The global electric vehicle market has reached a significant milestone, emerging as a key component of the energy transition. According to the International Energy Agency (IEA), over 20 million electric vehicles were sold worldwide in 2025, marking a 20% increase from the previous year. This growth trend is expected to continue, with projected sales of 23 million units, accounting for 28% of the global market. The rising popularity of electric vehicles is driven by international momentum, with over 100 countries contributing to this shift.
China is at the forefront of this green revolution, solidifying its position as an industrial superpower. In 2025, China accounted for approximately 75% of global electric vehicle production, with exports exceeding 2.5 million vehicles. Chinese vehicles dominate markets outside the US and Europe, representing 55% of sales in these regions. In areas such as the Middle East, Africa, and Latin America, Chinese imports account for over 80% of local market shares, while domestic sales approach 55% of new vehicle registrations in China.
The increasing adoption of electric vehicles is significantly impacting oil consumption. In 2025, the global electric vehicle fleet saved around 1.7 million barrels of oil per day, equivalent to Indonesia's annual consumption. China alone achieved a reduction of one million barrels per day. This trend is further amplified by the current energy crisis, as rising oil prices make electric vehicles more attractive, particularly in Europe, where annual fuel savings have increased by 35%.
The IEA projects a substantial acceleration in the next decade, with electric vehicles expected to save 5 million barrels of oil per day by 2030. This figure could potentially double to 10 million barrels per day by 2035. At the same time, the global electric vehicle fleet is anticipated to exceed 510 million units by 2035, with a projected market share of 50% globally. In China and Europe, this share is expected to surpass 90%.
As the world transitions towards electric vehicles, concerns about the impact on electricity demand are being addressed. The IEA estimates that electric vehicle consumption will exceed 1,500 terawatt-hours by 2035, representing only 4% of global electricity demand. This suggests that the integration of electric vehicles into the energy mix can be managed sustainably.
The growth of electric vehicles is driven by various factors, including government policies, declining battery costs, and increasing consumer awareness of environmental issues. As the market continues to evolve, it is likely that electric vehicles will play an increasingly important role in reducing greenhouse gas emissions and mitigating climate change.
The widespread adoption of electric vehicles has significant implications for the oil industry, with potential consequences for oil demand and supply. As the global energy landscape continues to shift, it is essential for stakeholders to monitor these developments and adapt to the changing market dynamics. The IEA's projections serve as a reminder of the critical role electric vehicles will play in shaping the future of transportation and energy consumption.
Key points
- Electric vehicle sales are expected to save 5 million barrels of oil per day by 2030.
- China accounts for approximately 75% of global electric vehicle production.
- The global electric vehicle fleet is projected to exceed 510 million units by 2035.
