Find Out More About Vehicle Electrification Market Global Growth With Rising CAGR And Forecast Till 2030

Posted by Mrudula Anil Karmarkar on December 8th, 2023

San Francisco, 08 December 2023: The ReportVehicle Electrification MarketSize, 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

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.

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The market is expected to grow significantly due to the automotive industry's demand for alternatives to petroleum-based fuel and government initiatives for environmentally sustainable transportation options globally. The governments of various nations are launching green initiatives; various environmental agencies are setting aggressive targets for emission cuts globally. At the same time, environmentally conscious consumers are increasingly adopting electric vehicles and contributing toward reducing their overall carbon footprint. As a result, the demand for vehicle electrification products is expected to increase during the forecast period. Furthermore, various advantages linked to electrification are improving the vehicle's performance, adding additional features, and providing benefits such as reduced vehicle weight, fewer emissions, higher fuel economy, enhanced driving comfort, and safety. All these factors are expected to propel the growth of the market.

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.

The COVID-19 pandemic significantly impacted the automobile sector. Lockdowns and travel restrictions worldwide resulted in the closure of factories, affecting everything from supply chain and operations to capital investment, financing, and long-term strategy. The epidemic increased the pressure on vehicle electrification technology manufacturers to change their business models as the sector dealt with a financial downturn and an uncertain timescale.

Vehicle Electrification Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 96.47 billion

Revenue forecast in 2030

USD 187.13 billion

Growth rate

CAGR of 9.9% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Although the crisis has left a significant financial hole and hampered various new vehicle programs, including EVs, the automobile industry's drive toward electrification remains strong. On the other hand, increased demand for cost-effective solutions and the growing trend of electrification of commercial vehicles and fleets are expected to provide lucrative opportunities for worldwide market advancement during the forecast period.

The greater inclination in recent years toward products has resulted in considerable demand for vehicle electrification and supporting infrastructure. An increase in the number of charging outlets coupled with financial incentives from the government is emerging as a crucial factor triggering the demand for electric vehicles. The lower operating costs of electric vehicles compared to those of conventional ICE-operated cars are expected to drive the growth of the market.

List of Key Players in the Vehicle Electrification Market

  • Robert Bosch GmbH
  • Continental AG
  • DENSO CORPORATION
  • Aptiv
  • Johnson Electric Holdings Limited
  • Mitsubishi Electric Corporation
  • BorgWarner Inc.
  • Magna International Inc.
  • AISIN CORPORATION
  • Johnson Controls

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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