South Korea Electric Vehicle Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars and Trucks), By Propulsion Type (Battery Electric Vehicle (BEV) and Fuel Cell Electric Vehicles (FCEVs)), By Drive Type (Front-Wheel Drive (FWD) and All-Wheel Drive (AWD)), and South Korea Electric Vehicle Market Insights, Industry Trend, Forecasts to 2035

South Korea Electric Vehicle Market Insights Forecasts to 2035

• The South Korea Electric Vehicle Market Size Was Estimated at USD 16,764.5Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 28.61% from 2025 to 2035
• The South Korea Electric Vehicle Market Size is Expected to Reach USD 2,66,892.6 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, the South Korea Electric Vehicle Market Size is Anticipated to Reach USD 2,66,892.6 Million by 2035, Growing at a CAGR of 28.61% from 2025 to 2035. Government incentives and legislation are speeding up the use of electric vehicles, or EVs.

Market Overview

The industry that includes the manufacture, distribution, and use of electric-powered vehicles, such as plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), is known as the electric vehicle (EV) market. A number of causes, including government incentives, environmental concerns, and technology developments, are driving this industry's rapid growth. EVs are more energy-efficient, which lowers fuel expenses, and electricity is typically less expensive than gasoline or diesel. Because EVs have fewer moving parts than cars with internal combustion engines, they require less maintenance and cost less to service. Companies may save operating expenses and carbon emissions by switching to electric vehicles for their fleets. As EV leasing and financing options proliferate, both people and businesses will have more access to EVs. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) program encourages the construction of charging infrastructure and offers financial incentives for EV sales. By encouraging investments and technological developments, the PLI initiative seeks to increase domestic production of EVs and associated components.

Report Coverage

This research report categorizes the market for South Korea electric vehicle market based on various segments and regions, forecasts revenue growth, and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea electric vehicle market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment South Korea electric vehicle market.

Driving Factors       

The rising environmental concerns and stringent emission regulations worldwide. Increasing government incentives and subsidies promote EV adoption, while advancements in battery technology enhance range and reduce costs. Growing consumer awareness about sustainability and lower operating costs fuel demand. Expansion of charging infrastructure and urbanization also support market growth.

Restraining Factors

The growing environmental awareness and stringent emission regulations are pushing for cleaner transportation. Government incentives, subsidies, and tax benefits make EVs more affordable, encouraging adoption. Advances in battery technology improve driving range and reduce costs, while expanding charging infrastructure enhances convenience.

Market Segmentation

The South Korea electric vehicle market share is classified into vehicle type, propulsion type, and drive type.

• The passenger cars segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea electric vehicle market is segmented by vehicle type into passenger cars and trucks. Among these, the passenger cars segment held a significant share in 2024 and is expected to grow at a substantial CAGR during the forecast period. A sharp increase in their uptake in key regions, the trajectory of electric passenger cars is set for tremendous expansion. Electric cars are still predicted to account for around one-fourth of all automobile sales, despite passenger car sales and the progressive elimination of subsidies in several nations. This data highlights a notable trend toward electric mobility, which is being driven by both consumer demand and legislative efforts to reduce transportation's carbon footprint.

• The battery electric vehicle (BEV) segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea electric vehicle market is segmented by propulsion type into battery electric vehicle (BEV) and fuel cell electric vehicles (FCEVs). Among these, the battery electric vehicle (BEV) segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The rise in the use of BEVs can be linked to customers' increased awareness of environmental issues, which has stoked demand for greener modes of transportation. BEVs are a more environmentally friendly option than conventional cars with internal combustion engines. Additionally, the usage of electric buses in metropolitan public transportation fleets is expanding quickly on a scale.

• The front-wheel drive (FWD) segment dominated the share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea electric vehicle market is segmented by drive type into front-wheel drive (FWD) and all-wheel drive (AWD)). Among these, the front-wheel drive (FWD) segment dominated the share in 2024 and is expected to grow at a significant CAGR during the forecast period. FWD's cost-effectiveness in manufacturing is driving its growing adoption. Compared to rear-wheel drive systems, FWD vehicles require fewer components, which lowers production costs. Cost advantage, automakers are able to provide consumers with vehicles at more competitive prices. Furthermore, FWD electric vehicles are usually lighter, which improves fuel economy and reduces drivers' overall operating expenses.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea electric vehicle market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the companies' current news and developments, including product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hyundai Motor Company
• Kia Corporation
• KG Mobility
• Renault Korea Motors
• CT&T United
• LG Energy Solution
• Samsung SDI
• Woojin Industrial Systems
• KGM Commercial
• EMVcon
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea electric vehicle market based on the below-mentioned segments:

South Korea Electric Vehicle Market, By Vehicle Type

• Passenger Cars
• Trucks

South Korea Electric Vehicle Market, By Propulsion Type

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicles (FCEVs)

South Korea Electric Vehicle Market, By Drive Type

• Front-Wheel Drive (FWD)
• All-Wheel Drive (AWD)