How to Accelerate the Adoption of Electrification

This is a summary from the panel discussion of the same title by experts from Zapi UK, 4e Consulting, ZAPI GROUP, and Delta-Q Technologies at the Future of Electrification 2024 conference. Watch the full session here:

The panel unanimously agreed that the sudden rise of electrification has sent ripples through the world scene. Yet a closer examination of these secondary effects lends valuable insights to the industry’s big questions: what is driving electrification, and how can it be accelerated? 

Claes Avasjo, Executive Director of ZAPI GROUP, kick-started these discussions with an overview of electrification’s penetration across core markets. Avasjo’s prime example lies in the golf cart market, where roughly 80% of the existing total fleet is electrified. 

Avasjo further notes that light-duty electric vehicles (EVs) and machinery are reaching similar penetration levels, even in construction. At the same time, regional differences make it clear that there is still work to be done; Europe enjoys 90% forklift electrification rates compared to the global average of 70%.

Gareth Jones, Managing Director at Zapi UK, attributed this to Europe’s stringent emission standards. He continued by noting that while environmental regulation is indeed a key driving force, this creates a domino effect in the form of:

• Government incentives
• Heightened consumer demand
• Ethical pressure and corporate responsibility
• Technological advancement
• Increased market competition 

As these individual drivers feed into each other, Jones noted the results firsthand. From his experience, forward-thinking manufacturers intend to eventually phase out internal combustion engines (ICE) entirely.

Paolo Patroncini, Founder and CEO of 4e Consulting, weighed in on the barriers to this industry-wide adoption. Interestingly, he noted that while 86% of electrified commercial vehicles can cover their intended range, lack of knowledge regarding this fact often prevents buy-in. 

Patroncini went on to explain that, in addition to higher initial costs, lack of infrastructure and standardization are further pushing back against electrification. 

Avasjo agreed that many of these problems could be addressed simply by bringing in the right experts. Legacy OEMs are indeed experts—but only in the mechanics of diesel engines. Electrification brings entirely new considerations into the picture. Avasjo thus emphasized the importance of a holistic view, from initial design to aftermarket service.

This led to a discussion of the ZAPI GROUP itself: what is the group doing to accelerate electrification? 

Patroncini lent valuable insights into the ZAPI GROUP’s strategic approach to educating, engaging, and supporting customers. The group’s paradigm has shifted from component supplier to service provider, mitigating electrification’s barriers by delivering, not disparate products, but fully integrated systems.

Jones backed up this strategy with insight into the group’s legacy—that of strong, standalone companies with decades of in-house expertise. Avastjo highlighted the importance of partnership and integration, as seen in ZAPI’s close collaboration with battery suppliers.

Sarah McKinnon, Co-CEO and CFO of Delta-Q Technologies, summarized these points well by stating that the focus now is on providing solutions rather than commodities. 

The panel’s discussions next shifted to the financial drivers of electrification, such as governmental incentive programs offered in certain regions. While potentially game-changing for those already in the sector, Jones warned against blindly overreaching. Should the incentive stop, would the project still be commercially viable? Jones cautioned that such questions must ground OEMs when considering these programs.

Patroncini proposed that such incentives could hold value for OEMs with a rough framework of an electrified machine already in place. According to Patroncini, these financial programs might offer the boost needed to achieve ideal market timing.

Regardless of whether such programs are utilized, the panel agreed that adopting electrification significantly impacts business outcomes and profitability. McKinnon noted that companies enabling electrification are realizing better bottom-line results. 

These results are evident from the data, which shows a noticeable migration away from the oil and gas industries into clean energy sectors. McKinnon cited that 15% of the entire British Columbia workforce now operates in clean technology—a staggering figure considering the sector’s relative infancy.

Such statistics paint a promising future for electrification over the next decade. Even as alternative sources of sustainable energy emerge, such as nuclear power, the panel demonstrated confidence in an all-electric future. Patroncini, noting that global energy consumption is expected to grow by 60% between 2024 and 2050, reaffirmed ZAPI GROUP’s mission to ensure this consumption is as efficient as possible.

The message to OEMs considering electrification? Jones suggests a big-picture approach—brainstorming the entire machine lifecycle from infrastructure to aftermarket support. McKinnon likewise highlighted the value of suppliers and consultants such as ZAPI GROUP, who can provide a clear roadmap backed by in-the-field expertise.

Avasjo wrapped up with a reiteration of the skyrocketing adoption rates mentioned at the outset. Electrification is coming. Rather than deliberating the pros and cons of adoption, forward-thinking OEMs are looking for opportunities to thrive in the inevitable electric future.