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August 27, 2019 - Philippines - Improvements and new discoveries in global technology solutions have allowed manufacturers to not only create better products and services for their customers and their own gain, but also to help several industries especially manufacturing to move towards greener production and lessen their negative effects on the planet.

In particular, the automotive market is going electric not only as an eco-friendly goal, but also as an ambition that would help fight climate change as stated by Camila Domonoske in her As More Electric Cars Arrive, What's The Future For Gas-Powered Engines? report on National Public Radio, Inc. from February 2019. 

PThe rise of electric vehicles is looking very positive for many reasons. However, this widespread shift in how things have been working is expected to create a huge disturbance, and it should take more years before electric vehicles can smoothly run on roads. Here are a few but significant points on how electric vehicles will change the future.

Disruption on oil demand and consumption

BloombergNEF in their Electric Vehicle Outlook from 2019 report shares that over two million electric vehicles were sold in 2018 and it has no sign of slowing down. It is even expected that the annual passenger EV sales will rise to 10 million in 2025, 28 million in 2030, and 56 million by 2040.

When the automotive market’s shift to electric vehicles further accelerate, major oil-producing countries and companies should be among the greatest to suffer. In fact, a report by RethinkX titled Rethinking Transportation 2020-2030 from 2017 predicts that oil demand will peak at 100 million barrels per day by 2020 but will drop to 70 million barrels per day by 2030, which is expected to have a catastrophic effect on the oil industry through price collapse, especially when the prices of electric vehicles continue to drop as well.

Furthermore, BloombergNEF’s earlier report from 2018 predicts that electric vehicles could display as much as 6.4 million barrels a day of oil demand, while fuel efficiency improvements will erase another 7.5 million barrels a day. 

Change in the employment landscape

Since it uses a different energy source, it is a no-brainer that the components of electric vehicles differ from those of vehicles run by fossil fuels. Instead of an internal combustion engine, electric vehicles use batteries. It also has no moving parts which means the cost of maintenance including oil change will also be lower.

However, this widespread shift to electric vehicles has the potential to eliminate a large number of jobs in the automotive market, especially those involved in the manufacturing, assembling, and maintenance of the internal combustion engine.

Fortunately for the automotive industry workers, there will still be plenty of related opportunities for them. The European Association of Electrical Contractors (AIE) in their Powering A New Value Chain in the Automotive Sector: The job potential of transport electrification study from November 2018 has assessed job creation in a number of subsections of the electromobility production process and concluded that a total of nearly 200,000 permanent jobs will be created by 2030, with 57% of it coming from the installation,operation, and maintenance of charging points.

Renewable energy market

The shift of the automotive market to electric vehicles will undoubtedly be positive for the future of the renewable energy market. Not only will it fuel the market’s rising demand, but it will also allow manufacturers to further expand and develop the choices of renewable energy sources for electric vehicles.

It is even possible that future households would be able to generate their own power for their electrical vehicles due to the interesting concept and possibility of prosumers in the future.

The shift to electric vehicles would not be fast and easy. However, the global technology solutions are rapidly changing and advancing that it would be best for the numerous EMS Company in the Philippines as well as the whole automotive market to start preparing for the future of electric vehicles as early as today.


Image source: https://pixabay.com/photos/electric-car-car-electric-vehicle-1458836/