A new report from Guidehouse Research analyzes the outlook for plug-in electric vehicles (PEVs) in North America. After record-breaking sales in 2024, the region’s PEV market continues to expand, supported by greater consumer acceptance, a growing public charging network, and improved total cost of ownership compared to internal combustion vehicles.
Although inflation and raw material price volatility created near-term headwinds, long-term fundamentals remain strong. Guidehouse projects annual PEV sales in North America to rise from 2.6 million in 2025 to 11.3 million in 2034, representing a compound annual growth rate (CAGR) of 17.5%.
The report notes that while some automakers have adjusted timelines for full electrification (often increasing their emphasis on plug-in hybrid models), battery electric vehicles (BEVs) are expected to remain the dominant driver of long-term growth.
Federal policies, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, have accelerated investment in domestic supply chains, with new battery and vehicle production facilities expected to open beginning in 2025.
At the same time, policy uncertainty and evolving trade dynamics present risks to adoption. Potential changes in emissions standards, the rollback of incentive programs, or new tariffs on EV components, raw materials, and imported vehicles could alter the pace of growth.
Under a scenario that assumes reduced regulatory support, the report projects PEV sales in the U.S. would still expand, reaching 9.2 million in 2034 (CAGR of 16.8%).
The report, EV Geographic Forecast – North America, examines adoption trends in the U.S. and Canada at the national, state/province, and local levels. It includes projections by powertrain type (BEV vs. PHEV), vehicle class (passenger cars and light trucks), and accounts for factors such as technology development, fuel pricing, model availability, and zero-emission vehicle mandates.
Filed Under: Charging, Technology News