US Electric and Hybrid Vehicles Market Report 2025
The EV and hybrid vehicle market is evolving, driven by shifting consumer priorities, policy changes, and economic conditions.
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EXECUTIVE SUMMARY
- What you need to know
- Market size & forecast
- Market predictions
- What consumers want & why
- What consumers want & why (cont)
- Opportunities
- Market hybrids as a half-step toward full electrification
- Improve charging station offerings
- Improve dealer and consumer education
- Emphasize sustainable manufacturing
- Position green vehicle technology as a way to keep consumers on the road longer
- Offer complimentary features, or add throughout vehicles’ lifetime
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Market Dynamics
- Market context
- Market drivers
- Federal electric vehicle incentives sunset
- Economic uncertainty continues to loom
- Graph 1: economic policy uncertainty index, 2020-25
- Consumer sentiment improves slightly…
- Graph 2: consumer sentiment index, 2022-25
- …with the price of new and used vehicles expected to rise
- Graph 3: consumer price index for all urban consumers, new and used vehicles, seasonally adjusted, 2019-25
- Average age of vehicles on the road continues to increase…
- …as do maintenance costs
- Graph 4: consumer price index for all urban consumers, motor vehicle maintenance and repair, not seasonally adjusted, 2019-25
- Car loan delinquencies reach new highs…
- …and the cost of auto insurance continues to increase
- Graph 5: motor vehicle insurance for all urban consumers, not seasonally adjusted, 2019-25
- Tesla scrutiny may create industry ripples
- Market size and forecast
- Retail sales and forecast of electric and hybrid vehicles
- Retail sales and forecast of electric and hyrbid vehicles
- Charging ahead: navigating the roadblocks to EV growth
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Consumer Insights
- Consumer fast facts
- Vehicle ownership
- Understanding vehicle ownership
- Graph 6: household vehicle ownership, 2025
- Driving through the generations: ownership trends
- Graph 7: household vehicle ownership, by age, 2025
- Bridging the gap in household vehicle ownership
- Graph 8: household vehicle ownership, by race and ethnicity, 2025
- Consumers continue to consolidate
- Graph 9: household vehicle ownership, 2020-25
- Shifting trends in single-car ownership
- Graph 10: single vehicle household vehicle ownership, by area, 2022-25
- EV & hybrid vehicle ownership type and brand
- Charging ahead: consumers continue to shift
- Graph 11: I or someone in my household…, 2025
- Tesla’s reign wanes, but remains
- Graph 12: household green vehicle brand ownership, 2025
- Younger consumers drive green vehicle ownership
- Graph 13: I or someone in my household…, by age, 2025
- Generational divide in EV and Hybrid brand preferences
- Graph 14: household green vehicle brand ownership, by age, 2025
- Driving inclusivity and short-term sales
- Graph 15: I or someone in my household…, by race and ethnicity, 2025
- Powering up urban mobility trends
- Graph 16: I or someone in my household…, by area, 2025
- Bridging regional charging access, adoption
- Graph 17: I or someone in my household…, by region, 2025
- Navigating barriers in the electrification landscape
- Graph 18: charging station concerns (% agree), by region, 2025
- Driving adoption: the remote work advantage
- Graph 19: I or someone in my household…, by working situation, 2025
- Brand ownership across work lifestyles
- Graph 20: household green vehicle brand ownership, by working situation, 2025
- Marketing to remote and hybrid workers
- Purchase interest and type consideration
- Understanding vehicle model classifications
- Opportunities in upcoming consumer purchase interest
- Graph 21: vehicle purchase intent timing, 2025
- Type consideration of future vehicle purchases
- Graph 22: vehicle type purchase interest, 2025
- Navigating consumers’ mixed vehicle considerations
- Younger consumers drive short-term interest
- Graph 23: vehicle purchase intent timing, by age, 2025
- Shaping the future of advanced vehicle adoption
- Graph 24: vehicle type purchase interest, by age, 2025
- Building awareness and consideration among younger consumers
- Income plays a part in vehicle considerations
- Graph 25: purchase interest for hybrid and gas-powered vehicles, by age and household income, 2025
- Bridging knowledge gaps to drive hybrid adoption
- Graph 26: “I know the difference between the various forms of hybrid vehicles” (% agree), by age, 2025
- Hybrids as the bridge to electric mobility
- Graph 27: attitudes toward green vehicles (% agree), by age, 2025
- Targeting fathers: a strategic path to influence
- Graph 28: planning to buy a vehicle in the next year, moms vs dads, 2025
- Urban buyers look to short-term purchasing
- Graph 29: purchase intent timing, by area, 2025
- Tailoring vehicle marketing to living areas
- Graph 30: vehicle type purchase interest, by area, 2025
- Alternate-fuel vehicles drive immediate demand
- Graph 31: vehicle purchase intent timing, by consideration type, 2025
- Highlight CPO programs for hybrid and electric options
- Graph 32: vehicle type consideration, by green vehicle type considering, 2025
- Choosing a hybrid or electric car
- Key factors influencing EVs and hybrids
- Graph 33: important factors when choosing a hybrid or electric car (% any rank), 2025
- Driving style: EVs capture the eye of younger consumers
- Rivian powers up: fitness electrified
- Bridging the gap: engaging older considerers
- Graph 34: features (% any rank), by age, 2025
- Reaching older consumers
- Understanding feature priorities across green vehicle types
- Graph 35: features (% any rank), by vehicle type consideration, 2025
- Tailoring green vehicle strategies across generations
- Graph 36: purchase drivers (% any rank), by age, 2025
- Purchase drivers vary by vehicle type consideration
- Graph 37: purchase drivers (% any rank), by vehicle type consideration, 2025
- Balancing over-the-air revenue models
- Graph 38: “I wouldn’t like having to pay extra for over-the-air vehicle updates or features” (% agree), by age, 2025
- Subscription backlash: an early warning for automakers
- The power of reputation and social influence in automotive choices
- Graph 39: brand and social perceptions (% any rank), by age, 2025
- Legacy automakers hold electric trust among younger consumers
- Graph 40: attitudes toward brand reputation (% agree), by age, 2025
- Influential sources
- Word-of-mouth leads consumer influence
- Graph 41: sources that would be most impactful when purchasing an electric or hybrid vehicle (% any rank), 2025
- Reaching consumers through reviews
- Influences vary by age
- Graph 42: sources that would be most impactful when purchasing an electric or hybrid vehicle (% any rank), by age, 2025
- Reaching across generations
- Cultural nuances in digital influence
- Graph 43: sources (select) that would be most impactful when purchasing an electric or hybrid vehicle (% any rank), by race or ethnicity, 2025
- Targeting parents as a key to reach younger consumers
- Graph 44: sources (select) that would be most impactful when purchasing an electric or hybrid vehicle (% any rank), by parental status (moms vs dads), 2025
- Reaching parents in person
- Charging station behaviors
- Charging ahead or hitting the brakes?
- Electric vehicle charging ports by state
- West coast leads charging awareness and demands…
- Graph 45: attitudes toward charging (% agree), by region, 2025
- …but consider starting small
- Generational trends in EV charging preferences
- Graph 46: attitudes toward charging stations (% agree), by age, 2025
- Generational preferences in sustainable charging choices
- Graph 47: charging behaviors (% agree), by age, 2025
- Brands continue to introduce sustainable charging
- Home charging preferences across generations
- Graph 48: charging behaviors (% agree), by age, 2025
- Energy providers that have already taken charge
- Powering the future: the car and home
- Home charging: a commuter priority
- Graph 49: “I prioritize home charging because of its convenience and cost-effectiveness” (% agree), by work from home status, 2025
- The dual impact of workplace and public charging
- Graph 50: charging location behaviors (% agree), by age, 2025
- Charging up profits: the plug-in advantage
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Innovation and Marketing strategies
- Competitive strategies
- Af(Ford)able innovation with low-maintenance appeal
- Slate Automotive offers affordable customization
- Volvo EX60: revolutionizing safety with smart belts
- Cadillac: crafting the future of luxury and prestige
- BMW leans into entertainment, flexible space
- Mercedes hits pause: rethinking the EQ evolution
- Rivian leverages its brick-and-mortar locations
- Marketing and advertising
- Cadillac meets Sotheby’s
- Timothée Chalamet partners with Lucid Motors
- Tesla shifts its stance on advertising
- Polestar spotlights Kevin Love
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Appendix
- Market definition
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
- Forecast methodology
- Forecast fan chart methodology
"The road to greener mobility hinges on balancing hybrid practicality with EV innovation, as affordability and infrastructure shape the future of the industry."
Gabe Sanchez, Senior Automotive Analyst
US Electric Vehicles Market – Trends and Insights
- The EV and hybrid vehicle market is evolving, influenced by shifting consumer priorities, policy changes, and economic conditions. While EVs are widely regarded as the future of transportation, challenges such as affordability, range anxiety, and insufficient infrastructure are slowing their short-term adoption.
- The reduction of incentives for EVs has made hybrids an attractive alternative, offering a practical balance between fuel efficiency, reliability, and environmental benefits without the limitations of full electrification.
- Hybrids are positioned as a dominant choice among green vehicle options in the near term, serving as a bridge for consumers hesitant to fully transition to EVs.
- To sustain momentum in the market, deeper consumer education is needed to highlight the long-term advantages of EV ownership, alongside continued improvements in charging infrastructure to address concerns about costs, range, and practicality.
- The success of the transition to greener mobility will depend on balancing the sustained demand for hybrids with innovations that make EVs more feasible, ultimately shaping the industry’s trajectory in the years ahead.
Key Topics Analyzed in the Report
- Consumers’ current ownership and consideration of electric and hybrid vehicles
- Influential sources impacting consumers’ interest in these vehicle types
- Important factors and sources impacting consumers’ decisions to purchase an electric and/or hybrid vehicle
- Consumer attitudes and behaviors toward charging
- Consumer attitudes and behaviors toward electric and hybrid vehicles
| Report Attributes | Details |
|---|---|
| Published Date | August 2025 |
| Data Range | 2019 – 2030 |
| Measurement Metrics | Revenue in US $ |
| Country Focus | United States of America (USA) |
| Consumer Data | 2,000 internet users aged 18+, April 2025 |
| Number of Pages | 96 |
| Market Segmentation | Mild Hybrid Vehicles, Plug-in Hybrid Vehicles, Electric Vehicles (EVs), Range-extended Electric Vehicles (REEVs), Fuel Cell Electric Vehicles (FCEVs) |
| Leading Companies in the Electric and Hybrid Vehicle Market | Tesla, Rivian, Polestar, Lucid Motors, Mercedes-Benz, BMW, Genesis, Honda, Toyota, Ford |
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