What to expect in electrification: Ten trends for 2024

In February, the automotive industry gathered in Stockholm, Sweden, for the eCar Expo, the largest exhibition for new electric cars in Europe. Oskar Gibas Hjertquist attended the exhibition and here compiles a list of ten clear trends, poised to redefine the automotive aftermarket.

1. Industry impacted by macroeconomic uncertainty and increasingly weak households

The global automotive industry doesn't operate in a vacuum – larger macroeconomic trends have a significant impact. From trade wars to pandemics, uncertainty in the economic climate can mean consumer hesitation and slowed growth in the electric car market.

2. Vast differences in charging infrastructure in Europe

The lack of a broad and reliable charging infrastructure is a significant obstacle facing mainstream electric car adoption. In response, we are seeing vast expansions of public and private charging stations worldwide. Moreover, the development of ultra-fast charging technology will make electric cars even more practical.

3. Vehicle-to-Grid technology

Still in its infancy, this innovation is expected to allow electric cars to feed electricity back into the power grid. With the so-called Vehicle-to-Grid technology, vehicles can contribute to grid stability, turning the cars into mobile energy storage units.

4. Price wars leave distinct mark on the larger industry

Competition is heating up. To capture market shares, aggressive pricing strategies are being adopted. Manufacturers need to find new ways to differentiate their products, including superior tech, customer experience, and branding. At the same time, this price war puts pressure on the industry to innovate rapidly and reduce costs.

5. Battery concerns no longer seen as an inherent issue

The heart of any electric car is its battery. Consequently, advancements in battery tech are viewed as the primary driver for growth. Major breakthroughs in energy density, charging speed, lifespan, and cost-effectiveness of batteries are expected.

6. Second-life battery applications

Better handling of used batteries is an area ripe for innovation – and one of relevance for the automotive aftermarket. Rather than discarding old batteries, they could be repurposed for energy storage in the electricity grid. Here, vast environmental benefits can be found.

7. Electrification of public transit

Electrification is not confined to personal cars alone. Cities globally are heavily investing in electric buses, trams, and trains, effectively constituting an all-embracing approach to electric mobility.

8. Autonomous cars

The confluence of self-driving tech and vehicle electrification is anticipated to revolutionise transportation. Autonomous cars can reshape city landscapes by decreasing the need for parking spaces, reduce traffic congestion, and play a significant role in shared and public transportation.

9. Growth of electric trucks and commercial vehicles

The electrification trend is quickly spreading to the commercial segment. Big players are announcing electric pickup trucks, vans, and big rigs, adding a new dimension to the industry and providing more environmentally friendly logistics solutions.

10. Intensified sustainability efforts within the aftermarket

One of the most visible trends is the increased focus on sustainability. Realizing the critical role the aftermarket contributes to achieving longer product life cycles, there is an urgent need to rethink old norms and transform the aftermarket services. These changes could range from maximizing the lifecycle of electric car batteries, introducing environmentally friendly components, to further optimizing recycling processes.

These ten trends underscore the profound technological and societal shifts shaping our relationship with transport. As the drive towards electrification accelerates, both challenges and opportunities abound. MEKO is well positioned to keep pace with the rapid innovation and rising consumer expectations.