Over the next two decades, the way we move and the way we transport goods is going to shift in a major way – and that means big changes already in the works in the automotive industry. Driven by issues across the globe including environmental policies, technological advancements, economics, demographics and evolving consumer preferences, the world is set to see a dramatic shift toward electric and hybrid vehicles.
Over 2 million electric vehicles were sold globally in 2018, up from just a few thousand in 2010. And there is no sign of that trend slowing. According to Bloomberg NEF’s Electric Vehicle Outlook 2019, annual passenger Electric Vehicle sales are expected to rise to 10 million in 2025, 28 million in 2030 and 56 million by 2040. This means that by 2040, electric vehicle sales will make up 57 percent of total passenger car sales worldwide.
And the actual number of electric vehicles on the road in the next 20 years? BNEF expects there to be 508 million electric vehicles on the road globally by 2040; including commercial electric vehicles.
These changes in the automotive sector mean that demand for new parts and materials will continue to rise. This demand not only creates challenges for existing automakers, it is creating opportunities for new companies to enter the market.