With automakers around the world releasing the latest electric models and investing in developing new technologies and building electric vehicle (EV) battery factories to drive the next generation of innovation, a bright future for electric vehicles is on the horizon. At the same time, government agencies are introducing a growing number of incentives and regulations that are creating significant momentum for consumers, the automotive industry and the environment in which they will be used.

Molex commissioned Dimensional Research to conduct the Innovation in Automotive Electrification survey in October 2021, interviewing automotive companies, Tier 1 or Tier 2 companies from North America, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC). ), automotive companies, Tier 1 or Tier 2 suppliers, and charging station providers.

The results of the survey further confirm that vehicle electrification is more than just a transition to electric motors. Consumer expectations for electric vehicles include the safety, value and convenience they expect from an electric vehicle, in addition to a different engine. As well as the unique driving experience, quiet ride, high performance and environmental friendliness that only an electric vehicle can provide.

Companies across the EV ecosystem understand that vehicle electrification is a complex undertaking that requires greater ingenuity, highly sophisticated engineering and fully integrated manufacturing collaboration to drive next-generation EV innovation. Our findings also reflect the need for greater collaboration between automotive OEMs and their suppliers to work together to design and develop new features that span the interior and exterior of the vehicle.

Opportunities and Obstacles

Respondents generally agreed that the top five features of EV innovation that received the most attention included: autonomous driving and driver assistance, safety, total cost of ownership, vehicle charging time and vehicle range. Interestingly, Tier 1 or Tier 2 suppliers indicated that the difficulty in their efforts was in improving vehicle range and recharge time, while automotive OEMs reported challenges in ongoing vehicle maintenance and innovation in autonomous driving and driver assistance features.

Overall, the results of the Molex survey reflect the accelerated pace of electrification and progress in the automotive industry. These strong developments are consistent with our experience of working in the electrification ecosystem. The industry is making significant R&D and capital investments, particularly in game-changing technologies like batteries and electronic powertrains.

The vast majority of respondents believe that vehicle electrification is on the cusp of a major breakthrough. At the same time, we recognize the ongoing challenges, all of which will require increased discovery research, investment and collaboration among practitioners.

Collaboration is critical

The accelerating pace of vehicle electrification is driving OEMs to change their strategies as automakers seek to gain greater access to advanced technologies and essential component supplies, according to market research firm Strategy Analytics. As a result, mainstream automakers are collaborating with battery suppliers, electric motor developers and semiconductor manufacturers to close the technology gap and gain advanced experience in these critical areas.

Our findings reflect the importance of collaboration, with OEMs indicating that they will work more closely with Tier 1 or Tier 2 suppliers as the best way to innovate. Likewise, suppliers are prioritizing collaboration and increasing R&D and capital investments to accelerate innovation with OEM partners. In particular, optimizing battery management to improve range, performance and recharge time is a common idea among companies.

Respondents indicated that while there have been successes with innovations in batteries, modules or packs, electric motors and powertrain electronics; the bigger challenges lie in improving controller units, wiring, connectors and busbars, and cameras and sensors. 92% indicated that as electrification intensifies, in-house design teams will face more challenges and obstacles.

Significant issues that need to be addressed include the risk of shock, vibration, loose or damaged circuitry, and safety threats related to thermal management and high currents. In-house design teams must also address battery pack lifecycle management and disposal issues. These industry realities create market opportunities for companies such as Molex to clear the way with their extensive experience in power control units.

Investment bank UBS predicts that electric vehicles will account for 20 percent of global new vehicle sales by 2025, with even better development by 2030, when market share is expected to reach 50 percent. As Molex's latest research confirms, the race to an electrified future for vehicles is accelerating. As a result, it is more important than ever for those involved in the EV space to keep their feet on the ground and work together to drive this important industry forward.

The global market has seen a significant increase in the number and category of various EV and HEV models (from compact cars to large pickup trucks). In addition, advances in batteries, power management and regenerative systems are increasing the range of EVs on a single charge to more closely match the range of gasoline-fueled vehicles after refueling. As the range of electric vehicles continues to increase, the concerns that have hindered the adoption of electric vehicles in the past continue to diminish. Moreover, as charging station networks expand and fast charging becomes more common, the "gap" between electric vehicles and internal combustion engine vehicles will narrow further, allowing electric vehicles to realize their tremendous growth potential.