The automotive sector has evolved dramatically over the centuries. From the first “Motorwagen” in 1886 to the latest alternative power vehicle in 2022, the automotive industry has also exploded in growth – to the tune of about $2.8 trillion globally – despite a global pandemic.
In fact, it is the global pandemic, as well as other factors, such as regulations, consumer behavior and technology, that are driving the growth of electrification, specifically, in the automotive industry now and in the years to come.
There have been a number of things in the electrification market in particular that have delivered on its explosiveness in the past few years. First, to make sure that electric mobility adoption is widespread and rapid, it is imperative that new electric vehicles (EVs) are launched in the market at a relatively quick pace. To build on that momentum, the entire mobility ecosystem must work in sync to make the move towards electrification successful – from EV manufacturers and suppliers to dealers, financers, energy providers, charging station operators and beyond.
From all of this, there are some notable trends that have emerged in the electrification market for 2022:
Some twenty years into the 21st century, it should come as no surprise that automakers continue to integrate more digital technology into the vehicles that they roll out of their manufacturing plants. Add to that mix tech companies, such as Tesla and Google, who are also working on – and delivering – electric and self-driving vehicles themselves. All of this points to an automotive evolution in 2022 and beyond of vehicles being produced full of technology, addressing a plethora of digital touchpoints. This leads to aggressive competition to quickly develop the digital, software and electronic operating systems to power and control highly advanced, zero-emission EVs, which will be loaded with digital technology.
As quickly as the latest digital technology is being integrated into new vehicles, it should come as no surprise to see the natural forming of partnerships between automakers and technology companies. Automakers know that it takes an exponential amount of specialized software and advanced technology to get electric, connected and autonomous vehicles to function safely and correctly. That leaves them two choices: either make enormous investments in their Research and Technology divisions or join in a partnership with tech companies that can do the work for them by designing and producing new operating systems that these technologically advanced, next-generation vehicles will need.
For EV owners, Level 1 charging for EVs has always been an available option at home, since this method requires the driver to plug their vehicle into a traditional outlet. For urban use, you could get 30-50 miles from a single overnight charge. As a result, more and more EV drivers are opting for home charging as an alternative to using public stations.
However, Level 2 chargers, which could fully charge the EV overnight, are gaining popularity in large part to incentives from states and utility companies, as well as EV manufacturers who are also helping with its acceptance. As a result, the global EV charger market is expected to grow at a 28.5% CAGR between 2021 and 2028.
There has been increasing attention to the total carbon footprint of vehicles since 2021. It is not surprising to see that China produced almost 80% of global lithium-ion battery supplies. This is up 3% from the previous year.
Add to this the need to ship these batteries globally and it becomes apparent that this is a detrimental factor to the carbon footprint of EEVs. So, it is essential and welcome news to receive announcements of local battery gigafactories being built by the likes of Tesla, Stellantis and Volkswagen Group in other countries, especially considering that they need these raw materials as well. To that end, you have Cornish Lithium and British Lithium focusing their efforts on Cornwall for its potential lithium supply, while Vulcan Energy Resources is hoping to uncover huge lithium deposits in the Upper Rhine Valley of Germany. Ultimately, there needs to be as much local production as possible, with batteries and their essential elements at the top of the list, if EVs are going to be considered “truly green.”
When you think of batteries, the first thing that may spring to mind might be the common batteries that are used in ordinary devices, such as TV remotes, game controllers or other devices. However, EV batteries are a different story altogether. They are intricate, intelligent technologies with semiconductors playing a critical part in how they operate. If these types of batteries are managed to the best of their capabilities, then EVs will go farther on a single charge effortlessly. That is why EV batteries are key to the start of an e-revolution in the automotive industry, in that they directly affect the functionality and driving range as a fuel source. They also influence the overall consumer adoption and satisfaction of EVs in the automotive market.
For example, there are battery management systems (BMS) which include integrated circuits (ICs) and sensors that control crucial characteristics, such as current, voltage and temperatures. As a result, a BMS is able to accomplish three important things – make the most of a battery’s electrical output, balance its functions and help ensure it operates safely. It is no wonder that top EV makers are turning to technology partners to help them achieve these efficiencies that BMS can deliver to EVs. In fact, in 2021, two out of the top three EV makers selected NXP BMS for their solution. So it is easy to see that BMS is integral to the e-revolution that is happening in the automotive industry.
EVs are on the horizon. Actually, they are already here. In order for electrification to fully take hold and gain momentum as the way we move around as a society, more needs to be done. From decarbonizing the transport sector to energy, infrastructure, mobility and automotive players taking the lead to create roles for new jobs and industries worth billions. In addition, it will be critical that economic viability and sustainability are weaved into the latest innovative technology and properly guided as mobility is transformed. Ultimately, all roads are pointing to an exciting future for the automotive electrification market in the years to come.
Want to learn more about how NXP is part of the e-revolution? Visit our Electrification webpage.
Davina leads NXP’s digital marketing team- responsible for building and optimizing digital marketing initiatives spanning the company. She has a particular interest in electrification, sustainability and safety stories. Davina has an MA in Communications and Public Relations from the University of Leicester and a DBA in International Business and Communications.
