Bloomberg NEF projects that the market will hit the 5-million milestone as soon as March 2019. Around 42% of upcoming EV sales will take place in China, 26% in Europe and 25% in North America. One in six cars sold worldwide in 2025 will be electric.
The question is, how will manufacturers meet demand? How are they doing it now?
Industry 4.0: don’t be afraid
Less than 30% of manufacturing businesses worldwide are rolling out Industry 4.0 technologies at scale, reports the World Economic Forum (WEF). That’s not specific to the auto industry, but it does highlight that the majority of manufacturers are reluctant to embrace new technologies, whether because of fear of the unknown or the perceived capital needed to invest.
“We are a long way away from fully capturing the benefits of [Industry 4.0] in an inclusive and holistic way,” says the World Economic Forum. Indeed, we are. McKinsey is more conservative reporting that only 16% of manufacturers have an Industry 4.0 strategy in place.
EV manufacturers striving to tap into demand for their vehicles can not afford to tiptoe on the issue of technology, especially when many competitors are already on the ball, implementing Industry 4.0 to make operations efficient.
