June 17, 2024
Vehicle Electrification Market

The Global Vehicle Electrification Market is Witnessing High Demand for Electrification

The global Vehicle Electrification Market is expected to exhibit substantial growth over the next few years. Vehicle electrification refers to the transformation of vehicles from conventional internal combustion engine vehicles to hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles or fuel cell electric vehicles. Vehicle electrification helps reduce greenhouse gas emissions and improves fuel efficiency.

Vehicle electrification involves electric motors, batteries, power electronics controllers and other electric components that replace or work along with traditional internal combustion engines. Such electrified vehicles provide cleaner and more efficient transportation options. Growing environmental concerns and stringent emission norms are encouraging automakers to shift focus towards electric vehicles. Governments across nations are also supporting vehicle electrification through subsidies and tax incentives to promote greener mobility solutions.

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.

The growing demand for fuel-efficient and low emission vehicles is a major factor driving the Vehicle Electrification Market Demand. Stringent environmental regulations regarding vehicle emissions and fuel efficiency are encouraging automakers to shift towards electric powertrains.

Manufacturers are expanding their vehicle electrification product portfolio and capabilities through strategic collaborations, partnerships, and acquisitions. They are also ramping up production facilities across regions to cater to the growing global demand. For instance, in 2023, Bosch plans to open a new €100 million e-axle plant in China.

Market Key Trends
Connectivity and autonomous driving technologies are increasingly being integrated with vehicle electrification systems. Advanced battery management systems, predictive maintenance capabilities, and over-the-air update functionalities are enhancing the user experience of electric vehicles. Electric commercial vehicles adoption is also on the rise supported by developing charging infrastructure.

Porter’s Analysis

Threat of new entrants: It is moderately difficult for new players to enter this market due to the requirement of huge capital investment in R&D and manufacturing facilities.

Bargaining power of buyers: There are many OEMs in the automotive industry which gives buyers higher bargaining power to negotiate on prices.

Bargaining power of suppliers: The suppliers have moderate bargaining power due to availability of substitute components from different suppliers.

Threat of new substitutes: There is a low threat from substitutes as electrification of vehicles is focused towards reducing emissions.

Competitive rivalry: The market sees intense competition between existing players to gain higher market share.

Geographically, North America holds the major share in the Vehicle Electrification Market in terms of value owing to presence of major OEMs and supportive government policies for electric vehicles adoption.

The Asia Pacific region is anticipated to witness the fastest growth during the forecast period due to increasing investments by automotive manufacturers in developing affordable electric vehicles, growing demand for affordable and eco-friendly transportation, and government initiatives to promote electric vehicles adoption.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it