2017.11.1402:13:00UTC+00Global Vehicle Sales Seen to Drop by 2040 - Study

Global vehicle sales will fall over the next two decades as consumers take advantage of ride services like Uber, while demand for oil will keep growing, according to a study.

Annual vehicle sales in the United States, Europe, China and India will drop over the next 23 years to 54 million in 2040, as total miles traveled increases 65 percent to almost 11 billion miles a year, the study forecasts. Almost 80 million vehicles a year are sold currently in those regions.

A study by IHS Markit also showed that more than 80 percent of the vehicles sold worldwide in 2040 will still use some form of petroleum-fueled combustion engine.

Demand for petroleum, particularly for non-transportation uses, is seen to grow, from the current 98 million barrels per day to 115 million barrels per day in 2040.

According to IHS Markit, battery-powered all-electric vehicles will account for almost 19 percent of sales by 2040. It also projects that plug-in hybrid electric vehicles will account for another 14 percent of sales in 2040.

The study's authors forecasts 43 million barrels per day of new oil production will need to be brought into development by 2040 as demand grows and existing fields decline naturally.