Encompassing five mobility-related commercial opportunities, including power source, autonomy, connectivity, electrification, and space, KGI is set to kick off its Future Mobility Fund on March 1.
KGI indicates that carbon reduction and energy conservation policies have become a long-term global trend. As vast improvements take place in AI processing, network speed, and sensing technologies, emerging future mobility applications led by EVs have also taken the market spotlight, with rapid advancements in V2X and self-driving functionalities. Along with surging complexity of and demand for automotive electronics, the aforementioned advances have generated vast commercial opportunities in the burgeoning new energy industry.
Mr. Shao-Rong Feng, manager of the aforementioned Fund, indicates that companies gradually realized space flights for non-professional astronauts last year, and an increasing number of flying cars will emerge in 2022. Hence, the financial markets will have unlimited room for imagination with respect to mobility tools that are more energy-saving, intelligent, safe, and applicable across various industries’ demands. Through evolutions in transportations, Feng hopes to explore topics in future mobility with more long-term competitiveness.
Feng further states that the increasingly stringent policies regarding global environmentalism have compelled various countries to accelerate the development of their new energy industries. Within the next 20 years, NEVs will likely account for as much as 70% of sales of new vehicles worldwide, with a 40-fold increase in their sales volume. New energy sources are needed in various EV-related components, such as self-driving equipment, V2X, chassis materials, and flying movements. In this manner, cyclical, commercial ecosystem opportunities hitherto undreamt of will emerge as a result.
Governments and enterprises alike have been closely adhering to energy conservation plans. As such, all new cars sold in California and the EU are expected to be NEVs in 2035. Likewise, all new cars sold in China and Japan will also likely become NEVs. The ability to get a handle on transportation vehicles and business models pertaining to smart mobility and cost-savings will allow one to obtain a market-leading advantage.
Feng believes that most governments are still proceeding with a multi-prong approach regarding EV subsidy policies and infrastructure constructions in order to drive up the penetration rate of EVs. What’s more, as a means of improving the safety of these transportation vehicles, ADAS (advanced driver assistance systems) will likely become standard equipment in new EVs for sale. Feng estimates that 90% of new cars sold in the next 10 years will be equipped with ADAS, which will undergo accelerated growth.
According to MOEA data from January 2022, the introduction of Taiwan’s CAFÉ (corporate average fuel economy standards), an increasingly stringent set of standards, is expected to stimulate competition in the EV market, thereby driving up demand for various EV features, with ADS (automated driving systems) taking center stage in the industry.
Feng indicates that advancements in ADS functionality will also bring about an increase in demand for chips and sensors used in ADS equipment. While the market is bullish on a twofold growth in the per-car semiconductor value of ADAS, companies strong in fundamentals will possess long-term competitiveness. Going forward, the development of sea-, land-, and air-based transportation vehicles is likely to leverage charging and ADS equipment, equipment that will become parts of everyday life.
In the future, flying cars are expected to enter commercialization, and space travel as a means of transportation for the general public will also become likely. Likewise, transportation vehicles powered by new energy sources are set to become more commonplace, in turn driving investors to allocate some of their investments into future mobility while the trend is yet to undergo explosive growth. By doing so, one’s investment portfolio will be strengthened and be in line with the growth wave.
(Image: KGI)