With increased fuel efficiency and increased popularity of electric vehicles, global gasoline and diesel demand for cars and trucks will peak in 2027, four years earlier than previously expected, according to the report.
BNEF, a Bloomberg energy data analysis company, released a report on Tuesday, predicting that transport fuel demand in Europe and the United States will fall the most, and that expected growth in fuel use in emerging markets, including India and China, will not be achieved. In a year, the agency predicted that transport fuel demand would peak in 2031, a change that would lead to a sharp drop in fuel manufacturers' sales over the next decade.
Global carmakers are shifting to greener models and the world's major economies are moving towards clean energy to reduce greenhouse gas emissions and move away from over-reliance on fossil fuels.
In May, the G7 agreed to phase out fossil fuel subsidies and stop funding coal projects, waving goodbye to the fossil fuel era at the official level.
The European Union announced an ambitious climate plan last week to ban new internal combustion engine cars by 2035, while countries, including the United States and China, have been promoting the popularity of electric vehicles.
"governments are pushing the car market towards low carbon and fuel efficiency," BNEF said in its report. "carmakers and large fleet operators are also targeting decarbonization."
"fuel producers in markets such as the United States or Europe are prepared for a significant decline in diesel and gasoline sales over the next decade," the report said. "
The proportion of shared car travel is expected to increase.
By 2050, increased fuel efficiency, electrification and other power sources, shared cars and other factors will offset the increase in fuel consumption caused by increased driving, the report said. Because shared cars, including Uber and Didi, will account for 36 per cent of mileage by 2050, up from 4 per cent today.
At the same time, the report also forecasts the global number of passenger cars: in 2039, the global number of passenger cars will reach a peak of 1.548 billion, an increase of 26% over this year.
In addition, cargo transport is expected to flourish over the next decade, but will be carried by trucks that do not rely on oil. Carmakers such as Daimler, Tesla and Volkswagen will produce more electric and fuel cell trucks.