The year 2024 marks another significant milestone in the global automotive industry as the electric vehicle – EV – market continues its ascending trajectory. With over 17 million units projected to be sold worldwide, the momentum behind electrification grows stronger each year.

This surge in EV adoption reflects not only the industry’s commitment to environmental sustainability but also the rapid advancements in technology, improvements in lithium-ion batteries, and decreasing costs, which are making electric vehicles more accessible and appealing to a broader audience. As we look ahead to the end of this decade, the EV market is poised to exceed expectations, capturing a larger share of new vehicle sales, as forecasted by the International Energy Agency (IEA) and Bloomberg NEF.

“Over 17 million units projected to be sold worldwide in 2024”

In the first half of 2024, EV sales have experienced impressive growth, with over 5.6 million vehicles registered globally by the end of May. This surge represents 17% of the total new automotive market, up from 16% in 2023 and 4% in 2020. This highlights the accelerated pace at which consumers are adopting electric vehicles across key regions, particularly in the United States, Europe, and China.

Breaking down the sales figures for the first half of 2024, battery electric vehicles – BEVs – have dominated the EV market, with approximately 3.6 million units sold, accounting for 11% of the total market share. Plug-in hybrid electric vehicles – PHEVs – have also made a significant impact, with around 2 million units sold, capturing a 6% market share. These numbers represent a 25% year-over-year increase in total EV sales, meaning that nearly 1 in 5 vehicles sold in 2024 is an EV.

“Automotive Software is the backbone of modern vehicles” is far from an exaggeration. The rapid evolution of ADAS and self-driving vehicles is steering in a new era of software-defined vehicles.

In this highly competitive automotive landscape, the pursuit of cutting-edge trends, such as highly automated driving and full automation, is pushing the boundaries of current engineering capabilities.

The rapid evolution of ADAS and self-driving vehicles is steering in a new era of software-defined vehicles.

Just five or six years ago, a new vehicle would typically be equipped with around 60 to 100 sensors. However, the automotive landscape has transformed significantly since then, with today’s vehicles showing a staggering 200 or more onboard sensors.

This evolution in sensor quantity and technology is closely aligned with the increasing intelligence and autonomy of vehicles. As automotive engineering propels forward, these sensors continue to advance in sophistication and will undoubtedly multiply as new features become commonplace.

Today’s vehicles showing a staggering 200 or more onboard sensors.

This surge in sensor capabilities has sparked innovation across all faces of vehicle design. It’s reshaping the vehicle’s E/E architecture, while intensifying the complexity of automotive software. The current 100 million lines of code found in vehicles are projected to expand to 300+ million lines by 2030.

To put this into perspective, consider that, fueled by data from all sensors, a single car can generate anywhere from 1.4 to 19 Terabytes of data per hour, translating to roughly 380 to 5,100 Terabytes annually.

This exponential surge in data generation underscores the urgent necessity for the industry to develop robust strategies to effectively manage and navigate the intricate landscape of this growing code complexity.

The current 100 million lines of code found in vehicles are projected to expand to 300+ million lines by 2030.

The future of automotive software is upon us, and it promises not only smarter and more autonomous vehicles but also a profound transformation in how we approach vehicle engineering and design.

The electric vehicle market in the United States has hit a historic milestone, achieving record-breaking sales of over 1 million battery-electric vehicles (BEVs) in the year 2023.

This accomplishment marks a significant shift in consumer preferences and signals a robust demand for fully electric vehicles in the American market.

EV sales in the United States has hit a historic milestone, achieving record-breaking sales of over 1 million battery-electric vehicles (BEVs) in the year 2023.

This achievement becomes even more noteworthy considering the initial skepticism from certain biased media outlets that questioned the demand for fully electric vehicles in the U.S.

Despite these doubts, the sales data for the year speaks volumes, contradicting the naysayers and underlining the strong and growing interest in BEVs among American consumers.

The notable surge in BEV sales highlights a fundamental shift in consumer behavior, indicating an increasing acceptance and adoption of electric vehicles.

The data not only dispels skepticism but also points to a compelling trend in the automotive industry. The notable surge in BEV sales highlights a fundamental shift in consumer behavior, indicating an increasing acceptance and adoption of electric vehicles.

This trend is not only a reflection of the changing preferences of American consumers but also suggests a transformative phase in the automotive landscape, with electric vehicles playing a central role in the future of transportation.

The electric vehicle market is experiencing an exponential surge in growth year over year, surpassing even the most optimistic predictions. Each year, experts and analysts reassess their forecasts, and these revisions consistently result in upward adjustments.

In 2023, EV sales are expected to represent approximately 15% of the global automotive market share, marking a remarkable achievement for the industry. Several key factors contribute to this upward trend, including decreasing battery prices, environmental consciousness, infrastructure development, and societal shifts toward sustainability.

One of the primary catalysts behind the rapid growth of the electric vehicle market is the steady decline in battery prices. For reference, battery prices have decreased from $1200 USDollars/kWh in 2010 to $150 USDollars/kWh in 2022 (Bloomberg NEF). Several factors contribute to this price reduction, including economies of scale, technological advancements, and increased production efficiency. As demand for EVs continues to surge, automakers and battery manufacturers are scaling up their operations, driving down production costs to lower than $100 USDollars/kWh by 2030 (ICCT – International Council on Clean Transportation)

Each year, experts and analysts reassess their forecasts, and these revisions consistently result in upward adjustments.

Improvements in battery technology, such as new cathode and anode materials, and the development of solid-state batteries, have also played a pivotal role in making EVs more affordable. These cost savings are directly passed on to consumers, making electric vehicles an attractive and financially viable option.

Consumers are increasingly drawn to electric vehicles not only because they are becoming more cost-competitive to traditional ICEs, but also due to their substantial environmental benefits. With concerns about climate change and air pollution growing, many individuals are seeking greener transportation alternatives. EVs produce zero tailpipe emissions, significantly reducing air pollution and greenhouse gas emissions.

Moreover, the lower operating costs of electric vehicles, including reduced “fuel” and maintenance expenses, make them an appealing choice for budget-conscious consumers. As more people recognize the ecological and financial advantages of electric vehicles, the market share continues to expand.

As demand for EVs continues to surge, automakers and battery manufacturers are scaling up their operations, driving down production costs to lower than $100 USDollars/kWh by 2030 (ICCT – International Council on Clean Transportation).

Another factor contributing to the growth of the EV market is the continuous improvement in driving ranges. Early EVs were often criticized for their limited range, which created “range anxiety” among potential buyers. However, advancements in battery technology have led to significant enhancements in driving ranges. Many modern electric vehicles can now travel over 300 miles on a single charge, eliminating range anxiety and making EVs suitable for long-distance travel. This improvement has played an important role in convincing consumers to make the switch from traditional internal combustion engine vehicles to electric ones.

While infrastructure development in the electric vehicle sector has been slower than ideal, it has still been a crucial driver of market share growth. Governments and private enterprises are actively investing in expanding the charging infrastructure, making EV ownership more convenient and accessible. The proliferation of charging stations at homes, workplaces, and along highways has significantly reduced charging-related concerns. As charging infrastructure becomes more widespread, more consumers are inclined to consider electric vehicles, boosting market share.

Many modern electric vehicles can now travel over 300 miles on a single charge, eliminating range anxiety and making EVs suitable for long-distance travel.

The electric vehicle market’s remarkable growth trajectory is a testament to the industry’s resilience and adaptability. Key factors driving this expansion include decreasing battery prices, environmental consciousness, improving driving ranges, and infrastructure development. Experts and analysts anticipate that this trend will persist, driven by stricter emissions regulations, ongoing technological advancements, and a broader societal shift toward sustainability. Looking ahead, electric vehicles are set to become an even more prominent and integral part of the global automotive landscape, contributing to a cleaner and more sustainable future.

As the world races toward a more sustainable and eco-friendly future, lithium-ion batteries have emerged as the most promising technology in mobility electrification. These unassuming powerhouses are powering everything from electric cars to e-bikes, revolutionizing how people move while reducing their carbon footprint. This fascinating world of lithium-ion battery technology is changing the world as it has been and is playing a key role in the electrification of mobility.

Lithium-ion batteries have become the go-to choice for electrified mobility, and for good reason. They offer a remarkable combination of energy density, efficiency, and reliability. Compared to traditional lead-acid batteries, Li-ion batteries are significantly lighter and have a higher energy density, meaning they can store more energy in a smaller, lighter package.

This fascinating world of lithium-ion battery technology is changing the world as it has been and is playing a key role in the electrification of mobility.

Currently, Li-ion batteries are widely used for various applications, and they come in different cell chemistries, each with its own set of characteristics, and advantages for several applications and segments. The main cell chemistries for lithium-ion batteries are Lithium Iron Phosphate (LiFePO4 or LFP), Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Nickel Cobalt Aluminum Oxide (NCA), Solid-State, Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), Lithium Titanate (LTO).

Undoubtedly the rise of electric vehicles is a testament to the capabilities of lithium-ion batteries. EVs equipped with Li-ion batteries deliver impressive ranges, often exceeding 300 miles on a single charge. This increased range, coupled with advancements in charging infrastructure, is making EVs a practical choice for daily commuting and long-distance travel.

While electric cars have captured much of the spotlight, Li-ion batteries are also powering other forms of mobility. Electric scooters, e-bikes, and electric buses are becoming increasingly common sights on city streets. These compact and efficient batteries are making urban commuting more sustainable and enjoyable.

Lithium-ion battery technology has transformed the landscape of mobility electrification.

As the world looks toward a greener future, the sustainability of battery technology is a critical consideration. The world of Li-ion batteries is not without its challenges. They use valuable and sometimes scarce materials like lithium, cobalt, and nickel. However, the industry is actively exploring ways to recycle and repurpose batteries, reducing waste and lessening the environmental impact of production.

Lithium-ion battery technology has transformed the landscape of mobility electrification. From electric cars that are reshaping the automotive industry to e-bikes, these batteries have opened a world of possibilities. As research and development continue to push the boundaries of what Li-ion batteries can achieve, the whole society looks forward to a future where mobility is not only electrified but also more sustainable and environmentally responsible.

Image: Yale Climate Connections

The automotive industry is facing a monumental shift, and each year, experts and analysts reassess their predictions, and these revisions usually result in upward adjustments. Electric vehicles (EVs) are at the forefront of this transformation, and global EV sales performance over the past few years has been nothing short of electrifying. As this is a new electrified decade in the automotive market, it’s worth examining the trends and expectations that will shape the EV landscape in the coming years.

The Current State of EV Sales:

The past decade witnessed a remarkable surge in EV sales, driven by a combination of factors. Government incentives and policies aimed at reducing greenhouse gas emissions have played a pivotal role. Consumers, increasingly conscious of environmental issues, have embraced the concept of cleaner transportation. OEMs have responded by introducing new EV models, ranging from compact cars to SUVs and even electric trucks.

In Europe, countries like Norway have set the gold standard for EV adoption, with electric cars accounting for a significant percentage of new vehicle registrations. China, the world’s largest automotive market, has made substantial strides in promoting EVs through incentives and robust charging infrastructure. The United States, home to pioneering EV manufacturer Tesla, has witnessed growing adoption, driven by a combination of federal incentives, state-level policies, and a broader range of EV models.

The past decade witnessed a remarkable surge in EV sales, driven by a combination of factors.

In 2023, EV sales are expected to represent ~15%, and there are key reasons for this upward trend. Battery prices are decreasing steadily due to economies of scale, technological advancements, and increased production efficiency. In addition, consumers are increasingly attracted to EVs due to their environmental benefits, lower operating costs, and improving driving ranges.

What to Expect in the Next Decade:

EVs will incorporate cutting-edge technology, including autonomous driving features, enhanced connectivity, and improved user interfaces.

Moving into the 2020s, the outlook for EV sales is remarkably optimistic, with several key trends and developments expected. Automakers are racing to introduce new EV models, catering to a broader range of consumers. From luxury electric SUVs to affordable compact cars, there will be more choices than ever before. In addition, governments and private companies are heavily investing in charging infrastructure. Fast-charging stations will become more commonplace, alleviating range anxiety and making EVs more practical for long-distance travel.

Automakers are racing to introduce new EV models, catering to a broader range of consumers. From luxury electric SUVs to affordable compact cars, there will be more choices than ever before.

Looking at the battery technologies, these advancements will continue, leading to increased energy density, faster charging times, and longer ranges. This will address one of the key concerns of potential EV buyers. And beyond electrification, EVs will incorporate cutting-edge technology, including autonomous driving features, enhanced connectivity, and improved user interfaces.

Finally, analyzing the entire EV ecosystem, from manufacturing to charging, is expected to become more sustainable. Recycling and responsible sourcing of materials will be emphasized. This is crucial for the whole circular economy, while governments worldwide are expected to introduce stricter emissions regulations and incentives for EV adoption.

These attributes are poised to not only stimulate sales but also incentivize automakers to expand their electric vehicle portfolios. This surge in offerings is anticipated to propel EV sales from their current approximate 15% market share to well beyond 40% of new car sales by the decade’s close.

In conclusion, this decade is poised to be transformative for electric vehicles. Looking ahead, market forecasts predict a substantial surge in EV sales, powered by technological advancements, heightened consumer awareness, and favorable government policies. The automotive industry is experiencing a seismic shift, and electric vehicles are at the forefront of the journey toward a cleaner, more sustainable future in transportation. With an expanding range of models, enhanced infrastructure, and a mounting commitment to environmental responsibility, electric vehicles are primed to revolutionize our modes of transportation and make a meaningful contribution to a more sustainable planet.

Vehicle electrification is disrupting the automotive business as it’s known today. The new mobility is embracing several changes and updates in the vehicle powertrain, components, and electrical and electronics systems. It means the aftermarket businesses must get prepared for significant changes in revenue, market share, and services within this decade.

Analyzing the aftermarket companies, suppliers, and overall businesses, the main areas in which Electric Vehicles will impact the after-SOP industry are:

New powertrain components: EVs use electric motors, power electronics, and high-voltage battery packs, which increases electric components, high-voltage cables, and other components demand. EVs eliminate the traditional internal combustion engine (ICE), resulting in a reduced number of complex mechanical components, such as pistons, crankshafts, transmission.

Reduced maintenance needs: EVs have fewer moving parts when compared to ICE vehicles. They don’t require oil changes, air filter replacements, or other maintenance tasks typically associated with ICEs. Consequently, some aftermarket businesses, such as brakes replacements, oil changes, welding and refurbishment and mechanic tool shops may experience a decline in demand.

Specialized Services: A surge in specialized EV service centers and repair shops is expected. These businesses will focus on EV-specific maintenance, repairs, software updates, and battery-related services. They may require expertise in electric drivetrains, battery diagnostics, and charging infrastructure. It requires specialized tools, employee training, vehicle communication and diagnostics, and software skills.

Battery Maintenance and Replacement: The battery pack is a crucial expensive component which may degrade or require replacement over time. Aftermarket businesses could potentially offer battery diagnostics, maintenance, and replacement services. Additionally, battery recycling and repurposing could become new profitable avenues for aftermarket companies.

Charging Infrastructure: a robust charging infrastructure has become increasingly important. It brings big opportunities in installing and maintaining charging stations, both for private and public use, plus installation services, repairs, and upgrades.

Software and Connectivity: EVs are software-defined with high connectivity features (at least are walking in this direction). An important way to support EV owners is by providing software updates, performance enhancements, customization options, and downloadable automotive apps from the cloud, as seamless as it is done on a smartphone. They may also offer connectivity-related services, such as integrating EVs with smart home systems or assisting with over-the-air updates.

New Product Opportunities: New business opportunities are endless in this new automotive electrification market. It could include accessories like charging cables, battery management systems, range extenders, custom lighting solutions, and other specialized components, or features that enhance the electric driving experience.

Therefore, while some products and services of the aftermarket industry may experience a steep revenue dip in this decade due to the shift to Electric Vehicles, there are many new opportunities emerging in a specialized EV market which companies can proactively move ahead and prepare themselves to increase their sales revenue.

Electric vehicles are becoming more and more common on American roads. BEV are already scoring the TOP 10 most sold vehicles in the USA

The Tesla Model Y made the 6th position, and being ahead of three other best-sellers (GMC Sierra, Honda CRV, and Toyota Tacoma). The Model 3 ranked 13th in sales at 211,641 units, according to Motor Intelligence.

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A high quality product often has good warranty. I am often asked about battery life warranty for electric vehicles. How many miles, how many years, battery SoH (State of Health), etc.

When looking at majority of OEMs traditional ICE vehicles, the powertrain warranty falls between 5 years or 60k miles. This is roughly half of the warranty period which is offered for electric vehicles!