Global Growth Opportunities in the Automotive Industry—Is Your Strategy Execution-Ready?

With more vehicles on the road and younger generations favoring shared mobility, micromobility, and electrification, the need for smart transportation strategy is urgent. Advances in connectivity, V2X, and IoT are driving OEMs toward fleet electrification and autonomy, while new entrants, like Chinese electric vehicle (EV) makers, heighten the competition.?

Can you identify the growth gaps in the evolving landscape of mobility??

To help you navigate, this edition of Frost & Sullivan’s Growth Opportunity Newsletter presents industry intelligence, groundbreaking innovations, best practices, and business models shaping the future of mobility.?

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MaaS, DaaS, EV, and Automotive Cybersecurity—Which Path will You Choose for Growth??

Micromobility and carsharing are rapidly growing, with the carsharing industry alone expected to reach $9.79 billion by 2030. Carsharing is becoming central to Mobility-as-a-Service (MaaS) platforms, driven by fleet management and predictive maintenance technologies. Despite hurdles for micromobility services like Bird and Helbiz, technology remains essential for growth. By 2028, connectivity will reach 80% in electric two-wheelers and 60% in ICE two-wheelers.?

• Why invest in carsharing? Carsharing integral to MaaS platforms and growing in niches like airport, real estate, tourist, and luxury segments.??
• Can micromobility drive your growth? Success depends on strategic industry selection, operational efficiency, diversified revenue streams, data-driven decisions, and adaptability.?
• Can technology give you an edge in the start-up dominated 2W space? Innovations like embedded, tethered, and Bluetooth technologies hold great promise.?

Here is an overview of the 2W industry to empower your leadership:?

Is DaaS the Future of Mobility Growth???

Diagnostics-as-a-Service (DaaS) is transformational auto diagnostics with innovative solutions for all automotive repair sectors. Years of R&D have led to breakthroughs that are driving growth, particularly in collision centers and EV battery diagnostics. By 2030, this model is expected to generate $3.28 billion, with collision centers leading in revenue.?

Key Questions to Explore:?

• How do regional megatrends, business models, and regulations shape the DaaS landscape??
• Where are the unexplored growth areas within the DaaS model??
• Who are the leading players, and what sets their business models apart??

EV – The Growth Hub of Mobility!?

• 2023 EV Sales: 14.1 million total; 70.2% battery EVs, 29.8% plug-in hybrids.?
• APAC Penetration: 23% in light-duty vehicles.?
• Charging Points: Over 5.2 million installations, averaging one connector per 12 EVs.?
• Global EV Penetration: Expected to hit 20% in light-duty vehicles; BYD to lead with increased margin.?
• Battery Segment: Supplies about 945,000 MWh; CATL leads, followed by BYD.?

The EV industry is booming with key megatrends such as sodium-ion and solid-state batteries, gigacasting, lower EV prices, artificial intelligence (AI) integration, Vehicle-to-Grid (V2G) technology, and growing battery repair opportunities. OEMs are adopting new battery chemistries, and while gigacasting is being explored for cost-effective EVs, its adoption is still limited.?

• What makes China a smart investment region for EV? The country's advanced EV charging and battery-swapping infrastructure, growing domestic OEMs, and improved consumer acceptance make it promising.??
• Which regions are leading in EV charging stations? Europe will top 1 million points by 2024, North America will reach 360,000, with CCS2 connectors and destination chargers leading the growth.???

Is Automotive Cybersecurity on the Rise???

Yes, it’s growing rapidly. Key players like Argus, Upstream, Karamba, AUTOCRYPT, Cybellum, VicOne, and ETAS are tackling automotive cybersecurity challenges with advanced technologies. Their approaches provide growth opportunities and best practices for the industry.?

What are the OEM activities??

• Automaker Megatrends: OEMs are focusing on sustainability and shared mobility, driven by younger generations. They are investing heavily in fleet electrification, despite varied opinions on full electrification.?
• Chinese Tier 1 Suppliers: Frost & Sullivan highlights Chinese Tier 1 Suppliers’ growing influence, leveraging technology and innovation to grow globally. Their core competencies and technology strengths set them apart.?

Top Strategic Imperatives for Growth?

Strategic Imperatives in the Shared Mobility Ecosystem?

• Enhancing financial viability in autonomous shuttle operations and achieving growth with innovative business models?

• Integrating shared mobility with food delivery services and uncovering new growth opportunities??

• Transforming ridesharing with artificial intelligence-powered route optimization for growth?

Explore More Growth Opportunities:

Don’t miss out on our Transformational Journey section which provides thought leadership to execute key growth opportunities.

New Growth Opportunities in Light, Medium, and Heavy Commercial Vehicles?

Are you leveraging the proliferation of electric vehicle technology, increased modularity, and the rising importance of digital platforms for growth?

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