While the U.S. was the world’s third largest HEV market in 2021, sales as a share of total motor vehicle sales were below the global average and well below levels seen in other high-income nations. U.S. adoption of BEVs in particular has been hindered by cultural and geographic factors that lead to greater concern over EV vehicle range and performance. The U.S. is expected to post strong growth in HEV adoption through 2026, but market penetration will continue to trail that in Europe and high-income Asian nations. However, the U.S. could be a stronger driver of growth in the 2030s, when European HEV markets begin to mature.
