Global electric car registrations are expected to decline by 18% this year, but this is a smaller contraction than that of cars equipped with internal combustion engines, Bloomberg NEF (BNEF) analysts said on Tuesday, Reuters reports.

According to analysts, car registrations equipped with internal combustion engines will fall by 23% globally in 2020.

According to BNEF estimates, in 2040 electric cars will account for 31% of the global fleet and will be responsible for 58% of sales of new passenger cars, while cars equipped with internal combustion engines will enter a downward slope, after reached its peak in 2017.

For this year, analysts expect 1.7 million electric cars to be sold worldwide, in addition to the approximately seven million units already in circulation, according to Agerpres.

These figures also have implications for the electricity and oil markets. BNEF estimates that electrification of transportation will eliminate 17.6 million barrels per day of oil demand in 2040, and by 2040 electricity demand will be higher by 5.2 % due to electric cars. Analysts also estimate that the world will need about 290 million charging points in 2040, of which 12 million will be in public spaces and the rest at home, at work or in private commercial spaces.