WoodMac: “Electric vehicle market will grow 35 times by 2040”

WoodMac: “Electric vehicle market will grow 35 times by 2040”

August 28, 2020 0 By autotimesnews

Consulting firm Wood Mackenzie has released a new forecast for the electric vehicle market 20 years from now. The company’s analysts have combined the latest reports from the oil and gas, metals and auto industries and concluded that the electric vehicle market will reach 320 million electric vehicles by 2040, and annual sales in 20 years will be 45 million units, according to The Next Web. For comparison, there are now less than 10 million electric cars on public roads.

WoodMac associates the global shift to electric vehicles with massive investments in renewable energy, battery technology and tax incentives for the first electric vehicle in developed countries. Whereas previously electric vehicles were the lot of enthusiasts, now motorists are buying green vehicles because of the savings in the long term, analysts say.

In addition, the world is gradually emerging with infrastructure and technologies that can compete with the standard requirements of car owners. Fast charging systems are getting more powerful every year, and batteries for electric vehicles are cheaper and, according to WoodMac, by 2024 they will cost an average of only $ 100 per kilowatt-hour (1.5-2.5 times less than now), which will make electric cars more attractive to a mass audience than ICE cars.

Governments will play a separate role in the transition to electric vehicles. Thanks to a new development strategy for Europe, also known as the European Green Deal, many states have announced an imminent ban on cars with internal combustion engines and automakers are forced to form new divisions to develop electric vehicles. Such companies have already included Daimler, Volkswagen Group, Audi, General Motors and many others.

Wood Mackenzie’s new forecast is slightly different from last year’s S&P Global Platts report. The US agency offers better data for electric vehicle manufacturers – 400 million units of clean vehicles on the road by 2040. However, the rest of the data in both reports almost completely coincides: the demand for oil will continue to fall, renewable energy sources will actively develop, and China will become the industry leader.