Plans for a new electric vehicle revolution over the coming decade are already in full force across many of the major economies in the world. New data shows how Europe is currently leading the transition in replacing their fossil fuel cars with electric ones in total market share.
New data collected by Bloomberg shows electric cars in Europe make up nearly 12 percent of the total passenger vehicle market share on the continent. That far outpaces other top economies in the world, with China behind at nearly 6 percent and North America just above 2 percent.
Governments and companies are quickly lining up to announce plans for a significant increase in electric vehicle production in the next five years. The newest addition from American car manufacturer Ford has the company pledging to offer only electric passenger vehicles in Europe by 2030—an enormous step that will certainly set the pace for other traditional car companies across the world.
The excitement of electric vehicles mixed with cheaper materials costs is driving an unprecedented transition. All-electric car companies like Tesla and NIO are poised to be leaders in the reformed car industry, and recent electric moves from traditional manufacturers like Ford, GM and Toyota are sure signs there’s zero doubt that electric vehicles will dominate the market share in the near future.
Still, Europe is far from the only place where electric vehicle investments are rising. China, India and the U.S. are all rapidly fleshing out their plans for a majority of vehicles to be electric in the coming decades. Japan and Canada are also catching up on electric car investments, adding to the growing list of large global economies seemingly all in on an electric transportation future. Growing alongside electric vehicles are renewable energy investments, with governments and new companies offering cutting-edge battery and energy supply services across the world.
However, data on electric car investments shows they’re set to overtake even renewable energy investments in just the next five years.
In data collected by Bloomberg, 2020 had roughly $304 billion invested globally into renewable energy and $139 billion invested in electric transportation. The forecast trend, however, shows electric transportation investments overcoming renewable energy by 2025, with a predicted $306 billion invested into renewable energy and $357 billion invested into electric transportation.
According to Bloomberg, the growth rate of electric transportation investments is most likely conservative. The eye test of electric car stocks like Tesla shows just how much interest there is in consumer electric vehicles, while cities around the world are also beginning to replace common public transportation systems with cleaner, electric-powered alternatives.
Ultimately, many expect the electric transportation revolution to occur much faster than the renewable energy transition to solar panels and wind farms across the world. The existing financial infrastructure of car companies and elasticity of commercial transportation is expected to help drive a much faster shift.
Overall, the biggest indicator of the coming electric vehicle transition may be from some of the largest traditional car manufacturers around the globe. Ford, GM, Toyota, Hyundai and Volkswagen are all publicizing plans to have a significant electric fleet globally over the next decade. Some of these companies, like Toyota, have been experimenting with electric cars and hybrid cars for awhile, and may be poised to transition smoothly alongside startup companies like Tesla, NIO and Lucid.