Vehicle Electrification Market

Vehicle Electrification Market Overview (2022-2032)

[250 Pages Report] The global vehicle electrification market is expected to be worth USD 72 Billion in 2021, with a CAGR of 10.3% over the forecast period. The vehicle electrification market is expected to grow significantly in the coming years as a result of automotive and automobile manufacturers' preference for electrified vehicles and the increasing emphasis placed on environmentally friendly alternatives in automobiles.

Vehicle electrification is being implemented by a number of key players in the automobile industry, including Toyota. Toyota is innovating in the vehicle electrification market, leveraging the benefits of vehicle electrification to support their sustainability initiatives, with the goal of increasing sales of electrified vehicles in the coming decade.

The initiatives taken by automotive players such as Renault Group and Bosch to implement vehicle electrification, transform public transportation with vehicle electrification, and aim to add electrified vehicles to their product portfolio in the future are expected to open new doors for automobile manufacturers.

Vehicle electrification, in line with sustainable transportation facilities, allows both vehicle manufacturers and end-users to benefit from it and transform how transportation is viewed, contributing to the growth of the vehicle electrification market.

Which are Some Prominent Drivers Spearheading Vehicle Electrification Market Growth?

Increasing conventional fuel prices, as well as an increase in electric vehicle sales, will accelerate the growth of vehicle electrification. Growing consumer demand for fuel-efficient vehicles, stringent emission standards, and increased environmental awareness are all expected to fuel the growth of the vehicle electrification market. Governments in various countries, including the United States, are actively encouraging vehicle electrification by providing tax breaks and subsidies.

The increasing use of technological advancements in electric vehicles, such as e-axles, is the primary factor driving the growth of the vehicle electrification market. Aside from that, the rising demand for lightweight vehicle production to improve fuel efficiency is casting a positive light on market growth. Furthermore, the market is expected to be driven by rising demand for hybrid vehicles.

What are the Challenges Faced by the Vehicle Electrification Industry?

Electric vehicles represent the incorporation of advanced technologies as well as electric power components into vehicles. There are several risks associated with these technologies, such as thermal runaway of the battery bank and fire, which must be carefully evaluated. High battery costs, overheating, the total energy storage capacity of the battery and the development of batteries for vehicles are the current challenges impeding the popularity of electric vehicles.

Why is Asia-Pacific Emerging as an Opportunistic Vehicle Electrification Market?

The Asia Pacific region has the largest market share. The government's numerous efforts in India, South Korea, and China to promote the use of electric vehicles and provide tax breaks for such purchases will boost the market growth in this region. Aside from that, technological and economic advancements in this region, as well as increased disposable income, are contributing to regional prosperity.

The largest vehicle electrification market is expected to be electric power steering (EPS). EPS reduces fuel consumption and improves vehicle maneuverability. The trend is accelerating in Asia. EPS is installed at a rate of nearly 91% in Asia. As a result, the EPS segment is expected to have the highest market share during the forecast period.

How is North America Contributing to the Growth of the Vehicle Electrification Market?

The vehicle electrification market is expected to grow at a double CAGR during the forecast period due to rapid technological advancement and the growing automobile industry.

North America is expected to be the fastest-growing vehicle electrification market. This region's growth is being driven by expanding charging infrastructure and significant investments by OEMs in the development of vehicle electrification. Federal tax credits and rebate incentives are hastening the growth of the vehicle electrification market, particularly in the United States.

The United States is poised to dominate the North American vehicle electrification market. With the presence of major OEMs and Tier I players, the country's adoption of electric components in ICE vehicles, BEVs, HEVs, and Plug-in Hybrid Electric Vehicles (PHEVs) is extremely high. As a result, during the forecast period, North America is expected to be the fastest-growing market.

Market Competition

Major manufacturers in the vehicle electrification market include Bosch (Germany), Continental (Germany), Denso (Japan), BorgWarner (US), and Mitsubishi Electric (Japan). These companies have extensive product lines and strong global distribution networks. To maintain their market position, these companies employ strategies such as new product development, expansions, collaborations, and contracts and agreements.

• ARBOC Specialty Vehicles, LLC (United States) and XL Fleet Corp. (United States) collaborated to electrify ARBOC Freedom low-floor buses.
• Ford (United States) has acquired Electriphi (California), a company that provides charge management and fleet monitoring software.

Scope Of Report

Report Attributes	Details
Growth Rate	CAGR of 10.3% until 2032
Base Year for Estimation	2021
Historical Data	2015 to 2020
Forecast Period	2022 to 2032
Quantitative Units	Revenue in USD Million, Volume in Kilotons and CAGR from 2022 to 2032
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Product Type, Degree of Hybridization, Region
Regions Covered	North America; Latin America; Western Europe; Eastern Europe; APEJ; Middle East and Africa
Key Countries Profiled	USA, Canada, Brazil, Argentina, Germany, UK, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASEAN, GCC, South Africa

Key Segments Covered in the Vehicle Electrification Market Report

Product Type:

• Start/Stop System
• Electric Power Steering (EPS)
• Electric Air-Conditioner Compressor
• Electric Vacuum Pump
• Electric Oil Pump
• Electric Water Pump
• Liquid Heater PTC
• Integrated Starter Generator (ISG)
• Starter Motor
• Alternator
• Actuator

Degree of Hybridization:

• Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle
• Hybrid Electric Vehicle (HEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Battery Electric Vehicle (BEV)
• 48 V

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa

Frequently Asked Questions

What is the anticipated growth of the Vehicle Electrification market until 2032?

FMI projects the global Vehicle Electrification market to expand at a 10.3% value CAGR by 2032

Which region is forecast to be the most lucrative for Vehicle Electrification market growth?

Asia Pacific is expected to be the most opportunistic Vehicle Electrification market.

Which are some prominent Vehicle Electrification manufacturers?

Bosch (Germany), Continental (Germany), Denso (Japan), BorgWarner (US), and Mitsubishi Electric (Japan) are some prominent Vehicle Electrification manufacturers.