Q&A: The Market Trends Driving Electrification’s Future

Growing demand for faster charging, changing vehicle platforms and expanding applications in energy storage are sparking new requirements for connection systems. In a recent podcast episode hosted by electronics distributor TTI, Aptiv Product Line Director Don Bizon discussed the market trends influencing electrification and the technologies helping industries adapt to those trends. Here are some key questions he addressed.

Is the EV market slowing down?

Despite discussions around an electric vehicle slowdown, global sales data tells a more positive story. In 2025, global EV sales reached nearly 21 million units, representing approximately 20 percent year-over-year growth compared with 2024. While some regions experienced faster growth than others, electrification continues to expand globally.

The dynamic market conditions in 2026 are influenced by infrastructure readiness, economic factors and policy changes, which can vary by region. While there may be short-term fluctuations, manufacturers remain focused on developing products and technologies that support the long-term trends favoring electrification.

How are OEMs responding to changes in the electrification market?

Many OEMs are adjusting their strategies. Some are extending existing vehicle programs while delaying others. Many are providing a transition path to battery electric vehicles by investing in hybrid and range-extended EV platforms.

Manufacturers are also exploring opportunities to improve economies of scale through markets such as battery energy storage systems [BESS], where existing battery technology supports applications beyond transportation. One thing the OEMs aren’t doing is sitting still, and neither are we.

How do these market shifts influence high-voltage connection system requirements?

Connection systems must perform in increasingly demanding environments. In range-extended EVs, for instance, engineers package both an engine and a large battery into a limited space. This places high-voltage connectors closer to heat sources and areas exposed to vibration.

As a result, connector temperature requirements are increasing from traditional 85° C ratings to 125° C and, in some cases, 150° C. Vibration requirements are also becoming more demanding, which creates design challenges for high-voltage systems.

What challenges come with higher temperatures and vibration?

Higher operating temperatures reduce the amount of additional heat a system can tolerate while carrying current. Engineers typically address this challenge by using larger cables, alternative insulation materials and connector designs that can maintain performance under extreme conditions.

At the same time, larger cables and heavier components introduce higher vibration loads. To ensure long-term reliability in harsh operating environments, connection systems may require more secure locking features, cable management strategies and terminal technology.

What role do high-voltage technologies play in energy storage?

Many BESS platforms operate at voltage levels similar to levels found in EVs, making automotive technology a natural fit for energy applications.

Energy storage systems typically experience less vibration than vehicles, but they share many electrical and thermal requirements. This creates opportunities to leverage common high-voltage technologies across multiple industries.

Additionally, emerging BESS providers are repurposing retired EV batteries into grid storage. These second-life solutions fill a growing need for rapidly deployable, modular systems, enabling grid operators to better integrate renewables or address peak demand.

What trends are affecting charging inlets and infrastructure?

One of the biggest trends is the ongoing evolution of charging standards. Multiple charging standards are currently used around the world, but SAE J3400, also known as the North American Charging Standard, is gaining traction and could reduce the number of charging interfaces OEMs need to support.

Faster charging is also changing inlet designs. Higher charging currents require larger conductors, which can create packaging challenges inside the vehicle. That’s making busbars more common, because they can fit into spaces where traditional cables are difficult to route.

Manufacturers are also showing interest in aluminum conductors as a way to reduce material costs. In addition, shielding and service of the inlet are more important, as high-voltage components are packaged closer together and OEMs look for designs that are easier to maintain throughout a vehicle’s life.