The global 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.
The vehicle electrification market includes various automotive electronic components that are used to enhance vehicle efficiency, reduce emissions and move vehicles towards fully or partially electric propulsions. These components include electric power steering, electric air-conditioning compressor, electric water pump, electric oil pump, start/stop system, electric turbocharger, 48V mild-hybrid system, ISG system and full hybrid system. Vehicle electrification improves fuel efficiency, reduces emissions and offers superior drivability. It also enhances safety and convenience features of vehicles.
Market key trends:
One of the key trends in the vehicle electrification market is the increasing adoption of mild-hybrid powertrains. Mild hybrid systems provide improvements in fuel efficiency without compromising the drivability or performance of the vehicle. These systems incorporate a belt-driven starter generator between the engine and transmission to recover braking energy and provide torque assist during accelerations. Additionally, mild hybrid systems eliminate the mechanical coupling between the engine and transmission by shutting off the engine at idle and restarting it seamlessly when power is needed again. This significantly reduces fuel consumption and emissions.
Threat of new entrants: The vehicle electrification market requires huge capital investments in R&D and manufacturing facilities. This poses as a barrier for new players entering the market.
Bargaining power of buyers: Individual buyers have low bargaining power as there are large number of vehicle manufacturers and component suppliers in this industry.
Bargaining power of suppliers: The component suppliers have moderate bargaining power due to some industry concentration and their specialized expertise.
Threat of new substitutes: There is moderate threat from new substitutes like hydrogen fuel cell vehicles emerging in the industry.
Competitive rivalry: The competition is high among existing players as they continuously invest in innovative products and technologies to gain market share.
The Global Vehicle Electrification Market Size is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period 2023-2030, due to increasing concerns regarding reduction of vehicular emissions and fuel consumption.
Regional analysis: Asia Pacific dominates the global vehicle electrification market currently, owing to presence of large automotive hubs and supportive government policies in major countries like China and Japan. Europe is another fast growing regional market due to stringent emission norms.
Key players operating in the vehicle electrification market are 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. Key players are focused on development of innovative products and solutions to gain a competitive edge in the market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it