Electric vehicle sales had a record-breaking year in 2024, and the industry is projected to continue its growth trajectory in 2025. Globally, electric vehicles are poised to grow at a mid-teens percentage rate this year, with China expected to maintain its position as the largest and most innovative EV market.
EV market growth is largely driven by technological advancements, particularly in battery tech, expanding charging infrastructure, and supportive government incentives. As more and more new electric vehicles are introduced this year, we will see enhanced performance, longer ranges, and faster charging times — all contributing to greater consumer demand and more sales. Beyond individual consumers, these technological developments are also fueling the growth of electric commercial fleets — which also add to the growth of the market.
At the same time, global regulatory and policy shifts are creating significant headwinds for the industry. Particularly in the United States, uncertainty persists around how the new presidential administration will affect EV production and sales in the long-term. Meanwhile, the European market could face tariff issues that curb growth in the automotive sector, while China’s market will become increasingly dominated by local manufacturers because of tariffs from both the United States and Europe.
Below, we cover the top trends shaping the EV landscape in 2025, as well as how you can stay ahead of new developments in the space.
Accelerated EV Adoption
EV adoption is experiencing an unprecedented surge in 2025, largely driven by rapid technological advancements, as well as an expanding charging infrastructure and supportive government incentives. Consumers and governments alike are now pushing for cleaner transportation options, resulting in traditional internal combustion engine (ICE) vehicles losing market share to EVs.
As technology improves, EVs are becoming more appealing to consumers. The flexibility of EV technology allows automakers to experiment with lighter, more efficient vehicles. And innovations in battery technology, such as solid-state batteries and new cell designs, are leading to faster charging times, extended driving ranges, improved performance, and enhanced safety — all of which have been pain points historically for EV users.
Looking ahead, battery technology will continue to be a major focus for EV manufacturers, with 90% believing that improvements in this arena will significantly impact the design and performance of EVs in the near term, compared to other technological advancements.
Expansion of EV Model Lineups
As more automakers see the opportunity and longevity in EVs, we are seeing more affordable and appealing models from both legacy automakers and new entrants — making these vehicles more accessible to a broader consumer base. The EV model lineup is expanding to fit with the diverse needs of various consumers, with offerings from compact city cars to large luxury SUVs.
Several traditional automakers are set to release their own new electric vehicles in 2025, including Range Rover, Audi, BMW, Hyundai, Jaguar, Mercedes-Benz, and Ferrari. At the same time, established EV makers are broadening their product lines this year — Lucid, Tesla, and Canoo are all expected to debut new models in 2025.
In 2025, we will likely see more consumers opting for electric vehicles, as they become comparable in affordability and practicality to traditional ICE vehicles.
Policy and Regulatory Developments
While significant progress has been made to expand the charging network, 74% of EV manufacturers say the lack of appropriate charging infrastructure remains the biggest obstacle limiting growth in the EV market. Currently, the global EV charging market is expected to grow substantially in the next decade, but several factors cast uncertainty on these projections. Meanwhile, in the United States, the new presidential administration has ordered a pause on the distribution of funds for new EV chargers.
Additionally, President Trump’s “America First” agenda includes easing fuel-related regulations and withdrawing from the Paris Agreement, which is likely to lead to decreased battery EV sales but increased hybrid EV sales. At the same time, we could soon see deregulation of autonomous driving, which would boost BEV sales.
With the Trump administration’s focus on promoting American-made products and technologies, there could be an increased demand for ICE cars, but it could also simply result in increased demand for American-made EVs.
In Europe, the European Green Deal — which aspires to make Europe the first carbon-neutral continent by 2050 — is driving widespread adoption of electric cars. In fact, the European Commission has set a target to ban the sale of new cars with internal combustion engines by 2035. Meanwhile, the United Kingdom has an impending ban set on new non-hybrid cars (currently set for 2035 but likely to revert to 2030), which is driving U.K. manufacturers to focus more on electric and hybrid vehicles.
China, home to the largest global EV market, is expected to implement more stringent EV regulations by 2025, which are likely to boost adoption and sales of EVs in China, while potentially affecting international trade dynamics. President Trump’s newly imposed tariffs on China are not expected to affect Chinese EV sales whatsoever, but it remains to be seen how they will affect EV sales within the United States.
Global Competitive Dynamics
The EV market in 2025 is dominated by Chinese brands, with traditional foreign automakers losing market share, particularly in China. According to broker research, Buick, Nissan, and Honda saw their volumes halved over the past five years in China, while BYD rose to the top.
An automotive expert, whose interview transcript can be found in the AlphaSense Expert Insights library, predicts that BYD and Tesla are best positioned in the EV market going into 2025. He also expects that of the traditional automakers, Toyota and Hyundai will do the best, due to their solid reputation and cost structure.
On the other hand, according to leading broker research in the AlphaSense platform, the peak of competitive intensity in the EV space may have passed. The industry is currently seeing more exits and capacity cuts, even from sizable players, and fewer model launches are scheduled for 2025. They expect to see more top-tier players in the China EV market, driven by competition and elimination of long-tail players.
Additionally, in the United Kingdom, there has been a significant increase in competition, with new entrants like XPeng and Haval challenging traditional manufacturers like Ford and Vauxhall. With Europe placing tariffs on Chinese-built EVs, it’s likely that many of those China-based brands will find a market in the U.K.
Navigating the Future of EVs with AlphaSense
The EV market is moving and changing fast, so you need a market research tool that can help you sift through the noise and uncover opportunities fast.
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ABOUT THE AUTHOR
Nicole Sheynin
Content Marketing Specialist
Fueled by empathy-driven storytelling and good coffee, Nicole is a content marketing specialist at AlphaSense. Previously, she has managed her own website/blog and has written guest posts for various other publications.
Read all posts written by Nicole Sheynin
