Vehicle Electrification

Vehicle Electrification

Global Vehicle Electrification Market to Reach US$155.9 Billion by 2030

The global market for Vehicle Electrification estimated at US$94.1 Billion in the year 2023, is expected to reach US$155.9 Billion by 2030, growing at a CAGR of 7.5% over the analysis period 2023-2030. Electric Power Steering, one of the segments analyzed in the report, is expected to record a 9.0% CAGR and reach US$48.5 Billion by the end of the analysis period. Growth in the Starter Motors & Alternators segment is estimated at 6.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$24.9 Billion While China is Forecast to Grow at 12.4% CAGR

The Vehicle Electrification market in the U.S. is estimated at US$24.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$39.7 Billion by the year 2030 trailing a CAGR of 12.4% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.1% and 7.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.0% CAGR.

Global Vehicle Electrification Market - Key Trends & Drivers Summarized

Why Is Vehicle Electrification a Major Focus in the Automotive Industry?

Vehicle electrification has become a major focus in the automotive industry as the world transitions towards more sustainable and environmentally friendly transportation solutions. The shift from internal combustion engines (ICEs) to electric powertrains is driven by the need to reduce greenhouse gas emissions, combat climate change, and comply with increasingly stringent emission regulations. Electric vehicles (EVs), including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs), are at the forefront of this transformation. As governments, consumers, and automakers push for cleaner and more efficient vehicles, the adoption of electrification technologies is accelerating, making vehicle electrification one of the most significant trends in the automotive industry today.

How Are Technological Advancements Driving Vehicle Electrification?

Technological advancements are playing a critical role in driving the adoption and development of vehicle electrification. Improvements in battery technology, particularly in lithium-ion batteries, have significantly increased the range, efficiency, and affordability of electric vehicles. The development of fast-charging infrastructure and wireless charging systems is also enhancing the convenience and practicality of owning an EV, addressing one of the key barriers to widespread adoption. Additionally, advancements in power electronics, electric motors, and energy management systems are improving the performance, reliability, and safety of electric powertrains. These innovations are not only making electric vehicles more competitive with traditional ICE vehicles but also opening up new possibilities for electrification in other types of vehicles, such as trucks, buses, and two-wheelers. The continuous evolution of these technologies is driving the rapid growth of the vehicle electrification market.

What Are the Emerging Trends in Vehicle Electrification?

The vehicle electrification market is witnessing several emerging trends that are shaping its future. One significant trend is the increasing focus on developing more efficient and sustainable battery technologies, including solid-state batteries and battery recycling solutions, to address concerns about resource scarcity and environmental impact. Another trend is the growing interest in electrification of commercial vehicles, such as electric trucks and buses, as fleet operators seek to reduce operational costs and meet regulatory requirements. The market is also seeing a rise in the development of electric vehicle platforms, which are specifically designed for EVs and offer greater design flexibility, improved aerodynamics, and better integration of batteries and electric components. Additionally, the emergence of vehicle-to-grid (V2G) technology, which allows EVs to supply power back to the grid, is creating new opportunities for energy management and grid stabilization, further driving the adoption of vehicle electrification.

What Factors Are Driving the Growth of the Vehicle Electrification Market?

The growth in the vehicle electrification market is driven by several factors, including the increasing demand for cleaner and more sustainable transportation solutions, which is fueled by growing environmental concerns and the need to reduce carbon emissions. The stringent emission regulations imposed by governments worldwide are also a major driver, as they compel automakers to adopt electrification technologies to comply with these standards. Additionally, the continuous advancements in battery technology, charging infrastructure, and electric powertrain components are making electric vehicles more accessible, affordable, and appealing to consumers. The rising fuel prices and the desire for energy independence are further boosting demand for electric vehicles, as they offer lower operating costs and reduced reliance on fossil fuels. Moreover, the increasing investments in EV production and infrastructure by automakers, governments, and private companies are accelerating the market`s growth, as they enhance the availability and viability of electric vehicles on a global scale.

Select Competitors (Total 46 Featured) -

• Aisin Seiki Co., Ltd.
• Aptiv PLC
• BorgWarner, Inc.
• Continental AG
• Denso Corporation
• Hitachi Automotive Systems Ltd.
• Johnson Controls, Inc.
• Johnson Electric Holdings Ltd.
• JTEKT Corporation
• Magna International, Inc.
• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• Valeo SA
• WABCO Holdings Inc.
• ZF Friedrichshafen AG

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