A third of all new car sales worldwide will be electric by the end of the decade, according to Deloitte.
A new analysis from the professional services network estimates that by 2030 the total number of electric vehicles (EVs) sold in a single year will be 31.1 million globally; 10 million more than previously forecast.
Despite disruption from Covid, total EV sales are expected to reach 2.5 million worldwide in 2020.
Based on a compound annual growth rate of 29%, Deloitte’s research estimates this to top 11.2 million in 2025 and 31.1 million by 2030. At this milestone, fully electric vehicles will account for 81% of all new EVs sold, outperforming their plug-in hybrid peers.
Deloitte identified a key factor in driving EV growth over the next 10 years as changing consumer sentiment as barriers to adopting the new technology disappear.
‘The price premium attached to many electric vehicles restricted some early adopters but, as the cost of EVs have converged with petrol and diesel equivalents, the pool of prospective buyers is set to increase,’ commented Jamie Hamilton, head of electric vehicles at Deloitte.
‘A wider range of new electric vehicles, combined with a growing secondhand market, means EVs are becoming a more viable option for many. However, overcoming consumer concerns around driving range and perceived lack of charging infrastructure will be important factors as more drivers consider the practicalities of switching to electric.’
Additional factors driving growth include a favourable regulatory environment, be it financial incentives or emissions targets, and the development of new EV models that span both affordable and luxury ends of the market.
At the same time, according to Deloitte, as company cars and fleet continue to represent the majority of all new car sales, a shift to EVs at a corporate level will further the global transition to electric.