Ready to charge into the future? The market for electric vehicles (EVs) has grown rapidly in recent years and is expected to continue to grow at a fast pace over the coming decade. Electric car sales in the United States increased from a mere 0.2 percent of total car sales in 2011 to 4.6 percent in 2021.

Although forecasts for the rate of EV adoption over the next decade vary widely given rapid changes in both government policies and the auto manufacturing industry in recent years—many forecasts expect a strong acceleration in EV adoption. S&P Global Mobility forecasts electric vehicle sales in the United States could reach 40 percent of total passenger car sales by 2030, and more optimistic projections foresee electric vehicle sales surpassing 50 percent by 2030.

This Beyond the Numbers article examines the main factors expected to contribute to growth in the electric vehicle market and identifies some occupations that are expected to play a role in the design and development of electric vehicles, in the manufacturing of the batteries that power them, and in the installation and maintenance of the infrastructure needed to charge them.

Factors contributing to a growing electric vehicle market
There are several factors contributing to the growing EV market such as increased consumer interest, government policies, and buy-in from the auto industry.

Factors driving up consumer demand
Consumer demand for EVs has risen significantly over the past few years. The number of EVs on the road jumped from about 22,000 to a little over 2 million over the 2011–21 decade.3 (See chart 1.) Several factors are expected to continue to drive consumer demand for EVs over the 2021–31 decade: environmental concerns, greater vehicle choice, improved battery capacity, and cost savings.

Chart 1. Electric vehicles share of car sales and stock, 2011–21
Combination chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 2 Y axes displaying Percent share of sales and Electric vehicles on the road.
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View Chart Data
A YouGov poll of drivers shows that the top reason for considering buying an EV was to protect the environment.4 Similarly, a survey from CarMax found that most car owners were concerned about fuel emissions and perceived the main advantage of EVs to be that they are good for the environment.

In addition, consumers can now choose from a wider range of vehicles, as manufacturers have introduced a greater variety of EV models into the market, including the much-preferred large-size vehicles. Up until recently, compact cars like sedans and hatchbacks were virtually the only EV options available, yet trucks and SUVs accounted for about 78 percent of new vehicle sales in the United States in 2021.6 Choice is only set to expand, with dozens of new models expected to debut by 2024.

Improved vehicle range is another factor that should encourage higher uptake of EVs. Range anxiety—the fear of running out of battery power before reaching a charging location—has long deterred consumers from purchasing an EV.8 However, battery capacity and range have greatly improved (from a median of 68 miles on a single charge in 2011 to 234 miles in 2021) and is expected to continue to increase with further advances in battery technology.

Furthermore, studies have found that switching to EVs saves consumers money, especially over the long run. For example, in addition to saving on fueling costs, EVs yield about $8,000 to $12,000 worth of savings on maintenance over the lifetime of the vehicle.10 Moreover, battery pack costs should continue to fall, bringing EV prices closer to those of conventional cars.

Government policies driving demand for electric vehicles
The Infrastructure Investment and Jobs Act, signed into law in November 2021, allocated $7.5 billion to building out a nationwide charging network.
The funding has initially focused on installing fast chargers along the interstate highway system, which would help mitigate battery range fears and enable long-distance travel.
The legislation also included large investments to upgrade the nation’s power grid—key for accommodating rising electricity demand as EV adoption grows—and to expand domestic battery production and recycling capacity.
On the consumer side, tax credits spur demand. For instance, the Inflation Reduction Act, signed into law in August 2022, extended a tax credit of up to $7,500 for the purchase of new EVs until 2032 and provided, for the first time, that tax credits could be used for purchasing used EVs.
State government policies also offer incentives, such as rebates, to encourage EV ownership by helping offset the high upfront costs of EVs.