How related supply chain companies in Taiwan will seize the business opportunities presented by the electric vehicle (EV) market has received great interest. In fact, the annual growth rate for EV sales is expected to reach double digits by 2025 and the market penetration rate is expected to surpass 30%.
While the global automotive market will not grow as expected in 2021 due to the impact of the chip shortage, the EV market will grow more than 90%, thanks to the joint promotion of global policies and industries.
In terms of the global EV industry development trends, DIGITIMES Research analyst and research manager Jessie Lin said that the industry will move toward delayering the supply chain, affordable pricing, popularization of charging stations and smart EVs.
The delayering of the supply chain is mainly due to the 40% difference in component requirements in transmissions between EVs and fuel-powered vehicles. The lack of fuel engines will also flatten the supply chain. The role of Tier 1 supply chains for some traditional automakers will be replaced by important component and system suppliers in the EV architecture.
At the same time, suppliers will be able to communicate more directly with automakers. In addition to understanding real needs, they can also more accurately grasp the trends and next-gen technical requirements of automakers. It will also make traditional automakers and supply chains that are unfamiliar with the ICT industry more reliant on the assistance of Taiwan-based ICT companies.
In terms of price-friendliness, industry players such as Delta Electronics chairman Yancey Hai have noted that EV prices are not affordable enough, which will have an impact on the popularization of EVs. Although EV prices are already starting to fall, overall the price is still too high.
Lin said in order to increase purchase willingness, automakers will have to come out with more affordable car models. It is expected that more pure EV models under US$25,000 will be launched after 2023. During that time, there will be another push for EV sales.
Another important factor affecting EV sales is the availability of charging stations. In order to reduce the mileage anxiety of EV users, Lin believes that setting up more charging stations will have a positive impact on EV sales. China, the US and Europe have all accelerated the speed of charging station installations in recent years. In addition to increasing the number of charging stations, the number of fast-charging stations will also increase.
Once the scale of charging stations and popularization of EVs has reached a certain level, bidirectional charging can be introduced, transforming EVs into large-scale mobile power sources. Also known as vehicle-to-grid (V2G) technology, it can stabilize the power grid when the power supply is tight and provide short-term power demand.
The smart development of EVs is mainly based on the fact that cars now have networking capabilities. More and more companies are using over-the-air (OTA) technology to update systems. Not only can OTA be used to update maps and engage in audio and video streaming services, but some companies are also already using OTA to upgrade self-driving systems.
Together with the current trend of software-defined cars, Lin said that OTA not only helps realize the software-defined car concept but also allows car values to increase instead of decrease once they hit the road.