- EVs will start to gain market share as unit costs, primarily driven by the price of a battery pack
- It added that these rates of electrification imply over 2,000 TWh of additional electricity load per year by 2040
- Plug-in electric vehicle (PEV) adoption will accelerate in the long term
According to a report by Platts Analytics, around half of all light-duty vehicles produced by automakers will be electric by 2040, S&P Global Platts Analytics also informed that EVs on the road will only be around 23 per cent owing to fleet turnover.
Platts Analytics stated that EVs will start to gain market share as unit costs, primarily driven by the price of a battery pack, start to come down and make mass-market ownership more viable.
PEV Adoption
“Platts Analytics anticipates that plug-in electric vehicle (PEV) adoption will accelerate in the long term, displacing internal combustion engine vehicles and eventually comprising a majority of global light-duty vehicle sales,” it said. “As PEV fleets grow, they will displace oil product demand while driving incremental power load demand.”
It added that these rates of electrification imply over 2,000 TWh of additional electricity load per year by 2040. PEVs will become cost-competitive with internal combustion engines by the mid-2020s.
