Currently, electric cars make up only a small portion of the total cars on the road. However, according to a new Bloomberg New Energy Finance report, 57% of vehicles sold and over 30% of all cars will be electric by 2040.
There are multiple factors that will play a big part in the growth of electric cars. Some of them include the price of the vehicle, cheaper operational cost (no gas), a more environmentally conscious shopper and more.
And thanks to advancements in technology, electric cars are becoming just as capable as their fossil fuel counterparts.
Driving Factor Behind Electric Car Growth
Understanding why the electric car industry will grow so significantly over the next two decades is rather simple. For starters, electric cars have suffered from a much greater price tag than conventional automobiles.
However, that is changing. Everything from the car parts to the lithium-ion batteries are all dropping in price rapidly. On top of this, using electricity to refill your car instead of gasoline saves drivers thousands of dollars in the vehicle’s lifetime.
Possibly the biggest push for electric cars is the mindset of shoppers and governments. By now, most people know the exhaust from their car is playing a part in climate change. Nations trying to lower carbon emissions are looking at every sector, and electric cars solve transportation issues.
Multiple countries are already banning fossil fuel cars in the future. This will play a major role in the increase in electric car sales. However, how many more countries will join in on banning non-electric cars is a big variable.
Car Sales Will Decrease
A huge factor behind this shift will also include that new car sales, in general, will shrink. This is in part due to services like Uber, Lyft and other public transportation. The need to own a personal vehicle is decreasing rapidly in some areas of the world.
On top of this, online shopping has also reduced the need to drive to stores. You can buy almost anything online and get it delivered to your house in a short amount of time.
These services will continue to grow and improve over the next two decades.
Necessary To Fight Climate Change
The transportation sector is one of the largest contributors to climate change, but it is also one of the easiest to fix. Electric is the solution to fossil fuel motors.
Unfortunately, the problem has been replacing the world’s current cars with electric ones. Previously the price difference and performance has been too much to convince buyers.
This report makes it clear purchasing vehicles is about to change.