The global electric vehicle market is expected to set another all-time high this year.

Electrek reported on Tuesday that the International Energy Agency projected in its latest report, “Global EV Outlook”, that worldwide EV sales would reach about 23 million this year. That would be about 30 percent of global new-car sales, showing EVs are becoming a core pillar of the global auto market.

The IEA said EV sales last year already topped 20 million, up about 20 percent from the previous year. That means 1 in 4 new cars sold worldwide last year were EVs. It said global EV sales in the first quarter fell about 8 percent from a year earlier, reflecting policy changes in China and the United States, but assessed the overall growth trend as still intact.

Regional trends diverged sharply. Europe’s first-quarter EV sales rose about 30 percent from a year earlier, showing a recovery, while the Asia-Pacific region excluding China surged 80 percent. Latin America also grew 75 percent, pointing to the expansion potential of emerging markets. The IEA said EV sales rose year on year in about 90 countries as of March, and around 30 countries posted record monthly sales.

China remains the dominant market and a supply base. About 13 million EVs were sold in China last year, accounting for about 55 percent of new-car sales. Chinese automakers also supplied about 60 percent of global EV sales, maintaining market leadership. On the production side, China accounted for about 75 percent of global EV output of around 22 million vehicles, cementing its position at the centre of the supply chain.

China’s export influence has also grown. As production in China exceeded domestic demand, EV exports more than doubled to over 2.5 million vehicles. About 55 percent of EVs sold outside China, Europe and the United States were imported vehicles made in China. That marks a sharp change from less than 5 percent five years ago. China’s influence is also dominant in the battery supply chain. More than 80 percent of global battery cell production last year took place in China.

The main drivers of market expansion were cited as falling battery prices and the burden of energy costs. The IEA said EV demand is not wavering despite geopolitical conflict and an energy crisis, and that in some regions rising fuel costs are accelerating the shift to EVs. IEA Executive Director Fatih Birol (파티 비롤) said lower battery prices and policy responses would provide additional growth momentum for the EV market.

Electric trucks and emerging markets are also growing rapidly. Global electric truck sales more than doubled last year, with a large share of that growth coming from China. Electric trucks now account for about 1 in 10 sales in the overall truck market. Southeast Asia also saw EV sales more than double, with market share approaching about 20 percent, showing rapid expansion.

The IEA forecast that in Southeast Asia, EVs could account for 60 percent of new-car sales in 2035 if policy support and falling prices continue. It also said that even without additional policy changes, the global EV fleet could rise from about 80 million now to as many as 510 million by 2035.

The report also includes a new section covering trends in automotive software and artificial intelligence. It also shows the EV market is shifting beyond simple sales growth toward competition in software and supply chains.