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BloombergNEF: electrics to take 57% of global passenger car sales, 81% of municipal bus sales by 2040

BloombergNEF (BNEF) is out with an aggressive forecast that projects electric vehicles taking up 57% of the global passenger car sales by 2040—slightly higher than it forecast a year ago—and electric buses with 81% of municipal bus sales by the same date.


Compared to other major organizations, BloombergNEF continues to hold the most aggressive view on EV adoption.

BNEF expects there to be 508 million passenger EVs on the road globally by 2040; including commercial EVs, this brings the BNEF 2040 EV fleet size forecast to about 550 million.

BNEF’s Electric Vehicle Outlook 2019 incorporates in the forecast detailed work on the commercial vehicle market. These projections show electric models taking 56% of light commercial vehicle sales in Europe, the US and China within the next two decades, plus 31% of the medium commercial market.

Heavy trucks will prove the hardest segment for electrics to crack, with the latter’s sales limited to 19% in 2040. Their use case will mostly be in shorter-distance applications. However, conventional heavy trucks on long-haul routes will also face other, non-battery-electric competition from alternatives using natural gas and hydrogen fuel cells.


Our conclusions are stark for fossil fuel use in road transport. Electrification will still take time because the global fleet changes over slowly but, once it gets rolling in the 2020s, it starts to spread to many other areas of road transport. We see a real possibility that global sales of conventional passenger cars have already passed their peak.

—Colin McKerracher, head of advanced transport for BNEF

The role of shared mobility services such as ride-hailing and car-sharing will be important in this evolving picture, according to BNEF. These services account for less than 5% of all passenger miles travelled globally at the moment, but this is set to rise to 19% by 2040. The BNEF team does not expect autonomous driving to have an impact on global transport and energy patterns until the 2030s.

Providers of shared mobility services will choose to go electric faster than private individuals. There are now over a billion users of shared mobility services such as ride-hailing globally. These services will continue to grow and gradually reduce demand for private vehicle ownership.

—Ali Izadi-Najafabadi, who leads BNEF’s coverage of shared mobility

The main driver for the electrification trend over the next 20 years will be further sharp reductions in EV battery costs, making electric cars cheaper than internal combustion engine (ICE) alternatives by the mid-to-late 2020s in almost every market, on the basis of both lifetime costs and upfront costs. Since 2010, the average cost of lithium-ion batteries per kilowatt-hour has fallen by 85% on a mixture of manufacturing economies of scale and technology improvements.

The BNEF report sees China continuing to lead in electric cars, accounting for 48% of all passenger EVs sold in 2025 and 26% in 2040 when other markets are catching up. Europe pulls ahead of the US as the number two EV market globally during the 2020s. Electrification in non-China emerging markets will be much slower, leading to a fragmented global auto market.

BNEF expects passenger EV sales to rise from 2 million worldwide in 2018 to 28 million in 2030 and 56 million by 2040. Meanwhile conventional passenger vehicle sales fall to 42 million by 2040, from around 85 million in 2018. Policy support such as fuel economy regulations and China’s new energy vehicle mandate are expected to drive the EV market in the next 5-7 years before economics takes over the latter half of the 2020s.

The oil, electricity and battery industries will all be impacted by the rise of EVs. A year ago, BNEF estimated their impact on road fuel demand at 7.3 million barrels per day by 2040. However, it has now nearly doubled this to 13.7 million barrels per day, partly because of new forecasts for electrification of the commercial vehicle sector and partly, paradoxically, because ICE fuel efficiency is expected to proceed more slowly than previously thought. That means that every EV displaces a conventional car that would have used a greater quantity of road fuel.



The downside is their estimate that 43% of car sales will continue to be ICEVs...I believe by 2040 almost all cars sold will be EVs because the technology is more compelling than Bloomberg realizes. Drive an EV and you won't want to ever drive an ICEV.


Electric buses with 50% (now) and 80+% in 2040 of the market are doing well and much better than the rest with barely 3%. (now) and 20% to 47% in 2040.

Norway, China and few other countries are already doing better than the above.


Heavy commercial is 20%, Tesla and others could make more progress.


Sorry but heavy commercial is currently less than 2% and should rise to about 18% in 2040.

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