July 15, 2024
Vehicle Electrification Market

Growing Demand For Electric And Hybrid Vehicles Is Anticipated To Open Up New Avenue For The Vehicle Electrification Market

The Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The vehicle electrification market consists of products and components used to electrify conventional internal combustion engine vehicles and develop new electric vehicles. Some key products include electric motors, lithium-ion batteries, on-board chargers, and power electronics. Electrified powertrains are helping automakers reduce emissions and improve fuel efficiency to meet stringent emission regulations. Both hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) are gaining popularity due to growing environmental concerns.

Market Dynamics:

Growing stringency of emission norms across regions is a major factor driving the vehicle electrification market. Various countries and unions like China, European Union, and India have implemented stringent emission standards which are pushing automakers to adopt electrified technologies. Moreover, supply and demand of lithium-ion batteries is also surging rapidly. Declining battery prices and advancements in battery technologies are making electric vehicles more viable and affordable options for consumers. Furthermore, government incentives and subsidies on sales of electric vehicles are encouraging buyers to shift from internal combustion engine vehicles. However, lack of standardization in EV charging infrastructure and consumer anxiety over range are some challenges restraining rapid adoption of electric vehicles.

Segment Analysis:

The vehicle electrification market can be segmented into hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs). The HEV segment currently dominates the market due to high sales of HEV vehicles like Toyota Prius and Honda Accord Hybrid. The HEV technology provides an affordable option to customers compared to other electric vehicle technologies.

PEST Analysis:

Political: Governments across the world are supporting the adoption of electric vehicles through tax rebates and investment in charging infrastructure to reduce dependency on fossil fuels. This is driving the electrification of vehicles.

Economic: Volatility in oil prices and savings in fuel costs makes electric vehicles an economically viable option. The total cost of ownership of electric vehicles is lower than gasoline vehicles.

Social: Rising environmental consciousness is pushing customers to opt for green technologies. Electric vehicles are perceived as environment-friendly.

Technological: Advancements in battery technology, electric powertrains, and charging infrastructure are enabling increased vehicle range and efficiency. This is positively impacting the adoption of different types of electric vehicles.

Key Takeaways:

The Global Vehicle Electrification Market Growth is expected to witness high, exhibiting CAGR of 9.5% over the forecast period, due to increasing environmental regulations on vehicular emissions. The market size for 2023 is estimated to be US$ 84.41 Bn.

China dominates the Asia Pacific vehicle electrification market due to strong government support and the presence of key players like BYD and SAIC Motor. Europe is another major market for vehicle electrification driven by emission norms and electric vehicle quotas in countries such as Germany, France, and the UK.

Key players operating in the vehicle electrification market include Aisin Seiki Co. Ltd., Borgwarner Inc., Continental AG, Delphi Automotive PLC, Denso Corporation, Hitachi Automotive Systems Ltd., Johnson Controls Inc., Johnson Electric, Jtekt Corporation, Magna International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo SA, Wabco Holdings Inc., and ZF Friedrichshafen AG. These players are focusing on expanding their product portfolios and building partnerships to tap the growing opportunity in the vehicle electrification space.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it