In the 13th edition of the Automotive Disruption Radar (ADR13), Roland Berger’s semi-annual industry study of disruptions in 23 countries, the Netherlands returns to second place behind Singapore. The Netherlands shares that position with China. In the previous edition, the Netherlands ranked fourth.

The Netherlands rose in the rankings thanks to its impressive advances in electrification. The number of shared vehicles is also high here, and there is a great deal of interest in autonomous driving technology. Singapore ranks first with its “new mobility concepts”, strong 5G infrastructure, and shared vehicle numbers. The Netherlands shares second place with China. China‚Äôs success is thanks to the large numbers of electric cars sold there: 60% of all new electric cars are sold in China. Researchers also point to its fast-growing charging network and progressive regulations for self-driving cars.

With the introduction of Chinese car brands NIO and BYD on the European market, the supply of electric vehicles is growing even more. There are few options in the lower price segment, however; this is where the sector’s biggest growth opportunities lie. BYD will soon launch a budget model called Seagull, and Tesla and Volkswagen also have plans for cheaper electric-powered models.

Electrification continues to be the main driver of change in the automotive sector. Regulations, such as bans or far-reaching restrictions on new fuel-engine cars, also have an important influence.

Also worth mentioning is the development of “functions on demand” (FoD), where consumers pay for a functionality in their car (such as seat heating or auto-pilot) on an annual or monthly basis. This represents an interesting revenue stream for automakers. For many consumers, willingness-to-pay depends on the functionality. Incidentally, of all the countries surveyed, the Netherlands seems the least open to this: 25% of the Dutch surveyed are not enthusiastic about this option.

The findings in ADR13 underscore the success and importance of innovation. Many of these originate in the Dutch automotive sector. The Automotive Innovation Awards give these innovations a stage.