Over the next few years, we’re gonna see a big shift in the automotive landscape as we move towards an electric future. With the evolving consumer tastes in In this article, we are going to delve deeper into the significant trends and market forecasts influencing EVs and their effect on the automotive industry as a whole along with a bigger picture of environmental sustainability.
The Electric Vehicle Sales Surge
The market for electric vehicles has already gotten hot and is set to take off in the next few years. The world is also forecast to have 10 million electric cars on the roads worldwide for sale a year by 2025 — compared with the 3 million sold last year , according to a report by Bloomberg. Powered by a raft of new tech, shifting consumer behavior and government handouts to save the planet.
1. Consumer tastes Increasing consciousness over climate change issues has forced consumers to look for alternatives sustainable means of transport. The number was an impressive 71% in a recent survey Conducted by Deloitte. This change in consumer attitudes will have a huge effect on the automotive sector as suppliers meet the demand for cars which are cleaner and more sustainable.
2. Government Incentives: Across the globe, governments are offering a number of incentives to promote EV culture. Typically, it will be tax credits, rebates and grants for purchasers of the EVs themselves. A non-refundable tax credit of $7,500 is available for the purchase of an eligible electric vehicle. Slowly we will see throughout the world that more governments are going to make sustainability a top priority in transportation and therefore, the electric vehicle market base will keep growing.
Improved Charging Infrastructure
And arguably one of the biggest factors holding back the growth of electric vehicles is simply building up that charging infrastructure. If charging stations are insufficiently available for a significant segment of consumers moving toward an EV transition, it may force them to reconsider their preference.
1. Increases In Charging Infrastructure: We can expect the number of public charging stations to increase massively in the coming years. Statista — In 2020, the number of public charging stations was limited to just under 1.5 million, but this figure is expected to reach over 3 million worldwide by 2025 The increase will make EVs more attractive to those turned off by range anxiety, as it can help allay fears of running out of juice and allow the battery-only cars to be used on a day-to-day basis without worry.
2. Fast Charging Technology: Improved fast charging technology will also make electric vehicles more prevalent around the world. Fast charging stations capable with 350 kW of power, meaning electric vehicles can be recharged to 80% within 15-20 minutes, will follow by 2025. This will add some needed convenience to long-distance travel and also help EV owners enjoy a better user experience in total.
3. Home Charging Infrastructure: The amount of home charging infrastructure will begin to grow as a response to the increased number of EVs. Most owners will opt for a L2 home charging station which can easily charge the batteries overnight. This will mean that 75% of EV charging can happen at home by 2023.
The march of advances in battery technology continues.
Battery technology will play an equally crucial role in the future of electric vehicles. Electric vehicles will become cleaner, more reliable, and cheaper to operate as battery technology advances.
1. Solid State Batteries: Realistically, the game changer in EV space is solid state batteries. The batteries will deliver greater energy density, faster charging times and increased safety over conventional lithium-ion batteries. Solid-state batteries, for example, would lower the risk of thermal runaway by substituting liquid electrolytes with solid materials so that they are safe enough to be implanted in electric vehicles.
2. Battery Recycling: with EVs becoming more and more in high-demand, sustainable battery production is going to need sustainable recycling. Efficient recycling methods will also be developed to recover and reuse valuable materials like lithium and cobalt. In a BNEF report, published in February 2020, the market for recycling batteries is forecast to rise to $18 billion by 2030, backing up the circular economy of electric vehicle domain.
3. Costs Down: Over the last ten years, the cost to produce batteries has decreased. Note: Bloomberg says the average cost of lithium-ion batteries fell from $1,200 per kWh in 2010 to $137 per kWh this year. The cost ensuing to end customers is prophesied to dip below $100 per kWh by 2024, enhancing the attraction of electric vehicles and hence boosting their adoption.
Environmental Impact of Electric Cars
The world at large is desperate to control climate change, and electric vehicles are going to play a vital part in that process. With the transportation sector making up around 29% of total greenhouse gas emissions in the US, switching to electric vehicles is a way towards saving energy and being sustainable.
1. Less Emissions: Replacing petrol and diesel with electric is a major step in less emissions. Source: U.S. Department of Energy Over their lifetime, electric cars on average produce about half the emissions of a new gasoline car, assuming fossil fuels power some portion of electricity generation.
2. Integration with renewable energy: As renewables continue to expand, including solar and wind (which maybe seen as a battery for the grid), electric vehicles of the future are likely to increasingly be used ‘directly’ on renewable power.
The further-that-the-more-charging-stations-are run on renewable energy will mean the electric vehicle is more environmentally friendly. The International Energy Agency (IEA) envisions the rise of renewables becoming 30% of global electricity generation and this would yield a more sustainable energy source for electric vehicles by 2030.
3. Support for Smart Grids: The electric vehicles connection to smart grids will improve the electricity consume and distribution management. In some cases, electric cars will act as power storage devices which will be sending back electricity to the grid during peak demand periods and this feature is known as vehicule-to-grid (V2G) technology. This technology will improve the stability of the grid and enable more renewable energy.
By Future Mobility & Transportation Innovation
The progression of electric vehicles is no mere evolution; that is, they are in the very act of reshaping far more than only the automotive sector. To summarize: The mobility of the future is one that puts an emphasis on sustainability, efficiency and connectivity.
1. Mobility-as-a-Service (MaaS): The answer to who will make money from EVs, is MaaS. Through MaaS platforms, services from a multitude of transportation modes — including electric vehicles, public transit and rideshare firms — will be integrated into a single, user-friendly interface. Consumers will have convenient and uninterrupted access to sustainable transportation, mitigating the majority of owning a personal vehicle.
2. Hybrid Vehicles: Electric vehicles will be the primary vehicle in the market, but there would always be a large space for hybrid vehicles so that it can help bring sustainable transportation sooner. Hybrid vehicles balance emissions reduction with range and convenience by using traditional internal combustion engines supplemented with electric drivetrains, making their appeal practical for the consumer.
3. Automatic Electric Vehicles: the coming electric vehicles will likewise highlight automatic driving tech. Autonomous electric vehicles will change the face of transportation, increasing safety and optimizing traffic congestion while allowing people unable to operate their own vehicle safe transportation at a low cost. Autonomous vehicles could represent up to 15% of all vehicle sales by 2030, Conversely, At Preferred Auto Transportation we will help shape the future of mobility More By @ McKinsey
4. Electrification of Public Transportation: We need to switch public transportation systems with the electrified one. From electric buses and trains in cities world-over to take action on emissions and air quality. According to the Global EV Outlook 2021, electric bus sales globally made up more than 16% of all bus sales in recognition of the push towards electrification of public transport.
With the rise of electric vehicles reshaping the auto industry, these trends and market predictions suggest a future that is both sustainable and innovative. The increasing shift to Electric Vehicles, with the growth in battery technology and charger infra, will open new avenues for manufacturers and customers both. When the world embraces electric mobility, it will not only make us take steps toward a cleaner and sustainable transportation future, but also cleaner air quality which in turn contributes to combatting climate change.
