Global EV Market Sees Robust Growth and Broad Regional Expansion, IEA Report Shows
According to the International Energy Agency’s Global Electric Vehicle Outlook 2026, the global electric vehicle (EV) market achieved strong momentum in 2025, with record sales registered across nearly 100 countries and territories. Global EV sales climbed 20 percent year-on-year to surpass 20 million units, accounting for one quarter of all new car purchases worldwide. Driven by energy supply volatility stemming from Middle East geopolitical tensions, global EV sales are set to rise further to 23 million in 2026, capturing nearly 30 percent of the global new vehicle market.
Regional markets have displayed differentiated yet vibrant growth trajectories. Tightened EU carbon dioxide emission standards fuelled a more than 30 percent year-on-year surge in European EV sales in 2025, with market share reaching 28 percent and ranking the fastest among major economies. The US EV market maintained steady performance, with its penetration rate approaching 10 percent. Emerging markets emerged as a new growth engine, with Southeast Asian EV sales doubling and hitting a nearly 20 percent market share, supported by strong uptake in Vietnam, Indonesia and Thailand. Latin America also recorded a 75 percent sales increase, led by thriving demand in Brazil and Mexico.
Diversified growth will continue across regions in 2026. Europe is projected to post the largest sales increase of around 20 percent. The Chinese EV market will maintain upward momentum with its market share nearing 60 percent. Asia-Pacific markets excluding China are expected to witness a more than 50 percent sales rise, while Latin American growth will stand at 45 percent. EV adoption registers faster growth in regions facing fuel supply shortages or sharp fuel price hikes.
Global EV sales dipped 8 percent year-on-year in the first quarter of 2026, yet regional markets delivered outstanding results. European EV sales rose nearly 30 percent, Asia-Pacific markets outside China grew 80 percent, and Latin America saw a 75 percent increase. In March 2026, almost 90 countries achieved year-on-year EV sales growth, with around 30 markets hitting new monthly sales records.
Sustained cost competitiveness and stricter environmental standards will drive long-term industry expansion. Global EV stock is expected to reach 510 million by 2035, over seven times the 2025 figure, with EVs claiming roughly half of global new car sales. Internal combustion engine vehicles will continue to lose market presence, failing to return to their 2017 sales peak. By 2035, EV penetration will exceed 90 percent in Europe and reach 60 percent in Southeast Asia, while Vietnam will top 80 percent thanks to mature local manufacturing and price parity with fuel cars.
EV popularisation substantially enhances energy security for oil-importing economies. Global EVs cut daily oil demand by 1.7 million barrels in 2025, and the daily oil displacement volume will rise to 5 million barrels by 2030. Road electrification is also accelerating, spearheaded by China’s booming electric truck sector. Global electric truck penetration stood at 9 percent in 2025. Despite current high purchase costs, falling battery prices are improving overall economic viability, with European electric trucks set to match diesel trucks in total cost of ownership by 2030 and secure over 20 percent market share by 2035.
Global EV trade and technological innovation further underpin industrial upgrading. Around a quarter of the 22 million EV units produced globally in 2025 entered cross-border trade. Advances in artificial intelligence and vehicle sensors have optimised EV control architectures and battery management systems, enabling commercial autonomous services in over 20 cities. Innovative charging technologies reduce charging duration and grid pressure. Fast-charging EV uptake keeps rising, and the projected 1500 TWh global EV power demand by 2035 will only account for 4 percent of total global power demand growth.
