Vehicle Electrification Market Size, Share & Trends Analysis Report By Product (Start/Stop Systems, Electric Power Steering, Liquid Heater Ptc, Electric Oil Pump), By Hybridization, By Region, And Segment Forecasts, 2022 - 2030

Vehicle Electrification Market Growth & Trends

The global vehicle electrification market size is expected to reach USD 187.13 billion by 2030, registering a CAGR of 9.7% during the forecast period, according to a new report by Grand View Research, Inc. The market is witnessing tremendous growth owing to several benefits such as reduced vehicle weight, higher fuel efficiency, improved driving comfort, and safety features in an electric vehicle.

The increasing conventional fossil fuel prices and rising electric vehicle sales are prompting the electrification of automobiles. The increasing customer demand for fuel-efficient automobiles, stringent emission rules, and growing environmental concerns are all expected to drive growth of the market for vehicle electrification.

Vehicle generally uses diesel or electricity as their power source. However, due to the growing environmental concerns over carbon emissions and rising crude oil prices. Governments of the countries such as India, China, and the U.S. are pivoting towards complete vehicle electrification. It encourages heavy investments from the government and private entities that used for the development of electric vehicles and their infrastructure. These factors are further driving the market growth.

The electric system is replacing several hydraulic or mechanical systems in a vehicle. For instance, hydraulic power steering is replaced with electric power steering, and mechanical or hydraulic pumps are replaced with electric pumps, etc. Furthermore, vehicle electrification decreases reliance on oil, which is a finite resource. All of these factors are projected to drive the global vehicle electrification market's growth.

Clean energy generation in such vehicles has a significant environmental impact since it decreases harmful emissions from tailpipes and the power grid. Additionally, the electrification process incurs fewer operating costs and requires low maintenance as it eliminates the use of lubricant or coolant in the vehicle. The mechanical integration through electrification enhances overall functioning and efficiency, which is expected to drive the market further during the forecast period.

Vehicle Electrification Market Report Highlight

• The global vehicle electrification market is expected to reach USD 187.13 billion by 2030 with a CAGR of 9.7% during the forecasted period
• The EPS segment is chosen with a higher preference between end-users than other steering systems because of many advantages such as energy economy, decreased mechanical complications, and the ability to simply adjust and simpler interface
• The Asia Pacific market is projected to witness substantial growth during the next decade owing to the growing large scale adoption of vehicle electrification methods between the automobile sectors. The regional market is expected to grow at a CAGR of 9.1% from 2022 to 2030