Factors influencing the emergence of ClimateTech
Our planet’s dynamic, and diverse climate needs undivided attention – especially to make the ecosystem sustainable for all living organisms. Global experts have revealed grim facts about Climate Change. Here are a few to help you put things in perspective.
- Over a million species are at risk of extinction, many becoming extinct in just decades.
- The Arctic Sea ice is diminishing rapidly, with the summertime sea ice to be lost completely by the end of the decade.
- Carbon Footprints record a new high, along with record high global temperatures as a result.
- Energy insecurity that could cause job loss, poverty, social segregation, economic decline, and environmental degradation.
How does ClimateTech help?
ClimateTech – To combat the effects of Climate Change, ClimateTech is evolving as one of the most promising sectors. At the COP27 Summit, the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), which took place in Sharm el-Sheikh, ClimateTech emerged as one of the major highlights, making the planet a better place to live in.
What is the ClimateTech space made of?
- Solar Industry: Solar energy with time has become an economic engine and is continuously gaining momentum in the market. With the significant growth of the solar industry in the last few years, it is anticipated to further grow by 25% by 2025.
- Hydropower Industry: The technological advancements in this sector have been very consistent. The estimated size of the global hydropower market is anticipated to reach USD 371.8 billion by the end of 2030.
- Real Estate ClimateTech: A blend of real estate with climate tech and a mindful step towards harnessing real estate to reduce the environmental impact. Niti Aayog predicts that it is estimated to reach a market size of US$ 1 trillion by 2030, representing 18-20 % of India’s GDP.
- Electronic Vehicle Industry: The emerging hero in the climate tech space –Electric Vehicles have been a crucial innovation in reducing the environmental impact and developing sustainable living on the planet. The estimated size of the global electric vehicle market in 2022 was USD 208.58 billion, and it is anticipated to increase to over USD 1103.17 billion by 2030, with a projected CAGR of 23.1% from 2022 to 2030.
Subsets in the EV space
The battery-powered Electric Vehicle industry is coming up with diverse business models to support and encourage potential users to prefer electric vehicles over traditional modes of transportation.
- Battery Swapping model: In this arrangement, the consumer has the choice to pay a set cost to exchange the depleted battery for a charged battery. This model largely solves issues with battery dependability and charging speed.
- Charging as a Service: It is still a concern for a lot of nations to install charging stations and build a reliable charging network to support the OEMs (Original Equipment Manufacturer). A lot of entrepreneurs have joined the club to help strengthen the charging infrastructure.
- EV Financing: Financing is one of the most important factors for any business and EV financing space is still growing, wherein we could find very few players in the market who are aiding in making commercial EV ownership simple, affordable, and a risk-free proposition for customers through its unique ownership plans.
- Vehicle Manufacturing: Startups under this umbrella are manufacturing electric vehicles for further use.
- Mobility Solutions: Responding to the opportunity that India’s EV industry presents, many leading industry players are rapidly growing their market presence by offering competitive and economical mobility solutions to their customers.
How does the Indian Market fare?
- Increased Adoption of EVs: According to a report by BloombergNEF, the sale of electric vehicles in India is expected to increase to 5% of all new car sales by 2025, up from the current market share of 1%. The Indian government’s FAME II scheme, which provides incentives for the adoption of EVs, has played a significant role in this growth. Under the scheme, the government has allocated a budget of Rs. 10,000 crores (approximately USD 1.4 billion) over a period of three years to support the adoption of EVs in the country.
- Expansion of EV Charging Infrastructure: As of December 2021, there were around 2,400 public EV charging stations in India, with plans to set up more than 10,000 charging stations across the country by the end of 2023. The government has also proposed the installation of at least one charging station within a radius of 25 km on both sides of highways and roads connecting major cities and towns. This expansion in charging infrastructure is expected to boost the demand for EVs and further promote their adoption in the country.
- Increased Investment in EV Startups: According to a report by YourStory Research, the Indian EV market has attracted a total investment of around USD 2.4 billion between 2014 and 2021. In 2021 alone, Indian EV startups raised more than USD 700 million in funding.
- Development of EV-related Software and Hardware: Startups in India are developing a wide range of EV-related software and hardware, including battery management systems, motor controllers, and charging solutions. According to a report by ResearchAndMarkets, the Indian EV charging infrastructure market is expected to grow at a CAGR of around 40% during the period of 2021-2026.
- The emergence of New EV Startups: The Indian EV market has seen the emergence of several new startups in recent years. According to a report by Tracxn, there are more than 200 EV startups in India, with a majority of them focused on developing two-wheelers and three-wheelers.
Does India have the talent?
- Growth in hiring activities: EV space is believed to mark a growth of 108% in the headcount and will continue to hire folks who are passionate about the space and want to make an impact in the Electric Vehicle industry. The engineering function dominates the EV hiring followed by sales and other functions.
- Less dense talent pool: The talent pool density is less due to Electric Vehicle being a niche space wherein organisations want either a fresher who has learning agility and can be trained to deliver the organisational goals or professionals with great years of experience in the same industry so that they can bring value and network to the organisation. While we were helping our portfolios hire for their team, we noticed that the talent pool is either nascent or the resources are quite costly and it was important to maintain the balance.
- Government Support: The introduction of EVs to the market has received a lot of encouragement from both the Central and State governments. To support the objectives of increasing the use of electric mobility transport, numerous production-linked incentive programmes were launched by the government to establish a local manufacturing ecosystem.
- Acquisition & Acquihires to the rescue: While optimising costs, building a headstrong team of like-minded people, and enhancing manufacturing capabilities is becoming a concern for startups in the EV space. Our portfolios adopted a key strategy of Acquisition & Acquihiring that helped them touch every milestone with a strong team of competent people who joined them with rich and substantial years of experience.
- Diversity & Inclusion: While the automobile industry is very much male-dominated, founders in the Electric Vehicle space are trying to balance the ratio and become more inclusive. Founders from our portfolio companies are encouraging women to join the club and help them reach the sky. The data below can help you better understand the male-to-female ratio in our portfolio of EV companies –
| Companies | Male: Female |
| Euler | 116:13 |
| EPe | 31:3 |
| BatterySmart | 146:21 |
| Vecmocon | 23:1 |
| Yulu | 100:23 |
Hiring Trends in the EV landscape
As the Indian Electric Vehicle (EV) market continues to grow, so does the demand for skilled professionals to drive innovation and fuel expansion. The EV industry has become a hotspot for job seekers in recent years, with startups leading the way in attracting talent.
– Functions most hired for: The EV landscape in India is expanding at a rapid pace, and as a result, there is a high demand for skilled professionals who can help drive the growth of the industry.
– The functions in demand for both Tech and Non-Tech Domain are as follows:
| Tech | Non-Tech |
|---|---|
| Core Engineering | Operations |
| Product | Human Resources |
| Marketing | |
| Analytics | |
| Strategy | |
| Sales & Business Development |
– Roles most hired for: To cater to the growing demands of the EV industry, Indian startups are actively hiring for a variety of roles. Following is a list of roles that have been on the priority list for recruiters in the EV industry:
| Tech | Non-Tech |
|---|---|
| Full Stack Engineer | Field Operations |
| Product Manager | Central Planning |
| Embedded Engineer | Demand Generation Lead |
| Asset Safety Engineer | Marketing Communication Manager |
| HRBP | |
| Business Analyst | |
| Founder’s Office |
– The Non-Negotiables: Recruiters seeking talent for the Research & Design function in the EV landscape are emphasizing on the importance of prior industry experience or experience working with OEMs. This is primarily because this function requires a deep understanding of the technical aspects of the EV industry and a knowledge of how to optimize designs to create high-performing EVs. On the other hand, folks stepping into the industry which covers the Ops and financing aspects of the EV landscape should have prior experience working with a fast-paced startup. They additionally, should have been an active part of a scaling startup.
– Why should you work in the EV landscape?: The EV industry is in its infancy, which makes it a hub offering a level of stability and long-term growth. The rising demand for EVs and associated technologies is leading to a ten-fold increase in the industry’s size, driving up salaries and making the job market more competitive. The investors have further identified it as one of the top three industries with significant growth potential.
Hiring Trends in the EV landscape
The Electric Vehicle (EV) space presents an excellent opportunity to explore. With competitive salaries and opportunities for personal and professional growth, the EV industry is attracting top talent from diverse backgrounds. If you’re a candidate who wants to explore opportunities in the EV industry, you can connect with us at————–. Our team of recruiters can help you navigate the EV landscape and connect you with the right opportunities. Join the EV revolution today!