The automobile industry is set to experience big changes in the next few decades.
Electric cars are still a niche item among automobile owners. However, many of the largest auto manufacturers have started to offer affordable options in this space. Meanwhile, autonomous vehicle development also promises to transform our relationship with automobiles.
This month, ReportLinker unveiled a research report on the electric vehicle market. It projected that the EV market would reach a value of US$725 billion by 2026. This would represent a CAGR of 27% from 2021 to the end of the forecast period.
Facts&Factors, another market research firm, recently projected that the global autonomous cars market would reach $64.8 billion by 2026. That would represent a CAGR of 22% over the forecast.
Investors who want to get in on these promising spaces should look to the Evolve Automobile Innovation ETF (TSX:CARS). This exchange-traded fund (ETF) seeks to invest in equity securities that are directly or indirectly involved in developing electric drivetrains, autonomous driving, or network connected services for automobiles. Shares of this ETF have climbed 12% in 2021 as of mid-afternoon trading on October 29.
Some of the top holdings in this ETF include Lucid Group, a United States-based electric vehicle manufacturer. The second-largest weighting is Bloom Energy, which manufactures and markets solid oxide fuel cells that produce electricity on site. This is an ETF that boasts promising potential going forward.
