'We plan to carry out preparatory work this year to connect the first unit's switchyard to the electrical transmission system,' Anton Dedusenko tells Anadolu
03.07.2025 Nuclear , General

Türkiye's daily power consumption up 4.4% on July 1

- Electricity exports amount to 14,406 megawatt-hours and imports total 2,515 megawatt-hours
02.07.2025 Electricity

International Atomic Energy Agency ready to 'accompany' African countries on nuclear journey

- Developing nuclear energy requires infrastructure, capacity building, says agency head
02.07.2025 Nuclear

Experts, policymakers explore ways for Africa’s energy transition

- Nuclear Energy Innovation Summit for Africa opens with focus on exploring potential of small modular and micro reactors in accelerating energy transition
03.07.2025 Nuclear

Spot market electricity prices for Wednesday, July 2

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.78 billion Turkish liras
02.07.2025 Electricity

Türkiye's daily power consumption up 11.6% on June 30

- Electricity exports amount to 13,941 megawatt-hours and imports total 12,565 megawatt-hours
02.07.2025 Electricity

Spot market electricity prices for Tuesday, July 1

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2.08 billion Turkish liras
30.06.2025 Electricity

Türkiye's daily power consumption down 12.4% on June 29

- Electricity exports amount to 14,301 megawatt-hours and imports total 11,740 megawatt-hours
01.07.2025 Electricity

Spot market electricity prices for Monday, June 30

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.84 billion Turkish liras
29.06.2025 Electricity

Türkiye's daily power consumption down 5% on June 28

- Electricity exports amount to 13,621 megawatt-hours and imports total 14,528 megawatt-hours
29.06.2025 Electricity

Spot market electricity prices for Sunday, June 29

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 878 million Turkish liras
28.06.2025 Electricity

Türkiye's daily power consumption up 0.74% on June 27

- Electricity exports amount to 14,347 megawatt-hours and imports total 10,993 megawatt-hours
30.06.2025 Electricity

Türkiye's licensed power generation up 11% in April

- Installed electricity capacity rises by 1.9% in April compared to same month in 2024
28.06.2025 Electricity

Spot market electricity prices for Saturday, June 28

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.67 billion Turkish liras
27.06.2025 Electricity

Candidate region selected for Türkiye's first YEKA floating solar power plant

- Floating solar panels improve feasibility for hydroelectric plants operating below capacity and improve efficiency of transmission lines
27.06.2025 Electricity , Solar

Türkiye's daily power consumption up 2.6% on June 26

- Electricity exports amount to 14,360 megawatt-hours and imports total 14,712 megawatt-hours
27.06.2025 Electricity

Global renewable expansion lags behind energy demand growth: Report

- Electrification is accelerating, particularly in developing economies, while all major energy sources hit all-time consumption highs in 2024, says industry report
27.06.2025 Electricity , Natural Gas , Renewable

Spot market electricity prices for Friday, June 27

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 1.97 billion Turkish liras
26.06.2025 Electricity

Türkiye's daily power consumption up 2.6% on June 25

- Electricity exports amount to 13,648 megawatt-hours and imports total 16,365 megawatt-hours
26.06.2025 Electricity

UN nuclear chief urges inspections in Iran

- Grossi says cooperation with International Atomic Energy Agency is key to resolving nuclear dispute
26.06.2025 Electricity

Spot market electricity prices for Thursday, June 26

- Energy Exchange Istanbul (EXIST) data shows electricity market trade volume amounts to 2 billion Turkish liras
25.06.2025 Electricity

Türkiye's daily power consumption up 4% on June 24

- Electricity exports amount to 13,498 megawatt-hours and imports total 15,533 megawatt-hours
25.06.2025 Electricity , Finance

Türkiye's daily power consumption up 16.2% on June 23

- Electricity exports amount to 13,845 megawatt-hours and imports total 16,929 megawatt-hours
24.06.2025 Electricity

Iran fires new salvo of missiles on Israel as conflict escalates

- Army says missile barrage triggered air-raid sirens in central, northern Israel
23.06.2025 Electricity
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