WASHINGTON, Dec. 9 (UPI) -- Europe and China are expected to dominate the consumer electric vehicle market as the footprint grows into double-digit percent, a market report finds.
"Significant advances in battery technology, financial support from governments, regulations and values of millennials will be key factors leading to increases in electric vehicle adoption," Jim Burkhard, a energy research for IHS Markit, said in an emailed statement.
IHS finds that, with the right policies in place, electric vehicles could account for at least 15 percent of total new vehicle sales by 2040. The report finds the current market share is about 1 percent, but up more than 1000 percent in terms of sales in the six years ending this year.
New Zealand was among the most recent movers on the incentive front, forming a special counsel tasked with accelerating the deployment of electric vehicles on the road this summer
The government this year launched an initiative aimed at doubling the amount of electric vehicles on the road to 64,000 by 2021. Transport Minister Simon Bridges added that consumers would pay the per-gallon equivalent of 85 percent less for fuel with electric vehicles.
The International Energy Agency said it expects a record-setting 1.26 million electric vehicles to be on the road by the end of the year. Compared with last year, the IEA found substantial gains in the sale and construction of the infrastructure needed to support a broader network of electric vehicles worldwide.
A measure included the Paris climate declaration, meanwhile, calls for 100 million electric vehicles on the market by 2030 in an effort to curb pollution levels.
IHS said it plans to launch an industry study aimed at examining the potential market impacts on the power sector, oil and gas and consumers from the evolution of electric vehicles. The study kicks off next week in Detroit, Mich.
The IEA found the United States is at the bottom when it comes to electric vehicles, which make up about 0.7 percent of the total U.S. market. Norway had the highest share globally, with 23 percent. Chinese registrations tripled last year.