What Impact Will EV (Electric Vehicles) Have in the Next Five Years?
The demand for and use of electric vehicles (EV) and other eco-friendly vehicles continues to surge alongside the increasing growth of autonomous features. Around the world, debates have raged on the particular impacts that these new products could have; one of the biggest sticking points has been the loss of employment due to the increasing use of automation (mostly people-free) technologies used in the manufacturing of these products. However, there are more far-reaching impacts that electrification will have on road transportation and other industries that are less clear to the public.
If we look at the overall impact that electric vehicles could have on economies based on a variety of studies, then we can see that it is a largely positive one. However, as with any other big change within an industry – some will stand to benefit more than others and there will certainly be winners and losers.
If we’re being honest, the transition to a world that is completely filled with electric vehicles isn’t going to happen overnight. As such, we give the process a period of about thirty five to forty years to which we will see more electric cars on the road than fossil fuel vehicles.
However, in the next five years, we are expecting to see a massive growth in the EV sector and these are just some of the impacts that experts are predicting on a global scale.
As our population grows, so does the demand for cars and seeing as we don’t seem to be slowing down in our growth – it only makes sense that we’ll keep producing cars to keep up with this demand. While traditional vehicles will continue to be produced, there will be a big increase in the number of environmentally-friendly vehicles being manufactured for the market, which will lead to an increase in job production and wealth creation. Companies that are ahead when it comes to manufacturing and selling electric vehicles will make some serious money and contribute to the overall economy of their own countries.
A shift in global car manufacturing power
Currently, the global epicentres of vehicle manufacturing are mainly Japan, Germany, Detroit, etc. However, as we move to a more environmentally-friendly solution, we could see the power of automobile manufacturing shift to places that are a step ahead when it comes to green technologies. California, India and China are all examples of countries that would more than likely benefit from the shift.
Places that have previously been known for their prowess in automobile engineering and manufacturing are going to have to start investing seriously in green skills and technology if they want to keep up with the rest of the pack.
Oil sales are going to drop even further
If the development and purchase of EVs continues to increase, we are most likely going to see the price of oil drop quite substantially. There is already a much larger quantity of cheap oil available now than ever before because of shale fracking. If the USA manages to become an exporter at the same time as electric vehicles really take off, then we could see a huge decrease in the amount of higher cost oils being sold due to a drop in market demand.
Automotive parts companies may struggle
Manufacturers of automotive parts are on the verge of being negatively impacted by the EV industry’s growth. Quite simply, electric cars have a lot fewer parts than traditional vehicles; in fact, they have thousands of fewer parts. Companies like Tesla have focused on simple, minimalistic vehicles that don’t require the same amount of upkeep and input as internal combustion vehicles, resulting in a substantial decrease in the demand for parts.
‘Green’ companies will flourish
As the need for traditional automotive parts starts to go down, the demand for renewable and electric parts will increase significantly. Companies that have already have the skills, money and products that meet green tax requirements, pollution regulations and other increasingly in-demand products and skills are set to really benefit from the EV market. We are expecting to see rapid growth in companies that specialize in green electric manufacturing and supply.
They will become more affordable
There is already a big difference in the cost between an EV now and what it would have set you back just a few years ago. As technologies evolve, it will become cheaper to produce electric vehicles. We should start to see these cars becoming more affordable for a larger range of people as they become more mainstream. At the end of the day, if we want to make the change to a completely fossil-free transport industry, the experts are going to have to find a way to make these vehicles more affordable for the average consumer.