Circular Autos represent a new vehicle class; fully-electric, connected vehicles built from the ground up with renewable resources and embedded recyclability.
They could be the silver bullet to the disruption the automotive industry faces; digitalization and sustainability amid the ripple effects of the worsening economic outlook. Circular Auto is the embodiment of clean, safe, and convenient movement of people and goods. Read this report to learn about the Top opportunities from the shift to Sustainable Mobility.
This report unveils the top opportunities in the transition to sustainable, electrified, connected, and shared mobility.
Read this report to learn:
- How can Circular Mobility lead the automotive transformation to sustainability;
- What is the impact of emission regulations and policies for Sustainable Vehicles;
- Key technological enablers and the pace of innovation for Circular Autos;
- Trends in consumer sentiment;
- Strategies to accelerate the transition to Sustainable Mobility
- The evolving player Ecosystem: Leaders vs. Followers
- Emerging Circularity Hubs
Circular Autos can address environmental goals and digital transformation
Circularity and sustainability are becoming core parts of the strategic direction of carmakers and automotive suppliers due to emission regulations and climate policies, competition, and changing consumer needs.
Many passenger car brands are already fully-electric, such as Tesla and Polestar. Still, their shift to climate neutrality is underway, with Tesla not making a commitment yet while Polestar has set 2040 as the goal.
The VW Group is targeting net carbon neutrality by 2050 with a combination of strategies that include a fully-electric car mix, off-setting unavoidable emissions, and many more. The VW Group expects its BEV mix to account for 20-25% of sales by 2025, amounting to 2-3 million units, of which VW will amount to circa 1 million.
The latest update of Renault Group’s Renaulution plan will include creating a 360° circular economy company from the closed loop in materials to battery recycling, called “The Future Is NEUTRAL”, an industry-first, according to the French carmaker.
- BMW aims at a 1/3 CO2 reduction across its value chain by 2030. The Group wants to become climate-neutral by 2050.
- Polestar and Volvo have set 2040 as their net-zero commitment target. Hyundai and KIA have set 2045.
- Ford, VW, Mazda, Honda, Nissan, Toyota, and Isuzu have set 2050.
ZF, a major automotive supplier, is targeting net carbon neutrality by 2040. The company intends to incorporate sustainability as a unique selling proposition, from meeting the highest environmental standards in production to dealing with employees and being a reliable, ethical business partner
Regulations are the biggest driver of transformation to Circular Autos. CO2 fleet compliance and targets for PHEV/BEV sales are increasing the cost of compliance of Internal Combustion Engines and driving the introduction of PHEVs and BEVs.
With the proliferation of electric vehicles, regulations are concerned about the environmental and social impact of EV batteries. The European Parliament is working on an update of the EU’s battery directive to ensure that batteries can be repurposed, remanufactured or recycled at the end of their life.
But the shift to sustainability still faces adoption challenges
A plethora of technological innovations in electric vehicle batteries, business models for 2nd life and recyclability, and industry collaboration will be crucial for the shift from Low to Full Circular Mobility.
The lack of regulatory harmonization, the absence of global cooperation to develop common standards, and consumer awareness are roadblocks to overcome.
Who is it for? Essential functions that would benefit from our research
- R&D
- Innovation
- Regulators, Homologation
- Academics and researchers
- Strategy
- Market Intelligence
- Procurement
- Investment professionals
Table of Contents
1. KEY FINDINGS
1.1. Achieve economic growth and customer value by embracing Circularity
1.2. Leverage the countdown to zero-emissions, zero waste and better utilization
1.3. Capitalize on booming investment and innovation in technological enablers
1.4. Top Strategies to pursue in the transition to automotive sustainability
1.5. Innovative business models and the companies behind them
2. TOP OPPORTUNITIES IN THE TRANSITION TO CIRCULAR MOBILITY
2.1. Emerging business models in Carbon-neutral vehicle production and zero emissions
2.1.1. Opportunities in the evolving Circular economy of Batteries
2.1.2. Evolving Competition to build new Battery and Hydrogen Hubs
2.1.3. Rising demand for new talent in electric mobility and sustainability
2.1.4. The future of Green Hydrogen for automotive
2.2. Opportunities in the development of supporting infrastructure
2.2.1. EV charging network and Energy infrastructure
2.3. Opportunities in Sustainable materials
2.3.1. Opportunities in Bio-plastics
2.3.2. Alternate Leather
2.3.3. New applications for car interior leveraging Smart Glass
2.4. New business models in Circular Mobility leveraging exponential technologies
2.5. Secure and transparent supply chain and procurement
2.6. Emerging opportunities in the optimization of vehicle utilization
2.6.1. Alternatives to vehicle ownership for better vehicle utilization
2.6.2. On-demand Mobility: Car sharing, ride-hailing and micro-mobility
2.6.3. AMOD
2.7. Vehicle lifecycle: re-use, recycling, re-purposing
2.8. Circularity hubs
2.9. Opportunities for Aftermarket, Aftermarket and Vehicle Dealerships in Sustainable Mobility
2.10. Opportunities in Vehicle Manufacturing
3. PLAYER ECOSYSTEM: LEADERS VS. FOLLOWERS
3.1. Carmaker ranking on Sustainability
3.1.1. VW Group
3.1.2. Renault
3.1.3. BMW
3.1.4. Volvo
3.1.5. Hyundai and KIA
3.2. The transformation of automotive Suppliers and new entrants
3.3. Emerging Start-ups
4. IMPACT OF REGULATION, POLICY & HOMOLOGATION FOR SUSTAINABLE MOBILITY
4.1. China’s role in the adoption of circular mobility
4.2. USA policy
4.3. European Green Deal and “Fit for 55”
4.4. Mandates for emission reduction: ICE phase-out and powertrain electrification
4.5. Regulations for sustainability and recycling of electric vehicle batteries
4.6. Homologation and Type approval
4.7. The role of ESG ratings for automotive players
4.8. Automotive markets leading circularity and who is falling behind
5. TECHNOLOGICAL ENABLERS & THE PACE OF INNOVATION FOR CIRCULAR AUTOS
5.1. Technological solutions to key challenges
5.1.1. The future of Internal Combustion Engines: Phase out or re-purpose?
5.1.2. Innovation in Battery Technology for Sustainable Propulsion
5.1.3. Solid State Batteries to power new emission-free business models
5.1.4. The future of Hydrogen for automotive
5.1.5. Sustainable Fuels: Renewable Gas, Synthetic Biofuels and e-fuels
5.1.6. The role of new architectures and platform consolidation in Sustainability
5.2. Overview of key academic research and scientific publications
5.3. Trends in Patent filings across players and markets
6. INDUSTRY VIEWPOINT
7. TRENDS IN CONSUMER SENTIMENT
7.1. Changing preferences in cities
7.2. Digitalized commute and mobility planning
8. AUTO OUTLOOK: SCENARIOS FOR THE AUTO INDUSTRY’S TRANSFORMATION
8.1. The macro outlook
8.2. Automotive Megatrends: Digitalization, Urbanization and Sustainability
8.3. Recommendations for the transformation of the Automotive Industry
Companies Mentioned
- APTIV
- Audi
- BAIC
- Bentley
- BMW Group
- Bosch
- BYD
- CHANGAN
- Continental
- Daimler: Mercedes-Benz
- Denso
- FCA: Focus on Alfa Romeo, Fiat, Jeep, Maserati
- Ford
- Geely
- General Motors: Cadillac and Chevy-Cruise
- Great Wall
- Guangzhou Automobile Group (GAC)
- Hella
- Hitachi
- Honda
- Hyundai, KIA and Genesis
- Jaguar Land Rover
- Magna
- Mini
- Mobileye
- Nissan & Infiniti
- Porsche
- PSA
- Renault
- Renault-Nissan-Mitsubishi Alliance
- SAIC
- Subaru
- Tesla
- Toyota Motors: Lexus and Toyota
- Valeo
- Veoneer (Ex-Autoliv)
- Volvo
- VW & VW Group
- Zenuity
- ZF
