Electric vehicle market: how to invest in the rise of EVs
Electric vehicle market growth projections seem to be really optimistic in the long run. According to recent estimates, the electric vehicles industry will reach a total market cap of $567 billion by 2025. The EV sector is progressing at an accelerated pace, which opens up attractive investment opportunities in 2019.
Top investment trend: industry of electric vehicles
According to the latest electric vehicle market report for 2019, published by Market Research Future, the demand for electric vehicles will steadily grow in the years ahead.
The rising electric vehicle market trend is driven by several major factors:
Though today the market growth may be slightly impeded by high prices on electric cars and underdeveloped aftermarket services, technological disruption, regulatory requirements towards emissions and changing consumer preferences will continue the global shift towards environmentally-friendly electric vehicles instead of gas-powered cars.
EVs continue to grow their market share, with analysts predicting EVs to account for half of new car sales by 2025. With the EV industry growing by 28% a year, other related industries also spring to mind:
- Shared mobility and autonomous driving (expected to grow by 32% a year)
- EV charging infrastructure (expected to grow by 16% per year)
Global electric vehicle market segmentation
From the technological perspective, the global electric vehicle industry is segmented into the following categories:
- Battery
- Hybrid
- Plug-in hybrid
In 2017, battery electric vehicles accounted for 51.40% of the electric vehicle market share, followed by hybrids. Today, plug-in hybrid electric vehicles have grown the fastest at a rate of 21.75%.
Key players in global electric vehicles market
In this highly competitive landscape, the major players operating in the EV market are the following:
Top EV market players’ performance for the period from 2 January to 25 March 2019
| Name | Start price (as of 2 January 2019) |
End price (as of 25 March 2019) |
Change % |
| Nissan Motor Company | 15.94 | 17.2 | 7.90% |
| Tesla Inc | 305.91 | 260.34 | -14.90% |
| Toyota Motor Corporation | 116.44 | 120.49 | 3.48% |
| Ford Motor Company | 7.5 | 8.49 | 13.20% |
| Volkswagen | 137.9 | 138.2 | 0.22% |
| BMW | 70.03 | 68.87 | -1.66% |
| General Motors | 32.81 | 36.73 | 11.95% |
| Daimler AG | 45.35 | 50.38 | 11.09% |
| Hyundai Motor Company | 25.25 | 30.99 | 22.73% |
| Mitsubishi Motors Corporation | 5.31 | 5.35 | 0.75% |
Facts you should know
EVs market will get bigger and better in 2019. Until recently, the electric vehicle market has been stuck in a chicken-or-egg situation, where no one wants to buy an electric car without a fully-operated charging point nearby – and no one wants to invest in a charging point that won’t be used.
Today, this situation is gradually changing. In 2018, the oil super-giant BP bought Chargemaster – an electric vehicle charging business. Besides, according to some regulations in the UK, all new houses in suburban areas are planned to be built with in-built charging points.
Utilities increase their role in transportation electrification. Utility business is another key player in transportation electrification, providing ‘fuel’ to electric cars. Utility companies are necessary partners in creating proper EV infrastructure. Today, utilities are implementing more sophisticated EV utility programs to meet higher demand for electric vehicles.
New all-electric vehicles coming in 2019. Year by year electric car buyers get more options to choose from. This year won’t be an exception with a bunch of long-awaited new all-electric EV models coming to market.
In the end
EVs may yet be considered the biggest investment opportunity of the recent decade. Having said this, you have plenty of ways to invest in electric vehicles market, starting from shares of top EV automakers to utility companies. Moreover, you can also gain exposure to car-charging market by investing in top oil businesses, such as Shell or BP – both of which are increasingly shifting their activities towards the electric power sector.
Source: capital
