When considering the trends facing our Industrials clients, at Citi Commercial Bank (CCB) we review the various Industrials sub-sectors in which our clients operate. These sub-sectors include Capital Goods, Automotives, Paper & Packaging, Transportation & Logistics, Metals & Mining, Aerospace, Building & Construction, or Chemicals. Over time, CCB has seen a new industrials ecosystem emerge, one in which the lines have blurred across the various Industrials sub-sectors and expands/overlaps with other industries. Let’s consider an example: The Mobility Ecosystem.
Industry data suggests approximately 30%- 40% of EV costs are batteries which involve both metal and chemical processes. Continuous innovation in battery technology has been critical to enabling the EV revolution. Increased energy density (longer vehicle range) and lower cell costs (consumer affordability) continue to drive the innovation landscape.
To accommodate, EV charging companies are investing in EV charging infrastructure which offers new opportunities for manufacturers of charging equipment. With the rising success of lithium battery in vehicles, trends show expansion to aircrafts as well – eVTOLs (Electric Vertical Take-off and Landing vehicles). The perspective of the air taxi will change how people travel in the future.
The other aspect of Mobility is technology, which has fundamentally changed the function of cars to be smart, connected, and shared. Citi Research estimates that by 2030, we can expect technology content to be 50% by value of a typical smart car. A smart car moves its passengers around without a human hand necessarily touching the steering wheel, and at the same time offers an in-journey array of entertainment choices. This will not only change the experience of individual consumers but also transform the Auto OEM (Auto Manufacturers) business model, as well as the overall transportation and logistics industry.
The entire Mobility ecosystem requires industry players across the specialized sub-sectors to work together towards building a more advanced future.
Because we serve clients across these sectors around the world, Citi Commercial Bank and our partners across Citi, have a unique view of this ecosystem. Our Industrials sector bankers understand the complexities of this ecosystem, as well as the opportunities and challenges clients in this sub-sector face. We can offer you advice and solutions so that you can make the most of the mobility ecosystem and, together, we can help build an exciting future.