Table Of Contents
- Growing electric vehicle adoption to decarbonize public and private transportation
- Innovations in battery technology aimed at improving the driving range and efficiency of the vehicle
- Hydron fuel cell technology creating favorable conditions for the growth of the sector
- Mobility-as-a-service: An innovative solution to address the problem of urban congestion
- Increasing use of telematics and fleet management technologies strengthening the position of the sector
- The start of a new chapter of growth in the automotive and transportation domain
Lalit Janardhan Katare
Koyel Ghosh
Automotive and Transportation Domain: Top 5 Trends in Q3 2024 Offering Profitable Opportunities for Businesses
The automotive and transportation domain has witnessed magnificent growth in the post-pandemic period. Most of the manufacturing companies restarted their operations as the lockdowns were lifted and social distancing norms were withdrawn. At the same time, a gradual rise in the disposable incomes of people globally led to a surge in demand for different vehicles and transportation technologies. The rapid pace of urbanization and industrialization in metropolitan cities has also contributed to the growth of the sector.
Moreover, many countries have launched upskilling and training programs for the youth which has created a huge pool of workforce for the car industries. The availability of skilled labor is an important factor influencing the landscape. Additionally, the heavy investments in R&D activities to design advanced automobile solutions have strengthened the position of the sector considerably. In the third quarter of 2024, certain trends and advancements have also played a major role in the growth of the domain. Recently, Allied Market Research compiled a study on the developments in the landscape to aid companies make the right investment decisions.
Growing electric vehicle adoption to decarbonize public and private transportation
One of the biggest shifts witnessed in the automotive and transportation domain is the transition toward electric mobility. Several countries across the globe have pledged to achieve net zero goals in the next few decades to limit the pace of global warming and climate change. Since the automobile sector is one of the biggest contributors to carbon emissions, many governments have passed legislation to take concrete steps for introducing EVs for public transit systems. The electric vehicle industry is expected to generate a revenue of $823.75 billion by 2030, rising at a CAGR of 18.2% from 2021 to 2030. Moreover, the costs associated with developing advanced battery packs and charging systems have also declined substantially. As a result, EVs have become an affordable option for private transportation also.
Innovations in battery technology aimed at improving the driving range and efficiency of the vehicle
One major factor restraining the full-fledged growth of the electric vehicles industry is the issues associated with battery packs used in hybrid automobiles. Hence, despite several countries launching initiatives for electric mobility, there has been a reluctance among individuals to adopt EVs. As a result, many leading companies have invested in developing technologies that improve the performance and durability of these energy storage devices. The emergence of automotive battery thermal management systems (BTMS) is an example of the trend.
Automotive BTMS helps in maintaining the temperature of the battery pack within an optimal range, thereby bettering the efficiency and safety of the vehicle. Similarly, breakthroughs have been achieved in solid-state batteries which have faster charging capabilities and significantly longer ranges. At the same time, innovations in recycling technologies have reached a level wherein energy storage devices can be easily repurposed or disintegrated without causing any harm to the environment. The electric vehicle battery recycling landscape is anticipated to amass a revenue of $2,272.3 million by 2025 on account of such technological advancements.
Hydron fuel cell technology creating favorable conditions for the growth of the sector
A fuel cell is an electrochemical device that converts the chemical energy of a fuel and an oxidizing agent into electricity. Hydrogen fuel cells, as the name suggests, use hydrogen to produce electric current. The primary reason behind the growing popularity of the technology is that it is a clean form of energy. The redox reactions in such machines produce no harmful emissions, but just water and heat. Moreover, studies in automotive engineering have shown that battery packs, though ideal for regular vehicles, aren’t a viable solution for trucks and buses. On the other hand, hydrogen fuel cells have been tested for such automobiles and have been proven to be perfect for such heavy-duty applications. Recently, multinational giants such as Toyota, Alstom, Siemens, etc., have started investing in hydrogen fuel cell train technology to meet the growing demands for passenger transportation.
Mobility-as-a-service: An innovative solution to address the problem of urban congestion
The rapid pace of urbanization and industrialization in major metropolitan cities has improved the living standards of people living in these areas. However, the changing scenario in such industrial towns has drastically aggravated the problem of vehicular congestion and pollution. To tackle the issue, the idea of mobility-as-a-service has emerged which allows individuals to plan, book, and pay for different transportation modes via a combined platform. Various companies in the shared mobility industry such as Uber Technologies Inc., Zoomcar India Private Limited, Blu-Smart Mobility Pvt. Ltd., ANI Technologies Private Limited (Ola), etc., have launched mobile applications. These platforms offer public transportation, bike-sharing, carpooling, ridesharing, car rental services, and other mobility solutions. Such innovative approaches have considerably reduced the dependence on private vehicles, thereby addressing the problem of congestion.
Increasing use of telematics and fleet management technologies strengthening the position of the sector
Telematics is an interdisciplinary field that involves the use of telecommunications, electrical engineering, computing technologies, and networking systems to transmit, store, and receive data between moving objects, typically automobiles. A telematics device usually consists of a GPS receiver, input/output interface, and other such components that help in monitoring the movement of the vehicle along with other details such as speed, tire pressure, fuel use, etc. Many logistics and supply chain companies use these fleet management technologies to track the location of their different delivery vehicles simultaneously.
The use of such innovations has helped companies to improve their customer service, while at the same time ensuring the security of the driver. The predictive maintenance and remote diagnostics offered by such platforms aid in streamlining operations and significantly reduce the downtime associated with repair and maintenance. The growing adoption of advanced technologies such as IoT and 5G by logistics businesses is expected to generate numerous growth opportunities in the fleet management industry by 2030.
The start of a new chapter of growth in the automotive and transportation domain
As highlighted by the study compiled by Allied Market Research, the transition toward electric mobility to decarbonize public and private transportation has been an influential factor in the rise of the sector in Q3 2024. Furthermore, intensive research and development in hydrogen fuel cell technology has improved the growth rate of the landscape in the third quarter of 2024. Finally, the launch of several fleet management and shared mobility applications by leading players in the sector has positively impacted the domain and is expected to expand its scope in the future.
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