North America Electric Vehicle Market by Vehicle Type (Passenger Vehicle, LCV, HCV, Two-wheeler, e-Scooters & Bikes); Propulsion Type (BEV, FCEV, HEV); Power Output (Less Than 100kW, 100 kW to 250 kW); End Use, Charging Standard, and Geography - Regional Forecast to 2029

The North America Electric Vehicle Market is expected to record a CAGR of 39.4% from 2022 to 2029 to reach $570.47 billion by 2029 from an estimated $55.81 billion in 2022. By volume, this market is expected to reach 7.62 million units by 2029 from an estimated 1.54 million units in 2022, at a CAGR of 25.7% during the forecast period. The growth of this market is attributed to supportive government policies and regulations, rising environmental concerns, increasing adoption of electric mobility. The growing adoption of autonomous driving vehicles, increasing adoption of electric vans and trucks for delivery and increasing trend of shared mobility are offering lucrative growth opportunities for this market's growth.

The Impact of COVID-19 on the North America Electric Vehicle Market

The COVID-19 pandemic outbreak has caused a widespread economic downturn. Several countries imposed strict lockdowns to contain the infection, thereby leading to the shutdown of manufacturing industries and disruptions in supply chains and production schedules. There has been a significant impact on technology supply chains globally. During COVID-19, the U.S. was hit severely causing significant damages in terms of life, resources, and economy. The adoption of EVs had fallen in the first & second quarters of 2020 while a slight growth was witnessed post second quarter. Consumer behavior has changed significantly since the pandemic. People have avoided shared mobility and public transit to reduce the risk of infection while, due to remote working, distance traveled is also decreased. This has negatively affected the adoption of EVs. Leading investors have planned to double their investment in autonomous vehicles that positively impact the EV market in the forecast period.

Zero-emission vehicle (ZEV) sales of Canada witnessed a decline in the second quarter of 2020. According to Electric Mobility Canada (EMC), only 9,069 sold between April and June 2020. That number includes battery electric vehicles, plug-in hybrids and hydrogen fuel cell vehicles. The 2020 sales results represent a drop of over 50% from the 18,032 sold in the second quarter of 2019. Furthermore, EVs’ entire light vehicle market share in Q2 dropped by 2.9% from the 3.4% from the same period in 2019. The sales of EVs were down by 45% in the second quarter and by 34% in the first half of 2020, due to the widespread economic shutdowns in effect throughout most of Canada since mid-March. However, the total number of ZEVs in Canada continues to grow. According to EMC, the total number of ZEVs has reached an estimated 168,000, with 75,000 of those located in Quebec, 46,000 in Ontario, and 41,000 in British Columbia and continue to grow in the coming years.

The North America electric vehicles market study presents historical market data in terms of value and volume (2020 to 2021), estimated current data (2022), and forecasts for 2029. The market is segmented based on vehicle type, propulsion type, power output, charging standard, end use, and geography. The study also evaluates industry competitors and analyses the market at the country level.

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Increasing Investments in EV Ecosystem

The automotive industry of North America is rapidly shifting from fuel-based vehicles to electric vehicles. Increasing investments and incorporation of innovative technologies by automotive OEMs in EVs and the development of advanced charging systems and batteries are driving this market growth in North America. Several industries worldwide are heavily investing to make strides in the decarbonization of transport and equipment and improve air quality in cities through greater investments in passenger trucks, light commercial vehicles, and e-scooters. Increasing adoption of electric vehicles to control pollution and carbon emissions and growing awareness about the use of electric vehicles to reduce emissions, and stringent government rules and emissions regulations towards vehicle emission are driving the demand for EVs and contributing to the overall market growth. In May 2021, South Korean automotive company, Hyundai Motor Group announced plans to invest USD 7.4 billion in the U.S. by 2025. The investments are aimed to produce electric vehicles, upgrade production facilities and further its investment in smart mobility solutions. Hyundai's investments plan comes as U.S. President Joe Biden's administration prioritized a strict regulation for electric vehicles, aiming to replace the 650,000 vehicles in federal fleets with U.S. made electric vehicles.

The Canadian government is investing in EVs and charging infrastructures to build a clean energy future to strengthen the economy, creating job opportunities and promoting support to workers in the natural resource sectors. In June 2021, Natural Resources of Canada (NRC) funded USD 2.3 million to the British Columbia Hydro and Power Authority for installing 47 EV fast chargers across Columbia province to decarbonize the environment. This fund is initiated through Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (AFIDI) of NRC. Additionally, The Government of British Columbia is investing USD 1.2 million through CleanBC Go Electric program towards AFIDI initiative. These investments and initiatives are propelling adoption of EVs in North America.

Key Findings in the North America Electric Vehicle Market Study:

During the forecast period, the light commercial vehicles segment is expected to grow at the highest CAGR

Based on vehicle type, the North America electric vehicles market is segmented into passenger vehicles, light commercial vehicles, heavy commercial vehicles, two-wheelers, and e-scooters & bikes. The light commercial vehicles segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment is mainly driven by the growing awareness regarding the role of electric vehicles in reducing emissions, increase in demand for electric vehicles to reduce fleet emissions, and stringent government rules and regulations towards vehicle emissions. Electric LCVs are a key element of urban distribution and transport systems and offer a promising low-emission solution. They require low maintenance and have relatively lower operating costs, as there is no need to lubricate the engines nor the maintenance costs associated with gas engines. Electric LCVs contribute to reducing greenhouse gas emissions and reduce the dependence on fuels. These are the key factors driving the adoption of electric light commercial vehicles.

The fuel cell electric vehicles segment is expected to grow at the highest CAGR during the forecast period

Based on propulsion type, the North America electric vehicles market is segmented into battery electric vehicles, hybrid vehicles, and fuel cell electric vehicles. The fuel cell electric vehicles segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment is mainly driven by the increasing demand for vehicles with low carbon emissions, a growing emphasis on the adoption of FCEVs due to advantages such as fast refueling and increasing government initiatives and investments for advancing fuel cell technology. Several major players and governments across the region are trying to encourage the use of hydrogen fuel cells for vehicles through various policies, investments, and regulations.

The more than 250kW segment is expected to grow at the highest CAGR during the forecast period

Based on power output, the North America electric vehicles market is segmented into less than 100kW, 100kW to 250kW, and more than 250kW. The more than 250kW segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the increasing adoption of electric buses and trucks for heavy applications, the implementation of numerous wireless EV charging pilot projects for heavy commercial vehicles, and the increasing adoption of electric mobility in emerging economies.

The commercial use segment is expected to grow at the highest CAGR during the forecast period

Based on end use, the North America electric vehicles market is segmented into private use, commercial use, and industrial use. The commercial use segment is expected to grow at the highest CAGR during the forecast period. The growth is mainly driven by the increase in fuel prices and stringent emission norms set by governments, the growing adoption of autonomous delivery vehicles, and the increasing adoption of electric buses and trucks. Electric commercial vehicles help lower greenhouse gas emissions, reduce dependence on fossil fuels, ensure smooth operation, and meet the latest emissions regulations. Electric buses are the most commonly used EVs for commercial applications. E-trucks are used for distribution and courier services. These vehicles have to cover long distances, as buses or trucks are required to travel a distance of 200 to 300 kilometers.

Canada to be the fastest-growing market in North America

Canada is expected to record the highest CAGR during the forecast period. The Canadian EV market is majorly driven by the local government's policies and incentives, increased driving range, and affordable vehicle prices due to increased spending of consumers on environment-friendly automobiles and developing infrastructure resulting in faster charging times. Canada’s mission to eliminate transportation emissions in the coming years has enabled governments to introduce numerous policies and incentive programs that could increase EV adoption and reduce emissions. For instance, in May 2019, the Government of Canada launched the Incentives for Zero-Emission Vehicles (iZEV) Program to encourage EV adoption. On the purchase or lease of ZEV, the government provides iZEV Program incentives of up to USD 5,000. The authorities have set targets for enhancing the adoption of EVs in the country.

Key Players

The key players operating in North America electric vehicles market are AB Volvo (Sweden), BMW Group (Germany), BYD Company Ltd. (China), Daimler AG (Germany), Faraday & Future Inc. (U.S.), Jaguar Land Rover Automotive PLC (U.K.), Ford Motor Company (U.S.), General Motors Company (U.S.), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Zero Electric Vehicles Inc. (U.S.), Nissan Motor Co., Ltd. (Japan), Rivian LLC (U.S.), Tesla, Inc. (U.S.), Volkswagen AG (Germany).

Scope of the Report:

North America Electric Vehicle Market, by Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Two-wheeler
• E-scooters & Bikes

North America Electric Vehicle Market, by Propulsion Type

• Hybrid Electric Vehicles
  • Pure Hybrid Electric Vehicles
  • Plug-In Hybrid Electric Vehicles
• Battery Electric Vehicles
• Fuel Cell Electric Vehicles

North America Electric Vehicle Market, by Power Output

• Less Than 100 KW
• 100 KW to 250 KW
• More Than 250 KW

North America Electric Vehicle Market, by End Use

• Private Use
• Commercial Use
  • Shared Mobility
  • Micromobility
  • Public Transport
• Industrial Use

North America Electric Vehicle Market, by Geography

• U.S.
• Canada

Key Questions Answered in the Report: