The global transition to electric vehicles (EVs) is creating new opportunities in the aftermarkets – tires, steel, and the power grid.
As demand for EVs increases and battery-powered cars become more mainstream, the need for specific car parts is growing.
Several new companies have cropped up to meet that demand from automakers and their suppliers to meet this rising demand.
Supportive government regulations and tax incentives, falling battery costs, and new models such as car-sharing services will drive substantial growth in the global electric vehicle (EV) market.
In the next decade, we expect demand for EVs to continue rising significantly, and so for the electric vehicle body components.
The Rise of EVs Is Increasing Demand For Tires
According to the International Energy Agency (IEA), 145 million electric vehicles will be on the road by 2030.
The rise of electric vehicles is profoundly affecting the tire industry. As electric cars and trucks become increasingly prevalent, the demand for tires specifically designed for electric motors is skyrocketing. In the United States alone, over 1,000 pilot programs are underway that are testing the viability of electric vehicles.
These programs have led to a significant increase in demand for tires that can handle the high torque and speeds associated with electric motors. Consequently, many tire manufacturers are investing heavily in research and development to create tires that can meet the needs of the growing electric vehicle market.
In the retread market, demand has increased as electric vehicles have become more popular. Retreaders have seen this coming for a while, but the rise of the electric vehicle (EV) has significantly increased the demand for retreaded tires.
Retread tires help EVs produce less tire wear than conventional vehicles due to their durability and reduced retread frequency.
There are also opportunities for new tire manufacturers, which are emerging with the rise of EVs. Since EVs produce less wear than traditional vehicles, new tire manufacturers must find a different way to compete.
With the continued rise of EVs, it is clear that tires specifically designed for electric motors will become increasingly important in the coming years.
The rise in demand for electric car tires is just one example of how EVs’ increasing popularity ripple effect on the economy. As more people switch to electric cars, we expect to see increased demand for various products and services, from batteries to charging stations.
The EV Manufacturing Boom Is Boosting The Steel Market
In recent years, there has been a boom in the market for electric motor vehicles. As more and more consumers seek to reduce their carbon footprint, manufacturers have been racing to meet this growing demand. While this shift away from internal combustion engines is good news for the environment, it also positively impacts the steel market.
Metal and plastic are the primary components for making Electric Vehicles. EVs require more steel than traditional cars – good news for the steel industry! as demand for the metal is rising; analysts predict that the EV market will reach 50 million units by 2025, requiring a total of 5.2 billion metric tons of steel.
Raw materials like iron ore and coal are still needed to make steel. But the process of manufacturing steel for EVs differs from the internal combustion engine. The supply chain is also different with new types of steel that EV manufacturing units require. As a result, the steel demand is growing.
In addition, the manufacturing process for EVs is accelerating the development of new types of steel. More robust and lighter steels are needed for EV batteries and charging infrastructure, and manufacturers are investing heavily in research and development to create these new materials. As a result, the EV boom is helping to drive innovation in the steel industry.
Steel manufacturers are seeing strong growth in demand as manufacturers look to build their EVs with newer, more advanced materials.
EVs are generally heavier than conventional vehicles, so they need more robust steel.
In the past few years, demand for stronger steel has increased as automakers work to build more EVs, autonomous vehicles, and other types of electric cars. The increase in demand for stronger steel has led to a shortage. Because of this, manufacturers have had higher prices for the materials.
EVs Will Be Responsible For Much Of The Coming Energy Infrastructure Buildout
EVs will account for 14% of global power demand by 2040. Electric vehicle manufacturing companies will invest trillions of dollars in upgrading the power grid over the next two decades.
EVs are much more efficient than gasoline cars and require less power to travel the same distance. Renewable energy sources like solar and wind power, becoming increasingly cheaper and more widespread, can also charge the lithium-ion batteries in your electric car.
And finally, EVs produce zero emissions, which is crucial for reducing greenhouse gas emissions and combatting climate change.
The demand for EVs also leads to a demand for new energy infrastructure. EVs require charging stations, and as EV adoption increases, so will the need for more charging infrastructure leading to more electricity.
More charging stations will create opportunities for companies that produce electric grids. As EV adoption increases, so will the demand for energy infrastructure.
Power grid companies will need to spend more on infrastructure upgrades, such as replacing old transformers with newer, more efficient models and so on and so forth.
The power grid is the electrical infrastructure that supplies power to our homes and businesses. It’s a massive network of power plants, transmission lines, and distribution facilities constantly expanding and upgrading. And, according to a new report from Bloomberg New Energy Finance, it’s about to get a lot bigger.
So while the upfront cost of investing in EV infrastructure may be high, it’s clear that the long-term benefits will far outweigh the short-term costs.
Not only will EVs help to reduce our dependence on fossil fuels, but they’ll also help to create jobs, spur economic growth, and, most importantly, protect our planet for future generations.
Summing up
The rise of EVs is increasing demand for tires, boosting the steel market, and creating opportunities for new energy infrastructure. EVs will also be responsible for much of the coming infrastructure buildout.
While EVs create exciting prospects for businesses in these industries, we must work together to ensure that this massive shift to electric vehicles doesn’t come at the expense of our environment or economy.
Power grid companies will need to spend more on infrastructure upgrades, such as replacing old transformers with newer, more efficient models and so on and so forth.
Frequently Asked Questions – FAQs
Q: Is Electricity cheaper than gas?
– Electricity is much cheaper than gas when it comes to the wholesale price, and the running cost is also much lower. It is the environmental taxes that make electricity more expensive.
Q: What is the electricity cost per kWh?
– Usage charges are usually described as electric power costs. These prices are usually measured in kilowatt-hours (kWh), with most electric companies charging 25 to 40 cents per kWh, depending on your state and electricity plan.
Q: What is the Electricity grid/Power grid?
-The electricity grid is the power lines, substations, and transformers that deliver electricity to homes and businesses.
Q: What is the market share of electric vehicles (EVs)?
-Only 3% of all cars sold worldwide are electric vehicles (EVs).
