E-mobility is fast becoming an important driver of growth in the automotive sector. Consumers are searching for greener transport solutions, and automotive manufacturers are producing more efficient e-mobility solutions to meet this demand. But, what does the future hold for the e-mobility sector and how are manufacturers creating innovative solutions to this growing consumer demand?
The future of mobility
Shifting the automotive sector away from combustion engines and toward green transportation is a key strategy for many governments looking to meet ambitious climate targets. Supported by government incentives and the phasing out of internal combustion vehicles in many countries, the e-mobility sector is one of the automotive sector’s fastest-emerging trends and is expected to achieve significant growth over the decade ahead.
Growing consumer concern over climate change has also served to increase demand for electric cars. In fact, 59% of consumers are expected to consider hybrid models for their next vehicle purchase. Alongside this growing demand, sales value for key e-mobility and EV components has also grown. For example, in 2022 the USD sales value of EV car tires increased 178% against 2021, which itself was a 336% jump from 2020. When compared with 2019’s results, sales values have increased a remarkable 1036% in three years.
Uneven adoption across markets
While demand for EV cars is growing across the board, adoption of electric battery and plug-in hybrid vehicles has varied between markets. When comparing three important automotive markets, China, Europe and North America, the Chinese market is the most advanced when it comes to EV adoption. The Chinese government has set a target market share of 20% for EVs and hybrids by 2025 and it has already reached 24%, making China a leader in EV and hybrid adoption.
Although it is working toward a lower target of 15% market share by 2025, Europe has also exceeded its EV target by achieving 19% market share. But, unlike the Chinese market which has consistently grown year-on-year, European adoption has stagnated in recent years and plateaued at 19% since 2021.
Market share in the US is lower than both Europe and China at 7%, and is below the global average of 13%. Despite this, the US has set an ambitious target of 50% EV and hybrid market share by 2030, exceeding Europe’s 2030 target of 35%.
The differences between these markets present different opportunities for the automotive sector. China’s high adoption rate of EVs provides a more mature market for EV components and accessories. Meanwhile the US market will need to grow very quickly in the coming years to meet its 50% target, creating an enormous opportunity for EV manufacturers.
Innovations driving the sector forward
As EVs and hybrid vehicles increase their market share, leading manufacturers are incorporating premium features such as artificial intelligence and automation to differentiate their products and tap into the strong demand for high-tech e-mobility solutions. These innovations are set to create a more intelligent and personalized e-mobility sector.
Already, there are EV models scheduled for launch that include intelligent driver interaction, including social media visualization and augmented navigation data.
While EVs will be an important driver for growth in the automotive sector, similar technological enhancements are driving product innovation in the wider e-mobility sector. Other innovative products new to the market include a ‘snowbike’ that produces zero emissions or noise, and a flying car that allows drivers to travel by road and air. Such futuristic capabilities were only recently the stuff of science fiction movies, showing how rapidly the EV sector is evolving. Manufacturers will need to adapt quickly to stay ahead of the fierce competition within the sector.
A bright future ahead
As consumers increasingly demand greener transportation and personal vehicles, and governments around the world encourage the shift, the e-mobility sector is expected to benefit strongly. While different countries have seen varying levels of adoption to date, demand is growing across the board, creating compelling opportunities for manufacturers of EVs, EV components and accessories, and other e-mobility solutions. But the maturity of the market is very different across regions, making it essential to understand the situation in each market to tap into local drivers of growth.
In addition, with manufacturers competing vigorously to capture lucrative market share, leveraging technology to create a high-tech range of smart and personalized solutions will be crucial to succeed in this crowded space. Understanding which performance features and capabilities will be most prized by consumers will help manufacturers to target their efforts to create the mobility of the future.
EVs and e-mobility represent two of the biggest opportunities in the automotive sector. Understand what your consumers are looking for to benefit.
