‍‍

What are the new markets for electric vehicles?

‍

The electric car market is booming. According to the International Energy Agency, the number of electric cars worldwide rose 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 increasing consumer demand for greener, more economical vehicles. 

This market is not confined to motorized vehicles, although these have been the focus of recent discussions. Indeed, electric motors can be used in a variety of applications, including aircraft, boats, drones and industrial machinery. 

Electrical equipment such as household appliances and heating systems also show great promise in this market. 

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

‍

What are the advantages of an electric vehicle?

‍

Buyers are often motivated by ethical and ecological reasons, as these vehicles do not produce harmful exhaust emissions as gasoline-powered vehicles can. What's more, electric vehicles are often more expensive to buy, but their running costs are lower than those of internal combustion engine cars. They require less maintenance, and the cost of electricity is generally lower than that of petrol or diesel. 

‍

Key figures

In Europe, combustion engine vehicles account for 60.6% of transport-related CO2 consumption.

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

‍

What laws favor the electric vehicle market? 

‍

The law provides for a ban on the sale of combustion-powered cars in France from 2040. This means that all new cars sold from that date onwards will have to be either electric, hydrogen or other low-carbon vehicles. In addition, the LTECV (Loi de Transition Énergétique pour la Croissance Verte) also encourages the development of clean, sustainable mobility by supporting the installation of charging stations for electric vehicles and encouraging the use of more sustainable modes of transport such as car-sharing, public transport and active modes such as cycling and walking.

In the same vein, manufacturers are upgrading scooters and bicycles to make them more efficient and electric, in line with the LTECV. 

The global market for electric motors was estimated at US$98.3 billion in 2020.

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

Subsidies have been introduced in many countries to encourage people to switch from internal combustion to electric vehicles. In France, the government offers a bonus of up to €7,000 for the purchase of an electrically-powered vehicle.

‍

The challenges and opportunities of electric power

‍

Theelectric vehicle market presents challenges for automakers, particularly in terms of production costs, battery performance and durability, and insufficient recharging infrastructure. Manufacturers also need to convince consumers that electric vehicles are a viable alternative to combustion-powered vehicles, offering similar performance and adequate driving range.

However, this market also offers numerous opportunities for automakers. Electric technologies offer significant advantages in terms of low CO2 emissions and lower running costs compared with internal combustion engine vehicles. Manufacturers can also take advantage of tax incentives and government subsidies to produce electric vehicles.

According to a study by Bloomberg NEF, worldwide sales of electric cars 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 study by Fortune Business Insights.

‍

Future prospects for these new markets 

‍

The outlook for newelectric vehicle markets is particularly promising, not least because of the continuing 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 stimulate growth in these markets, with technological advances such as more efficient batteries and faster recharging 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 electric markets are well on the way to a prosperous and sustainable future.

‍

Conclusion

In conclusion, the electrification of the automotive industry is well underway, and the new electric vehicle markets offer very promising prospects for the future. The Motor Show showed that automakers are determined to speed up the transition to electric vehicles and offer innovative solutions to meet growing consumer demand. Technological advances are tangible proof that the automotive industry is on the right track towards 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 gathering pace, and the new electric markets hold enormous potential for the future of the automotive industry.

‍