The United States has the third-largest electric vehicle market in the world, and more than $125 billion in new EV investments in the U.S market were announced in 2020.
The EV market, like much of the vehicle industry, was hit hard by the COVID-19 pandemic throughout much of 2020. However, the EV industry fared relatively well compared to the internal combustion market. EV sales through Q3 of 2020 were approximately 6.1% lower than during the first three quarters of 2019. The biggest hits came during the first two quarters of 2020, down nearly 26% from the first two quarters of 2019, but EV sales bounced back in Q3 2020, down only 1.6% from Q3 2019.
Charging infrastructure continues to expand with the demand for EVs. Its average compounded annual growth rate across 50 metropolitan areas is 30% and charging infrastructure deployment is now in line to meet the expected charging gap through 2025.
By 2025, automakers plan to release 200 new electric car models, many of which are in the popular sport utility vehicle market segment. The EV market in the United States is likely to reach 6.9 million units by 2025. As improvements in technical performance and pricing continue, consumers and public fleets alike will have more decision-making power when purchasing EVs.