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What are the new electrical markets?

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The market for electric cars is in full expansion. According to the International Energy Agency, the number of electric cars in the world increased from 2 million in 2016 to 10 million in 2020, and this number is expected to reach 145 million by 2030.

This growth is fuelled by increased consumer demand for greener and more economical vehicles.

This market is not limited to motorized vehicles although they have been at the heart of discussions lately. In fact, the electric motors can be used in a variety of applications including airplanes, boats, drones, and industrial machines.

Electrical equipment such as household appliances and heating systems are also very promising in this market.

Suppliers are trying to follow this trend and develop new products and services in order to meet this emerging demand. LGC Industries wants to be part of this approach and to develop in these markets. To do this, LGC Industries is developing new products specially designed for electric motors and other applications that require cylindrical fasteners. We favor methods based oneco-design and on the respect of the CSR taking into account the carbon footprint of our products.

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What are the advantages of an electric vehicle?

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Buyers are often motivated by ethical and ecological reasons because these vehicles do not produce harmful exhaust emissions as gas-powered vehicles can. In addition, the electric vehicles are often more expensive to buy, but they cost less to use than internal combustion engine cars. They require less maintenance and the cost of electricity is generally lower than that of gasoline or diesel.

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A few figures

Combustion engine vehicles represent 60.6% of CO2 consumption related to transport in Europe

Combustion engine-powered vehicles are responsible for a large part of CO2 emissions worldwide, i.e. 6%, which represents a total of 2 billion tons emitted. By switching to electric motor vehicles, the emission will be divided 3 to 4 times, i.e. between 500 million and 1 billion tons of CO2 per year.

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What are the laws that favor the electrical market?

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The law provides for a ban on the sale of cars with internal combustion engines from 2040 in France. This means that all new cars sold from that date will have to be either electric vehicles, hydrogen vehicles, or other types of low-carbon vehicles. In addition, the LTECV (Energy Transition Law for Green Growth) also encourages the development of clean and sustainable mobility by supporting the installation of charging stations for electric vehicles and by encouraging the use of more sustainable modes of transport such as carpooling, public transport and active modes such as cycling and walking.

In the same vein, manufacturers are changing the scooter and bicycle market to make them efficient and electric in order to meet the LTECV.

It should be noted that the global market for electric motors was valued at 98.3 billion US dollars in 2020.

It is estimated that the global market for electric motors will reach a value of 169.1 billion US dollars by 2026, with a compound annual growth rate of 9.4% between 2021 and 2026.

Subsidies have been put in place in many countries to encourage people to switch from thermal to electric. In France, the government offers a bonus of up to €7,000 for the purchase of a vehicle with an electric motor.

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The challenges and opportunities of the electric sector

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The market forelectrical presents challenges for car manufacturers, especially in terms of production costs, battery performance and durability, and insufficient charging infrastructure. Manufacturers must also convince consumers that electric vehicles are a viable alternative to internal combustion engine vehicles, offering similar performance and adequate driving range.

However, this market also offers numerous opportunities for car manufacturers. Electric technologies offer significant advantages in terms of low CO2 emissions and lower operating costs compared to internal combustion engine vehicles. Manufacturers can also take advantage of fiscal incentives and subsidies offered by governments to produce electric vehicles.

According to a study by Bloomberg NEF, global electric car sales are expected to reach 10.2 million units by 2025 and 56 million units by 2040. The electric vehicle market is expected to reach $800 billion by 2027, according to a Fortune Business Insights study.

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Future prospects for these new markets

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Future prospects for new markets inelectrical are particularly promising, especially due to the continued growth in demand for electric vehicles. Indeed, consumers are increasingly aware of the importance of the energy transition and the need to reduce greenhouse gas emissions. Future innovations could also further drive the growth of these markets, with technological advancements such as more efficient batteries and faster recharge times. In addition, possible changes in regulations and public policies in favor of electric vehicles could also have a significant impact. With these positive developments, the new electrical markets are on track for a prosperous and sustainable future.

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Conclusion

In conclusion, the electrification of the automotive industry is under way and the new electrical markets present very promising future prospects. The auto show showed that automakers are committed to accelerating the transition to electric vehicles and offering innovative solutions to meet growing consumer demand. Technological advances are tangible proof that the automotive industry is on track for a sustainable future. However, to achieve this goal, it is crucial that public policies continue to encourage the production and use of electric vehicles. In short, the transition to electric vehicles is accelerating and new electric markets have enormous potential for the future of the automotive industry.

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