Siemens, the world leader in industrial manufacturing and technology, is speeding up its involvement in the electric vehicle sector, driven by the increasing demand for sustainable transportation. According to SNS Insider research, the world electric vehicle market is expected to be $491.7 billion by 2023 and over $1.5 trillion by 2032; this makes Siemens position itself among the key players in the ever-growing industry. By employing strategic moves like spinning off its EV charging business, furthering expansion on charging networks across Europe, and making investments in next-generation megawatt charging technology, Siemens is shaping the future of electric mobility. Moreover, the initiatives of Siemens are being brought by its company's core focus on ESG principles; therefore, its expansion in the segment of electric vehicles will not only bank its profits but also the sustainability and welfare of society.
In a major effort to bring in more momentum, Siemens stated it was to split off its electric vehicle charging unit, Siemens e-Mobility. According to SNS Insider, the global EV charging infrastructure market is forecasted to reach $199.25 billion by 2032, up from a CAGR of 25.5%. The spin-off provides Siemens e-Mobility with the strategic scope to exploit the massive potential of the emerging market and the growing demand for EV infrastructure.
It is a strategic move towards achieving the ESG goals for Siemens in general and in the environment. Creating and expanding charging infrastructure for EVs reduces carbon emissions directly, now that transportation accounts for some 15% of the greenhouse gases in the world, and the development of a robust EV charging infrastructure will be crucial in mitigating reliance on fossil-fuel-powered vehicles. By spinning off Siemens e-Mobility, the company ensures that this could now operate independently and solely concentrate on producing green infrastructure on long-term sustainability commitment.
This also supports the social aspect of Siemens' ESG framework, as the extensive charging infrastructure under development will make electric mobility accessible to a much larger population. As EVs gain increasing acceptance worldwide, it is critical to focus on a reliable and widespread network of charging for the democratization of clean energy transportation, better air quality, and cleanliness of cities around the world.
Europe is a global pioneer of electrification in mobility, and Siemens is said to be at the forefront of this trend. To further accelerate the growth of electrical vehicle charging infrastructure on the continent, the company recently formed a coalition with E.ON one of Europe's largest energy providers. This partnership aims to ensure easy access to fast and ultra-fast charging stations for the ever-increasing numbers of both EV owners and operators.
The region is poised to lead the way in the adoption of EVs, considering that Europe's electric vehicle sales grew by 44% year over year in 2022. As ambitious carbon reduction targets have been set by the European Union—55% reduction by 2030—across Europe, it needs widespread setting up of EV infrastructure. Siemens is helping this goal materialize by deploying more fast chargers across highways and cities to overcome one of the biggest fears that has crippled most EV drivers out there: range anxiety.
This meets the ESG focus of Siemens on environmental sustainability, investing in infrastructure for charging in Europe that will increase charging station provisions and thus enable a larger number of consumers and operators of commercial fleets to switch over to electric and directly help reduce carbon emissions from transport. Transport currently accounts for about 30% of total emissions in Europe. This move to increase public charging stations will further support some EU Green Deal requirements in installing fast chargers on highways every 60 kilometers by 2025.
The social implications of the work Siemens is doing are equally important. Expanding its EV charging infrastructure helps to encourage the use of cleaner vehicles that will reduce air pollution and improve public health in the main cities of Europe. This is particularly vital for countries that are desperately in need of reducing their air pollution since the direct impact of EV usage correlates with smog reduction and thus the quality of life.
Siemens is also dominating the heavy-duty transportation space, as well with its megawatt charging system technology for electric trucks. Electric trucks had not been taken on by heavy-duty long-haul vehicles that quickly because long-hauling requires powerful, fast chargers. Siemens' MCS can charge electric trucks in less than 30 minutes, a game-changer for the freight industry.
Megawatt charging is one of Siemens's latest innovations for the global commercial EV market. The annual growth rate of this market is estimated to be $315.80 billion by 2031. Electric long-distance transport has big carbon emissions at the moment; fast-charging solutions will help activate electric trucks on highways. The solution here will largely be technology, particularly that of Siemens MCS, to meet the stringent reduction levels set by global regulations to reach the kind of emission-reduction levels seen through the European Green Deal, which comes as part of its goal of increasing de-carbonization for freight transport.
This project is perfectly in line with Siemens' environmental commitments through its ESG framework. In electrifying commercial trucks, Siemens puts an end to one of the transport sector's major current sources of emissions. Trucks geared towards long-distance trucking today rely on diesel, which is a source of very high levels of carbon dioxide emissions. Megawatt charging systems will provide the needed infrastructure that supports large-scale freight transport electrification thereby eradicating significantly the carbon footprint of the sector.
That being said, some of Siemens' investments in electric trucking infrastructure have such a strong social impact. It is not only lowering emissions but noise pollution in urban areas, and headed to quieter cities and improving quality of life for the residents who live by main transportation routes. This technology is a fundamental step to a more sustainable and livable future.
The company is not only limiting its efforts for EVs in Europe. The other important market Siemens is investing in is India, as the country is moving very fast toward electric mobility. India's EV market is expected to grow at a CAGR of 49% between 2023 and 2030 and is estimated to reach $150 billion by the end of the decade. Siemens is expected to capture its share of this fast-growing market by investing in the infrastructure for EVs in India.
In May 2023, Siemens sold one of its divisions in India for INR 2,200 crores and acquired a local EV charging firm for INR 38 crores. That step will make it easier for Siemens to offer localized solutions meeting the Indian market's exact requirements, as that market seeks EV charging solutions to be both affordable and scalable. Investments in India also align Siemens with the country's ambitious FAME program to adopt and manufacture hybrid and electric vehicles - an extremely ambitious effort by a nation to curb the consumption of fossil fuel and to shift towards electric and hybrid vehicles.
Siemens's commitment to India is like its commitment on the global level to ESG principles; it supports the country in its fight against major environmental problems such as air pollution in large cities. The corporation would support an expansion of Indian electric vehicle infrastructure, thus making for cleaner mobility healthier public health, and lower emissions, especially in the most polluted urban areas of that country.
Siemens is also revolutionizing the landscape of electric vehicle production through its digital twin technology. According to the Definition, a digital twin is a virtual representation of a physical system. It allows manufacturers to simulate, test, and optimize the production process before finally deploying it in real life. It has played the role of a panacea for EV manufacturers as it reduced not only the time of production but also its efficiency and cost, and all these are at critical stages while scaling the production of electric vehicles.
Helixx, a commercial electric vehicle manufacturer, is utilizing the digital twin software from Siemens to build its production hubs. This collaboration will enable Helixx to optimize the same processes of manufacturing to make high-quality electric vehicles affordable in emerging markets.
Siemens' particular interest in the environmental dimension of ESG makes it fit well with digital twin technology. Digital twin technology minimizes waste in energy and materials when applied to production processes. This aligns with the circular economy and further elaborates on efforts toward meeting resource efficiency in manufacturing. This will position EV manufacturers to follow a stringent approach to the regulations imposed on the environment while also saving operation expenses.
The ESG factor remains dominant within the overall strategic strategy of the company. In this case, they form the backbone of the electric vehicle strategies Siemens uses. ESG shows that the initiatives toward electric vehicles remain deeply rooted within the principles of the principles rather than creating economic growth. It makes Siemens contribute to sustainable development and social well-being beyond mere economic driving growth.
Environmental
The company vows to cut carbon emissions through its growth in green technologies EV charging infrastructure and megawatt charging systems for heavy-duty vehicles. These technologies help combat the worldwide battle against climate change, especially in Europe, which has lofty ambitions for cutting carbon levels.
Social
Siemens is contributing to the emergence of clean cities, better air quality, and improved public health through the expansion of electrified mobility infrastructure and increased access to electric mobility. This effort toward localizing EV solutions in emerging markets like India proves its commitment to making sustainable transportation beneficial to all sections of society.
Governance
Siemens has been transparent and communicative in its governance practices, ensuring everything is in sync with the global sustainability outlook without undermining regulatory compliance. As a result, Siemens eMobility-spinning off its EV charging business will help the company provide more focus and accountability on sustainable growth.
Key Takeaways
• Siemens spun off the EV charging business, Siemens eMobility, to facilitate growth and support towards ESG goals of reducing carbon emissions and creating sustainable transport.
• Siemens to Partner with E.ON as part of the Doubling of EV charging infrastructure across Europe tied in with the EU Green Deal, this would facilitate transport electrification.
• Siemens' megawatt charging systems for the electric trucks, will revolutionize commercial transport by giving it speed in charging over some time, thus fitting the global carbon reduction targets.
• Siemens is investing in India's accelerating market for EVs to back its countrywide sustainability goals while supporting the FAME initiative.
• Company is putting in manufacturing engineering, and digital twin technologies from Siemens to optimize its EV-manufacturing processes with minimum waste through a circular economy.
Hi! Click one of our member below to chat on Phone
© 2024 All Rights Reserved by SNS Insider Pvt Ltd
