Global spending on electric vehicles (EVs) is rising, with the total value of EVs sold to date reaching more than $1 trillion.
Key Details
- Annual EV spending hit $388 billion in 2022, a 53% rise from the year before, according to Bloomberg writer Colin McKerracher.
- Including the $388 billion in spending added from 2022, the total value of EVs sold to date has reached over $1 trillion.
- Global auto sales typically reach around $2.5 trillion a year, but considering EVs are a relatively new market, the $1 trillion in spending is significant.
- Around 60% of the total EV spending was done in the last year and a half, and it is expected to continue rising this year, with estimates of spending exceeding $500 billion.
Why it’s news
EV sales have rapidly increased over the years as more people worldwide switch to electric from gas-powered vehicles.
There were around 7.8 million EVs sold worldwide in 2022, a 68% increase from 2021, and the number is expected to continue rising with the possibility of quadrupling by 2030, according to Business Insider.
Annual spending on EVs hit $388 billion in 2022, taking the total value to $1 trillion, while that number is low compared to the $2.5 trillion a year in total auto sales globally, it is still significant considering how fast EVs hit the trillion dollar mark.
The International Energy Agency estimated in 2021 that EVs would take until 2030 to reach between 7% and 12% of global auto sales. Last year, EVs captured 10% of global auto sales beating predictions by eight years.
Many automakers saw the demand for EVs rapidly increasing and began rushing to produce EVs to meet consumer demand, but some automakers opted out, thinking that the demand would slowly fade out, but it hasn’t.
The announcement of the $1 trillion total value sales has automakers who have not made the jump to electric rethink decisions and look to get in on the $1 trillion EV market.