With the rampant increase in global temperatures, researchers around the world are increasingly calling for a transformation in the conventional fossil fuel industry. From the United Nations Sustainable Development Goals to the broader environmental objectives defined by leading enterprises, the need to shift away from conventional fossil fuels has never been more pressing.
In this landscape, electrification has emerged as the most viable option to replace conventional solutions and provide a sustainable way forward. The current shift towards electrification is centered around innovative technologies devised by corporates around the world. From the automotive sector to the broader power industry, sustainable electrification is making global waves due to the prospects of transforming the way we power the world. Electrification has emerged as the optimal solution to simplify transportation and reduce global pollution.
Value in Electrification – An Insight
A recent survey by DIF suggests over 90% of people would prefer to shift to sustainable power sources if they were able to deliver comparable performance to fossil fuels. The findings from the survey come as just another step to reaffirm global concerns about the importance of shifting to sustainable power sources.
The Covid 19 pandemic has played a significant role in accelerating the electrification megatrend by providing a different context on the role of public spaces. People have witnessed significant improvements in global pollution and temperatures with the shutdown of conventional avenues. A key outcome from this experience has been the renewed perspective on the utilization of electric buses, trains, and vehicles as forms of transport.
The Electronic Transport Revolution – Powered by Innovation
One of the most significant factors in enhancing the electrification trend has been the consumer availability of effective electric transport options. Companies like Tesla and Rivian have led the way in introducing sustainable transportation options for consumers. In the landscape of these companies, a key factor in the change has been linked to the innovative superiority of these products over conventional alternatives.
Here are some key innovations that have emerged as a result of these efforts.
Improved Acceleration – The shift to electric drivetrains has allowed vehicles to generate higher torque and unlock faster acceleration. This innovation facilitates faster automotive speeds and provides better driving experiences than fossil fuel-based options.
Affordable Travelling – Efficient engine configurations and cutting-edge battery technology are allowing higher milage per charge for electric vehicles compared to conventional alternatives. The lower driving and maintenance cost is a key factor in attracting newer consumers and expanding the adoption of electric vehicles.
Sustainable Production – Unlike fossil fuels that need to be continuously drilled and mined, electrification provides a sustainable option by harnessing natural sources of energy. Some of the common forms of sustainable electrification include solar, wind, and thermal energy. This sustainable production provides a viable application for consumers that are looking for dependable energy options decades into the future.
This outlook is further accentuated by forecasts that elaborate on the scarcity of fossil fuels. According to a recent study by British Petroleum, the remaining global fuel reserves are estimated to last only 48 years based on the estimates emerging from the Statistical Review of World Energy. The limited global reserves of fossil fuels have accentuated the development of electric solutions to provide a sustainable path forward.
Key Trends in the Global Electric Vehicle Industry
- Over 10 million electric vehicles are already being used by consumers around the world in 2021. The rate of electric vehicle adoption increased by over 25% compared to the number of electric vehicles on the road in 2019.
- Despite the impacts of the Covid 19 pandemic, global electric vehicle registrations increased across major markets in 2020, according to IEA.
- Europe managed to overtake China as the biggest electric market with a rapid increase in electric car purchases. Battery-based vehicles amounted to over two-thirds of new electric car registrations in China in 2020.
- Stable government support has been a key factor in increasing EV registrations across the globe. According to IEA, governments around the world have spent over $14 Billion on tax incentives and purchase allocations for EV purchases in 2020. The most significant increases in government spending were observed in Europe, where countries introduced electric vehicle sales schemes to counter the economical downturn emerging from the Covid 19 pandemic.
According to the evaluation by British Petroleum, demand for electric vehicles is expected to grow consistently across the world. Increasing consumer demand for vehicles such as the current Tesla models were identified to be key factors in accelerating the electrification megatrend. The company’s forecast projects a monumental increase in the number of electric car vehicles from 1.2 million in 2020 to 70 million in 2035.
Electrified Public Transport – A Model for Future Public Travel
The aggressive growth of the electric automotive sector is having a subsequent impact on public transportation models as well. Cities like Shenzhen have already made strides in establishing fully electric bus and taxi fleets to accommodate consumer commuting requirements. The electrification of public transport provides the following incentives to governments.
- Reduction of Cardon Footprint
- Decrease in Local Air Pollution
- New Employment Opportunities
Aside from these elements, the lower running costs of electric vehicles compared to gas and petroleum alternatives provides a cost-efficient solution to governments that are looking to enhance efficiency. According to Bloomberg, Hertz has ordered 100,000 Tesla Model 3 vehicles for its rental car fleet. The decision comes as another step towards the electrification of public transport across the governmental and corporate segments.
Expanding Charging Network – The Case of Tesla
In the past, electric car adoption was significantly impacted by the lack of charging stations around the world. However, innovative steps from Tesla and other providers have led to the creation of thousands of superchargers across the United States and Europe. Furthermore, companies like Hertz have expressed plans to create thousands of new chargers in key locations to facilitate the charging process and pave the way to an electrified transportation system.
Peeking Ahead – Potential Insights
DIF forecasts suggest a significant shift towards electric public transportation in major cities around the world. Practical applications of electric vehicles in the public transportation space are already being pushed forward in the corporate sector. In most Nordic states, the electric bus revolution has already begun, with the wide majority of new bus purchases being in the electric bus segment.
The rate of electrification is expected to amp up in 2022 as leading nations around the world move towards a consensus on the importance of sustainable power generation. Steps like the Paris accord and other environmental conventions are facilitating innovation by removing the legislative and regulatory hurdles and providing incentives to industries that facilitate sustainable electrification.
An Electrified World – Future Trends
The aggressive rate of EV adoption has come as a pleasant surprise to governments and enterprises around the world. Positive audience reception has led to a significant transition in the conventional fossil fuel industry. Leading players, including automotive manufacturers and energy companies, are shifting towards electric products to provide sustainable outlets to global consumers.
DIF anticipates a consistent increase in the electrification trend with even more enterprises shifting from fossil-fuel-based products to electric options. Governmental support is also expected to increase as global warming and climate change continues to pose a significant threat to ecosystems and the global economy.