Q&A: 2026 Trends & Expectations

As electrification continues to reshape the mobility landscape, industry leaders are rethinking how and where electric technologies deliver the greatest value. During a wide‑ranging discussion during the Current & Wave January webinar, experts explored how 2025 marked a shift from electrification for its own sake to solutions grounded in return on investment (ROI), efficiency, and real‑world original equipment manufacturer (OEM) constraints. Hybridization emerged as a dominant theme alongside a growing demand for compact, torque‑dense technologies like axial flux motors. 

Looking ahead to 2026, the webinar panelists highlighted advances in battery chemistry; data connectivity; integrated, drop‑in systems; and scalable manufacturing as key enablers of broader adoption. The conversation also examined how regulatory clarity, cost reductions, and new vehicle segments will influence market momentum. They also covered which verticals—from construction and agriculture to marine and military—are poised for the next wave of electrification. Together, these insights paint a pragmatic, optimistic picture of how electrified and hybrid mobility will continue to evolve.

As we look back on 2025, what in your opinion were the big trends that shaped the mobility market?

Hornyak: Without a doubt, the economics and benefits of electrification (and not just electrifying everything) is what’s on top of mind. In other words, the trend has moved to the green on a company’s balance sheet and profits/losses versus just supporting the environmental benefits at any cost. So, we’re also seeing a lot of hybrid-based applications, which are perfect for axial flux motors because thier power density and torque allow them to match fossil-fuel motors. And we’re seeing hybridization as a long-term solution and not just a stopgap.

OEMs are also leveraging existing platforms versus building ground-up applications. Building a ground-up application requires engineers to retool, redesign, and remanufacture. It’s a long and very expensive process. Because of this, many OEMs want to better take advantage of existing platforms, which again, puts limitations on space under the hood, which is great for axial flux motors, because of their smaller footprint and higher torque density.

Schultz: I agree with Steve in terms of the trend toward hybridization. It seems like for a time, hybrid systems were considered the least desirable option for moving into electrification. Initially, it was kind of an all or nothing mentality. Now, we’re seeing more OEMs looking to hybrid solutions that can help them take advantage of existing technology that they are familiar with while enabling better fuel efficiency, [decreased] emissions, and controls, certainly providing a lower cost solution for them.

One of the things that has become more critical at this stage is a packaged solution, the ability to deliver not just a single component that helps solve a problem, but a full package that allows for dropping into existing footprints. As Steve said, the ability to take an existing design and drop in a solution is becoming more desirable to the OEMs as they move forward.

Carney: The trend was hybridization in 2025. And the aspect of it that I noticed the most was the embrace of plug-in hybrids and the value of having longer range plug-in hybrids.

We saw more plug-in hybrids arriving with 50 miles of electric-only range versus what was typically the norm before in the 25-mile range. The longer ranges will encourage people plug them in more frequently. That’s been a problem: People haven’t been plugging them in. However, if you can plug it in overnight and get 50 miles on the charge, I think that will motivate people to be more likely to do that.

As well, we saw the announcements of sort of a blurring of lines between plug-in hybrids and extended range battery electric vehicles (EVs) where there’s an onboard gas-powered generator. Scout Motors, for example, announced that 80% of the orders for its electric, off-road vehicles are the extended range versions with an onboard gasoline engine.

Jensen: From my perspective, covering primarily the fluid power systems that are on a lot of vehicles, improving efficiency has always been important, but it’s been really emphasized now with the move to hybrid and electric powertrains and vehicles. We’ve seen an increased need to improve the efficiency of the hydraulic systems, which OEMs didn’t have to worry about when they were running off an engine. You’re able to achieve that efficiency with hydraulics using electric technologies, but it’s more about pairing the electric technologies with the hydraulics. 

One example is pairing an electric motor running a hydraulic pump with a hydraulic motor, like an axial flux motor. OEMs can get better speed, control, and efficiency out of that system and electrify the hydraulic system to help with efficiency gains and other aspects that OEMs want from their vehicles.

Moving into 2026, what do you think are the big topics and trends that can shape the mobility market in the year ahead?

Schultz: One of the things that we’re seeing is hybridization of even the hydraulic systems in vehicles and equipment. We’re seeing a shift to electromechanical systems and electrohydraulic systems. We’re going to see that becoming even more prevalent as we move into 2026.

Because there’s so much more efficiency that can be gained in terms of fuel, performance, and emissions reduction, it just makes sense. It’s also a fast way for OEMs to decarbonize as opposed to some of the more complex technologies that might be applied.

We’re also seeing a shift to technologies such as drive-by-wire systems and steer-by-wire systems, especially in some of the larger vehicles. This technology is migrating from more consumer-oriented vehicles into more commercial applications.

Again, we’re going to see a lot more demand for packaging of systems that is more of a plug-and-play opportunity to take advantage of the existing footprint and insert technology into the machines. That will help accelerate the adoption of electrification, not necessarily fully electric, but I think you’re going to see elements of electrification coming into more vehicles and equipment as we move forward into 2026.

Carney: One of the reasons that we’ll see electrification proliferating is that we will see the rise of lithium-iron-phosphate (LFP) batteries. They’re already the dominant battery chemistry in the Chinese market, and we’re going to see that spread to the rest of the world. [LFP chemistry] is getting more viable in terms of performance, and its price is more attractive.

More importantly, LFP batteries don’t use some of the problematic materials, like cobalt, that have ethical concerns and complicated supply chains. If OEMs can eliminate some of those risky elements that are used in the batteries, electrification will be more streamlined, practical, and feasible.

Jensen: Not just in the electrification/hybridization space but all over the industry is the use of data and connectivity to monitor the performance of systems. Connected systems keep an eye on that battery pack to know how much runtime is left, if systems are performing as they’re supposed to, or if maintenance is needed.

There’s more integration of sensors and software and all the components, liked hydraulics. Getting that information and keeping vehicle owners informed of how things are performing is critical for making the best use of that vehicle or machine.

Helping keep end users more productive and feeding into that efficiency aspect helps make sure that end users are getting as much use and efficiency out of something as possible.

Hornyak: I agree with everything that’s been stated, but what I want to amplify is just the speed of advancement of battery technology: lighter, smaller, faster charging, higher performing batteries. This is opening the market, whether it be full electrification, hybrid systems, or applications beyond what you would think about moving people. We’re seeing a lot of traction, pun intended, in motors and applications beyond just consumer vehicles.

We are not focused on that segment of the market perse. [Our primary focus] is off-road, commercial construction, marine, powersports, and premium automotive … lots of applications that combine the advances of the pure technology, as well as advances in batteries. Being able to get the cost more in line from an ROI perspective and getting the speed of charging increased have all helped facilitate advancing this segment.

There was a lot of discussion about the end of the U.S. federal tax credits for incentivizing EV purchases last year. With these credits gone, new questions are emerging about the clean energy propulsion market. What do you think will drive the adoption in 2026? 

Carney: One of the drivers of adoption in 2026 and beyond is the original motivating factor of electrification, and that’s the inherent benefits of electric drive. The costs were an obstacle to that, and that’s why we had those incentives and pulled forward some purchases before the expiration of those incentives.

Edmunds.com estimates that we had 7.5% EV market share in the U.S. in 2025, and that they estimate that it will fall to 6% in 2026, partly because those purchases got pulled forward.

But the inherent benefits of electrification are there, and as prices fall, that barrier drops, and people will start embracing electrified vehicles. I think the first step will be in 2026. We’ll start seeing more affordable EVs, the Chevy Bolt, the Nissan Leaf, Slate’s electric mini pickup truck, and Ford’s mini electric pickup truck. Those are going to be the kinds of vehicles that start driving mass adoption of electrification during 2026.

Hopefully, the market will grow from there as we start to phase in advanced technologies like solid-state batteries and axial flux motors and things like that to help bring the weight of vehicles down because after cost weight is another issue with EVs and if we can reduce the weight with smaller lighter solid-state batteries and smaller lighter axial flux motors then another couple of years will maybe be where we want to be.

Jensen: I agree with Dan. OEMs really need to show the benefits and help somebody’s ROI.
In some of these instances, like construction or agriculture equipment, the vehicle or equipment is being used for work. So, they need to have a business case for that.

When you electrify some of the systems including the hydraulics, sometimes there’s opportunities to rethink system architectures where things are placed or you might be able to eliminate some hydraulic hoses or other components which can help from the OEM’s perspective reduce their costs, which can trickle down potentially to the customer.

It reduces the amount of components you might need and just makes integration of systems a little easier as well. Some of those discussions and benefits could help from the OEM perspective and then potentially for the end user as well and help make the case for both sides of things.

Hornyak: It’s interesting when you look at this, and I agree with Dan, too, when he talked about more offerings that are price competitive. You always have to look at price and the benefit: do people like using these types of vehicles? Battery electric is just a better way to move things; it’s more efficient. It’s more effective, the torque is just crazy. The maintenance is virtually zero compared to fossil fuel engines, so it is a better way to move things.

What has been the hurdle in the past, and in some ways now, is the cost. Those are coming in line. As the price comes [down], as the fear of charging anxiety comes in line or using as a runabout versus a long trip, I think you’re going to see more people moving over into the electric space regardless of not having the tax credits anymore. It’s also kind of addictive. If you’ve gotten one and driven an EV, it’s very difficult to go back.

Schultz: Looking specifically at the commercial vehicle side of things for 2025, there was an anticipated pre-buy [because of] greenhouse gas emissions regulations that are expected to go into effect in 2027. As the administration changed, the U.S. saw a pullback in regulations, and there was a lot of uncertainty as to whether the EPA27 regulations were going to move forward. That has been clarified in the courts as of November, and now there is the expectation that fleets will start looking at investing in more efficient technology.

This also lends a little more certainty to the OEMs who were not sure what direction to head in terms of their solutions for the market. Now they have that certainty in place. They know that they can potentially move forward with 2027 models that have more efficient technology that includes perhaps electrification or hybrid systems that help propel that market. 

In general for 2026, the advancements that we’ve already been talking about (improved battery systems, better charging infrastructure, investment in solutions that help ensure faster and more cost-effective charging rates, and greater life cycle capabilities and cost effectiveness of the technology) are going to help drive electrification forward in the next 12 months and well beyond that.

Axial flux motors seem to have evolved from niche applications to more widespread adoption. What changed to make them more attractive to OEMs and consumers?

Hornyak: Axial flux motors have been around for a long time. They’re not new to the market. They’ve always been a very high-compact, high-torque, incredible motor and option, but they’ve been more bespoke and hand-built. This resulted in them being significantly more expensive than traditional radial flux motors.

So, the movement, and we’ve done this at Turntide, is to a scalable, componentized, highly configurable axial flux motor assembly that leverages patented automation and provides breakthroughs in value and performance, which helps drive cost down.

It will not be cheaper than the equivalent radial flux motor, but it doesn’t have to be. It’s also not double the price. You’re looking at maybe a 20% to 30% price premium to a traditional motor. The fact that you can fit these motors in spaces that you can’t fit the radial flux motors, the performance and torque benefits, and the lower weight benefits have really opened the market.

When you look at a hybrid engine, what you basically want to do is take the area for the [powertrain] and shrink the engine, and that leaves a little bit of space. In that little bit of space, OEMs will have to fit the electrification components.

Axial flux motors being wafer-like, think of them as the size of a 25- to 35-pound plate that you see in a gym or two of them put together, OEMs can put those in line, and they can torque match with the engine. They are a perfect match for hybridization, inline hybridization, and torque matching. Combining that with a reduction in price, we’re expecting to see a tornado of growth in axial flux motors and axial flux motor deployments this year. In fact, we’re predicting for Turntide alone probably more than 500% year-over-year growth in volume or possibly more.

Schultz: I don’t know if I have a lot to add to what Steve said. I think that there’s an increase in the need for power-dense, compact, weight-efficient solutions in the market. As Steve mentioned, hybridization is eating up a lot of space within an existing product design. So OEMs they are definitely looking for solutions that can help them fit more into the same package because otherwise they’re going to have that much more cost in new product development.

And so the ability to get that efficiency, increased efficiency, reduced size and space demand and also reduce weight in the overall package required for electrification. I think that’s going to be essential for a lot of OEMs going forward as they’re looking at trying to keep their equipment as cost effective for the end user as possible.

Carney: Just to repeat what Steve said about the manufacturing challenge: [Axial flux motors] are a technology that companies don’t have as much experience manufacturing in high volume as they do traditional radial flux motors. In the electrified technology industry, just the requirements for manufacturing at scale are very high. We’ve seen, for example, the recall of the Jeep 4xE because of a battery problem that resulted from a manufacturing flaw, just because it’s challenging.

The more experience that OEMs get, the better they’ll be able to do it at volume and at a reasonable cost. And there’ll be the ability for axial flux motors to come down in cost as that experience grows.
In addition, the packaging makes them very attractive. I think it’s almost coincidental that axial flux motor is almost exactly the size and shape of a traditional hydraulic torque converter with an automatic transmission, and you can just drop it into that same space.

And so you have no additional size there on the drive train side. You do still have to put the battery somewhere, but it’s a good solution.

Jensen: Anything that’s not going to take up a lot of space and can provide the power that is needed.

It needs to provide similar performance that is expected from a diesel or traditional diesel or gas-powered machine. This will help the uptake of any technology like an axial flux motor.

Can you discuss the vertical markets that are best suited for axial flux motors and any untapped growth opportunities?

Jensen: If OEMs want to design a hybrid setup or even go full electric, they will still need those hydraulics in there, being able to any vehicle machine that’s going to still rely on hydraulics, like an excavator, if you can drive the pumps and other components with an axial flux motor, I think that’s going to be beneficial.

One market that kind of came to mind was work trucks. vehicles like utility or bucket trucks where there’s a lot of work that I’ve been seeing at trade shows over the last few years. The truck needs to be stationary doing work but not idle the engine, which causes the loss of a lot of energy, noise, and emissions. But if you and have a setup where you’re lifting that boom for the bucket truck with electric power and not have to use the engine, that would be ideal. That still relies on a lot of hydraulics.

You can drive that with an electric motor and other technologies. Then the end user can save on operational cost and cut down on noise and emissions … so that’s an application where I could see maybe there’s some opportunities for the axial flux motor technology.

Hornyak: I think we are seeing a lot of applications in agriculture and construction.
Exactly what Sara was mentioning, that if there’s a way to prevent constant motor/engine idle leveraging electrification, where you can require some high torque to help drive the hydraulics, it is beneficial. We’re seeing a lot of applications like this, such as in street sweepers. There are lots of great applications out there that you may not think about.

Schultz: Marine is another application. This is an industry sector where, in a lot of cases, [end users] looking for hybrid or fully electric solutions, especially for import applications where there are restrictions on emissions and noise. Very often, operators are using a diesel engine, perhaps for while they are at full speed, but once they start approaching port, they move to an electrified mode to reduce environmental and noise concerns in more sensitive areas.

Something else that comes to mind is the waste industry, potentially something like a refuse truck, which experiences a lot of idling time, but must operate many functions while idling.

Carney: Within the passenger car market, and the segment that could emerge that would use electric motors as in-wheel motors, eliminating the entire drivetrain and putting an electric motor at each corner of the vehicle and freeing up all the space in the platform is possible.

It’s been something that’s been predicted and forecast for years. It hasn’t come to fruition. Lordstown Motors got close before they went out of business. 

One of the challenges with in-wheel motors is that the motor then is unsprung mass, which is undesirable. However, with an axial flux motor that weighs less, it makes it more practical to put the motor in the wheel and have the unsprung mass there. It’s not as much of a problem. So, I would see eventually the emergence of EVs that go with wheel motors instead of central motors to drive them and axial flux is perfect for that.

What are you most excited about in 2026?

Hornyak: I can go a lot of ways with that one. I joined Turntide about 18 months ago, and I was super excited about the opportunity to commercialize, componentize, and mass produce axial flux motors and axial flux motor electric drive units (EDUs). I saw that as a definite opportunity, a market trend, and a missing component in this space. This is particularly true for water-glycol-cooled axial flux motors because there is a player out there that focuses on high-performance, oil-cooled axial flux motors. I saw it as a massive opportunity.

I’m looking at it, and I’m super excited because it’s working. We’re seeing a lot of demand and market pull, and we’re seeing a lot of validation for the return on investment, their performance, and the ability to fit axial flux motors in a number of different applications that we dreamt about and are now seeing come to reality.

In fact, we have a program (we can’t announce it yet) but we’ve got a program with one of the largest manufacturers of vehicles in the world for commercial vehicles for an inline hybrid system. This project will be going through testing this year as well. I’m super excited about seeing what’s going to happen, what could happen, setting the foundation and then just watching it take off.

Schultz: Well, I’m excited because I think that we’re going to see some fun technologies being shown in the marketplace. We saw some interesting things come out of Bauma last year, which for those who aren’t familiar with bauma, it’s basically the world’s largest construction show that’s hosted every three years in Munich, Germany.

That show, we saw things as innovative as drop-in, full-packaged electric solutions. Systems that essentially are packaged like a motor that are capable of being dropped directly into the machine.
Perkins was one of the companies that showed that during bauma, showed it in an actual prototype machine that they’re partnering with OEMs to develop.

I think we’re going to see more and more solutions like that coming into the marketplace that are going to further enable OEMs to almost immediately move into electrification in a much more accelerated fashion.

I’m excited to see what we find out at CONEXPO coming up, which is basically the equivalent here in North America. I think that it’s going to be an exciting time because we’re seeing so many innovations coming through in terms of battery and charging technologies.

Autonomy is becoming much more prevalent in the markets that we’re looking at. We’re seeing actual on-road testing of autonomous vehicles happening as we speak. I think that there’s a lot of innovation that’s going on in the market, and it’s just very exciting to watch.

Carney: I’m excited about the prospect of the Slate $25,000 pickup truck. I want to get one. The sub $30,000 Nissan Leaf is a great value, but I think Slate has really found something with their stripped-down, simplified vehicle.

And you might wonder what’s the relationship between an inexpensive vehicle like that and axial flux motors. And it’s that a rising tide lifts all the boats. The more EVs that are on the road the more infrastructure there will be to support them and therefore the more demand there will be for vehicles that use axial flux motors as well.

Jensen: I’m just excited to see how the technology continues progressing and the different ways OEMs and system suppliers continue to bring technologies together. Covering the fluid power side, hydraulics, it’s always seen as this dirty, stagnant, not very innovative industry at times, but that it’s definitely not the case.

A lot of the hybridization and electrification have brought new opportunities for the industry to rethink how they set up systems, drive the hydraulics, and various things. It’s brought a lot more intrigue and interest to the industry.

People in the industry are always saying [that] it’s an exciting time to be in fluid power and all the industries we cover because there is just so much going on and so many different and unique ways to go about doing things. So, I’m just excited to see how it keeps progressing and evolving. It’s already changed so much in my decade plus career so far. I’ll be interested to see how it keeps going.

What makes axial flux motors more expensive than radial flux motors? Shouldn’t they ultimately be cheaper because they require less materials?

Hornyak: Yes, sort of, but one of the biggest cost factors for axial flux motors are the windings and the different configurations of the windings. To date, there has been a more manually intense process and very precise process to get that done in a way that is effective and efficient, whereas radial flux motor manufacturing is more attuned to simplified automation.

So we have actually solved that, or are in the process of solving that, with a patented process that allows for the automation of incredibly complex axial flux motor windings, which will radically decrease the human labor costs associated with putting them together.

What trends are you seeing around integrated, drop-in systems?

Carney: I can say that at the Munich Mobility Show this year, we saw a lot of displays from companies like Bosch and ZF.

Companies like that were showing exactly that. Magna has shown a lot of that as well, where they’ll have a system that is on their booth, that is ready to just bolt right in as a plug-and-play replacement for existing systems.

Hornyak: We’re seeing it componentize, but prepackaged EDUs. When I say componentized, I mean being able to configure axial flux motor EDUs. Also, in the future, if you have an issue with one, [you don’t have] to pull the whole thing out and replace the whole EDU. You can replace components.

Having whole, integrated EDUs that are out of box that you can drop in place is a trend but also having them designed and optimized for future-based performance of maintenance is important. We’re seeing a big trend towards that.

Expect lots of announcements from Turntide in axial flux based EDUs. Being able to integrate the motor controller along with the motor with third-party gearboxes and be able to get an EDU that’s pre-tested, pre-paired and being able to drop it in can literally take six to twelve months off of the development cycle for projects. We are seeing massive benefits in that, and in fact, we’re realizing those benefits as we speak in the field with speed to market.

Schultz: I’d just add that one of the big things is that [packaged systems] are reducing complexity for the OEMs. It’s helping them focus on the bigger picture of new product development, the issues that they should be concentrating on because they’re builders of machines.

They shouldn’t be concentrating on the little things that they need to be able to implement into those machines to make them function.

Jensen: From the fluid power side, you have a lot of system companies that are system integrators. They have that fluid power experience, and they’re learning a lot of the electrification technologies to help bring those together, making it so that the OEMs don’t have to focus on that. They can worry about the other things that they’re experts in.

As Becky said, in a lot of the smaller or small to medium sized OEMs, they just don’t have those engineering resources in-house to do that kind of work. These system integrators can use their different areas of expertise to bring the systems together and provide a full-fledged system that is easier to integrate and helps OEMs move along that electrification path however they choose.

What problems do customers still underestimate that Turntide ends up solving for them?

Hornyak: I think part of the underestimation is the fact that even with pre-packaged EDUs and already paired motors and motor controllers, tuning must occur. You don’t just drop these things in and off they go, optimized the second you put them in.

There is an underestimation of the fact that you’ve got to optimize the vehicle control unit (VCU) with the motor control unit, with optimizing battery, with optimizing the motor, with optimizing how it’s being controlled by the motor controller.

Even if they come prepackaged in an EDU, they still have to pair that up with the VCU. It takes some time. Now, that time has shrunken from months to weeks, but that is still a service that companies like Turntide and even some of the system integrators provide because we and they have done it many times. In some cases, it may be the first time an OEM’s team is doing it. 

Schultz: One of the things that seems to be a dominant part of conversations that I’ve had is the need to actually have a really good conversation with your suppliers.

OEMs needing to be able to communicate really effectively what the application is, their expectations, what they really need to get from the solution and what problem they have.

How do you communicate that most effectively to ensure that when you’re working with a partner? That’s what a lot of companies are becoming. They are becoming development partners in the process. Suppliers need to help OEMs better understand what [information] they require from OEMs, such as what are the problems that the supplier is trying to solve, and not just what component is needed.

I think that that’s a really essential part of product development, just being willing to share that kind of information, so you get what is going to be most effective for your own products, as well as solve the problems that OEMs have as well.