The anticipated rapid growth of plug-in electric vehicles worldwide is expected to surge from about 2 million now on roads to 37 million in 2025, according to a new research report.
The report from the Navigant Research consulting firm contends technological advancements and cheaper electric vehicle options will drive significant growth in more energy efficient vehicles throughout much of the world, from the U.S. and Europe to large developing nations like China.
“Battery cost reductions are having dramatic impacts on (battery electric vehicles) cost and range, portending significant market growth in the years ahead,” says Scott Shepard, senior research analyst with Navigant Research. “Further battery innovations alongside vehicle automation promise to significantly disrupt the nature and business of transportation, although this process will take decades to come to full fruition.”
While the U.S. anticipates domestic gasoline consumption to exceed records again in 2017, most analysts believe the U.S. demand is nearing its peak as electric vehicle use grows and other vehicles continue to become more fuel efficient.
The Navigant report notes that long-range electric vehicles are on the verge of becoming more price competitive starting with the anticipated release of the Tesla Model 3, which already has more than 400,000 pre-orders.