The Global Vehicle Electrification
Market is Driven by Higher Emissions Regulations

The global Vehicle Electrification Market is
estimated to be valued at US$ 97.25 Mn in 2024 and is expected to exhibit a
CAGR of 5.9% over the forecast period from 2024 to 2031.



Key Takeaways



Key players operating in the Vehicle Electrification Market are AMETEK Inc.,
Alleima, Teshima International Corporation, Om Steel Tubes Ltd., Tech Tube,
Inc., Bison Stainless Tube, LLC, Vita Needle Company, M&M International,
Fuji Seiko, Accu-Tube, Eagle Stainless Tube & Fabrication, Inc., Forefront
Medical Technologies, Minitubes, Teleflex Incorporated, VIANT, and K-Tube
Technologies. Growing environmental concerns and stringent government
regulations regarding vehicle emissions are fueling demand for electrified
vehicles. Leading automakers are expanding their electrified vehicle portfolio
and production capabilities globally to transition to electric mobility and
reduce dependence on internal combustion engines.



Market Drivers



Stringent government regulations regarding vehicular emissions are a major
driver propelling the Vehicle
Electrification Market Demand. Various regions and countries have
implemented stringent emission norms such as Euro 6, China 6, and BS 6 to curb
air pollution from the transportation sector. This is encouraging automakers to
develop electrified vehicles with lower emissions. Government initiatives in
the form of fiscal incentives for buying electrified vehicles and building out
electric vehicle charging infrastructure are further boosting market growth.



Impact of Geopolitical Situation on the
Growth of Vehicle Electrification Market

The ongoing geopolitical conflicts and tensions have disrupted supply chains
and increased economic uncertainties across many regions globally. This
volatility in the political and economic landscape is negatively impacting the
growth of the Vehicle Electrification Market. Many automotive players are
facing challenges in sourcing critical raw materials and components due to
restrictions and trade barriers imposed between major trading partners. Rising
raw material costs and difficulties in logistics are hindering the mass
production plans of electric vehicles. Additionally, domestic policies
providing incentives for electric vehicles are also getting affected amid
fiscal pressures faced by governments.



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