Global Vehicle Electrification Market 2023-2030

Global Vehicle Electrification Market 2023-2030

Global Vehicle Electrification Market Size, Share & Trends Analysis Report by Product (Electric Power Steering, Electric Air Conditioner Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, Integrated Starter Generator, Actuators and Others (Liquid Heater PTC, Starter Motor), by Hybridization (Internal Combustion Engine (ICE) & Micro-hybrid Vehicle, Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV) and Battery Electric Vehicle (BEV), and by Vehicle Type (Passenger vehicle and Commercial vehicle), Forecast Period (2023-2030)

The global vehicle electrification market is anticipated to grow at a significant CAGR of 12.2% during the forecast period (2023-2030). The growing incentives and policies promoting electric vehicle adoption is the key factor supporting the growth of the market globally. According to the International Energy Agency (IEA), in May 2022, public spending on subsidies and incentives for EVs nearly doubled in 2021 to nearly $30 billion. A growing number of countries have pledged to phase out internal combustion engines or have ambitious vehicle electrification targets for the coming decades. The market players are also focusing on introducingvehicle electrification solutions that further bolster the market growth. For instance, in February 2023, Nissan Motor Corp. announced to accelerated electrification strategy, a plan to 23 electrified vehicles, including 15 EVs, by 2030. In response to changes in customer needs and the business environment, Nissan has revised its plan to further accelerate electrification.

Segmental Outlook

The global vehicle electrification market is segmented on the product, hybridization, and vehicle type. Based on the product, the market is sub-segmented into electric power steering, electric air conditioner compressor, electric vacuum pump, electric oil pump, electric water pump, integrated starter generator, actuators and others (liquid heater PTC, starter motor). Based on the hybridization, the market is sub-segmented into internal combustion engine (ICE) & micro-hybrid vehicles, hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). Further, on the basis of vehicle type, the market is sub-segmented into passenger vehicles and commercial vehicles. Among the hybridization, the plug-in hybrid electric vehicle (PHEV) sub-segment is anticipated to hold a considerable share of the market owing to the rise in the development of extended range and potential for refueling of conventional hybrids while enabling drivers to use battery electric power.

Commercial Vehicle Segment is Anticipated to Hold a Considerable Share of the Global Vehicle Electrification Market

Among the vehicle types, the commercial vehicle sub-segment is expected to hold a considerable share of the global vehicle electrification market. The segmental growth is attributed to the growing vehicle electrification technology and supporting infrastructure for commercial vehicles globally. To meet the requirements of the commercial vehicle market. Modularity enables manufacturers to use full e-powertrain systems, or ‘mix and match’ their components. For instance, in May 2022, ZF launched AxTrax 2, a next-generation e-powertrain system for commercial vehicles.The integrated and modular e-powertrain system for light, medium and heavy-duty vehicles is ZF’s latest e-mobility solution to help support the industry’s transformation toward a more sustainable future.

Regional Outlook

The global vehicle electrification market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe, owing to the advancements in battery technology that have allowed for extended ranges, making electric commercial vehicles more practical for various applications.

North America is Expected to Grow at a Significant CAGR in the Global Vehicle Electrification Market

Among all regions, the North Americais anticipated to grow at a significant CAGR over the forecast period. Regional growth is attributed to the expansion of charging infrastructure and major expenditures by OEMs in the development of vehicle electrification. According to the US Bureau of Labor Statistics, in February 2023, electric vehicle sales in the US could reach 40.0% of total passenger car sales by 2030, and more optimistic projections foresee electric vehicle sales surpassing 50.0% by 2030.

The electric motor, power electronics and transmission that are combined into a single module to deliver improved performance and range at a competitive cost. For instance, in February 2023, Stellantis NV announced $155 million investment in Three Indiana Plants to Support North American Electrification Goals. To produce new electric drive modules (EDM) that help power future electric vehicles assembled in North America and support the goal of 50.0% battery electric sales in the US by 2030. EDM provides an all-in-one solution for electric vehicle powertrains, delivering improved performance at a competitive cost.

Market Players Outlook

The major companies serving the vehicle electrification market include Aptiv, Eaton, HORIBA Group, NSK Ltd., Siemens, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2023, Stellantis and Ample partnered to leverage Ample’s modular battery-swapping technology for use in Stellantis electric vehicles. Innovative battery swapping solution capable of delivering a fully charged battery in less than five minutes.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global vehicle electrification market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.