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.
Model supply expands as cheaper Chinese EVs open emerging markets
Nearly 1,000 electric models were available in 2025, about 40% of roughly 2,500 car models globally. The count rose more than 25% in 2025, and the IEA expects it to exceed 1,100 in 2026 based on announced OEM launches. SUVs made up around half of electric models.
Electric car sales outside the three major markets reached 2 million in 2025, up almost 50%. In emerging and developing economies excluding China, sales rose about 80%, largely because lower-cost Chinese EVs widened access. India's electric car sales climbed 75% to 165,000 units, while available models grew from 33 to 45.
In Europe, sales rose more than 30% after stricter EU CO2 standards took effect. In Germany, more affordable models contributed to a roughly 6% decline in average BEV prices.
Battery deployment rose almost 30% to 1.2 TWh as prices dropped 8%
BEVs are expected to remain the largest growth segment, and their share of electric car sales reached 65% in 2025. Global EV battery deployment increased almost 30% to 1.2 TWh in 2025. Average battery prices declined 8%.
LFP chemistry accounted for more than 55% of deployment, up from nearly 50% in 2024. Lower material costs and reduced dependence on nickel and cobalt drive its adoption in mass-market BEVs.
BYD and CATL push charging times below ten minutes
In March 2026, BYD introduced its second-generation Blade Battery with FLASH Charging. It supports a 10% to 97% charge in nine minutes at up to 1,500 kW. BYD plans 20,000 FLASH charging stations in China by the end of 2026.
In April 2026, CATL unveiled a next-generation battery supporting a 1,000 km range. Its Shenxing battery can charge from 10% to 98% in under seven minutes.
BMW's Neue Klasse adds 372 km of range in ten minutes
Passenger cars are expected to keep the largest share of the market. BMW's 2026 Neue Klasse platform uses sixth-generation eDrive technology with an 800-volt architecture, cell-to-pack integration and cylindrical cells with 20% higher cell-level energy density. The BMW iX3 can add up to 372 km of range in 10 minutes at a 400 kW charger. The new BMW i3 is designed for up to 900 km of range and 400 km added in 10 minutes.
Tesla, Volkswagen and Hyundai target cost and adoption barriers
Tesla is expanding localized battery production at Gigafactories in the US and Mexico. Volkswagen is investing in software-driven energy management systems, and Hyundai is building scalable EV platforms for multiple vehicle types across regions.
Overlapping demand from plug-in hybrid and fully electric platforms is lifting use of both conventional powertrain parts and EV-specific components. These include LFP battery packs, high-efficiency inverters and advanced cooling systems.