EV market surpasses $1 trillion.

The transition to electric vehicles is rapidly accelerating, with the total value of electric passenger vehicles sold globallynow surpassing $1 trillion. More than 50% of this value was in the last 18 months alone, reflecting the exponential growth of the electric vehicle market. According to Bloomberg, “This is now a very material, very fast-moving part of global auto sales”.

While the growth could be attributed to the rebound in vehicle sales from the pandemic, it is important to note that internal combustion engine (ICE) vehicle sales have not rebounded in the same way (as seen in the above graph). In fact, ICE vehicle sales are down 20% compared to five years ago, and Bloomberg has confidently declared that the peak year for combustion cars was 2017.

This trend is likely to continue as high-growth car markets, such as Southeast Asia and India, shift towards electric vehicles. Additionally, major oil companies like BP have predicted that we have reached peak global oil demand. Energy sources and structures are also being re-drawn in Europe and the US, with increased investment in renewable energy and infrastructure to support the electrification of transportation.

The transition to electric vehicles is not only driven by environmental concerns but also by advances in technology, decreasing battery costs, and government policies supporting the adoption of electric vehicles. This shift is expected to bring numerous benefits, including reduced greenhouse gas emissions, improved air quality, and increased energy independence.

As electric vehicle sales continue to rise and ICE vehicle sales decline, it is clear that the era of fossil-fuel vehicles is coming to an end. The challenge now is to be ready for the full transition to electric vehicles and ensure that the necessary infrastructure is in place to support widespread adoption. Governments, automakers, and infrastructure providers must work together to create a sustainable transportation network for the future of our planet.