Bloomberg New Energy Finance (BNEF) expects 530 million Electric Vehicles (EVs) on the road by 2040, it also expects more electric buses and trucks as that segment of the transportation market becomes more attractive for electrification, Bloomberg reports.
Long-term, EVs will likely account for 8 percent of total vehicle sales by 2025, 24 percent by 2030 and 54 percent by 2040, according to BNEF. Experts are of the view that the disruption will come very fast because of economies of scale.
The implications for oil are significant, with BNEF expecting EVs to displace 8 million barrels of daily oil demand by 2040. However challenges remain. A shortage of charging infrastructure, policy changes less supportive of EVs or a slowdown in the price declines for lithium-ion batteries could all conspire to slow progress.