Although driving an electric vehicle produces a lower carbon footprint than a petrol-powered vehicle, walking, cycling, and taking public transit produce less. Given environmental concerns and the rising cost of passenger vehicles, many surveys demonstrate younger consumers have less interest in car ownership. Nevertheless, in most parts of the world, cars remain the most convenient method of transportation between home, work, school, and places of commerce. As a result, Bloomberg New Energy Finance forecasts that the number of passenger vehicles on the road globally will expand 20% to 1.6 billion by 2040, and the number of kilometers driven annually by that fleet will grow 40% to more than 25 trillion. The world may reach peak oil, but it does not appear on track to reach peak car anytime soon.
Source: Bloomberg New Energy Finance, August 2023