Battery electric vehicle (BEV) sales reached a record ~13% share of global vehicle sales in 2024, totaling around 12 million units, up from 12% in 2023. China leads the way in adoption, followed by Europe and the United States. Although regional dynamics vary, the broader shift away from internal combustion engine (ICE) vehicles is firmly underway, driven by regulatory mandates, accelerating technological progress, and rising consumer demand.

Short-term volatility has emerged, particularly in Europe and the US. Europe experienced a notable slowdown in 2024, with BEV residual values under continued pressure, which weighed on total cost of ownership (TCO). In the US, political uncertainty and a strategic refocus by OEMs on more profitable ICE models have tempered BEV momentum. In contrast, China’s BEV market continues its rapid expansion--particularly in the plug-in hybrid (PHEV) segment--supported by strong government incentives, vehicle trade-in programs, and aggressive price cuts by manufacturers.

Looking ahead, we forecast BEVs will represent approximately 36% of global light vehicle sales by 2030 and around 60% by 2035. Despite headwinds, the structural shift toward electrification will continue. OEMs face increasing pressure to scale EV production, lower costs, and meet evolving regulatory expectations.