- Projections by various research firms indicate that the electric vehicle (“EV”) and fintech markets will grow through the coming years
- The EV industry will witness a steady increase in the penetration of EVs in three key markets in which IDEX, through its Ideanomics Mobility division, operates
- The global fintech industry is projected to grow at a 23.58% CAGR from 2021 to 2025, while the US fintech market is estimated to witness a CAGR of 8.6% from 2019 through to 2024, and the Ideanomics Capital division focuses on fintech solutions
A recent electric vehicle (“EV”) market publication by J.P. Morgan (NYSE: JPM) Global Research showed that EV penetration was gradually growing in North America, Europe, and China. The report projected that the penetration in the North American market would increase to 4% in 2020, up from 3% in 2019. In comparison, the European and Chinese markets were forecasted to witness a more rapid growth, fueled by an enabling regulatory environment, higher spending power and the prospects of a future that merges autonomous driving with green vehicles.
The Chinese EV industry is currently in the acceleration stage, which started in 2020 and is expected to last until 2025, when the EV penetration is likely to cap at 20%, up from 5% in 2019. In Europe, five countries, namely the UK, Spain, Italy, Germany and France, dominate the EV space, taking up 63% of the EV volumes across Europe. Per the J.P. Morgan report, EV penetration in 2020 in these countries was about 6%, up from 1.6% in 2019. Further, EV sales had reached 27% of the total, compared to 8% in 2019 (https://ibn.fm/Am4lS).
While the COVID-19 pandemic slowed the demand for both passenger and commercial EVs, a separate report by Bloomberg New Energy Finance (“BNEF”) indicates that the demand will resurge and maintain an upward trajectory through the coming years, at both regional and global levels (https://ibn.fm/WEXb3).
For Ideanomics (NASDAQ: IDEX), a global company with a foothold in each of these three markets, these positive trends and statistics effectively mean that it is uniquely positioned to thrive well into the future. IDEX has been rapidly expanding its Mobility division through new acquisitions and investments. As a result, it has amassed a broad portfolio of EV products, including buses, EV tractors, trucks, two-wheelers and three-wheelers, on the vehicular end of the spectrum, as well as wireless charging solutions and battery and charging technology design and development, on the other. Currently, the Mobility unit consists of over five companies based in various jurisdictions.
“We have a unique view across what we believe is the EV value chain because we have operations in China, South Asia, in Malaysia, in Europe and in North America,” CEO Alf Poor said during a recent webinar (https://ibn.fm/23qNm).
IDEX’s second division, aptly named Ideanomics Capital, currently comprises companies offering disruptive fintech solutions covering a broad range of financial services. As with the Mobility unit, Ideanomics Capital is equally poised to benefit from the projected growth in the fintech sector.
Before the pandemic, the adoption of fintech solutions was increasing twofold every two years, reaching 64% in 2019, up from 16% in 2015 (https://ibn.fm/4MfP8). Nonetheless, the World Bank observed that the fintech industry remained largely unaffected by the vagaries of the pandemic and, in fact, reported double-digit growths in some areas (https://ibn.fm/Gnl7O).
This momentum is likely to continue through the mid-2020s as indicated by a Research and Markets forecast, which expects the global fintech market to grow at a CAGR of 23.58% from 2021 to 2025 (https://ibn.fm/SsiJJ). Locally, the US fintech market is projected to grow at an 8.6% CAGR from 2019 to 2024 (https://ibn.fm/T0m2w).
For more information, visit the company’s website at www.Ideanomics.com.
NOTE TO INVESTORS: The latest news and updates relating to IDEX are available in the company’s newsroom at https://ibn.fm/IDEX
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