The global electric vehicle (EV) market has grown significantly in 2022, with sales reaching new heights. According to the latest data, global EV sales exceeded 10.3 million units in 2022, three times more than two years ago. This increase in EV sales illustrates a growing trend towards environmentally-friendly transport solutions worldwide.
Developed markets have seen a remarkable rise in EV sales, with battery electric vehicles and plug-in hybrids recording a 21% year-on-year increase in 2022, totalling around 4 million units. This growth has enabled EVs to account for over 14% of total passenger car sales in these regions. The US leads this group, with over 970,000 EV sales, followed by Germany with 850,000 and the UK with 400,000.
In emerging markets, China has played a dominant role, accounting for almost 96% of EV sales in these regions, with 6.1 million vehicles sold by 2022. Collective sales in other emerging markets almost doubled on the previous year, reaching around 208,000 units. This growth, although substantial, remains relatively low compared with developed markets.
The expansion of the EV market is also reflected in the variety of models available, with 7 of the top 10 EV models in Q4 2022 coming from Chinese brands.
What’s more, the impact of EVs on oil displacement is becoming increasingly significant. It is estimated that EVs of all types displace around 1.5 million barrels of oil per day, equivalent to around 3% of total road fuel demand. This trend is expected to continue as the global transition to electric transport accelerates.
Another key driver of the EV market is the demand for lithium-ion batteries, which is putting pressure on the supply chain for materials such as lithium, cobalt and nickel. The increase in demand for batteries is a direct result of rising EV sales and indicates a growing need for sustainable and efficient energy storage solutions.
Overall, the growth trajectory of the EV market is strong, with projections suggesting continued increases in sales and market share. The adoption of EVs is becoming increasingly common, indicating a significant shift in global transport trends towards more sustainable and environmentally friendly options.