The electrification segment is attracting the highest enterprise focus and investments within the autonomous, connected, electric, and shared mobility segment (ACES), according to a report brought out by the multinational tech company Cyient, which has been prepared in partnership with the IT and business research-focused firm, Everest Group.
The report highlighted several reasons which have led to boosting electric vehicles (EVs) across the world. For instance, regulatory requirements have increased the focus on sustainability which, in turn, has increased the adoption of EVs all over the world. The government has also been instrumental in bolstering consumer buying trends. In countries like France, India, the US, Germany, and more, buyers are getting subsidies for buying EVs which is giving the demand in these countries a push.
The report further revealed that the spending on electric mobility themes accounts for over 50 per cent of enterprise ACES spend and is poised to grow at 18-20 per cent CAGR through 2025. Furthermore, embedded systems architecture, battery management, monitoring systems, power electronic components, charging systems, and enhanced grid capabilities are the top investment themes, among others.
The report also noted that the EV market is not just disrupting the technology and the automobile industry but also attracting great investor interest. “...at the end of 2021, the five largest EV players (Tesla, Rivian, Lucid, Nio, and Xpeng) were valued at $1.3 trillion, more than double the valuation of the five largest legacy original equipment manufacturers (OEMs),” the report highlighted.
Today, start-ups apart, manufacturing and IT giants such as Apple, SONY, Baidu, and more are looking to diversify into this segment. For instance, in 2014, Apple started working on “Project Titan” - its low-key electric vehicle initiative - is still on track, s per latest reports.
Overall, the outlook for the global EV market looks positive. However, to keep the sector moving and ensure its sustainable growth and development, the R&D in battery management systems and materials need to be thorough, the report stated.
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