Credit: CHUTTERSNAP
transport report
Electric mobility: Key trends Capital markets, consumer demand, climate change reduction ambitions and new skills acquisition have created a momentum for electric mobility that even the global pandemic will not halt. “The momentum behind cleaner, software-enabled forms of mobility is powerful and seemingly unstoppable,” a report by McKinsey and Company declared, before detailing four key trends driving clean, electric, connected mobility. The assumption is a brave one when considering the levels of disruption future mobility ambitions have undergone in the past two years but an in-depth look at the trends serves to highlight that a slowdown in mobility demand driven by the pandemic should not have a lasting impact on the electric vehicle market. Global EV sales in early 2019 had reached record highs, with an estimated two million EVs sold globally, but whereas previously statistics served to underpin predictions on EV growth, recent figures are obsolete because of the levels of unprecedented disruption. Global sales for 2020 were predicted to
70
fall by between 20 to 25 per cent in a best-case scenario and up to 50 per cent in Covid-19 worst hit areas. However, despite the disruption, significant momentum in a number of key areas points to resilience in the electric mobility market. The first of those key trends, as highlighted by McKinsey is the continued interest by capital markets. The report points out that under the disruption, the mobility industry continues to outperform top industries, including big tech, in capital markets.
Capital markets The reasons underpinning performance are wide-ranging but the report points to key initiatives that appear to be driving capital market interest. The first is the opportunity for diversification. The direct replacement of internalcombustion engines by EVs is a massive market opportunity in itself, but
recent years have seen the mobility industry initiate moves into more diverse markets such as shared mobility and the advanced connectivity solutions for EVs, offering clear pathways for market evolution in the decades ahead. The second is the evolution and growth of the automotive software market, estimated to grow by 250 per cent by 2030 and the third is somewhat related to this software boom. New mobility players are approaching the future with a software-first mentality, attracting the best talent, compared to traditional industry players who will require a major shift in their operations and the reskilling of their existing talent. A fourth reason is the appeal of green investment. Carbon neutral solutions are attracting the interest of investors and consumers. In response, the EV industry has sought to tailor its offering to consumer demands and customer-
