Vehicle Electrification Market To Witness Rapid Development

Vehicle Electrification Industry Overview

The global vehicle electrification market size was valued at USD 89.26 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.9% from 2023 to 2030. 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.

Gather more insights about the market drivers, restrains and growth of the Vehicle Electrification Market

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.

Growing consumer demand for fuel-efficient vehicles has increased demand for vehicle electrification. However, electric vehicles are quite expensive despite the various benefits. This is due to the high cost of batteries used in electric vehicles and the expense of charging the batteries. Product charging stations are still in the early stages of development. As a result, utilizing electric vehicles to go considerable distances is likely to cause issues along the way.

Moreover, electric vehicles are not feasible in cities with power shortages. The battery backup time of electric car batteries is likewise relatively short. These limitations of electric vehicles are projected to hamper the market. On the other hand, vehicle electrification's replacement and maintenance costs are high. However, the rising fuel prices and growing environmental concerns are also expected to drive the growth of the market during the forecast period.

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• The global commercial vehicles market size was estimated at USD 1.35 trillion in 2022 and is projected to register a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030.
• The global electric vehicle market size was estimated at USD 1,070.77 billion in 2023 and is anticipated to grow at a CAGR of 33.6% from 2024 to 2030.

Vehicle Electrification Market Segmentation

Grand View Research has segmented the global vehicle electrification market report on the basis of product, hybridization, vehicle type, and region:

Vehicle Electrification Product Outlook (Revenue, USD Billion, 2018 - 2030)

• Start/Stop System
• Electric Power Steering
• Liquid Heater Ptc
• Electric Air Conditioner Compressor
• Electric Vacuum Pump
• Electric Oil Pump
• Electric Water Pump
• Starter Motor & Alternator
• Integrated Starter Generator
• Actuators

Vehicle Electrification Hybridization Outlook (Revenue, USD Billion, 2018 - 2030)

• Internal Combustion Engine (ICE) & Micro-hybrid Vehicle
• HEV
• PHEV
• BEV

Vehicle Electrification Vehicle Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Passenger vehicle
• Commercial vehicle

Vehicle Electrification Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• RoW
  • Latin America
  • Middle East and Africa

Key Companies profiled:

• Robert Bosch GmbH
• Continental AG
• DENSO CORPORATION
• Aptiv
• Johnson Electric Holdings Limited
• Mitsubishi Electric Corporation
• BorgWarner Inc.
• Magna International Inc.
• AISIN CORPORATION
• Johnson Controls
• ZF Friedrichshafen AG
• Valeo SA
• JTEKT Corporation
• Hitachi Astemo, Ltd.
• Wabco Holdings Inc.

Key Vehicle Electrification Company Insights

Market players are focusing on inorganic growth strategies, such as acquisitions & mergers, and collaborations to augment their market share. For instance, in 2020, CATL, a Chinese EV battery manufacturer, is extending its relationships with Coach B.V. & VDL Bus in the Netherlands and Quantron AG in Germany to advance commercial vehicle electrification in Europe by improving local services and product solutions. Such partnerships, mergers, and acquisitions have created an environment for all contemporaries to employ ideas and innovation for enhanced manufacturing and technologies.

Many companies have introduced innovative technology that has enhanced the user experience. For instance, Continental Technology supplied the necessary components for a pleasant and straightforward user experience in the new BMW iX. Regarding vehicle digitalization, the continental's cockpit high-performance computer is integrated into the electric car.

Recent Developments

• In April 2022, BMW made a significant announcement, solidifying its dedication to the electric vehicle (EV) revolution. The renowned automaker announced its goal of achieving 50% of its total sales of electric vehicles by 2030. This commitment marks a decisive step towards reducing its reliance on internal combustion engines and embracing sustainable mobility solutions. The company also introduced two electric models, the BMW i4 and iX. These cutting-edge vehicles promise not only enhanced performance but also an extended driving range, showcasing the company's commitment to providing compelling and eco-friendly options for its customers.
• In April 2022, BYD Motors, a prominent electric vehicle (EV) manufacturer introduced the ECC32 advanced battery electric forklift. This remarkable forklift, weighing 7,000 pounds, stands out for its cutting-edge design that eliminates charge restrictions.
• In September 2021, ABB, an automation company based in Switzerland, unveiled Terra 360. This cutting-edge electric car charger offers an unparalleled charging experience for EV owners. It is a highly customizable all-in-one charger that boasts simultaneous charging capabilities for up to four vehicles. With its dynamic power distribution technology, it can deliver an impressive 100 kilometers of range in less than three minutes.

Order a free sample PDF of the Vehicle Electrification Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.