The global electric vehicle (EV) market is gaining speed again. A sharp rise in oil prices, triggered by the recent U.S.–Iran conflict in early 2026, has changed how consumers think about fuel and mobility. What looked like a slow market just months ago is now showing strong signs of recovery.
According to SNE Research’s latest report, this sudden shift in energy markets is pushing EV adoption faster than expected. Rising gasoline costs and uncertainty about future oil supply are driving buyers toward electric cars. As a result, the EV transition is no longer gradual—it is accelerating.
Oil Price Shock Changes Consumer Behavior
The conflict in the Middle East sent oil markets into turmoil. Gasoline prices jumped quickly, rising from around 1,600–1,700 KRW per liter to as high as 2,200 KRW. This sudden spike acted as a wake-up call for many drivers.
Consumers who once hesitated to switch to EVs are now rethinking their choices. High and unstable fuel prices have made traditional gasoline vehicles less attractive. At the same time, EVs now look more cost-effective and reliable over the long term.
SNE Research noted that even if oil prices stabilize later, the fear of future spikes will remain. This uncertainty is a key driver behind early EV adoption. People no longer want to depend on volatile fuel markets.
EV Growth Forecasts Get a Major Boost
SNE Research has revised its global EV outlook. The firm now expects faster adoption across the decade.
- EV market penetration is projected to reach 29% in 2026, up from an earlier estimate of 27%.
- By 2027, the share could jump to 35%, instead of the previously expected 30%.
- Most importantly, EVs are now expected to cross 50% of new car sales by 2030, earlier than prior forecasts.
The research firm also highlighted a clear timeline shift. EV demand has moved forward by half a year in 2026. By 2027, this lead increases to one full year. From 2028 onward, adoption is expected to accelerate by more than two years. This shows that the global EV transition is happening much faster than industry players had originally planned.
Higher Fuel Costs Improve EV Economics
One of the biggest drivers behind this shift is simple: EVs are becoming cheaper to own compared to gasoline cars.
SNE Research compared two popular models—the gasoline-powered Kia Sportage 1.6T and the electric Kia EV5. The results highlight how rising fuel prices change the equation.
At a gasoline price of 1,600 KRW per liter, it takes about two years to recover the higher upfront cost of an EV. However, when fuel prices rise to 2,000 KRW per liter, the payback period drops to just one year and two months.
So, over a longer period, the savings are even clearer:
- Total 10-year cost of a gasoline car: 59–65 million KRW
- Total 10-year cost of an EV: around 44 million KRW
This large gap makes EVs a smarter financial choice, especially when fuel prices remain high.
Battery Shake-Up: Market Struggles While CATL Surges Ahead
In the first two months of 2026, global EV battery usage reached 134.9 GWh, a modest increase of 4.4% year-over-year. However, not all companies are benefiting equally.
South Korean battery makers—LG Energy Solution, SK On, and Samsung SDI—saw their combined market share fall to 15%, down by 2.2 percentage points. Each company reported declining growth:
- LG Energy Solution: down 2.7%
- SK On: down 12.9%
- Samsung SDI: down 21.9%
This drop was mainly due to weaker EV sales in the U.S. market earlier in the year.
- In contrast, Chinese battery giant CATL continued to expand its lead. Its market share grew from 38.7% to 42.1%, strengthening its global dominance.
SNE Research explained that future competition will depend less on overall EV growth and more on supply chain strategy. Companies that diversify across customers and regions will be in a stronger position.
Automakers Feel the Impact Across Markets
Battery demand also reflects trends in automaker performance. Samsung SDI, for example, supplies batteries to brands like BMW, Audi, and Rivian. However, slower EV sales across these companies reduced overall battery demand.
Some key factors include:
- Lower sales of BMW’s electric lineup, including models like the i4 and iX
- Weak demand for Audi EVs despite new launches
- Declining sales from North America-focused brands like Rivian and Jeep
In some cases, new models even reduced demand for older ones. For instance, Audi’s Q6 e-tron impacted sales of the Q8 e-tron, lowering overall battery usage.
A Structural Shift in the EV Market
Despite short-term fluctuations, SNE Research believes the EV market is entering a new phase. The current surge is not just a reaction to oil prices—it reflects a deeper shift in consumer mindset.
People now see EVs as a safer and more stable option. Energy security, cost savings, and environmental concerns are all playing a role.
As SNE Research’s Vice President Ik-hwan James Oh explained, even if oil prices fall, the memory of sudden spikes will remain. This lasting concern will continue to push EV adoption.
In conclusion, the events of early 2026 have shown how quickly market dynamics can change. A single geopolitical shock has reshaped the global auto industry outlook.
For automakers, the message is clear: EV demand can rise faster than expected. For battery companies, the focus must shift to global expansion and supply chain resilience. For consumers, the decision is becoming easier as EVs offer both savings and stability.
The global EV market is no longer just growing—it is accelerating. And if current trends continue, the shift to electric mobility could arrive much sooner than anyone expected.
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For most companies, the largest figure in the carbon inventory is not the office, the vehicle fleet, or the electricity bill. It sits upstream, in the goods and materials a business buys to make and sell its products. These purchased inputs form the bulk of a company’s Scope 3 emissions, which routinely exceeds everything the business controls directly, and can add up to 90% of their global footprint.
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