The global vehicle electrification market is projected to reach USD 157.75 billion by 2029 from USD 65.28 billion in 2020, at a CAGR of 11.8 % from 2022 to 2029.
Vehicle electrification refers to the process of transitioning vehicles from using traditional internal combustion engines (ICEs) that rely on fossil fuels to electric power sources. It involves replacing or supplementing the combustion engine with electric motors and utilizing batteries or other energy storage devices to provide power for propulsion.
The growing electrification of motor vehicles is the fundamental driver of the significant transition in the automotive sector. The need for vehicle electrification is being driven by an increase in car manufacturing and a global growth in vehicle sales. It's becoming more popular as an alternative to more traditional hydraulic and mechanical systems. It improves fuel economy and reduces vehicular emissions. Due to the rising trend of electrifying automobiles, original equipment manufacturers (OEMs) have witnessed a significant decrease in the weight of automotive components. It, in turn, helps to cut fuel consumption and increases the vehicle's operational efficiency.
Vehicle electrification holds immense potential for positive environmental impact. By replacing conventional internal combustion engines with electric motors, these vehicles produce zero tailpipe emissions, leading to improved air quality and reduced carbon dioxide emissions. Electrification also offers the advantage of energy independence and diversification by reducing dependence on imported fossil fuels and promoting the utilization of domestically produced electricity.
A number of attractive factors encourage vehicle electrification. the urgent need to address environmental concerns, particularly reducing greenhouse gas emissions. Governments across the globe are enacting stringent regulations and policies to curb pollution, spurring the adoption of electric vehicles. Technological advancements, such as improvements in battery technology and charging infrastructure, are playing a pivotal role in driving the growth of vehicle electrification. These advancements are gradually lowering the costs of electric vehicles, enhancing their performance, and making them increasingly attractive to consumers. Moreover, the growing awareness and demand for sustainable transportation options are fueling the transition towards electrification, as more individuals recognize the benefits of reducing their carbon footprint.
| ATTRIBUTE | DETAILS |
| Study period | 2022-2029 |
| Base year | 2022 |
| Estimated year | 2023 |
| Forecasted year | 2023-2029 |
| Historical period | 2018-2022 |
| Unit | Value (USD Billion) Volume (Million Units) |
| Segmentation | By Product Type, By Degree of Hybridization, By Region |
| By Product Type |
|
| By Degree of Hybridization |
|
| By Region
|
|
The global vehicle electrification market is projected to reach USD 157.75 billion by 2029 from USD 65.28 billion in 2020, at a CAGR of 11.8 % from 2022 to 2029.
Asia Pacific dominates the vehicle electrification market, with a market share of over 42%.
Robert Bosch GmbH, Continental AG, Denso Corporation, Delphi Automotive PLC, Johnson Electric Holdings Ltd., Volkswagen, Toyota Motor Corporation, Honda Motor Co. Ltd, Mitsubishi Electric Corporation, TRW Automotive Holdings Corp., Hitachi Automotive Systems, BorgWarner Inc., Magna International Inc. are among the leading players in the global vehicle electrification market.
The global vehicle electrification market registered a CAGR of 11.8 % from 2022 to 2029.
The global vehicle electrification market has grown at a rapid pace as the automotive industry's technologies have shifted from hydrocarbon energy to electricity. The need for sunlight-weighted vehicles to improve fuel efficiency and lower carbon emissions supports the growth of this industry.
The global vehicle electrification market is segmented by product type, degree of hybridization and region.
Based on product type, the vehicle electrification market is segmented into Start/Stop System, Electric Power Steering (EPS), Electric Air-Conditioner Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, Liquid Heater PTC, Integrated Starter Generator (ISG), Starter Motor, Alternator, Actuator. The electric power steering sector led the market, with a market share of 23% in 2021. The EPS sector is more popular among end users than other steering approaches. It offers several benefits, including energy savings, less mechanical troubles, and the ability to customize a more user-friendly interface. EPS is a more energy-efficient vehicle option than HPS since it is smaller and lighter. The demand for more dependability in hydraulic power steering promotes market growth.
The electric hoover pump segment is expected to increase rapidly during the forecast period. As engines are becoming more energy-efficient, advances in vehicle technology are being developed to conserve gasoline. The consistent operation of electric vacuum pumps in automobiles supports automakers in satisfying stricter emission limits by delivering the vacuum required for the brake booster. The rising popularity of electric hoover pumps can be attributed to their ability to provide customers with a consistent and soft break-pedal experience.
Based on degree of hybridization, the vehicle electrification market is segmented into Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle, Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), 48 V. Plug-In Hybrid Electric Vehicles (PHEV) are expected to grow at a greater CAGR of 12.3% than other hybridization types over the forecast period. The present technology and mechanical integration prospects within autos provide the consumer with the most efficient solution. The increased customer desire for the benefits of fuel efficiency and low vehicle operational and maintenance costs is related to the expanding demand for PHEVs.
Battery Electric Vehicle (BEV) sales are expected to expand at a strong 10.3% CAGR during the forecast period. The segment's expansion is due to shifting environmental rules across all governments. The goal of reducing the impact of global carbon footprints is expected to boost market demand within the business.
[caption id="attachment_28105" align="aligncenter" width="1920"]
The global vehicle electrification market key players include Robert Bosch GmbH, Continental AG, Denso Corporation, Delphi Automotive PLC, Johnson Electric Holdings Ltd., Volkswagen, Toyota Motor Corporation, Honda Motor Co. Ltd, Mitsubishi Electric Corporation, TRW Automotive Holdings Corp., Hitachi Automotive Systems, BorgWarner Inc., Magna International Inc.
May 17, 2023: The new generation of conventional electronic brake systems, the so-called MK 120 ESC, has been firstly put into production in the Chinese market by Continental’s company.
April 18, 2023: Mitsubishi Electric Corporation today that it has developed a technology to detect serious physical conditions experienced by people driving automobiles, such as loss of consciousness, by estimating pulse rate, changes in blood pressure and other biometric data collected with a contactless Driver Monitoring System (DMS) camera, which the company has already launched to detect driver distractions and drowsiness.
The vehicle electrification market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
Asia-Pacific held the largest market share, valued at USD 40.36 billion in 2021. The government's attempts to encourage electric vehicles and provide incentives for revenue are fuelling demand in this region. The expanding population in the countries, together with rising per capita income, drives demand for personal transportation automobiles that are environmentally friendly. Due to the government's emphasis on implementing sustainable infrastructure expansion, Europe is projected to witness significant growth in the vehicle electrification business. Furthermore, future investment as a result of government assistance is likely to drive the growth of the vehicle electrification market throughout the forecast period.
North America is expected to be the fastest-growing vehicle electrification market. Growing charging infrastructure and major expenditures by OEMs in the development of car electrification are driving growth in this area. The United States is about to dominate the North American market, with the highest market share in the future.
[caption id="attachment_28107" align="aligncenter" width="1920"]
Want to know more about the report or any specific requirement?
We asked them to research ‘ Equipment market’ all over the world, and their whole arrangement was helpful to us. thehealthanalytics.com insightful analysis and reports contributed to our current analysis and in creating a future strategy. Besides, the te
We asked them to research ‘Equipment market’ all over the world, and their whole arrangement was helpful to us. thehealthanalytics.com insightful analysis and reports contributed to our current analysis and in creating a future strategy. Besides, the te
Our Report’s database covers almost all topics of all regions over the Globe.
Tie ups with top publishers around the globe.
Complete pre and post sales support.
Complete secure payment process.