Nowadays only one percent of cars on the road are electric.

London-based IHS Markit is a company specialized in providing information, analysis and expertise to support the decision-making process of businesses and governments in a variety of domains like defense and security, aerospace, chemical, energy, and automotive. Starting December 15, it will begin a research project called “Reinventing the Wheel” to try and predict whether the car industry is heading towards a revolution similar in magnitude to the one driven by the development of the combustion engine in the 20th century.

The company is now presenting some of the findings that will be included in the research project, with part of the focus being on electric vehicles. Even though only one percent of the cars on the road today are EVs, IHS Markit mentions it’s still a 1,000-percent increase compared to 2010 and it estimates the trend will continue in the years to come. As a matter of fact, it predicts EVs will represent 15 to 35 percent of total vehicle sales by the year 2040.

Jaguar I-Pace Concept
Jaguar I-Pace Concept

One of the most important factors that will have a significant impact on the adoption of EVs is going to be the progress made with battery technology. That being said, IHS Markit mentions also crucial will be the regulations and support coming from governments to promote zero-emissions cars. Another prediction the company is making is that EVs could account for more than 50 percent of new passenger car sales in 2040.

All the major players in the car industry are investing significant sums of money in the development of electric cars. Take for example Daimler, which has already announced plans to spend a whopping €10 billion and it has established the EQ sub-brand set to have 10 electric cars by the middle of the next decade.

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Another relevant example would have to be the Volkswagen Group with its “TOGETHER - Strategy 2025” plan referring to the launch of more than 30 EVs by that date. Jaguar is also hopping on the EV bandwagon with a production version of the I-Pace concept, while BMW is preparing an entirely electric X3 and also a Mini that won’t have a combustion engine.

Moreover, Toyota is gearing up to introduce a long-range electric car by 2020, with other models to follow in the next decade. As for Hyundai, it has the 124-mile Ioniq Electric, but it’s already preparing a 200-mile crossover slated to go on sale in 2018.

These are only a few examples to get an idea of the EV era upon us.

Source: IHS Markit

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