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NewsThe Increasing Popularity of EVs Could Help Save 5 Million Barrels of...

The Increasing Popularity of EVs Could Help Save 5 Million Barrels of Oil Per Day in 2030

Electric vehicles could increase in popularity to a level where they would save up to 5 million barrels of oil per day compared to current levels.

  • 2023 could see a 35% increase in EV sales over a record-breaking 2022.

  • This could mean up to 14 million sales and an 18% global market share.

  • Electric vehicles are more and more popular in emerging markets.

According to the International Energy Agency (IEA), electric vehicles could see a 35% increase in sales in 2023 compared to last year.

Indeed, forecasts predict up to 14 million electric vehicles of all sorts could be sold around the world this year, up from a record of 10 million in 2022.

This means EVs could reach a global market share of about 18% by the end of December, impressive when considering this number was only 4% in 2020.

The IEA says this will have significant impacts on pollution and the oil industry since a similar growth rate through the end of the decade could result in EVs saving the need for about 5 million barrels of oil per day in 2030.

This popularity of electric vehicles is still mainly concentrated in China, Europe, and the United States, but emerging markets are also beginning to adopt EVs, even if some aren’t actual cars.

Indeed, 60% of all EVs sold around the world in 2022 were bought in China and over half of all electric vehicles currently on the road are found in that country.

Europe is second on the list and EV popularity grew by 15% there over the last year, while the United States is catching up with a growth of 55%.

This large increase in popularity can be attributed in part to incentive programs, especially since they have been strengthened by the Inflation Reduction Act.

Experts believe that EVs could represent 60% of all cars sold in China, the United States, and Europe combined by 2030.

In the case of emerging markets, the charging infrastructure is still deficient and normal electric cars are still too expensive for most buyers, but this hasn’t stopped EVs from making progress.

Indeed, countries such as India and Indonesia saw the sales of electric vehicles triple in 2022 while Thailand sold twice as many EVs as before in the same time period.

This is because electric two and three-wheeled vehicles are getting more and more popular in these countries where most drivers can’t afford a four-wheeled car.

Of course, increasing sales to the predicted levels in such as short timeframe will require massive investments in battery development and production, but the IEA says projects which have already been announced will be sufficient to meet the expected demand to 2030.

Source: IEA

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