Why Electric Vehicles Become the Focus of Global Attention?

Electric Vehicles Driving Green Travel and Sustainable Development

Electric vehicles (EVs) play a vital role in environmental protection, energy transition, economic growth, social equity, and sustainable development. As a critical path to achieving global green travel and carbon neutrality goals, EVs represent not just technological and industrial transformation but also a global ecological revolution, offering unlimited possibilities for the future of human life.

I. The History and Evolution of Electric Vehicles

At the end of the 19th century, the streets of Europe were filled with the clatter of horse-drawn carriages and the roar of steam cars, choking the air with dense smoke and acrid smells. Amid this scene, a silent new type of vehicle slowly emerged—a humble electric vehicle. Designed by French engineer Gustave Trouvé, this three-wheeled vehicle looked simple yet futuristic. It wasn’t powered by horses or burning coal but by a lead-acid battery. The sight of this remarkable machine left bystanders wide-eyed, and even children hesitated to approach it, as if it were an artifact from another century.

By the 1890s, electric vehicles began appearing on the streets of major cities. In Manhattan, New York, a few electric taxis quietly navigated through the crowds. They were not only silent but also spared the city the deafening noise of internal combustion engines.

At that time, the electric vehicle market saw a brief period of prosperity. American inventor William Morrison designed a four-wheeled electric car that could carry more passengers and reach speeds of 20 km/h, making it ideal for urban travel. By 1900, around 40% of cars in the U.S. were electric, particularly popular with taxi companies and wealthy families in congested city centers.

However, the seemingly promising electric vehicles had notable technical limitations. Lead-acid batteries had low energy density, providing a maximum range of only 50 kilometers on a full charge. Charging often took hours, and finding a charging point in the city was a significant challenge. Additionally, the high cost and complexity of producing electric vehicles made them a luxury for the few rather than a practical means of transport for the masses.

The turning point came in 1908 when Henry Ford’s Model T revolutionized the automobile industry. Mass production dramatically reduced the cost of internal combustion engine vehicles, making them affordable for ordinary workers. With longer range, higher speed, and a growing network of gas stations, internal combustion vehicles made electric cars appear clumsy and impractical. By the 1920s, the rapid development of the petroleum industry had driven electric vehicles out of the mainstream, relegating them to museum exhibits.

As EVs once again capture global attention today, we can’t help but reflect on that era of steam, coal smoke, and electric power coexisting. Those electric vehicles that once roamed the streets of Paris, London, and New York may have been sidelined by technological and market constraints, but they sowed the seeds of green travel—seeds that have finally found their spring a century later.

Policies have been a major driver of the resurgence of EVs. To combat climate change, governments worldwide have introduced policies supporting EV development, such as tax breaks, subsidies, and traffic restrictions, making EVs more accessible. Many countries have also set clear timelines for phasing out fossil fuel vehicles, paving the way for widespread EV adoption.

At the same time, technological advancements have given EVs wings to soar. High-performance lithium batteries have achieved greater energy density and lower costs, with range increasing from tens of kilometers to several hundred kilometers or more. Fast-charging technology and the expansion of charging networks have also enhanced the convenience of using EVs. With the addition of autonomous driving and smart connectivity technologies, EVs have become synonymous with future smart mobility.

Most importantly, the rise of environmental awareness has prompted consumers to reconsider the impact of traditional internal combustion engines. Growing concerns over air pollution and the climate crisis have made clean-energy vehicles an inevitable choice. The zero-emission, low-noise advantages of EVs align with society’s demand for green travel.

By combining policy support, technological innovation, and environmental awareness, electric vehicles are set to redefine the future of transportation, driving humanity towards a more sustainable and greener world.

II. Current Global Market Status of Electric Vehicles

1. Global Market Size and Growth Trends

The following data shows the scale and growth trends of the global EV market in recent years (unit: billion USD):

Trend Analysis

• Rapid Growth

Over the past five years, the global EV market has experienced an average annual growth rate exceeding 30%, with cumulative sales growing exponentially. This reflects a steady increase in consumer acceptance worldwide.

• Regional Characteristics

• China: The largest single market globally, accounting for about 50% of global sales, driven by strong policy support and technological leadership.

• Europe: Rapid expansion after 2020, benefiting from carbon neutrality policies and stringent emission regulations.

• North America: Led by brands like Tesla, with increasing consumer environmental awareness.

• Future Outlook

By 2025, the global EV market size is projected to exceed USD 500 billion, with cumulative sales reaching nearly 30 million units, and EV penetration rates continuing to rise.

2. Leading EV Companies and Their Market Performance

A summary of leading global EV companies and their market performance:

Brief Analysis

1. Global Leader: Tesla

Tesla dominates the market with innovative technology and strong brand recognition. Its vertically integrated model (in-house battery and software development) and extensive Supercharger network ensure steady market share growth.

2. Chinese Market Leader: BYD

Leveraging its full-industry-chain model (batteries, motors, and controllers), BYD has expanded from its dominant position in China to a global presence. In 2023, it surpassed Tesla as the world’s top seller by volume.

3. Traditional Automaker Transformation: Volkswagen

Volkswagen has successfully launched its ID series, capitalizing on decades of manufacturing expertise and strong influence in the European market.

4. Regional Competitors: Korean and Japanese Automakers

Hyundai has made significant strides in Southeast Asia and North America with its cost-effective and design-focused models. Meanwhile, Renault-Nissan focuses on entry-level EVs, maintaining a stronghold in Europe.

5. Emerging Chinese Brands

Brands like NIO, Li Auto, and XPeng have carved out niches in the mid-to-high-end market with intelligent features and differentiated services, becoming key players in the Chinese EV market.

The global EV market is currently shaped by a “dual-leader structure,” with Tesla and BYD spearheading innovation, traditional automakers accelerating their transformations, and emerging brands gaining traction in niche segments. As technology matures and competition intensifies, market concentration is likely to increase, with regional players continuing to contribute significantly.

3. Changes in Consumer Acceptance and Perception of EVs

As EV technology matures and environmental awareness grows, consumer acceptance and perceptions of EVs have shifted significantly:

1. From Hesitation to Adoption

• Early Hesitation:

Consumers once viewed EVs as “experimental” or suited only for urban commutes due to limited range and inconvenient charging.

• Gradual Adoption:

With brands like Tesla gaining traction and improvements in range, charging infrastructure, and performance, consumers now recognize EVs as suitable for long-distance travel.

2. From Functionality to Branding

• Previously: Functionality First

Early EV buyers prioritized subsidies and low operating costs.

• Now: Emphasis on Brand and Experience

Increasing competition has shifted consumer focus to brand value, driving experience, and smart features. EVs have become a symbol of lifestyle and identity.

3. Awakening Environmental Awareness

• An increasing number of consumers are paying attention to their personal carbon footprint. EVs are regarded as a practical way to reduce emissions and protect the environment. Green travel has become a key selling point for attracting consumers.

4. Regional Differences

• Developed Countries:

High acceptance rates, with a focus on performance, intelligence, and environmental benefits. High-end brands like Tesla perform strongly in the premium market.

• Developing Countries:

Price sensitivity is higher, with consumers prioritizing cost-effectiveness and government subsidies. However, acceptance is gradually increasing, particularly in urban areas.

III. Future Trends in Electric Vehicles

1. Innovations in Battery Technology: Solid-State Batteries and New Energy Storage Materials

Solid-state battery technology is emerging as a major breakthrough in energy storage. Compared to traditional lithium-ion batteries, solid-state batteries use solid electrolytes instead of liquid ones, offering higher safety, longer lifespan, and faster charging times. Countries and companies worldwide are accelerating the development of this technology.

1. Advances in Solid-State Battery Technology

• Electrolyte Breakthroughs: Research teams have developed new solid electrolyte materials that significantly enhance battery stability and prevent short-circuits caused by dendrite growth in traditional lithium batteries.

• Rapid Charging Capability: For example, a research team at Harvard University has introduced a novel battery design capable of completing a full charge in 10 minutes and supporting over 6,000 charge-discharge cycles.

• Material Innovation: Dynamic lithium plating on silicon particles creates uniform surfaces, improving battery efficiency and extending its lifespan.

2. New Energy Storage Materials

Beyond solid-state batteries, other energy storage materials have made significant progress. Technologies such as sodium-ion batteries, lithium-sulfur batteries, and lithium-air batteries are considered crucial for the future. These advancements are gradually addressing challenges in energy density and cost within the battery industry.

2. Software-Defined Vehicles: Building Intelligent Driving and IoV Ecosystems

The concept of “Software-Defined Vehicles” (SDVs) represents the automotive industry’s shift from hardware-driven to software-driven development. By integrating advanced software and intelligent technologies into vehicles, SDVs transform cars into IoT-connected, intelligent driving platforms capable of supporting complex interactions.

1. Core Concepts of Software-Defined Vehicles

• Decoupling Hardware and Software: Traditional vehicle functions depend on fixed hardware configurations. SDVs enable flexible functionality through centralized computing platforms and software updates.

• Data-Driven Decision-Making: By collecting driving behavior and environmental data, vehicles continuously optimize performance and user experience.

• OTA (Over-the-Air) Updates: Supporting remote updates allows dynamic feature iterations, extending product lifecycles.

2. Key Technologies for Intelligent Driving

• Autonomous Driving: A core feature of SDVs, intelligent driving leverages AI algorithms, HD maps, and multi-sensor fusion to enable capabilities ranging from L2 assisted driving to L4 highly autonomous driving.

• Edge and Cloud Computing Integration: Local data is processed in real-time, while cloud-based big data analysis supports complex decision-making scenarios.

• Vehicle-to-Infrastructure (V2X) Communication: Through 5G networks and V2X technology, vehicles collaborate with road infrastructure to optimize traffic flow and safety.

3. Constructing an IoV Ecosystem

• IoV Platforms: Automakers and third-party providers are developing cloud-based open platforms to enable seamless data connectivity and build service ecosystems.

• Mobility-as-a-Service (MaaS): SDVs transform vehicles from mere transportation tools to integral nodes in the sharing economy, supporting on-demand travel and logistics solutions.

• Integration with Smart Homes and Devices: The IoV ecosystem extends into home and work environments, enabling vehicles to control smart home devices via voice assistants.

4. Transformation of Business Models

• From Product Sales to Service-Oriented Models: Automakers are transitioning to “service providers,” offering subscription-based or on-demand value-added services through SDV technology.

• Cross-Industry Collaboration: The development of SDVs fosters deep integration between the automotive sector and IT, telecommunications, and cloud computing industries. According to McKinsey, the market for SDV-related software and services is projected to reach $400 billion by 2030, becoming a significant driver of industry growth.

IV. Regional Characteristics of the Global Electric Vehicle Market

China: The World’s Largest EV Market

China leads the global EV market, driven by policy support, corporate innovation, and infrastructure development. Since 2010, the Chinese government has implemented a series of incentives, including purchase subsidies, tax exemptions, and license plate benefits, significantly lowering the barriers to EV adoption.

China is home to several globally competitive EV manufacturers such as BYD, NIO, and Li Auto.

• BYD: Leveraging its expertise in battery technology, BYD dominates the domestic market and has successfully expanded into international markets like Europe.

• NIO: With its battery-swapping model and user-focused services, NIO has created a unique brand ecosystem.

• Li Auto: A key player in the extended-range EV segment.

Infrastructure development has been crucial to EV adoption in China. As the country with the densest charging network globally, China has built over 6.5 million charging stations, with public chargers accounting for nearly half of the global total. Companies like State Grid and Teld are expanding highway charging networks, enabling long-distance EV travel.

Personal Experience: Last year, I purchased a BYD electric vehicle and drove it 1,400 kilometers from Zhejiang to Shanxi during the cold winter. I relied entirely on highway service area charging stations, experiencing the convenience and cost-efficiency of EVs. However, I noticed a significant drop in range under low-temperature conditions, a challenge that advancements in solid-state battery technology may address in the future.

United States: An Innovation-Driven Market

The U.S. EV market is characterized by technological innovation and leadership by industry pioneers, with Tesla being a standout example. As the first company to successfully mass-produce high-end EVs, Tesla has built consumer confidence in EVs through its Model series while advancing infrastructure with its Supercharger network.

Tesla’s success has prompted traditional automakers like General Motors (GM), Ford, and Chrysler to transition towards electrification. GM’s Bolt EV, Ford’s Mustang Mach-E, and the planned all-electric F-series pickups demonstrate their commitment to the EV revolution.

In terms of infrastructure, the U.S. is accelerating its efforts to support EV adoption. The Infrastructure Investment and Jobs Act passed in 2021 allocated $7.5 billion to establish a nationwide charging network, aiming to deploy 500,000 chargers by 2030. This initiative alleviates concerns about charging accessibility and supports long-distance travel. Private companies like ChargePoint and Electrify America are also expanding their networks, complementing Tesla’s Supercharger stations.

With technological innovation and policy support, the U.S. EV market is growing rapidly, solidifying its position in the high-end market while expanding accessibility to the mass market, serving as another global model for EV development.

Europe: Policy-Driven and an Environmental Leader

Europe plays a pioneering role in global EV adoption, with policy measures serving as a key driver. The EU has long enforced stringent carbon emission standards to push automakers towards electrification. From 2020, the EU lowered the carbon emission limit for cars to 95 grams per kilometer of CO₂ and imposed heavy fines on automakers exceeding this threshold. These regulations have compelled traditional automakers to accelerate their EV strategies. For example:

• Volkswagen launched its ID series of EVs.

• BMW and Mercedes-Benz have introduced new electric models.

Several European countries have also announced timelines to phase out internal combustion engine vehicles, accelerating market electrification.

• Norway aims to ban sales of fossil fuel vehicles by 2025, the most ambitious target globally.

• France and the UK plan to ban such vehicles by 2030.

• Germany has set 2035 as its goal for full electrification.

These measures provide clear policy signals to consumers and create strong incentives for infrastructure investment.

Thanks to policy support and rising environmental awareness, Europe has become one of the largest EV markets globally. In 2022, EVs accounted for over 20% of new car sales across Europe, with some countries like Norway surpassing 80%, demonstrating the transformative power of policy-market synergy.

Emerging Markets: Rising Stars in the EV Industry

Emerging markets, including Southeast Asia, South America, Africa, and the Middle East, are becoming significant growth areas for the global EV industry. With large populations, rapidly growing economies, and strong interest in EV development, these regions exhibit immense potential.

• Southeast Asia: Countries like Thailand, Indonesia, and Vietnam are aggressively promoting EV adoption through policies and market initiatives. Thailand aims for 30% of new car sales to be EVs by 2030, while Indonesia is leveraging its abundant nickel resources to attract investments from Tesla and other battery manufacturers.

• South America: Governments and private enterprises are focusing on electrifying public transport systems. Brazil and Chile, for example, are rolling out electric buses to reduce urban pollution.

• Africa: Although at an early stage, there are notable developments, such as Kenya’s use of solar energy to create low-cost charging networks and Morocco’s establishment as a hub for EV manufacturing.

• Middle East: Despite being oil-dependent, countries like Saudi Arabia and the UAE are investing in EV infrastructure and projects as part of their green transition strategies.

The rise of these emerging markets not only broadens the global EV landscape but also injects diversity and vitality into the industry’s development trajectory.

In conclusion, electric vehicles have become the focus of global attention because they address critical challenges of our time—environmental sustainability, energy security, and technological advancement. EVs offer a pathway to reducing carbon emissions, curbing air pollution, and fostering innovation in renewable energy integration and smart transportation. As governments, industries, and individuals recognize their transformative potential, EVs are not just vehicles of change but symbols of a collective commitment to a cleaner, more sustainable future. Their rise is a testament to humanity’s drive toward progress and a better world for future generations. iEVtime is committed to walking this path together and contributing its strength to the cause.