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 Vehicle Type, By Region, And Segment Forecasts, 2023 - 2030

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 Vehicle Type, By Region, And Segment Forecasts, 2023 - 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 9.9% from 2023 to 2030, 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 the growth of the market for vehicle electrification.

The vehicle generally uses diesel or electricity as its 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 toward complete vehicle electrification. It encourages heavy investments from the government and private entities that are 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, 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.

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 Highlights

• The electric vacuum pump segment accounted for the largest revenue share of 13.3% in 2022 and is expected to grow at the fastest CAGR of 12.4% over the forecast period. Technological developments are being carried out in the automotive industry to save fuel, gaining prominence due to increased engine energy efficiency.
• The Internal Combustion Engine (ICE) and micro-hybrid vehicle segment accounted for the largest revenue share of around 58.5% in 2022. Technological advancements in the automotive industry have led to the introduction of battery electric vehicles.
• 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 dominated the market and accounted for the largest revenue share of 52.2% in 2022 owing to the growing large-scale adoption of vehicle electrification methods in the automobile sector.

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