Traditional carmakers will certainly seek to sustain their existing advantages of automobile manufacturing in the development of EV businesses. It is by far a no-brainer for enterprises to join the global EV race to meet requirements of the battery and recharging systems. They can take the initiatives by integrating EV power management and ICT-related areas as the first step. In terms of the human-machine interface, smart cockpits, smart lighting, AR head-up displays, heterogeneous car screens and navigation systems are the immediate business opportunities. Considering self-driving requirements, EV industry players may cash in on business opportunities of ADAS, image sensors, driver assistance and decision-making system, and safety/cyber security system, etc.
GM CEO Mary Barra has noted self-driving vehicles will be the second mobile offices. Intel predicts that cities may save up to 250 million commuting hours in average a year after the widespread of self-driving vehicles. The market size for car apps and related contents could reach US$200 billion a year. We can imagine that EVs will occupy a pivotal position in the future smart city and smart transportation areas. What the new forces and traditional carmakers are vying for are not purely manufacturing benefits. Will the vision of software-defined vehicles be realized as practical services and influence our future life?
With V2X services connecting with EVs, the cars will be the third most meaningful living space next to our home and office. Individual needs are to be satisfied as a result of data analysis enabled by personalized service. EVs are excellent aids to energy conservation and carbon reduction and driving forces of new industries, ranging from energy storage to system integration sectors. We come to realize that personal information and life patterns that are connected to cars will also pose challenges to "national security" - now a major concern for many countries which are looking to exert more control on related services.
Tesla founder Elon Musk has predicted that Tesla's future business scale will be covering the automotive and energy industries. His energy business incorporates home solar systems and large battery storage devices. Volkswagen has also announced that it will develop its EV business and related digital technologies, funneling in EUR73 billion. Under VW's EV architecture, EV is positioned as the mobile energy storage device and VW will be transformed as a solution provider of digital mobility. The global battery storage market size is expected to reach US$11 billion by 2025.
More than 2,000 enterprises had joined the Foxconn-initiated MIH platform as of October 2021. Foxconn (Hon Hai) has achieved its goal at the initial stage, convincing the supply chain that MIH is all about sharing and co-creation.
(Editor's note: This is part of a series of analysis of Taiwan's role in the global ICT industry.)
