The vehicle electrification market includes hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs). These vehicles utilize electric propulsion with rechargeable batteries or other energy storage devices. With growing environmental concerns and implementation of stringent emission regulations, automakers are developing electrified vehicle models with lower carbon emissions.
The integration of electric powertrains is enabling manufacturers to comply with corporate average fuel economy (CAFE) and greenhouse gas (GHG) emission standards. Various countries have implemented policies promoting electric vehicles, including purchase incentives and public charging infrastructure investments. Additionally, technological advances have reduced battery costs and improved energy density, making electrified vehicles more affordable and practical for daily use.
The global Vehicle Electrification Market is estimated to be valued at US$ 114.24 Bn in 2030 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the vehicle electrification market is the development of all-electric commercial vehicles. Major fleet operators are proactively electrifying their vehicle fleets to lower operating costs and meet sustainability goals. Electric trucks and vans offer significantly lower fuel and maintenance expenses compared to diesel variants. Startups such as Rivian, Arrival and Xos Trucks are unveiling electric vehicles tailored for commercial applications. Established manufacturers like Ford and GM are also investing heavily in productions of electric commercial vehicles. This shift towards electrification of commercial fleets will drive the demand for electric powertrains in the coming years.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the vehicle electrification market is moderate. High capital requirements and the need for technological expertise pose a barrier to entry.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have several product options from different manufacturers, giving them moderate influence over price.
Bargaining power of suppliers: Suppliers of components and materials have moderate bargaining power due to the prevalence of some component manufacturers globally.
Threat of new substitutes: The threat of substitutes is moderate as electric vehicles still account for a small share of the overall automotive market. Consumers are still warming up to the new technology.
Competitive rivalry: Competition in the vehicle electrification market is high amongst the top manufacturers as they continue to invest heavily in new technologies and solutions.
Key Takeaways
The Global Vehicle Electrification Market Size is expected to witness high growth over the forecast period. The global Vehicle Electrification Market is estimated to be valued at US$ 114.24 Bn in 2030 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2033.
The Asia Pacific region currently dominates the vehicle electrification market owing to the large production and sales volumes of electric vehicles in China. Government incentives and initiatives are driving adoption.
Key players
Key players operating in the vehicle electrification market are AME, Bosch, Continental, Magna, Vector, and Valeo. AME is one of the largest Tier 1 suppliers in Europe and a leading provider of electrified powertrain systems. Bosch is a major player in automotive components and engineering and supplies electric axle drives.
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According to the new market research report "Vehicle Electrification Market by Product (Start-Stop, PTC, EPS, Electric Air Conditioner, ISG, Starter Motor, Alternator, Actuator, Electric Pump-Vacuum, Oil & Water), 48V, ICE, BEV, HEV, PHEV, Vehicle Type, and Region - Global Forecast to 2025", Published by MarketsandMarkets™, Vehicle Electrification Market is projected to grow at a CAGR of 11.9% to reach USD 129.6 billion by 2025 from USD 73.7 billion.Owing to various benefits offered by electrification such as decreased vehicle weight, lower emissions, increased fuel efficiency, improved driving comfort, and safety, vehicle electrification would be a preferred option by OEMs soon.Browse in-depth TOC on "Vehicle Electrification Market"152 – Tables63 – Figures212 – PagesDownload PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=224946587“Passenger car is estimated to be the largest segment for the Vehicle Electrification Market”Electrification of a vehicle is considered the best way to reduce carbon emissions, increase vehicle efficiency, and reduce dependency on oil.
Vehicle electrification generates newer opportunities for consumer engagement, along with various environmental and economic benefits.
Developed infrastructure such as charging stations, a limited range of present-day BEVs, and the high cost of HEVs and PHEVs are the few reasons why 48V vehicles are preferred over hybrid vehicles in Europe.
The 48V system consists of a 48V Li-ion battery, DC/DC converter, and an integrated starter generator (ISG).
This parallel combination helps boost the efficiency of electric parts like electrical oil, coolant, and vacuum pump.
Since emission norms in Europe are very strict, 48V vehicle is expected to hold a significant market soon.Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=224946587“North America is the fastest-growing market for vehicle electrification”The North American Vehicle Electrification Market has a very positive outlook, owing to effective infrastructure and tax exemption, subsidies, and special facilities provided by governments of different countries in the region.
