Sustainability shifting component landscape, Automechanika Dubai Network hears

Sustainability shifting component landscape, Automechanika Dubai Network hears

The forecast by Vishal Pandey, Automotive & Mobility Practice, at Glasgow Consulting Group was delivered at the recent Automechanika Dubai Network, a one-day hybrid gathering of the Middle East’s biggest industry players who explored shifts in the global automotive aftermarket industry which is expected to be worth US$529.25 billion by 2028.

Pandey told the gathering that a focus on autonomous driving, connected cars, electric vehicles, and shared mobility is changing the supplier product mix with a new emphasis on e-motor technologies and battery innovations and a shift away from body exterior and engine systems, suspensions, and wheels. He pointed to a rise in new electric vehicle OEMs who are helping generate an uplift in sustainability.

“There’s no question that in the future, suppliers with more sustainable footprints will have an advantage in terms of pricing and margin,” he said while predicting that EVs could exceed 15% of the annual auto market in four years.

The sustainability focus, said Pandey, is likely to lead to new sector growth opportunities with the market for e-motor and battery management systems, battery and fuel cells rising by 42% by 2030.

However, Pandey warned that the sector’s sustainability will only be achieved through collaboration across the entire automotive value