With governments around the world implementing legislation and offering subsidies that push us towards electric vehicles over combustion engined equivalents, the market is surely set to grow. But by how much?
According to a recent forecast from Wood Mackenzie, a global energy, chemicals, and renewables consultancy, EV sales are expected to surpass 320 million unit sales globally by 2040.
With current volumes just under 10 million, the forecasted growth would make the EV market 35 times bigger than it is now.
By 2040, Wood Mackenzie also expects global annual EV sales to be around 45 million units per year.
If overall car sales continue to decline, EV sales could account for more than half of annual global car sales by unit volume.
The consultancy credits the fall in battery prices and growth of EV charging infrastructure as being responsible for the increased uptake in electrified vehicles. By 2024, the firm says batteries should cost $100 per kWh, which would put EVs on price parity with combustion engined vehicles.
With nations like the UK setting to ban the sale of new combustion engined vehicles in the next 15 years, some countries will have to make the shift to EVs sooner than others.
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