U.S. Electric Vehicle Market Analysis, Growth, Trends and Projections By 2034

U.S. Electric Vehicle Market Research, Trends and Forecast

The U.S. electric vehicle market is expected to increase from USD 136.31 billion in 2025 to USD 434.24 billion by 2034, growing at a CAGR of 13.74% throughout the forecast period from 2025 to 2034.

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Introduction

The U.S. electric vehicle market is a crucial segment of the EV industry. This industry deals in manufacturing and distribution of EVs in the U.S. There are different types of vehicles developed in this sector consisting of two-wheelers, passenger cars, commercial vehicles and some others. These vehicles are integrated by various types of drivetrains comprising of front-wheel drive, rear-wheel drive and all-wheel drive. It is powered by numerous batteries including sealed lead acid battery, nickel metal hydride, lithium ion and some others. The rising sales of hybrid vehicles in the U.S. has accelerated the market expansion. This market is predicted to rise significantly with the growth of the automotive sector.

• According to the International Energy Agency, the PHEV sales in 2020 was 0.6 million that increased to 1.3 million in 2023.

Highlights of the U.S. Electric Vehicle Market

• California held the highest share of the U.S. electric vehicle market.
• Michigan is expected to grow with a significant CAGR during the forecast period.
• By propulsion, the BEV segment held a dominant share of the market.
• By propulsion, the FCEV segment is predicted to grow with a significant growth rate during the forecast period.
• By vehicle, the passenger car segment led the industry.
• By batteries, the lithium-ion segment constituted the largest share of the industry.
• By end-use, the commercial segment held a notable share of the market.

Key Metrics and Overview

U.S. Electric Vehicle: Stats and Figures

• According to the U.S. Energy Information Administration, the electric vehicle sales increased by 18.7% in 2nd quarter of 2024 as compared to 1st quarter of 2024.
• According to the Our World in Data, in 2023, around 10% vehicles sold in the U.S. were EVs.
• According to the Argonne National Laboratory, around 143,007 HEVs were sold in the U.S. during February 2025.
• According to the International Energy Agency, around 1.7 million EVs were sold in the U.S. during 2024.

Propulsion Insights

The BEV segment held a dominant share of the market. The growing demand for eco-friendly vehicles among the people of the U.S. has boosted the market growth. Also, the rising investment by government for strengthening the EV charging infrastructure is crucial for the industrial expansion. Moreover, the increasing prices of gasoline and diesel along with technological advancements in battery industry has driven the growth of the U.S. electric vehicle market.

• In January 2025, the government of U.S. announced to invest around US$ 635 million. This investment is done for strengthening the EV charging infrastructure across the U.S.

The FCEV segment is predicted to grow with a significant growth rate during the forecast period. The growing demand for fuel-efficient vehicles coupled with numerous government initiatives aimed at lowering emission in the environment propels the industrial expansion. Additionally, the rising adoption of hydrogen-powered trucks in several industries such as oil and gas, food and beverage, e-commerce and some others has proliferated the market growth. Furthermore, collaborations and partnerships among various automotive companies for developing FCEVs in the U.S. boosts the growth of the U.S. electric vehicle market.

• In June 2024, Honda collaborated with General Motors. This collaboration is done for developing a fuel cell electric vehicle model named as ‘Honda CR-V’ in the U.S.

Vehicle Insights

The passenger car segment led the industry. The rising demand for luxury electric vehicles among rich people has boosted the market growth. Also, the people of U.S. are transitioning towards EVs due to the rapid deployment of fast-chargers in charging stations coupled with the increasing prices of fossil fuels is driving the industrial expansion. Moreover, the growing preference of youths towards off-roading activities has increased the demand for electric SUVs, thereby fostering the growth of the U.S. electric vehicle market.

• In January 2025, Mitsubishi announced to launch an electric SUV in the U.S. by 2026. This SUV is expected to come out with advanced features and superior driving range.

Batteries Insights

The lithium-ion segment held the largest share of the industry. The rising demand for long-range electric vehicles among the people of the U.S. increases the demand for li-ion batteries, thereby driving the market expansion. Also, numerous benefits of li-ion batteries including high energy density, light-weight, long lifespans, temperature tolerance, fast charging and some others is crucial for the industrial growth. Furthermore, several li-ion battery companies are opening up new production plants in the U.S. is expected to propel the growth of the U.S. electric vehicle market.

• In April 2024, Green Li-ion announced to open a new li-ion production facility in Oklahoma. This new manufacturing plant is inaugurated to increase the li-ion battery production for the EV industry across the U.S.

End-Use Insights

The commercial segment held a notable share of the market. The rising adoption of electric vehicles by government agencies in the U.S. to lessen CO2 emission has bolstered the market expansion. Also, the rise in number of ride-sharing platforms along with growing deployment of electric trucks by fleet operators is playing a vital role in shaping the industrial landscape. Moreover, the increasing use of electric buses in cities such as New York, Los Angeles, Chicago, Dallas, San Diego and some others is likely to foster the growth of the U.S. electric vehicle market.

• In January 2025, Thomas Built Buses launched Saf-T-Liner C2 Jouley battery-electric school bus in the U.S.. This electric bus comes with disc brakes, two-speed transmission, and rear-drive gear and other features.

Geographical Insights

California held the highest share of the U.S. electric vehicle market. The growing demand for sustainable transportation along with rise in number of charging stations along with opening of new manufacturing facilities by global EV companies has boosted the market growth. Also, several government mandates on automotive companies for maintaining emission levels coupled with rising sales of EVs is shaping the industry in a positive direction. Moreover, the presence of numerous EV brands such as Lucid Motors, Rivian, Aptera Motors, Tesla and some others as well as rapid government investment for deploying fast-charging stations is expected to propel the growth of the U.S. electric vehicle market.

• In February 2025, the government of California announced to invest around US$ 55 million. This investment is done for deploying fast-charging station across this state.
• In January 2025, ZM Trucks announced to open a new EV truck manufacturing plant in California, U.S. This new production facility is inaugurated to manufacture EV trucks at a large scale for the consumers across the U.S.

Michigan is expected to grow with a significant CAGR during the forecast period. The presence of several automotive brands in Detroit along with rapid investment in EV sector by automotive giants boosts the market expansion. Additionally, the rising sales and production of luxury EVs as well as presence of well-established EV charging infrastructure further propels the industrial growth. Moreover, growing investment by government to bolster the EV battery manufacturing sector is predicted to boost the growth of the U.S. electric vehicle market.

• In September 2024, the Michigan government announced to invest around US$ 355 million. This investment is done for strengthening the EV battery manufacturing sector across this state.

Industry Leader Announcement

In March 2025, Christian Meunier, the chairman at Nissan Americas made an announcement stating that, “This agreement with SK On is a significant milestone for Nissan's electrification journey and supports further investment in U.S. manufacturing, through this smart partnership with SK On, we can leverage their growing U.S. production capacity to deliver innovative, high-quality electric vehicles that meet the needs of our customers.”

Competitive Landscape

The U.S. electric vehicle market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Lucid Motors, Ford, Chevrolet, General Motors, Rivian, Tesla and some others. These companies are constantly engaged in developing electric vehicles for the U.S. and adopting numerous strategies such as product launches, joint venture, partnerships, business expansion, acquisition, and some others to maintain their dominant position in this industry. For instance, in February 2025, Ford announced to launch extended-range electric SUVs by 2027. This SUV is expected to be integrated with high-capacity battery to provide extended driving range. Also, in November 2024, Rivian joined hands with Volkswagen. This joint venture is done for developing an EV software that enhances the functionality of vehicles.

• According to the annual report of Lucid Motors, the revenue of the company was US$ 595271 thousand in 2023 that increased to US$ 807832 in 2024.

Recent Developments

• In April 2025, Tesla launched Cybertruck. Cybertruck is an electric vehicle that comes with a 600-hp dual motor and all-wheel-drive system.
• In April 2025, Nissan made an announcement to launch a light weight EV in the U.S. This vehicle is expected to be launched by 2028.
• In January 2025, Honda announced to launch a small-sized electric vehicle in the U.S. by 2026. This new EV will be priced under US$ 30000 and is expected to compete vehicles manufactured by Tesla.

U.S. Electric Vehicle Market Segments

By Propulsion

• BEV
• HEV
• PHEV
• FCEV

By Vehicle

• Two-wheelers
  • Motorcycles
  • E-bikes
• Passenger Cars
  • Sedan
  • SUV
  • Hatchback
  • Others
• Commercial Vehicles
  • Light
  • Medium
  • Heavy

By Drivetrain

• Front-wheel drive
• Rear-wheel drive
• All-wheel drive

By Battery

• Sealed Lead Acid
• Nickel Metal Hydride (NiMH)
• Lithium Ion

By Range

• Less than 100 km
• 100 km-200 km
• 200 km to 300 km
• Above 300 km

By Price Range

• Below USD 10,000
• USD 10,000 to USD 30,000
• USD 30,000 to USD 50,000
• Above USD 50,000

By End Use

• Personal
• Commercial
• Government
• Private