The internal combustion engine was one of the world’s most significant inventions. It ended up powering the entire transportation industry for more than a century. But just like the internal combustion engine replaced the horse carriage and the steam-powered engine thereafter, the transport sector is likely to be disrupted soon again.
Rapid developments in technology such as battery-powered electric engines will shape the future of this sector. Today's electrical cars run on lithium-ion batteries which are highly efficient. For example, the Chevrolet Bolt can last for 383km on a single charge. Global automakers around the world such as Volkswagen, Volvo and BMW are investing in the development and production of electric cars.
UBS bank predicts that by the year 2025, electric cars will be 14 per cent of total global car sales compared to the one per cent today. Electrical vehicles will become affordable as batteries are getting cheaper. The cost of kilowatt-hour decreased from $1000 in 2010 to $175 in 2017. The 500,000+ preorders of Model 3 of Tesla, one of the pioneer producers of the electric car, alone is a testimonial of the general masses interest in electric vehicles. Model 3 will be available at the end of 2018, and it will be Tesla's first affordable electric vehicle with a price tag of $35,000.
In addition to developing cars for the consumer market, on November 16, Tesla has announced its Semi-truck. It is a part of Elon Musk’s grand place to reduce the planet’s global emissions by trying to disrupt the traditional transport and logistics industry. Industry experts believe these trucks will be able to reduce carbon emissions effectively as trucks are only a small fraction of the vehicles on the road, but they still account for a much higher emission level. The traditional octane and diesel based car engine are already in the process of being disrupted. The world is preparing itself for this new wave of electric vehicles, which will shape the future of transportation.