Vehicle telematics and electrification in india

VEHICLE TELEMATICS AND ELECTRIFICATION IN INDIA

Managing Director of DuckerFrontier’s Asia Pacific practice, Markus Pfefferer, recently moderated a panel at the TI Auto event in Pune, discussing trends and disruptions in the electric vehicle space in India. Gaining insights from local OEMs, service providers, and regulators, Markus shares some key takeaways from the event below.

Mobility behavior is beginning to shift in India and around the globe. With its large population clusters, a young demographic that is well connected to the internet, and rising incomes, India is expected to be a leader in shared mobility by 2030. Four technology-driven trends are driving change in the current automotive landscape, shifting markets and revenue pools:

  • Electrification
  • Shared mobility
  • Connectivity
  • Autonomous driving

Hybrid solutions and alternate fuels such as ethanol and CNG will also play a crucial role in the adoption of electrification in India. Alternative fuel does not require additional infrastructure resources such as charging stations, making it an accessible and scalable solution for both the Indian government and automotive companies. Overall, we see three key players who need to work hand in hand to facilitate the penetration of these trends in the market.

The government is a major driver for electrification in India and many other markets across the globe. Defining regulations on emissions and fuel efficiency, as well as exploring incentives and subsidies can support electric vehicle adoption. This in turn will help develop an ecosystem to support more sustainable forms of transportation.

Power, fuel, and charging infrastructure companies can utilize technology innovation to drive EV adoption. Finding solutions for faster charging infrastructure, providing stable power supply, and innovating business models through battery leasing, swapping infrastructure, and deploying fast chargers can enable easy and rapid charging for more widespread EV adoption.

The automotive industry is arguably the most significant driver of electric vehicle disruption in India. By changing the product and component mix, building the right talent pool, and improving the performance of batteries and electric vehicles, the industry can bring EV to life in a more scalable way. However, we have seen limited success in India with alternative vehicle technology thus far, highlighting the need for government support.

Ultimately, we expect a large uptick in all-electric, hybrid, CNG, or E20 compliant vehicles on the road in India post-2030. This shift will not only help environmental sustainability, but also allow the Indian government to minimize dependence on fuel imports.

DuckerFrontier’s Automotive team is at the forefront of key trends impacting the industry. Thus, our goal is to help clients deliver growth solutions to support critical business decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us here to connect with a team member.

Will bio-sourced materials change the way we insulate buildings?

WILL BIO-SOURCED MATERIALS CHANGE THE WAY WE INSULATE BUILDINGS?

While they’ve been around for many years, some bio-sourced insulation materials have grown in popularity recently thanks to their impressive properties—as well as their sustainability.

Ecologically conscious architects and construction firms are increasingly choosing bio-based materials over conventional alternatives, both for individual homes and for commercial premises. More traditional or familiar bio-based materials such as wood, hemp, flax, cork, algae or microalgae may seem like obvious choices. However, newer byproducts of these materials such as wood wool, wood fiber, wood foam, or even the chemicals that can be obtained from rapeseed oils or pine resins should remain in consideration.

The Advantages of Using Bio-based Insulation Materials

These products have all been promoted as “low-embodied” energy insulation materials—that is, they require less energy to create compared to more traditional varieties (e.g., glass wool, rock wool, PU-based insulation materials).

Bio-sourced materials present several advantages:

  • They have a limited environmental footprint
  • They come primarily from renewable resources
  • They can be recycled
  • They contribute to the reduction of carbon dioxide (through photosynthesis reaction, plants transform CO2 from the atmosphere into carbon and oxygen, which reduces the global stock of carbon dioxide in the atmosphere and thus global warming)

Some may be more commercially viable than others:

  • Wood foam insulation materials promoted by the German Fraunhofer Institute for Wood Research seem to have great potential to scale up across Europe. A variety of woods can be used, along with waste from other industrial facilities like sawmills. Wood foam is also lightweight and adaptable for a range of construction settings.
  • Hemp has the potential to rapidly scale upward. It grows quickly and is naturally resistant to bugs and bacteria, which means it can be cultivated without fertilizers. Hemp is durable and rot-proof, making it not only profitable, but also ecologically sound. France is the European Union’s largest hemp producer. Triballat, a French industrial company, recently built its IT offices from a wooden structure, using hemp insulation.

The use of bio-based insulation materials is growing. For example, bio-based materials are currently estimated at about 10% of the insulation market in France and their sales continue to grow by 10 to 15% per year.

They are used mostly by building owners who wish to make a sensible ecological choice, while taking advantage of the specific basket of performance benefits provided by these materials. For instance, wood fiber is often used in the production of suspended ceilings in Scandinavian countries. These materials also tend to be lightweight, easy to install, and durable.

What the Future Holds for Bio-based Insulation Materials

The increasing use of bio-based insulation materials is attributed to five main factors:

  • Thermal performance
  • Fire resistance
  • Contractor training
  • Material cost
  • Regulation that pushes toward increasingly low-carbon construction

Some wood fiber insulation materials achieve thermal conductivity performance (0.036 W/(m.K) – Pavatex of Soprema group) practically identical to that of mineral wool.

The acoustic rating of the new bio-sourced insulation surpasses most other materials, but not much—if anything—is currently gained in the areas of thermal performance and fire resistance. To convince contractors to give the new materials a chance, it’s essential to focus on the ease of installation and other benefits through communication and training.

Regulations vary from country to country, and must be understood and followed. In 2014, a group of US architects, public health advocates, and scientists asked the International Code Council (ICC) for an exception to the International Green Construction Code. It wanted to use bio-based insulation materials—without added flame retardants—in areas where fire risks are very low. However, a demand like this can be extremely complicated in this very regulated market.

Finally, the cost of sustainable materials needs to be more in line with competing traditional products. This adjustment depends partly on government support for sustainable forestry or hemp cultivation, but also on the expansion of the supply base, which remains limited today. If those challenges are met, Europe’s bio-sourced insulation industry may increase its share of the market.

Bio-Based Materials In Other Building and Civil Engineering Fields

Insulation is not the only area where bio-based materials are used. Today, manufacturers and end users in other segments of the building and civil engineering industry are looking for alternative solutions.

A large French civil engineering construction company (Eiffage) is starting to replace, in several pilot projects, traditional bitumen with a bio-based binder, obtained from Tail Oil , a byproduct from forestry and the paper industry process.

At DuckerFrontier, we believe that the use of bio-source in the construction industry is just beginning, and after a slow start, will experience high growth. The possibilities offered by natural materials in different forms, transformed mechanically or chemically, have yet to be completely explored.

Using exclusive research and an expansive network of industry professionals, DuckerFrontier offers market intelligence and consulting services that will help you navigate the emerging industry of sustainable insulation materials. Please click here to connect with a team member.

Duckerfrontier in sae international’s ‘automotive engineering’

DUCKERFRONTIER IN SAE INTERNATIONAL’S ‘AUTOMOTIVE ENGINEERING’

DuckerFrontier’s Chris Brower was recently quoted in Automotive Engineering, SAE International’s magazine publication, in an article titled, “Aluminum: Toward 50% Body Content.” Our automotive experts have spent more than two decades tracking automotive materials, from the raw material to the finished product, to develop a proprietary dataset that provides aluminum and steel usage in every vehicle type.

Steel and aluminum will continue to compete for market share in the next decade, but mixed materials are becoming increasingly more common as light-weight vehicles begin to dominate.

The emerging pattern has more aluminum added with each model changeover over a 10-15 year period until all closures are aluminum and at least 50 percent of the body is aluminum. This is a much different timing pattern than Ford exhibited on the F-150.

Steel, magnesium, CFRP and polycarbonate additions are critical. Aluminum BIW and closure parts, however, are the key to achieving both regulatory and OEM goals for vehicle improvements over the next 10 to 15 years.

To read the full Automotive Engineering article about the impact of aluminum on vehicle efficiency in 2020 and beyond, please click here and refer to page 28.

DuckerFrontier’s Automotive team is at the forefront of key trends impacting the industry. We are the premier provider of market, customer and competitive insights to Fortune 1000 industrial organizations. Thus, our goal is to help clients deliver growth solutions to support critical business decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us here to connect with a team member.

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On-the-ground insight: aia conference on architecture 2019

ON-THE-GROUND INSIGHT: AIA CONFERENCE ON ARCHITECTURE 2019

The building and construction industry is currently undergoing rapid change. Some of these changes include the shortage of skilled labor spurring the innovation of pre-fabricated products on construction sites. The rise in demand of pre-fabricated products is creating a network of smaller “smart” factories where pre-fab products are assembled off-site. The use of drones on site for thermal imaging, gathering real time actionable data, and mapping large areas is significantly more prevalent. In addition to drones, smart technology is increasingly visible throughout a construction site like Autodesk’s BIM technology that speeds up quality control inspection times, or the use of video from 360 cameras which decreases site visits and enables troubleshooting of work problems off-site. Although green construction is still viewed as a luxury in many ways, the demand for it from renters, commercial tenants, and home buyers is making it the expected standard. Pressure from within the construction industry and new regulation will only ensure its growth in the industry. Finally, pricing confusion will continue to be a challenge as a result of uncertain demand, trade-war tariffs, and project mix.

Earlier this month, DuckerFrontier’s Nick Limb and Peter Domingos attended the AIA Conference on Architecture in Las Vegas, Nevada. The theme of this year’s show was “Blueprint for a Better Future” and focused on how to design a better future while taking on the critical challenges facing our cities today. This exclusive three-day event included over 650 exhibitors, 50 networking events, and 500+ educational sessions ranging from workshops, seminars, tours and more.

In this short video, DuckerFrontier’s Managing Principal, Nick Limb, shares key takeaways from the show and highlights trends we are seeing in the building and construction industry. Some of these trends include:

  • Eco-friendly and energy-efficient building materials
  • Contemporary, elegant designs
  • Prefabricated products and systems
  • And more

To learn more about DuckerFrontier’s Building and Construction practice, please click here.

On-the-ground insight: transport logistic exhibition

ON-THE-GROUND INSIGHT: TRANSPORT LOGISTIC EXHIBITION

Last week, DuckerFrontier had the pleasure of attending the Transport Logistic Exhibition 2019 – the world’s largest multimodal logistics hub. This year’s exhibition focused on topics like the US-China trade war, driver shortage, the New Silk Road, and more. Over 2,300 exhibitors and 64,000 visitors from 125 countries attended the exhibition to discuss the major challenges facing the industry.

“We saw strong growth from China, where the number of exhibitors almost doubled by 30 new ones to 64,” Mr. Rummel stated. “Chinese companies are increasingly looking for cooperation partners in Europe as part of the Silk Road Initiative.” The driver shortage was also one of the dominant topics. In addition to more attractive working conditions, artificial intelligence could help in the long term; this should make logistics chains more transparent and efficient overall.

In this short video, DuckerFrontier Managing Principal, Jochen Kemnitz, shares key takeaways from the show and highlights trends we are seeing in the automotive and transportation industry, such as:

  • Digitalization
  • Urban mobility trends
  • Product innovation
  • And more

Event recap: global automotive lightweighting summit 2019

EVENT RECAP: GLOBAL AUTOMOTIVE LIGHTWEIGHTING SUMMIT 2019

DuckerFrontier Managing Director, Markus Pfefferer recently spoke at the Global Automotive Lightweighting Summit in Shanghai, China. He presented on global lightweighting trends across the entire auto industry, including the electric vehicle space. Here are the key takeaways from the presentation.

Global Trends

Global regulations are the largest driver for demand in lightweighting. We see three areas where regulations will demand compliance: powertrain, materials (body structures/chassis), and design/aerodynamics. Closing the regulatory compliance gap is a multi-step process:

  • Level 1: Material Substitution: One to one part/material substitution for closures, bumpers, knuckles, control arms, etc.
  • Level 2: Holistic Weight Saving Designs: Parts consolidation, multi-form & multi-material for subframes, front end modules, shock towers, door rings, etc.
  • Level 3: Aesthetic Elements: Glazing/glass, coatings, interiors, etc.

Ferrous materials in its various forms together with aluminum made up nearly 75% of the materials mix in the average 2018 light vehicle. When comparing material content from 2013 to 2018, the steel overall percentage remains consistent, while aluminum, polymers and other metals begin to gain share. Aluminum content takes some share away from iron content, while advanced high-strength steels (AHSS) content replaces mild steel. In some cases, AHSS replaces high-speed steel in applications where geometry and formability can be addressed with advanced grades of steel.

Structural vehicle dynamic control (VDC) shows the most promising growth trajectory in addition to sheet. While high pressure die casting (HPDC) and permanent mold/sand castings are declining primarily due to downsizing and some conversion to CGI (compacted graphite iron) for engine blocks, structural HPDC and extrusion applications show tremendous potential.

We expect that AHSS, UHSS and Gen3 materials will grow at a tremendous pace. Controlled deformation, high rigidity (limited deformation) and associated weights savings are the fundamental properties driving the growth and proliferation of advanced grades of steel.

Lightweighting in EV

Electric vehicle motivations vary by region, particularly across the United States, the EU, and China. In China specifically, EV incentives encourage material and technology upgrades. These incentives resulted in increased advanced battery technology, deliberate use of aluminum to increase range, and premium vehicle advancement for Chinese OEM.

Eventually, the cost and/or desirability of electric vehicles will reach the point where most other technologies, including mass reduction, will not be needed to reduce CO2 tailpipe emissions in non-electric vehicles and to increase the range of electric vehicles.

DuckerFrontier’s automotive experts have been at the forefront of industry trends for decades. We recently published an executive summary around the impact of vehicle electrification across the industry. If you and your company want to capture the exciting growth potential for your products and services related to lightweighting and electric vehicles, please contact our auto team.

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Duckerfrontier and real deals discuss transaction advisory trends

DUCKERFRONTIER AND REAL DEALS DISCUSS TRANSACTION ADVISORY TRENDS

Real Deals, the independent voice of European private equity recently interviewed DuckerFrontier’s Scott Ulnick, Managing Principal, Tom Bottomley, Commercial Director, and Martina Bozadzhieva, Managing Director. The interview covered DuckerFrontier’s work in transaction advisory with private equity and corporate clients and current trends in the space. Below is a brief recap from the interview. To read the full Real Deals article, please click here.

In the interview, our team discussed trends they are seeing in their practices across the globe and how we support businesses prepare for constantly shifting environments. We have seen an increased need for careful assessment of risks and opportunities in a highly global and uncertain environment. Political, economic, and social factors change faster now than they ever have before. Private equity has also become increasingly popular as PE fundraisings have increased. Funds now engage us to provide an initial pre LOI view on the potential target to differentiate their own bids.

Real Deals: Where would you say that you offer the most value to private equity? When are you typically engaged in a deal process and what work are you most often asked to produce?

Tom Bottomley: Most of our studies provide visibility of the complex supply chains: the end product use and prospects; the attitudes of the ultimate customers; and the market dynamics beyond the distribution chain. We are particularly strong in international projects in automotive, mobility, infrastructure, building products, materials, heavy equipment and industrials, where our multilingual capabilities, spread across three continents, is a significant advantage.

About DuckerFrontier’s Transaction Advisory Practice:

DuckerFrontier’s team utilizes the data, relationships, and expertise we have developed to provide fast access to markets in transactional situations. We cover commercial due diligence, M&A mapping and receptivity and growth consulting for private equity portfolio companies.

DuckerFrontier is unique in its proven methodologies. We leverage our datasets and work from previous projects along with significant primary research executed in timeframes clients need to make informed decisions. This allows our experts to provide clients with unique and high-quality insights they need to find the smartest ways to grow their business. To get in touch with a member of our team, contact us here.

Ipaf and duckerfrontier provide cutting-edge market intelligence

IPAF AND DUCKERFRONTIER PROVIDE CUTTING-EDGE MARKET INTELLIGENCE

For 10 years, the International Powered Access Federation (IPAF) has partnered with DuckerFrontier to conduct a detailed analysis of the Mobile Elevating Work Platform rental market. This rather stable, yet growing industry presents several opportunities – as well as barriers – for key industry players. Last year, IPAF and DuckerFrontier won a prestigious European Rental Association award for business intelligence for these reports.

An invaluable aid to the industry market they serve. The tables are clear and most importantly highlight, at a glance, significant deviations.” – The European Association Awards 2018, Judge’s Comment

DuckerFrontier examines these market dynamics within both Europe and the U.S., and provides key facts and statistics that will enable good decision-making and help senior management to plan for future investments.  The 2019 rental market reports contain the most up-to-date information on the global Mobile Elevating Work Platform (MEWP) rental market. Covering 2008-2020, with a focus on 2018, they include:

  • 2018 MEWP rental market value and fleet size
  • Trends and dynamics over the period
  • Operational indicators (investment, age of fleet, application)
  • The fleet mix and evolution
  • Estimated size of the 2018 MEWP rental fleet worldwide, with a breakdown by region and by machine type
  • Ranking of construction and non-construction sub-sectors in the MEWP rental revenue
  • Return on investment/average payback period by equipment type

While Brexit uncertainty in the UK, and the US-China trade war and Presidential elections set for 2020 muddy the waters, markets are booming in Spain, Germany and the Netherlands, where MEWP rental grew very strongly in the past year, by 8-10%.

Through DuckerFrontier’s in-house research teams, numerous interviews were conducted in various languages from offices located in Paris, Berlin, the U.S. and Shanghai. Organizations interviewed included rental companies, national rental associations, manufacturers and various industry experts. Data gathered was compiled and analyzed by DuckerFrontier’s industry experts, utilizing fact-based insights, macro-economic figures and other industry information.

You can purchase a copy of the IPAF rental market reports here: www.ipaf.org/reports. If you are interested in learning more about DuckerFrontier’s solutions in the heavy equipment industry, contact us to speak with a team member.

ABOUT INTERNATIONAL POWERED ACCESS FEDERATION

The International Powered Access Federation (IPAF) promotes the safe and effective use of powered access equipment worldwide in the widest sense – through providing technical advice and information, through influencing and interpreting legislation and standards, and through its safety initiatives and training programs. It is a not-for-profit organization owned by its members, which include manufacturers, rental companies, contractors and users.

For more information on this research, or IPAF – who sponsored the project – please visit www.ipaf.org/reports. These reports are available to both members and non-members of IPAF, for purchase directly through IPAF.

Duckerfrontier in bloomberg – the reinvention of steel and electrification

DUCKERFRONTIER IN BLOOMBERG – THE REINVENTION OF STEEL AND ELECTRIFICATION

DuckerFrontier was recently quoted in a Bloomberg article titled, “The Reinvention of Steel Could Make Car Bodies 30% Lighter.” The move towards automotive electrification is gaining traction at an unprecedented scale. This is a trend our team has covered extensively over the past several months (read our latest analysis here).

Automotive OEMs, their suppliers, technology providers, and consumers alike have rapidly transitioned from finding barriers to now more than ever accepting the enablers with arms wide open. The move to electrification is not without its own set of challenges and road-blocks; however, OEM strategic plans along with just the right amount of regulatory push makes the road ahead meaningful.

For years, cars have actually been gaining weight, not losing it, adding about 880 pounds (400 kg) in the last two decades alone, according to automotive consultancy A2Mac1. Beefier beams and pillars for added crash protection and more amenities like power seats have been the main culprits, along with popularity of behemoth pickup trucks and SUVs.

But now tighter emissions rules are forcing manufacturers to consider dieting. Even in North America, where fuel efficiency targets are less ambitious than in Europe and China, the curb weight of new vehicles will drop about 7%, or 270 pounds, between 2015 and 2025, according to market researcher DuckerFrontier.

To read the full Bloomberg article about the reinvention of steel and electrification, please click here.

DuckerFrontier’s Automotive team is at the forefront of key trends impacting the industry. We are the premier provider of market, customer and competitive insights to Fortune 1000 industrial organizations. Thus, our goal is to help clients deliver growth solutions to support critical business decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us here to connect with a team member.

Event recap: sae international world congress experience

EVENT RECAP: SAE INTERNATIONAL WORLD CONGRESS EXPERIENCE

DuckerFrontier’s Director, Global Automotive Strategy & Advisory, Chris Brower, recently moderated a panel at the WCX™ World Congress Experience — in the beating heart of The Motor City — following a keynote address from Ken Washington, Ford Motor Company CTO and SAE International VP Automotive Sector.

Event Overview

The SAE International WCX is the “mobility industry’s most-anticipated annual event for forward-thinking engineers, executives, OEMs, suppliers, decision-makers, disruptors and the entire spectrum of the mobility-engineering field. The event spans three days of expert-led technical education, peer-to-peer networking, a technology-driven exhibit floor and global mobility solutions that are shifting the marketplace.”

The event was part of the 11th Annual Global Automotive & Mobility Innovation Challenge, now STEM.org Educational Research Accredited™ (SER). The theme of this year’s event and the panel addressed how mobility is progressing at a rapid-fire pace. Staying ahead of the curve means standing shoulder-to-shoulder with industry leaders who are transforming inspiration into action.

“While there is often a focus on detailed engineering, GAMIC finalists provide a broad set of applications and innovations from universities, national labs, incubators and other sources.  This panel took it a step further to provide a framework for the future,” said GAMIC co-founder, David Stout.

Presentation Takeaways

Brower moderated a panel of mobility innovators across the mobility ecosystem. He covered topics such as new capital investments, business model enablers, technology advancements and consumer trends influencing connected services. Participants included the following:

  • Steve Surhigh, Vice President of Automotive Cloud Solutions for Harman International
  • Ryan Kiley, Executive Director of Consumers Energy
  • David Welch, Bloomberg’s auto sector bureau chief – who is frequently published on topics involving technology and mergers & acquisitions.

The panel covered new business models and approaches to the EV outlook, such as distributed renewables, distributed battery storage, microgrids, smart cities, electric vehicle smart charging infrastructure, advanced energy management services and different monetization model consideration alternatives, including subscription vs. direct.

The discussion also touched on advancements in consumer electronics and telematics, operational challenges and governance, and automotive M&A activity. Panelists considered details ranging from early stage valuations to emerging and unseen B2B and B2C partnerships, as ‘mobility as a service’ models emerge across different global markets.

“Cars are no longer just transport vehicles, but integrators of technology, data centers, and parts of an intricate mobility network—which will only continue to advance over the next five years,” says Harman’s Surhigh. “The more partnership and collaboration amongst companies, the more seamless integration automakers can offer consumers, providing an opportunity for OEMs and Tier Ones to differentiate themselves from the pack.”

How are improvements in infrastructure, electrical grids and connected services enabling vehicle connectivity, safety and performance? What is the EV adoption outlook, and what are industry drivers and barriers? Are the emerging models generating more attractive returns to shareholders?

“Right now, carmakers, software giants and Silicon Valley startups are plowing billions into electric drive and autonomous software. There will be a few winners and possibly many losers, so the risk is big,” asserts Welch.

DuckerFrontier’s Automotive team is at the forefront of key trends impacting the industry. Our goal is to help clients deliver growth solutions to support critical business decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us here to connect with a team member.


About GAMIC:

The Global Automotive & Mobility Challenge (GAMIC) is an annual competition for early-stage automotive and mobility companies with emerging technologies. It was created to: identify innovative companies from around the world; cultivate new technologies and solutions; and accelerate their adoption into the automotive and mobility industries. Winners share more than $300K in commercialization acceleration services and cash, along with facilitated introductions to top influencers and decision-makers. At the GAMIC Finals during SAE WCX World Congress held at Detroit in April, attended by over 10,000 people including forward-thinking engineers, executives, OEMs, suppliers, decision-makers, disruptors and mobility professionals, participants get exposure to vast networking and connections opportunities.

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