The automotive industry is undergoing transition, where electric vehicles are envisaged to take a most important market share. It will happen, but not suddenly. According to Sandvik's Eduardo Debone, the increase in electric and, crossbreed technology symbolizes a huge chance for suppliers to the automotive industry.
Earlier in 2017, the global economic services Company Morgan Stanley predicted that there will be 1 billion electric vehicles on the roads by 2050, with a marketplace share that will increase progressively from around 2020. The report recommended that electric vehicles would account for 16% of car sales by 2030, and would turn out to be market-leading with up to a 69% share by 2050.
This growth will principally be motivated by government legislation, with more countries incentivizing the use of prospective technologies such as electric vehicles. These moves have turned out to be more extensive since the 2015 Paris Agreement, which seeks to pursue efforts to frontier the temperature increase to 1.5 °C above pre-industrial levels.
Clear Statement of Intent
In 2016, the German Bundesrat (Federal Council) approved a decision to ban new petrol or diesel-powered vehicles from EU transportation, starting in 2030. Only vehicles with zero-emission would be permissible on the market after that time. The decision is an apparent statement of intention, even though it is not binding and subject to endorsement by the European Council.
In July 2017, Emmanuel Macron's new French administration declared its plans to prohibit all petrol and diesel vehicles by 2040 in line with the Paris Agreement. The French statement came the day after Volvo pronounced that it would make simply fully electric or hybrid cars from 2019 onwards.
In the meantime, governments of nations ranging from China, India, and Japan, to the Netherlands and Norway, have declared similar plans.
For a merchant in the conservative automotive industry, this inclination would decrease the need for products and services associated with inner combustion engines (ICEs). Every week I get in touch with people who ask if electric cars are a threat to our companies, and my response was that in the short to intermediate term these new podiums represent an opening for Sandvik.
Electrification Creates Opportunities
Sandvik is developing a deep analysis of the effects of electrification, and the findings confirm that electrification will create significant new opportunities in the approaching years. Right now, there is lower-hanging fruit in the appearance of the amalgam vehicles, which have enormous potential to deliver CO2 savings devoid of needing a total paradigm change in terms of technology and infrastructure.
Even though electric vehicles are unquestionably on the rise, some hindrances still must be overcome before conventional cars have been outmaneuvered. Price is still distress for many customers as they take time to charge (around 30 minutes) while the driving range differs. In addition, today's power network lacks the capability of supporting a mass market for electric cars.
Today one of the most industrialized markets in the world for electric vehicles, and with a constant power grid sustaining only 5 million inhabitants it makes sense. In cities like São Paulo or New Delhi, both with around 20 million people in the municipal area, where the power grids are scarcely able to maintain the day-to-day needs of their populations, it is a diverse challenge.
A Bright Future
For the next 5 to 10 years, it is believed that the rising inclination toward hybrid cars will allow automotive suppliers to keep on delivering the parts, technologies, and apparatus they presently make, besides the new ones. Hybrids need the same apparatus as ICE vehicles, in addition to some new parts to maintain the hybrid technology.
An Electrified Future Is a Bright Future
When pure electric cars turn out to be a reality on a larger scale, we will have an adult provision for many areas, such as digital industrialization, additive industrialization, and others.
At the end of the day, I think the lasting resolution may comprise fuel cell technologies, as an accompaniment to batteries and interior burning engines. However, before then, the technologies must grown-up. For now, we don't have an exceptional substitute for fossil fuels.