Industrial Opportunities in the Electric Vehicles Segment

The EVs market growth foretells several opportunities for industrial market participants in Europe. However, there are demands from the industry base of automotive manufacturers for new automated processes that reflect the scalable output and lightweight material requirements of electric cars. Additionally, there are some basic competency gaps in electric motor design and integration, which can be capitalised on by industrial electric motor manufacturers. Other opportunities lie in the supply of specialised components and EV charging infrastructure space.

‘Although it is apparent that electric vehicles will play an increasingly significant role in the European economy, auto manufacturers are being slow in addressing their knowledge gaps,’ says the analyst of this research. ‘Auto manufacturers should enter into series production, with new plant processes from 2012, when the EU emission regulations are implemented.’ Research suggests that while many auto manufacturers are building their in-house competency to produce electric motors, several others are looking to form relationships with electric motor manufacturers to address a competency shortfall. EVs and high-efficiency vehicles, in general, will require new processes for variable-output modular manufacturing and to address the emerging need for lightweight components.

Several Market Opportunities Exist for Manufacturers Capable of Producing Charging Systems

The key challenges in the industry are standardisation and battery performance, both of which have experienced significant progress. The lack of a pre-existing operational infrastructure for charging system supply on a large scale is another major issue. It is likely that participants from the existing charging system as well as system builder participants will move into the segment. ‘The growth rate of the critical charging infrastructure market will depend upon the far-sightedness of market participants in creating the required products or alternatively, in waiting to see how successful the new start-up companies are,’ explains the analyst.

Although there is high investment in areas such as in battery technology, opportunities remain in the market for manufacturers capable of producing charging systems or specialised components needed in each product area. ‘Based on the competency areas involved, a strong proposition for the charging station opportunity may be possible by collaborating with an industrial participant with charging systems experience, such as a European producer and marketer of parking payment systems,’ concludes the analyst.

This Frost & Sullivan research service titled Thought Leadership Report: Industrial Opportunities in the Electric Vehicles Segment provides an overview of the opportunities available for industrial participants in the European electric vehicles (EVs) market. In this research, Frost & Sullivan’s expert analysts examine the following technology: electric vehicle motors.