The move towards vehicle electrification is gaining traction at an unprecedented scale, as new investment pours in and the race toward $100/kWh battery offerings intensifies. Despite the notable increase in global launch activity of mass market EVs, the move to electrification comes with its own set of challenges and road-blocks. However, OEM strategic plans, along with just the right amount of regulatory push, makes the road ahead critical to monitor closely. According to DuckerFrontier’s analysis, over 35% of new vehicles produced and sold in 2030 will have some form of battery-based powertrain.
Advancements in battery technology, software based “connectivity” development, charging infrastructure and overall enhanced customer experience enables a rapid program planning shift. Thus, the trend is moving away from pure ICE based vehicles to the emergence of new class of “mobility” based suppliers, while also stress testing traditional suppliers with both their capabilities as well as their patience.
Will the “mass market” adopt these new offerings? What new revenue opportunities will emerge across the value chain including Body & Chassis, Powertrain & Battery, Electronics, Interior & Safety? Will manufacturers prefer open source operating systems and what new monetization pathways will emerge for indirect providers? To what extent will traditional OEMs vertically integrate software development? In contrast, will they continue to rely on their supplier partners for hardware, software and system integration? These are just some of the important areas being monitored by DuckerFrontier’s global mobility analyst team.
Motivations of EV growth varies among countries. The EU and China have comparatively fewer barriers for EV growth as compared to the US. In spite of the push for automotive electrification, the unintended consequences of generating electricity must also be part of the solution for CO2 reduction.
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