EV Market to Reach $1.31 Trillion by 2035 as Battery Costs Fall
Delray Beach – October 19, 2026 -- The global electric vehicle market will grow from USD 794.59 billion in 2026 to USD 1,312.73 billion in 2035, a 5.7% CAGR, according to MarketsandMarkets. The forecast rests on falling battery costs, faster charging and rising fuel prices that improve EV running economics.
EVs reached one in four new cars sold in 2025
More than 20 million electric cars were sold worldwide in 2025, up 20% year on year, according to the International Energy Agency (IEA). That equals 25% of new car sales. The IEA projects the share will reach 29% in 2026, driven by a strong second quarter.
Fuel prices are adding to demand. The IEA estimates that 2026 oil price increases raised annual fuel savings from driving an EV in the European Union by 35% compared with 2025.