[Due to the increasing size of the archives, each topic page now contains only the prior 365 days of content. Access to older stories is now solely through the Monthly Archive pages or the site search function.]
IBM automotive study sees consumer co-creation, greater personalized driving, but not widespread fully autonomous driving by 2025
January 15, 2015
During the Automotive News World Congress this week, IBM released results of its new Automotive 2025 Global Study, outlining an industry ripe for disruptive changes that are breaking down borders of the automotive ecosystem. The study forecasts that while the automotive industry will offer a greater personalized driving experience by 2025, fully autonomous vehicles or fully automated driving will not be as commonplace as some think.
The IBM Automotive 2025 Global Study is based on interviews with 175 executives from automotive OEMs, suppliers, and other thought leaders in 21 countries, detailing customer expectations, growth strategies, mobility requirements, ecosystem disruption and other topics shaping the direction of the industry. Entitled “Automotive 2025: Industry without borders,” the study was developed by the IBM Institute for Business Value (IBV) as a follow up to “Automotive 2020: Clarity beyond the chaos.”
Scotiabank forecasts 4% growth in global auto market in 2015 to 74M units, led by China
January 09, 2015
|2015 forecast share by region. Data: Scotiabank. Click to enlarge.|
In its latest Global Auto Report, Scotiabank forecasts record global car sales in 2015, with the total market advancing 4% over 2014, reaching more than 74 million units. Global growth will mainly be driven by China, where Scotiabank expects auto demand to grow 7% in 2015 to 19.36 million units, up from an estimated 18.1 million units in 2014. Under the forecast, China will thus represent 26% of global auto sales in 2015.
Despite growing concerns about an economic slowdown in China, demand for new automobiles continues to be driven by rising vehicle ownership in tier 2 and 3 cities, especially for CUVs, which are advancing by 40% per annum, the report noted.
Navigant forecasts LD natural gas vehicles to account for 2.8% of global vehicle parc by 2024
December 31, 2014
|Cumulative light-duty NGV sales by segment. Source: Navigant. Click to enlarge.|
In a new report, Navigant Research forecasts that light-duty natural gas vehicle (LD NGV) sales will grow 119% between 2014 and 2024, culminating in 42.1 million NGVs on the world’s roads and accounting for 2.8% of all vehicles on the roads.
Overall, Navigant expects the worldwide market for LD NGVs to grow at a compound annual growth rate (CAGR) of 5.6% between 2014 and 2024, with the number of passenger car sales growing at a slightly slower rate (5.3% CAGR) than light trucks (5.6% CAGR). Asia Pacific will remain the largest market, with more than 2.0 million LD NGVs sales in 2024.
Lux Research: GaN-on-Si will dominate the GaN power electronics market for the next decade, reaching $1B by 2024
December 22, 2014
Emerging materials such as gallium nitride (GaN) and silicon carbide (SiC) look to displace silicon in power electronic applications. While silicon and SiC (SiC-on-SiC) come in only one flavor, GaN comes in many different variants, including GaN-on-Si, GaN-on-SiC, and GaN-on-GaN. In a new report, Lux Research forecasts that the total market for GaN power electronics overall will grow at 32% CAGR, reaching $1.1 billion by 2024, or more than 5% of the total market share.
Each variety of GaN has advantages and disadvantages while also being better suited to different power electronics applications. For example, Lux notes, while GaN-on-Si offers price benefits over the other GaN types, GaN-on-SiC can offer benefits of efficient high-temperature operation.
ExxonMobil: global GDP up ~140% by 2040, but energy demand ~35% due to efficiency; LDV energy demand to rise only slightly despite doubling parc
December 10, 2014
|As the world population increases by the estimated 30% from 2010 to 2040, ExxonMobil sees global GDP rising by about 140%, but energy demand by only about 35% due to greater efficiency. Click to enlarge.|
Significant growth in the global middle class, expansion of emerging economies and an additional 2 billion people in the world will contribute to a 35% increase in energy demand by 2040, according to ExxonMobil’s latest Outlook for Energy report.
Even as demand increases, the world will continue to become more efficient in its energy use, according to the 2015 Outlook for Energy: A View to 2040. Without efficiency gains across economies worldwide, energy demand from 2010 to 2040 would be headed toward a 140% increase instead of the 35% forecast in the report.
Navigant forecasts modest global annual sales growth of e-bicycles, reaching 40.3M units in 2023
November 05, 2014
In a new report, Navigant Research forecasts that global annual sales of e-bicycles will grow modestly from 31.7 million units in 2014 to 40.3 million units in 2023 under a base scenario—a CAGR of 2.7%. Navigant expects China, the market leader, to reach 28.8 million e-bicycle sales this year under the base scenario, representing 91% of the total global market. In 2023, Navigant expects China to have 85% of the total market.
This growth in demand is expected to result in revenue for global e-bicycle sales of $13.5 billion by 2023. Under Navigant Research’s aggressive scenario, in which e-bicycle become a stronger alternative to passenger vehicles in urban environments, global e-bicycle sales could reach as many as 44.4 million units annually by 2023.
Ford projects utility vehicles to account for 29% of its global sales by end of decade
October 30, 2014
Ford projects utility vehicles will account for 29% of its global sales by the end of the decade. Ford utility vehicles—ranging from the compact EcoSport to the eight-seat Expedition—accounted for 23% of brand sales globally in 2013, up from 17% a year earlier.
Utility vehicle sales are expanding rapidly in many of the world’s fastest-growing markets according to a Ford analysis of data from IHS Automotive, which forecasts market information and competitive data on the automotive industry. Worldwide demand for utility vehicles is up 88% since 2008, making SUVs the fastest-growing segment. Utilities now account for 19% of the global automotive market, with the segment expanding at more than three times the rate of the vehicle industry overall.
Navigant Research forecasts plug-ins will be 2.4% of global new vehicle sales by 2023; luxury brands to represent about 50% of that
October 23, 2014
Navigant Research forecasts that plug-in EVs (which include plug-in hybrids and battery EVs), will represent 2.4% of total worldwide light-duty vehicle sales by 2023, or about 2.5 million units. In its new report, “Global Forecasts for Light Duty Hybrid, Plug-In Hybrid, and Battery Electric Vehicle Sales and Vehicles in Use: 2014-2023”, Navigant notes that luxury brands, which have benefited in recent years from increased interest from the developing markets of Asia Pacific, have committed more strongly to plug-in EV platforms.
Accordingly, Navigant expects this luxury brand push to increase global sales of plug-in EVs significantly in the near term. Navigant expects sales of plug-in EVs from luxury manufacturers, such as Tesla, Mercedes, Audi, and BMW to grow strongly through 2018 before leveling off at around 50% of the plug-in EV market.
Honeywell Global Turbo Forecast projects 49M turbocharged vehicle sales, $12B revenue per year by 2019
September 30, 2014
The automotive turbocharging industry will generate $12 billion in revenue by equipping 49 million vehicles with turbochargers annually by 2019, according to Honeywell Turbo Technologies’ 2014 Global Turbo Forecast. The continued growth of turbocharging technologies will be driven by requirements for manufacturers to meet global environmental emissions regulations and bolstered by strong demand in emerging markets.
Automakers are turning to downsized turbocharged engines to satisfy more stringent global fuel economy and emission regulations and customer demand for better-performing vehicles. Turbochargers can help downsized engines improve fuel economy as much as 20 to 40% in gasoline and diesel engines, respectively, when compared with larger naturally aspirated engines and still provide the same or better engine performance. In addition to improving fuel efficiency, downsized turbocharged engines also reduce harmful exhaust emissions.
EIA projects world liquid fuels use to rise 38% by 2040, driven by growth in Asia and Middle East; transportation 92% of demand
September 10, 2014
World petroleum and other liquid fuels consumption will increase 38% by 2040, spurred by increased demand in the developing Asia and Middle East, according to the Reference Case projections in International Energy Outlook 2014 (IEO2014), released by the US Energy Information Administration (EIA). Those two regions combined will account for 85% of the total increase in liquid fuels used worldwide over that period, said EIA Administrator Adam Sieminski.
IEO2014 projections of future liquids balances include two broad categories: crude and lease condensate and other liquid fuels. Crude and lease condensate includes tight oil, shale oil, extra-heavy crude oil, field condensate, and bitumen (i.e., oil sands, either diluted or upgraded). Other liquids refer to natural gas plant liquids (NGPL), biofuels (including biomass-to-liquids [BTL]), gas-to-liquids (GTL), coal-to-liquids (CTL), kerogen (i.e., oil shale), and refinery gain.
Lux: Tesla likely to miss 2020 vehicle target by >50%; Gigafactory to bring only modest reduction in costs, >50% overcapacity
September 03, 2014
Lux Research forecasts that Tesla Motors’ Gigafactory—the announced new 35 GWh lithium-ion cell production facility that is the target of hot competition between five states (earlier post)—will bring about only a modest reduction in Li-ion battery costs and create significant overcapacity, given likely Tesla EV sales in 2020 of less than half of the company’s targeted 500,000.
Tesla and its partner, Panasonic, will contribute about 45% and 35%, respectively, of the initial $4 billion required to build the Gigafactory, proposed to go on-stream in 2017. Lux Research’s new report—“The Tesla-Panasonic Battery Gigafactory: Analysis of Li-ion Cost Trends, EV Price Reduction, and Capacity Utilization”—projects sales of some 240,000 Tesla cars in 2020, leading to razor-thin margins to Panasonic and 57% overcapacity.
Navigant forecasts global road transportation energy consumption to increase 25% by 2035; 84% from conventional fuels
July 28, 2014
In a new report (Transportation Forecast: Global Fuel Consumption), Navigant Research forecasts total road transportation energy consumption will grow from 81.1 quadrillion Btu in 2014 to 101.7 quadrillion Btu in 2035—an increase of 25.4%. Approximately 84% of that will be provided by conventional fuels. The United States is currently the largest consumer of energy in the road transportation sector, with nearly 23.1 quadrillion Btu projected to be consumed in 2014.
Navigant also projects that investments in alternative fuel and fuel efficiency improvements will reduce annual energy consumption in the United States year-over-year. Most developed countries in Western Europe and parts of Asia Pacific will also exhibit similar decreases in energy consumption. In contrast, energy consumption will grow in developing regions, particularly in Eastern Europe, Asia Pacific, Latin America, and the Middle East & Africa. Brazil, Russia, India, and China (the BRIC nations) will represent the largest increases, as the percentage of global road transportation energy consumed by these nations is forecast to grow from 20% in 2014 to 36% in 2035.
Navigant forecasts 40% of new vehicles in 2030 will have some form of autonomous driving capability; 75% by 2035
July 11, 2014
In a new research report (“Autonomous Vehicles”), Navigant Research forecasts that by 2030, about 40% of new vehicles sold will have some form of autonomous driving capability installed. The company expects this to increase to 75% by 2035.
Although the first vehicles with some self-driving capability will come to market in 2020, Navigant said, it expects it will take another 5 years before volumes become significant. By 2030—if the recent proposed changes to the Vienna Convention (which would allow autonomous vehicles with a driver control override) are approved—Western Europe will be slightly ahead on first implementation, but the much larger automotive markets in Asia Pacific and North America will eventually lead, according to the research firm.
Navigant forecasts MHD vehicle market to nearly double by 2035 with declining share of conventional engines; gases win out over electricity
July 07, 2014
The number of medium- and heavy-duty vehicles (MHDVs) in use worldwide will nearly double between 2014 and 2035, according to a new forecast report by Navigant Research. Navigant projects that annual MHDV sales will grow throughout the forecast period at a compound annual growth rate (CAGR) of 2.4%.
Alternative fuel vehicles (AFVs)—including battery-electric (BEVs), plug-in hybrid (PHEVs), propane autogas (PAGVs) and natural gas vehicles (NGVs)—will grow from 5.0% of the market in 2014 to 11.2% by 2035. A majority of these AFVs will be NGVs and PAGVs. Vehicles running primarily on hydrogen and electricity will make up less than 1% of all MHDVs in 2035, according to Navigant.
Industry study finds lead-acid to remain most wide-spread automotive energy storage for foreseeable future; new chemistries continue to grow
May 28, 2014
|Overview of the three vehicle classes identified in the study, and their corresponding battery technologies. Click to enlarge.|
There would be a significant impact on the overall performance and cost of vehicles, plus an effect on targets for fuel efficiency and reduced CO2 emissions, if established battery applications were to be replaced with alternative technologies, according to a new study published by associations representing the European, Japanese and Korean automotive industry (ACEA, JAMA and KAMA); EUROBAT (the Association of European Automotive and Industrial Battery Manufacturers) and the International Lead Association (ILA).
The study, which provides a joint industry analysis of how different types of batteries are used in different automotive applications, concludes that lead-based batteries will by necessity remain the most wide-spread energy storage system in automotive applications for the foreseeable future.
Lux: 48 V micro-hybrid market will pass 7M vehicles in 2024; promising for LTO Li-ion batteries
May 26, 2014
According to a new forecast by Lux Research, the likely 48 V micro-hybrid market will exceed 7 million vehicles in 2024, with the first adoption year beginning in 2015 and more focused on premium vehicles, in which cost sensitivity in order to reach regulation targets without sacrificing performance is lower.
Europe will lead global demand with 2.6 million units sold in 2024, followed by the US and China. With 1.6 million units, China will be the third-largest market for 48 V micro-hybrids despite having a more attractive total cost of ownership than 48 V micro-hybrids sold in the US. This is due to stricter long-term regulations in the US as well as a greater need to ramp up fuel efficiency to catch up to regulations, Lux said. Europe will lead all other key markets in terms of adoption percentage, with 48 V micro-hybrids representing 11% of all vehicle sales in 2024, according to the forecast.
DOE to award up to $2M to develop supply chain, manufacturing competitiveness analysis for hydrogen and fuel cell technologies
May 22, 2014
The Energy Department announced up to $2 million to develop the domestic supply chain for hydrogen and fuel cell technologies and to study the competitiveness of US hydrogen and fuel cell system and component manufacturing. (DE-FOA-0000854) (Earlier post.)
This funding will support projects that focus on scaling-up the production of today’s hydrogen and fuel cell components and systems to commercial scale. Currently, these components and systems are being built using laboratory-scale fabrication technologies, but developing a robust supply chain to support mass production of these systems can enable the market for these technologies to grow. There are two topics of interest: (1) Facilitate the Development and Expansion of a Robust Supply Chain for Hydrogen and Fuel Cell Systems and Components; and (2) Analysis of US Hydrogen and Fuel Cell Manufacturing Global Competitiveness.
Navigant forecasts plug-in and fuel cell vehicles to be 2.5% of all vehicles in use in 2035; global parc of >2B vehicles
May 20, 2014
In a new report, Navigant Research estimates that nearly 84.1 million new light-duty vehicles (LDVs) will be sold globally in 2014, putting more than 1.2 billion vehicles on the world’s roads. The company forecasts that annual LDV sales will grow to 126.9 million in 2035, representing a compound annual growth rate (CAGR) of 2.0%. The number of LDVs in use worldwide will grow by 72.4% over the forecast period—i.e., to more than 2 billion vehicles.
Navigant forecasts that sales of conventional ICE vehicles will fall significantly over the period, experiencing a CAGR of -6.7%; the share of vehicles in use with conventional ICE powertrains will thus fall from 95% in 2014 to 45% in 2035. Navigant suggests that conventional ICE vehicles will be mainly supplanted by stop-start vehicles (SSVs), which will grow from representing fewer than 3% of vehicles in use in 2014 to around 45% in 2035. Hybrid-electric and natural-gas (HEVs and NGVs) will account for almost 8% of global share, while plug-in hybrid (PHEV), battery-electric (BEV), and fuel-cell electric (FCV) together will add up to almost 2.5% of the LDVs in use in 2035.
Lux Research: self-driving cars will lead to a $87B opportunity in 2030, but fall short of full Level 4 autonomy; software leads
May 12, 2014
|Software will capture the largest segment of the autonomous car market opportunity, according to Lux. Click to enlarge.|
In a new report—“Set Autopilot for Profits: Capitalizing on the $87 Billion Self-Driving Car Opportunity”—Lux Research projects that Level 2 self-driving will increase from about 3% of cars sold globally today to 57% in 2020, and 92% in 2030.
However, the firm also concludes, by that same year only 8% of new cars sold will attain the reasonable capabilities of Level 3 autonomy, and no Level 4 fully autonomous cars will be available. By 2030 automakers will be able to capture profits of about $9.3 billion from the emergence of autonomous vehicles, making this new technology an alluring proposition. Level 3 autonomy will be a premium option, opening the door to business model innovation if automakers hope to deploy it beyond some high-end vehicles.
MIT study: higher octane standard fuel in US could lower fleet fuel consumption & GHG an extra 4.5-6% by 2040
April 24, 2014
Offering a higher-octane gasoline to the consumer market in the US as the standard grade could deliver an incremental 4.5% to 6% reduction in fleet fuel consumption and greenhouse gas emissions by 2040, on top of a projected 26.8% reduction by then in the baseline case (i.e., without higher octane fuel, but with other projected vehicle and powertrain technology improvements), according to a new analysis by a team at MIT. For their paper, the team proposed a 98 RON gasoline—currently the US premium grade—as the new standard fuel. In other words, they proposed making the current premium fuel the new standard grade.
The analysis by Eric Chow, John Heywood and Raymond Speth, presented as a paper at the recent SAE 2014 World Congress, seeks to quantify the reductions in consumption and GHG if new vehicles designed to use the higher-octane fuel were deployed. Raising octane reduces engine knock constraints, enabling the design of new spark-ignition engines with higher compression ratios and boost levels. This leads to improved engine efficiencies and the sought reductions. (Earlier post.)
Navigant: US to remain largest national plug-in vehicle market over next 10 years; Tokyo to take metro market lead spot from LA
Navigant Research forecasts that the United States will remain the largest national market for light-duty plug-in electric vehicles (PEVs) during the next 10 years, with LD PEV sales exceeding 514,000 in 2023. Currently, North America is the strongest market for light duty PEVs with nearly 100,000 sold in 2013, according to the market research firm. Japan is a distant second, with just under 30,000 sales, followed by the Netherlands (more than 23,000) and China (more than 17,000).
Navigant Research forecasts that the global LD PEV market will grow at a compound annual growth rate (CAGR) of 24.6% while the global market for LD vehicles will grow at a CAGR of only 2.6% during that period. Navigant Research estimates the US PEV market will grow at a compound annual growth rate (CAGR) of 16.3% between 2014 and 2023. Canada, which is about 1 year behind the United States in terms of vehicle availability, is expected to have a CAGR of 25.4%, reaching more than 66,000 vehicles in 2023.
IHS forecasts 11% rise in China automotive semiconductor market in 2014 due to safety and navigation features
February 26, 2014
|Click to enlarge.|
The fast-growing semiconductor market for China’s automotive industry is set for double-digit expansion in revenue this year, propelled by an increasing desire among Chinese car buyers for added vehicle safety features and helpful infotainment applications such as car navigation, according to a new report from IHS Technology (NYSE: IHS).
Chip consumption in 2014 by the country’s automotive industry will amount to $4.6 billion, up a solid 11% from $4.1 billion last year. This year’s projected revenue growth improves on the already strong 10% rise of the China automotive chip market in 2013, and three more years of similar notable increases will take place. By 2017, revenue will reach $6.2 billion.
Navigant Research forecasts 58% growth in global biofuels consumption by 2022; biodiesel and drop-in fuels gain market share
February 05, 2014
In a new report, “Biofuels for Transportation Markets”, Navigant Research forecasts that global demand for biofuels in the road transportation sector will grow from representing almost 6% of the liquid fuels market in 2013 to roughly 8% by 2022. Of that 8%, 8% will consist of advanced drop-in fuels, according to the research firm. Navigant forecasts that global biofuels consumption in the road transportation sector will grow from more than 32.4 billion gallons per year (BGPY) in 2013 to more than 51.1 BGPY in 2022—an increase of 58%.
Overall, Navigant forecasts that global retail sales of all liquid fuels for the road transportation sector will grow from more than $2.6 trillion in 2013 to more than $4.5 trillion in 2022 (73% growth).
IHS Automotive forecasts global production of plug-in vehicles to rise by 67% this year
February 04, 2014
|Global electric vehicle production forecast for 2014. Source: IHS Automotive. Click to enlarge.|
Driven by tighter emission standards in Europe, worldwide production of plug-in electric vehicles(PEVs)—including both battery-electric (BEV) and plug-in hybrid (PHEV) models—will increase by 67% this year, according to IHS Automotive, driven by Polk. The jump in the PEV market this year contrasts with an expected 3.6% rise in global manufacturing of all motor vehicles expected in 2014.
Total production of PEVs is projected to rise to more than 403,000 this year, up from slightly more than 242,000 in 2013. Growth will accelerate sharply from the 44% increase in 2013, based on data from the new IHS Automotive Hybrid-EV Portal. In December 2013, IHS projected total global automotive sales in 2014 of 85 million, roughly resulting in an expected approximate 0.5% share for PEVs in the global market this year.