In the wake of increasing global interest in electric vehicles (EVs), the Market Intelligence & Consulting Institute (MIC) has projected a substantial growth in the EV market for the year 2024, estimating a total of 17.31 million units, marking a significant 23.5% increase from the previous year. With a focus on the burgeoning EV sector, MIC anticipates a surge in the installation of public charging infrastructure, forecasting an addition of 960,000 DC chargers and 660,000 AC chargers in 2024, driven by supportive policies and the expanding EV ownership base.

Global xEV Market Sales Volume Forecast for 2024-2028

Note: xEV refers to BEV (Battery Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), and FCEV (Fuel Cell Electric Vehicle) for both passenger cars and medium/heavy-duty commercial vehicles.
Source: Marklines, China Association of Automobile Manufacturers (CAAM), IHS, International Energy Agency (IEA), International Organization of Motor Vehicle Manufacturers (OICA), compiled by MIC, April 2024.

According to MIC's industry analyst, Lucy Ho, the automotive sector is currently grappling with challenges such as competitive pricing pressures, uneven investment returns, shifts in supply chain dynamics, and the rising influence of Chinese carmakers. Ho foresees 2024 as a period of consolidation and adjustment, with traditional carmakers revising their strategies towards full electrification while new carmakers undergo restructuring to mitigate losses. Meanwhile, players in the information and communication technology (ICT) sector are adopting a cautious approach, awaiting further developments.

As the automotive landscape evolves, the integration of Artificial Intelligence (AI) is emerging as a pivotal differentiator. MIC highlights the early adoption of AI models in advanced driver-assistance systems (ADAS) and autonomous driving (AD) applications, enabling functionalities ranging from Level 2+ to Level 3 automation across highways, urban environments, and commuting scenarios. While Western carmakers predominantly focus on sensor fusion for highway-based AD, their Chinese counterparts are aggressively pursuing urban and commuting applications, aiming to operate without reliance on high-definition (HD) maps.

Furthermore, the fusion of AI with smart cockpits enhances human-machine interaction, offering a more immersive and intuitive driving experience. Chinese carmakers have made voice-based personal assistants a standard feature, with plans for widespread adoption of augmented reality (AR) heads-up displays (HUD) and biometric authentication. In comparison, Western carmakers are in the nascent stages of voice assistant development, emphasizing user privacy and security, while also investing in gesture control and AR HUD technologies.

Analyzing the AI-driven opportunities in smart vehicle applications, Ho identifies a growing demand for sensors, particularly for high-resolution visual sensing and millimeter-wave radar applications. Furthermore, advancements in computational power are enabling domain fusion, opening doors for original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers to enter the market. Lastly, the evolution of autonomous driving and AI models necessitates higher bandwidth, capacity, and stability in memory solutions, driving sustained growth in memory demand.

About Market Intelligence & Consulting Institute (MIC):

Established in 1987, Market Intelligence & Consulting Institute (MIC) is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in Taiwan. MIC offers comprehensive, integrated solutions and services across various industries, providing in-depth analysis, insights, and strategic recommendations to support businesses in their decision-making processes. With a dedicated team of industry experts and analysts, MIC strives to deliver actionable intelligence to our clients, enabling them to stay ahead in today's dynamic business environment.

To know more about this topic, please visit: Building a Collaborative Mobility Ecosystem, Exploring Development Opportunities for Affordable Electric Vehicles (pre-order), Product Development and Supply Chain Deployment of Leading Chinese Automotive Battery Supplier: CATL (pre-order)

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