Total final consumption in 2024 was over 450 EJ and has grown by around 25 EJ since 2019. Transport accounts for around 30% of global energy demand and have contributed around 10% of the growth in total demand since 2019. Road transport accounts for nearly 90% of total domestic energy demand. The remaining 10% is split between domestic aviation, domestic shipping and rail.

In advanced economies, passenger cars dominate road transport demand, accounting for around 65% of the transport energy use. Trucks make up most of the remainder. Buses play a minor role in energy demand, but they transport people in a much more efficient way than private cars. As a result, replacing existing inefficient, fossil fuel powered cars and trucks with more efficient and electric ones, together with promoting more efficient modes of transport (such as public transport and cycling), can accelerate efficiency progress in road transport.

In emerging economies, there is a slightly larger role for two-wheelers (scooters and motorcycles), which account for around 5% of road transport demand and are more numerous than cars in many countries. There is also stronger growth in new vehicles, as private passenger vehicle ownership is lower on average, providing an opportunity for policies to promote efficient and electric vehicles as sales grow. Finally, the share of heavy-duty trucks is higher than in advanced economies.

Governments can accelerate progress in passenger cars through electrification and technical efficiency improvements. For example, fuel economy standards accelerate efficiency improvements of internal combustion engine vehicles and can contribute to a faster adoption of electric vehicles. Next to that, bonus-malus schemes and other taxation policies can incentivise the purchase of more efficient cars while penalising less efficient ones, requiring less fiscal space from governments. Last, governments can promote modal shift by creating an infrastructure to make efficient transport attractive.

Efficiency improvement through the electrification of two-wheelers is relevant in many emerging economies, such as China, India and Indonesia, where a large part of the population uses them for commuting. Policies such as electrification targets, infrastructure support including charging and battery swapping stations, tax exemptions and financial support can accelerate their deployment.

For heavy-duty trucks, fuel economy standards play a key role. Countries where standards are already in place can increase their stringency to scale up progress. Others can start by setting standards now to avoid inefficient vehicles entering the market and to accelerate the shift to electric models are fleets are renewed.