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Navigating the 2024 Transportation Landscape: Market Sizes, Projections, and Policy Drivers

General Report May 6, 2025
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  • In the transportation landscape of 2024, a significant transformation unfolded, characterized by a burgeoning market for electric vehicles (EVs), enhanced smart mobility solutions, and the emergence of air taxis. The global EV market, which reached an impressive valuation of approximately USD 1.35 trillion by the end of 2024, showcased a trajectory that defies conventional growth patterns, bolstered by considerable investments and governmental incentives. The sector displayed an incredibly promising outlook, with projections suggesting a compound annual growth rate (CAGR) exceeding 32.54% between 2025 and 2034. The Asia Pacific region dominated this market, retaining a substantial 50% market share, partly attributed to its array of battery manufacturers and supportive policies that incentivized EV adoption.

  • Simultaneously, the smart transportation market emerged with a valuation of USD 124.6 billion in 2024, forecasted to escalate to USD 353.9 billion by 2034, driven primarily by urbanization and the critical integration of connected and autonomous vehicles (CAVs) into urban mobility frameworks. The necessity for efficient transport solutions to combat escalating traffic congestion directly influenced this market's expansion.

  • Furthermore, the air taxi sector experienced remarkable growth, achieving a valuation of USD 1.4 billion and projected to reach USD 15 billion by 2035, propelled by innovations in eVTOL technology and burgeoning interest from various stakeholders. As of late 2024, around 250 companies were engaged in the development or testing of air taxi prototypes, underscoring the transformative potential within urban air mobility.

  • China's heavy-vehicle electrification advancements were noteworthy, presenting significant sales figures that contributed to its position as a global leader in achieving zero-emission commercial transportation. The country not only increased the sales of new energy vehicles (NEVs) but also made substantial inroads into battery-swapping technologies, setting an example for electrification initiatives in logistics and construction.

  • Overall, the transportation markets of 2024 laid a foundation for progressive change, with various drivers—ranging from evolving consumer preferences to robust policy frameworks—poised to shape the trajectory of transportation well into the next decade.

2024 Market Overview: Base-Year Benchmarks

  • Global EV and Smart Mobility 2024 market valuations

  • In 2024, the global electric vehicle (EV) market was valued at approximately USD 1.35 trillion, showcasing a robust landscape characterized by accelerating investments and innovatory advancements in the sector. By the end of the year, the EV market was projected to expand at a compound annual growth rate (CAGR) of over 32.54% from 2025 to 2034, with estimations suggesting it could reach USD 22.58 trillion by 2034. This explosive growth trajectory was driven by heightened funding from key players, including strategic investments targeting electrification efforts and supportive government policies promoting the adoption of EV technologies. The Asia Pacific region notably dominated the market, holding a 50% share in 2024, bolstered by a significant presence of EV battery manufacturers and favorable government incentives.

  • Furthermore, the Smart Transportation market, which encompasses intelligent mobility solutions integrating advanced technologies such as AI, IoT, and smart traffic management systems, was valued at USD 124.6 billion in 2024. The market was anticipated to experience a substantial growth trajectory, estimated to reach USD 353.9 billion by 2034, reflecting a CAGR of 12.8%. The expansion in smart transportation was closely linked to escalating urbanization levels and the need to address challenges posed by traffic congestion. The integration of connected and autonomous vehicles (CAVs) into urban mobility strategies served as a critical accelerator, enhancing transport system efficiencies and offering sustainable transport solutions to urban populations.

  • Air taxi sector size and growth drivers

  • The air taxi market experienced significant growth in 2024, with its valuation reaching USD 1.4 billion and projected to surge to USD 15 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 24% for the period 2025-2035. This growth was fueled by rapid advancements in electric vertical take-off and landing (eVTOL) technology, along with increasing investments from both aerospace and mobility innovators. Additionally, the growing urbanization trends and the rising need for efficient transport alternatives to alleviate road congestion played pivotal roles in shaping the demand for air taxi services.

  • By the close of 2024, approximately 250 companies globally were engaged in developing or testing air taxi prototypes. The air taxi segment primarily benefitted from innovations in battery technology and autonomous operation modalities, promising enhanced safety and operational efficiency in urban transport networks. As regulatory frameworks evolved to support these innovations, the market attracted diverse stakeholders, ranging from startups to established aerospace giants, accelerating its path to commercialization.

  • China’s heavy-vehicle electrification status

  • China's progress in heavy-vehicle electrification marked a notable achievement in 2024, establishing the country as a frontrunner in the global push towards zero-emission commercial transportation. Heavy-duty trucks accounted for significant sales numbers, with approximately 901, 700 units sold domestically, reflecting a 1% decrease from the previous year. However, the share of new energy vehicles (NEVs) within this segment notably surged, peaking at around 82, 000 units sold—10% of the heavy truck market—with nearly 94% being battery-electric vehicles.

  • The growth trajectory of battery-electric trucks was further complemented by innovations in battery swapping technologies, significantly enhancing their operational viability in sectors such as logistics and construction, where uptime is crucial. Furthermore, policies incentivizing electrification in urban transit also bore fruit, with the bus segment, long an exemplar of electrification, reporting increased counts of new energy vehicles. Meanwhile, construction and special-purpose vehicle electrification remained nascent but exhibited promising growth supported by targeted government initiatives, emphasizing the critical role of policy frameworks and infrastructure investments in hastening China's heavy-vehicle electrification journey.

Electric Vehicle Adoption and Manufacturer Leadership

  • Global EV market projection to 2034

  • The global electric vehicle (EV) market is poised for explosive growth, with projections indicating it will expand from an estimated USD 1.79 trillion in 2025 to approximately USD 22.58 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 32.54% throughout this period. This growth is primarily driven by increased investment and innovation from major automakers, alongside evolving consumer preferences for sustainable transportation solutions. The Asia-Pacific region, which dominates the market, accounted for over 50% of global EV sales in 2024, and is expected to maintain this position as government initiatives continue to support EV adoption. Furthermore, the rising demand for electric passenger vehicles, among other segments, is anticipated to significantly influence the overall market trajectory.

  • India’s path to 123 million EVs by 2032

  • India is on a trajectory to have up to 123 million electric vehicles on its roads by 2032, according to the recent report from the India Energy Storage Alliance and Customised Energy Solutions. This ambitious target is positioned within the framework of India's commitment to achieving net-zero emissions by 2070. Key to this growth are supportive governmental policies, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles II (FAME-II) scheme, which provides incentives for electric two-wheelers, three-wheelers, and four-wheelers, along with subsidies for charging infrastructure. Currently, electric two and three-wheelers constitute over 93% of on-road EV stock, while electric four-wheelers account for roughly 6%. Significant investments in charging infrastructure will be crucial, with ongoing projections indicating a need for between 0.9 million and 2.1 million installed EV charging points by 2032 to support the anticipated growth.

  • BYD’s rise to global leadership

  • BYD has emerged as the world’s leading electric vehicle manufacturer, surpassing Tesla in sales in 2024. This remarkable ascent is a reflection of BYD’s strategic focus on research and development, coupled with their ability to innovate in battery technology and charging systems. Their latest charging technology enables vehicles to be charged in just five minutes to achieve a range of 400 km, substantially outperforming competitors like Tesla, which takes 15 minutes to add 320 km of range. Founded in 1994, BYD's transformation from a battery manufacturer to a major player in the EV sector has been underpinned by the company's early recognition of key market opportunities, particularly in electrification. The combination of advanced technology and affordable product offerings, such as their proprietary driver-assistance system, positions BYD not only as a market leader but also as a vital actor in the transition towards greener mobility solutions.

Battery and Vehicle-to-Grid Infrastructure Growth

  • Automotive battery market forecast to 2034

  • The global automotive battery market is projected to experience remarkable growth from a valuation of USD 83.08 billion in 2024 to an anticipated USD 462.10 billion by 2034. This growth is primarily driven by factors such as the increasing production of electric vehicles (EVs), advancements in battery technology, and a global shift towards more sustainable modes of transportation. Notably, the automotive battery sector plays a crucial role in the functionality of both electric and hybrid vehicles, serving as the essential power source for starting these vehicles and facilitating the operation of their electronic systems.

  • Key trends contributing to this market growth include the transition toward electric mobility, where manufacturers are investing significantly in developing high-capacity and rapid-charging batteries. Such innovations aim not only to enhance the performance of EVs but also to address environmental concerns, as governments globally push for cleaner energy solutions. Additionally, there is a growing focus on second-life battery applications and recycling efforts, which aim to reduce waste while recovering valuable materials, further supporting sustainable practices within the battery supply chain.

  • Vehicle-to-grid market expansion through 2034

  • The vehicle-to-grid (V2G) market is expected to grow significantly, with projections indicating an increase from USD 5.3 billion in 2024 to approximately USD 78.8 billion by 2034. This expansion is being propelled by the global push for clean energy solutions, where V2G technologies are becoming increasingly essential in enabling bidirectional energy flow between electric vehicles and the electrical grid.

  • Governments around the world are implementing various incentives—such as tax benefits and infrastructure mandates—to promote the integration of V2G systems. These systems not only facilitate the management of energy resources but also provide cost-reduction advantages for consumers and grid operators alike. The growing deployment of smart charging infrastructure and the need for modernized energy management systems are critical factors driving this market. Furthermore, partnerships between automakers and utility companies play a pivotal role in enhancing V2G system efficiency, as these collaborations implement pilot projects and aim for commercial-scale rollouts of bi-directional charging technologies.

Ancillary Automotive Markets: Logistics and Tires

  • Finished-vehicles logistics market outlook 2025

  • As of May 2025, the Finished Vehicles Logistics market is poised for significant growth, having been valued at approximately $90.9 billion in 2024. Projections indicate an upward trajectory, with the market expected to reach around $105.5 billion by 2030, reflecting a compound annual growth rate (CAGR) of 2.5% between 2024 and 2030. This growth is attributed to several key factors, including the increasing complexity of global supply chains and the rise in vehicle production driven by burgeoning consumer demand.

  • Current tariff negotiations impacting logistics operations across 180+ countries have reshaped the market landscape, modifying operational costs and supply chain strategies. In light of these tariff adjustments, logistics firms are optimizing their services to navigate the heightened regulatory environment and adapt to the evolving global trade landscape. The logistics process for finished vehicles, while crucial, faces challenges such as varying regulatory requirements, the need for real-time tracking, and the pressures of delivering vehicles efficiently despite potential delays caused by weather, infrastructure challenges, and customer expectations for quicker deliveries.

  • Technological advancements play a pivotal role in enhancing the efficiency and reliability of finished vehicle logistics. The deployment of telematics and GPS technologies allows logistics providers to monitor vehicle movement in real time, improving delivery accuracy. Moreover, innovative solutions such as automated storage systems and data analytics facilitate improved route optimization and operational efficiency, crucial for meeting the escalating demands of both manufacturers and consumers.

  • Heavy-duty tire market forecast to 2034

  • The heavy-duty tire market has shown robust growth potential, valued at approximately $28.26 billion in 2024, with forecasts indicating it will reach around $39.37 billion by 2034. The increasing demand is primarily driven by sectors such as construction, mining, agriculture, and logistics, which require tires capable of withstanding heavy loads and rugged terrains. As industrial activities expand, particularly in emerging economies, manufacturers are focusing on innovations that enhance tire durability and performance to meet sector-specific needs.

  • Key trends influencing the heavy-duty tire market include the adoption of smart tire technologies and eco-friendly manufacturing practices. Smart tires equipped with sensors provide data on tire pressure, temperature, and wear, facilitating predictive maintenance which is critical for preventing costly downtimes in heavy machinery operations. Additionally, environmental concerns are pushing manufacturers to utilize sustainable materials in tire production, aligning with global conservation objectives and ensuring that advancements in tire technology contribute to overall sustainability.

  • Furthermore, the heavy-duty tire market anticipates growth in regions like Asia-Pacific, where rapid industrialization is prompting increased demand for commercial vehicles and heavy machinery. Nations such as China and India are leading this demand surge, driven by investments in infrastructure and mining initiatives. The North American market is also expected to expand quickly due to its advancing logistics and transport sectors, underscoring a strong need for durable tire solutions capable of optimal performance across a range of demanding applications.

Regional Policy and Energy Drivers

  • China’s measures to boost private energy investment

  • As of May 2025, China has implemented new measures aimed at significantly enhancing private sector investment in its energy economy. This initiative, conveyed by the National Energy Administration (NEA), stipulates that private enterprises will be encouraged to partake in substantial energy projects, including nuclear power, hydropower, oil and gas infrastructure. The reforms are centered on promoting a rapid development of the private energy sector, fostering a more robust contribution to China’s green and low-carbon energy transition. Notably, private companies are now being allowed to hold a minimum of 10% stakes in significant nuclear projects, representing a significant deviation from past policies that favored state-owned enterprises in this strategic sector. Moreover, with private firms already dominating over 80% of the large-scale charging infrastructure market, these measures signal Beijing's determination to leverage private sector dynamism to innovate and modernize the energy landscape, which experts argue will likely catalyze increased technological advancements and operational efficiencies.

  • Impact of US climate funding cuts on Southeast Asia

  • Recent shifts in U.S. policy regarding climate funding have led to notable repercussions in Southeast Asia. As of early May 2025, the withdrawal of funding and support for renewable energy projects has left several nations, including the Philippines, relying increasingly on Chinese renewable technologies. Amidst a backdrop of geopolitical tensions with China, the availability of low-cost wind turbines and solar panels from Chinese firms has become a crucial lifeline for countries seeking to enhance their renewable energy capabilities. This reliance also underscores a broader strategy in which China's investments through the Belt and Road Initiative are cementing its role as a pivotal player in the renewable energy sector across Asia. This dynamics showcases how US policies are inadvertently empowering China’s influence in Asian renewable energy markets, offering a complex scenario where countries must balance national security concerns with the urgent need for sustainable energy solutions.

  • South Africa’s shift beyond load-shedding

  • As of May 2025, South Africa is experiencing a renewed focus on renewable energy solutions, encouraged by recent developments in energy policy and market dynamics. Following years of disruptive load-shedding due to an aging infrastructure and unreliable electricity supply, there is a cautious optimism as the country seeks to expand its renewable energy sector. The government has begun implementing new flexible contracts with Independent Power Producers (IPPs) to alleviate the reliance on long-term agreements that have historically constrained operational flexibility. Furthermore, the surge in electricity tariffs, which have increased over 450% since the onset of the power crisis, is serving as a catalyst for businesses to transition towards diversified energy solutions. This transition aligns with global pressures to comply with regulatory frameworks aimed at carbon emissions reduction, pushing local industries to adopt more sustainable energy practices.

  • China’s infrastructure investment plans

  • In 2025, China’s infrastructure investment is witnessing significant growth as the nation strategically navigates global trade tensions. Amidst these challenges, the Chinese government is actively working to stabilize domestic demand and replace the diminishing exports due to external pressures. Notably, infrastructure investment grew by 5.8% year-on-year in the first quarter, indicating a robust response to the need for economic stability. Major projects are accelerating, with the construction of essential transport links making progress ahead of schedule, thereby enhancing connectivity across regions. This heightened investment aims not only to bolster the economy but also to ensure that infrastructure plays a critical role in supporting various energy initiatives and enhancing operational efficiencies within the energy sector.

Wrap Up

  • Reflecting upon the achievements and transitions of the 2024 transportation sectors, it is evident that we are on the cusp of a transformative era. The substantial advancements in electric vehicles, smart mobility, and air taxis not only underscore a growing consumer shift toward sustainable options but also depict a unique landscape where innovation meets policy. As these markets move into the early 2030s, projections indicate a sustained trajectory of growth for electric vehicle adoption, battery advancements, vehicle-to-grid (V2G) services, logistics network enhancements, and rising tire demand, which collectively highlight the interconnectedness of various segments within the transportation industry.

  • Regional policies will significantly impact this growth. India’s commitment to achieving net-zero emissions, China’s progressive energy reforms, South Africa’s revitalization of its renewable sector, and Southeast Asia’s increased reliance on affordable Chinese renewables collectively illustrate a global shift towards sustainability and innovation. Stakeholders within the transportation and energy sectors are urged to prioritize infrastructure investments, modernize grid systems, and foster cross-sector collaborations, as these actions are critical in adapting to emerging trends and ensuring resilience and equity within the framework of transportation systems.

  • Looking forward, the integration of planning across transportation, energy, and digital infrastructures stands as a vital strategy that can drive not only decarbonization but also holistic equitable access to transport solutions across diverse populations. As investments continue to shape the future landscape, proponents of sustainable transport are encouraged to actively engage in these developments, advancing efforts toward smarter, cleaner, and more efficient transportation ecosystems. Such engagement will ensure that stakeholders collectively contribute towards navigating the complexities of future transportation needs.

Glossary

  • Electric Vehicles (EVs): Electric Vehicles (EVs) refer to automobiles that are powered entirely or partially by electricity. As of 2024, the global EV market was valued at approximately USD 1.35 trillion and is projected to experience significant growth through technological advancements and supportive government policies, particularly in the Asia Pacific region.
  • Smart Mobility: Smart Mobility encompasses intelligent transportation solutions that utilize advanced technologies such as AI and IoT to enhance urban mobility systems. With a valuation of USD 124.6 billion in 2024, it aims to improve efficiency and sustainability in addressing traffic congestion and urban transport challenges.
  • Air Taxi: Air Taxis are innovative aerial transport services utilizing electric vertical take-off and landing (eVTOL) technology. The air taxi market was valued at USD 1.4 billion in 2024 and is projected to grow to USD 15 billion by 2035, driven by urbanization and advancements in aircraft technology.
  • Vehicle-to-Grid (V2G): Vehicle-to-Grid (V2G) technology facilitates bidirectional energy flow between electric vehicles and the electrical grid, allowing EVs to feed energy back into the grid. The market is projected to grow from USD 5.3 billion in 2024 to around USD 78.8 billion by 2034, supported by the push for clean energy solutions.
  • New Energy Vehicles (NEVs): New Energy Vehicles (NEVs) are a category of vehicles in China that includes electric, plug-in hybrid, and hydrogen fuel cell vehicles. As of 2024, NEVs accounted for a significant portion of heavy-duty vehicle sales, reflecting China's efforts toward zero-emission transportation.
  • Compound Annual Growth Rate (CAGR): The Compound Annual Growth Rate (CAGR) is a measure used to determine the mean annual growth rate of an investment over a specified time period longer than one year. In the EV market, a CAGR exceeding 32.54% is projected between 2025 and 2034, indicating robust growth expectations.
  • Battery Market: The battery market, particularly for automotive purposes, is expected to grow from USD 83.08 billion in 2024 to USD 462.10 billion by 2034. This surge is attributed to increased EV production and advancements in battery technology, which are critical for the operation of electric and hybrid vehicles.
  • Logistics: Logistics refers to the detailed coordination of complex operations involving people, facilities, and supplies. The Finished Vehicles Logistics market, valued at USD 90.9 billion in 2024, is expected to grow significantly due to increasing vehicle production and the complexity of global supply chains.
  • Infrastructure Investment: Infrastructure investment involves funding directed towards building essential structures and systems, such as roads, bridges, and energy facilities. As of 2025, China's infrastructure investment is growing to support economic stability and transformative energy initiatives amid global trade tensions.
  • BYD: BYD is a leading Chinese electric vehicle manufacturer that surpassed Tesla in sales in 2024. Established in 1994, BYD focuses on innovation in battery technology and research and development, positioning itself as a dominant player in the global EV market.

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