Electric Vehicle Sales Soar: A Look at the Global Market Growth Past 10 years and Government Incentives

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Over the past few years, electric vehicles (EVs) have become increasingly popular across the world. With concerns about climate change and air pollution, many people are looking for alternative modes of transportation that are more environmentally friendly. In this article, we'll take a closer look at the sales of electric vehicles across the world over the past few years.

According to data from the International Energy Agency (IEA), sales of electric vehicles have been steadily increasing since 2010. In 2010, there were just 17,000 electric vehicles sold worldwide. By 2020, that number had grown to 3.1 million, representing a compound annual growth rate (CAGR) of 58%.

Electric Vehicles Adoption Statistics, data courtesy IEA.

The biggest market for electric vehicles is China, which accounted for 44% of global EV sales in 2020. Europe is the second-largest market for EVs, accounting for 28% of global sales. In the United States, EV sales accounted for just 7% of total vehicle sales in 2020.

Looking at individual countries, Norway is the clear leader in EV adoption, with electric vehicles accounting for 75% of all new car sales in 2020. Other countries with high levels of EV adoption include Iceland, Sweden, and the Netherlands.

One of the main drivers of EV adoption has been government incentives and regulations. Many countries have implemented policies to encourage the use of electric vehicles, such as tax credits, subsidies, and zero-emission vehicle mandates. In China, for example, the government has set targets for electric vehicles to account for 25% of all car sales by 2025.

Another factor driving EV adoption is the declining cost of batteries, which make up a significant portion of the cost of an electric vehicle. According to BloombergNEF, the cost of lithium-ion batteries has fallen by 97% since 2010, and is expected to continue to decline over the coming years.

Despite the rapid growth of EV sales, there are still challenges that need to be addressed. One of the biggest challenges is the lack of charging infrastructure. Many people are hesitant to buy an electric vehicle because they are worried about running out of charge on long journeys. Governments and private companies are working to address this issue by investing in more charging stations and developing fast-charging technology.

Overall, the sales of electric vehicles across the world have grown rapidly over the past few years. With government incentives, falling battery costs, and increased charging infrastructure, it seems likely that this trend will continue. As more people switch to electric vehicles, we can expect to see significant reductions in greenhouse gas emissions and air pollution, helping to mitigate the impacts of climate change.