The electrification rate of the energy system is strong
In 2018 only 19% of final energy demand was delivered in the form of electricity. By 2050, that will more than double to 41% and 60 PWh.
Looking at the various demand sectors, electrification growth is strong in both buildings and manufacturing, but most of all in transport, where electrification grows from 1% to 27% over the forecast period. 27% may not seem so impressive, but since the efficiency of the electric system is far higher than the efficiency of combustion systems, the resulting emissions reduction are much higher. Indeed, transport sector oil use declines 58%, and transport sector CO2 emissions almost halve.
Plunging battery costs will spur the rapid electrification of the passenger vehicle fleet, and by 2032, half of all new passenger vehicles sold globally will be electric. Already in 2024 this will happen for 2&3 wheelers, while the more diverse commercial vehicles take longer, reaching the 50% mark in 2037.