A total of 21.9 million electric vehicles (EVs) will be sold worldwide during the period from 2012 to 2020, according to a recent report from Navigant Research.

“The average price of fuel for conventional vehicles will likely continue to rise through the remainder of this decade, driving demand for electric vehicles,” said Dave Hurst, principal research analyst with Navigant Research. “Government policy, in terms of purchase incentives, emissions regulations, fuel taxes, and fuel economy rules, will also play a strong role in the expansion of the EV market.”

Electric vehicles sales will grow at a much more rapid pace than the overall automotive market, according to the report. While the overall auto market will expand only 2 percent a year through 2020, sales of plug-in EVs will grow at a compound annual growth rate of nearly 40 percent over the remainder of the decade. Nevertheless, by 2020, PEVs will still make up only a small fraction of annual light-duty vehicle sales – less than 2 percent, the study concludes.

The report, “Electric Vehicle Market Forecasts,” provides forecasts, market sizing, and market share analysis for light-duty hybrid, plug-in hybrid, and battery electric cars and trucks. The report includes comprehensive data for sales and underlying forecast assumptions for the consumer and fleet markets. Annual vehicle sales by electric vehicle segment and market share for key manufacturers are forecast through 2020, segmented by world region and key countries. An executive summary of the report is available for free download on the Navigant Research website.