The Rise of Transportation Electrification

Abstract

In the United States, where transportation accounts for 29 percent of total energy use per year, the country is witnessing a slow but steady shift from gasoline and diesel fuel to electricity—with electric vehicles (EVs) now forecast to become 11 percent of all passenger vehicle sales by 2025, and 55 percent by 2040. At this rate, the sector is expected to reach a $567 billion market size by 2026—a nearly $500 billion increase from 2017. Signs of this growth abound, from the many Teslas, Chevrolet Bolts, and Nissan Leafs on the roads to the charging stations sprouting up in public and commercial parking lots. Most automakers are planning for EVs to eclipse conventional vehicle manufacturing within the decade.