Gartner Identifies 2023 as Crucial for Battery-Electric Vehicle Success

Gartner, Inc. predicts that 2023 will seriously challenge the commitment of both governments and the automotive industry in advancing battery-electric vehicles (BEVs).

One key issue is the steep increase in the prices of raw materials like lithium and nickel, which will drive up BEV costs and make it more difficult for original equipment manufacturers (OEMs) to close the price gap with traditional internal combustion engine vehicles.

As a result, BEV sales growth might slow down considerably or even come to a halt in certain markets, prolonging the time needed for BEV investments to become profitable. During this period, automotive CIOs can play a crucial role in helping their companies increase market share through technological advancements.

For instance, many established car manufacturers are trying to reinvent themselves as technology companies, but their existing corporate cultures have often impeded these efforts.

With the global demand for electric vehicles rising, Chinese companies are well-positioned to benefit from this growth due to their strong access to essential minerals and battery production capacity.

Gartner recommends that automotive CIOs focusing on EVs incorporate supply chain planning and visibility software to make informed decisions about sourcing critical materials and ensuring the resilience of essential supplies.

Gartner analysts estimate that by 2025, tech giants will control part of the operating systems in 95% of new vehicles. These tech companies are beginning to replace traditional automotive suppliers as the main providers of in-vehicle software, such as Google Automotive Services and Apple’s CarPlay.

They are also using their ecosystems to gain a larger share of the vehicle operating system market, illustrated by partnerships like Renault with Google and Volkswagen with Microsoft.

Additionally, several tech giants are directly engaging in the development, production, and sale of vehicles. Companies like Foxconn, Huawei, Alibaba, Xiaomi, Tencent, and Sony exemplify this trend.