The automotive world is facing several disruptions—from electric cars to autonomous driving. And this was all before COVID-19. So, what can the automotive industry do despite all of these challenges? One thing is for sure; the automotive industry needs transformation now.
THE ELECTRIC VEHICLE TRANSITION AND FUTURE OUTLOOK OF E-MOBILITY
One easy way for the automotive industry to stay competitive is to embrace the electric vehicle (EV) disruption and all the technological advances that come with it. Not only does mobility services present a business value, but it is a crucial part of tackling climate change.
In 2020, global plug-in vehicle sales reached 3,24 million, compared to 2,26 million the year before. What started as an economic downturn during the COVID-19 crisis became a success story for electric cars in Europe. That same year, nearly 1,4 million BEVs and PHEVs were registered in Europe, 137% more than in 2019.
The combination of more availability, new attractive models, the 95g CO2 mandate, incentive boosts by green recovery funds, and heavy promotion of EVs contributed to this massive uptake in EV sales.
Source: EV Volumes
In Europe, one in six vehicles is registered as a plug-in-vehicle to put this rapid growth into context. To expand this transformation, the European Union’s (EU) CO2 standards require automakers to reach 10% EV sales share in 2021 or face fines. This means that the number of electric cars will at least double in the upcoming years.
Extensive growth is happening in China and the United States as well. Globally, the EV charging market is expected to grow at a compounding growth rate of 31-38% over the coming years.
These growth rates are simply astounding. The market share of plug-in vehicles was only 3.1% in 2019. By 2030, it’s estimated that global EV sales will reach 43 million—that’s 70% of all vehicles.
Want more EV market stats and forecasts? Head over to our Global EV Market Overview Guide.
THE CONVERGENCE OF THE AUTOMOTIVE AND ENERGY INDUSTRIES
The EV disruption all comes down to mitigating climate change and energy efficiency is the most crucial part of tackling climate change.
For the first time, renewable sources have overtaken fossil fuels in Europe’s power generation, according to a recent study by Ember. Compared to 2011, fossil fuels generated twice as much of the EU’s electricity as renewable sources.
While renewable sources overtaking fossil fuels in electricity generation is inevitable, the COVID-19 crisis has accelerated this shift considerably.
The transition to renewable energy, the dire need to lower C02 emissions, and the shift from fossil-fueled cars to electric means that the automotive and energy sectors are naturally converging. For the auto industry, this presents opportunities within energy management.
In fact, oil companies are already transforming into energy providers for mobility, with electricity playing an ever-increasing role.
By 2030, an estimated 44 million EVs will be on the road. There is no clear industry leader yet, which means there is massive untapped potential to meet the future e-charging demand.
While there are many ways businesses can become more sustainable, EV charging is one of the only options that is also a potential revenue generator.
IT'S NOW OR NEVER - FIERCE COMPETITION IN THE ELECTRIC CAR CHARGING MARKET
While investing in electric vehicles is a no-brainer for automotive companies, offering EV charging is where the real potential is at since it offers a sustainable and recurring revenue stream.
Moreover, as the world races to mitigate climate change, many countries offer funding and government backing to solutions and innovations for this end.
So how can the automotive industry latch on to this once-in-a-lifetime opportunity? Timing is everything in this race. The EV charging market is reaching a tipping point and is quickly getting saturated with various industry players.
The energy, petrol, and real estate industries are just a few of the sizable competitors who also have high stakes in the game. This is why timing is of the essence.
To learn more about how smart EV charging can work for you, check out this comprehensive guide we book together: “How to Stay Competitive in the Changing Automotive Industry.”