As the world population grows from 7.5bn today to 10bn by 2050 and living standards also continue to grow, the world will consume up to 50% more energy in 2050 than today. Although this trend will be partially offset by growing energy efficiency, alternative energy will play a key role in meeting this demand as fossil fuels start losing their competitive edge and are facing increasing social pressure. As prices continue to drop renewable energy becomes more competitive with fossil fuels.
Energy & Mobility Transformation
More energy needed, coming increasingly from renewable
Electrification boom is on the way
Renewables and energy storage solutions will trigger an electrification boom: electricity share of the energy market will move from 18% today to 60% by 2100. It will impact all sectors, like mobility and smart cities. This is driven by renewables becoming a cheaper source of energy than fossil fuels and energy storage cost decreasing at a fast pace. Energy storage will help the energy market to address renewable production intermittence transforming the grid management to allow distributed generation and consumption.
A mobility sector transformed by digital technology and electricity
The mobility sector was relying on the same dynamics since its inception until a few years ago. The industry now faces a rapid shift towards ACES mobility: Autonomous, Connected, Electric, and Shared. The transformation towards Electric cars is already in motion, boosted by rapid battery technology evolution. Whilst less than 2% cars are electric today, their price will become cheaper than traditional Diesel/Petrol cars by 2023. It is then expected that electric cars will make up more than 35% cars on the road and 50% of new cars sold by 2035.
Cross industry disruption
The transformation of the Energy and Mobility sectors combined with digitalisation will have a transversal impact on many industry verticals and initiate many new business models. The shift of mobility to ACES will impact not only OEMs, but also the energy, insurance, telecom, entertainment, hospitality and health sectors, alongside government & cities and many more. Smart transportation, smart grid management, smart cities and smart homes will force existing players to re-invent themselves as they face new digital entrants who will disrupt their market.
Growing environmental concerns
As society is becoming increasingly vocal in regards to its environmental concerns, governments will enact tighter legislation to cap carbon emission and contain climate change. Some governments and cities have already set aggressive targets to move transport to full electrification by 2040 if not earlier. At the same time, consumers will get increasingly sensitive to the energy profile and carbon footprint of companies they buy products and services from.