Technology Giants get Serious about EV plans as Massive Market Opportunity Beckons

Technology giants such as Baidu and Apple are increasing their focus on the EV market as a huge trillion-dollar opportunity beckons for companies as the automobile, or shall we say, the entire transportation industry makes a paradigm shift. Not only will new energy sources be used in this new paradigm (electricity, hydrogen) but the role of technology will become increasingly important as the transport vehicles become connected and autonomous.

Tesla has already upended the industry by using a massive amount of technology in its cars to create a differentiated advantage in the industry. Now Google, Apple, Amazon and others too want to get into this technology opportunity. Google has been toying with autonomous vehicles for quite some time. Apple has also announced big plans for self-driving vehicles. With its solid brand loyalty and a robust ecosystem, Apple can easily extend its dominance to the transportation industry. Apple already has some experience in totally disrupting the communication and the music industries with its iconic iPhone and iPods. A similar seamless premium experience in cars can also let Apple generate a new stream of revenues from a totally new unexplored market.

Baidu which is facing threats to its search monopoly in China is also looking at new markets to expand. The Middle Kingdom already has a thriving EV ecosystem and the biggest EV market in the world, thanks to government targets and subsidies. Baidu is entering a partnership with one of the largest car manufacturers Geely into making smart EV cars. Baidu wants to use its software and technology expertise to make a bid splash. The company already has built an ecosystem of suppliers and vendors under the Apollo subsidiary. With Geely’s manufacturing expertise, the company could become a dominant player in the market as well.