New electric markets

‍What are the new "electric" markets?

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The electric car market is expanding rapidly. 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 motor vehicles, although they have been at the focus of discussions in recent years. Electric motors can be used in a variety of applications including aeroplanes, boats, drones, and industrial machines.

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

Suppliers are trying to follow this trend and develop new products and services in order to meet this emerging demand. LGC Industries wishes to take the same approach and develop into these markets. To do this, we are developing new products specifically designed for electric motors and other applications that require cylindrical fasteners. We favour methods that are based on eco-design, respectful of our CSR policies and are mindful of our products' carbon footprint.

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What are the advantages of an electric vehicle?

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Electrical vehicle buyers are often motivated by ethical and ecological reasons, since such vehicles do not produce harmful exhaust emissions as gas-powered vehicles do. Although electric vehicles are often more expensive to buy, 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 petrol or diesel.

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A few key figures

Combustion engine vehicles make up 60.6% of transport-related CO2 consumption in Europe

Combustion engine-powered vehicles are responsible for a large share of CO2 emissions worldwide - 6% to be exact - for a total of 2 billion tonnes of emissions. By making the switch to electric motor vehicles, the emission could be divided by 3 or 4, i.e. between 500 million and 1 billion tonnes less CO2 per year.

What factors are favouring the development of the electric market?

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The European Union plans to ban combustion engine cars from 2035 onwards. This means that all new cars sold from that date will have to be either electric, hydrogen, or other types of low-carbon vehicles. Moreover, in France for example, laws have been put in place to encourage the development of clean and sustainable transport options, supporting the installation of charging stations for electric vehicles and encouraging people to adopt more sustainable modes of transport such as carpooling, public transport, cycling and walking.

Similarly, manufacturers are changing the scooter and bicycle market to make them electric and increase their efficiency in order to meet new environmental standards.

It should be noted that the global market for electric motors was estimated at $98.3 billion USD in 2020.

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

In many countries, subsidies have been put in place to encourage people to switch from combustion to electric. In France, the government offers €7,000 in financial aid to those purchasing a vehicle with an electric motor.

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Challenges and opportunities with electric vehicles

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The electric vehicle market brings with it new challenges for car manufacturers, especially in terms of production costs, battery performance and durability, and a lack of widespread charging infrastructure. Manufacturers also face the challenge of convincing consumers that electric vehicles are a viable alternative to internal combustion engine vehicles, offering similar performance and adequate range.

However, this market also offers many new opportunities for car manufacturers. Electric technologies allow for low CO2 emissions and lower operating costs compared to internal combustion engine vehicles. This means that in some cases, manufacturers can benefit from tax incentives and government subsidies to produce electric vehicles.

According to a study by BloombergNEF, 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 be worth $800 billion by 2027, according to a Fortune Business Insights study.

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Future prospects for new electric markets

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Future prospects for new electric markets are particularly promising, especially due to the continued increase in demand for electric vehicles. Consumers are increasingly aware of the importance of the transition to sustainable energy and the need to reduce greenhouse gas emissions. Future innovation could also further drive the growth of these markets, with technological advancements such as more efficient batteries and faster charge times. As well as this, possible changes in regulations and public policies in favour of electric vehicles could also have a significant impact on the future of driving. With such positive developments, the electric sector is on track for a prosperous and long-lasting future.

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In summary

In short, the electrification of the automotive industry is underway and the new electric market is increasingly showing signs of promise. At recent car shows, car manufacturers have emphasised their commitment to accelerating the transition to electric vehicles and offering innovative solutions to satisfy growing consumer demand. The technological advances seen in recent years are tangible proof that the automotive industry is working to create a sustainable future. However, in order to achieve this goal, it is vital that public policy continues to encourage the production and use of electric vehicles. Either way, the transition to electric vehicles is accelerating, with huge potential for the future of the automotive industry.

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