July 19, 2024
Vehicle Electrification Market

Increased Production of Electric Vehicles to Drive Growth of the Vehicle Electrification Market

The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The vehicle electrification market involves applications of electrical components and systems in conventional gasoline-powered vehicles to improve efficiency, performance and reduce emissions. Electrified vehicle systems include start-stop system, electric power steering, liquid heater PTC, electric brake booster and hybridization of certain components. Adoption of vehicle electrification enhances the driving experience by improving torque delivery and acceleration. It also helps automakers comply with stringent emission regulations globally.

Market key trends:

One of the key trends in the vehicle electrification market is growing penetration of hybrid electric vehicles. Hybrid vehicles combine an internal combustion engine with an electric motor for propulsion. Hybrid systems allow combustion engines to operate more efficiently by capturing and regenerating braking energy. Hybrids are gaining popularity owing to benefits such as improved fuel efficiency and lowered emission levels. Plug-in hybrid electric vehicles (PHEV) that can be charged from an external electricity source are also witnessing increasing demand. Stringent emission norms in regions such as Europe and China are compelling automakers to adopt more electrified vehicle technologies in order to reduce fleet average CO2 emissions. This is expected to drive the vehicle electrification market during the forecast period.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is moderate. The high capital requirements for R&D, manufacturing facilities, testing and certification limits the entry of new players in the market.

Bargaining power of buyers: The bargaining power of buyers is high. The presence of numerous OEMs and tier-1 suppliers gives buyers wide choice and bargaining power over suppliers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While components are specialized, many suppliers exist limiting their bargaining power.

Threat of new substitutes: The threat of new substitutes is high given the technological advances in alternate powertrains like electric and hybrid vehicles.

Competitive rivalry: Intense due to presence of global automotive giants continuously innovating to gain market share.

Key Takeaways:

The Global Vehicle Electrification Market Size is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing stringent emission regulations coupled with rising demand for fuel-efficient vehicles.

Regional analysis: North America dominated the market in 2020 and is expected to continue its dominance during the forecast period. Presence of tier-1 suppliers and technology giants along with government support for green vehicles drives the region’s growth. Asia Pacific is poised to be the fastest growing market led by China and India owing to rising income levels and demand for personal vehicles.

Key players: Key players operating in the vehicle electrification market are Aisin Seiki Co. Ltd., Borgwarner Inc., Continental AG, Delphi Automotive PLC, Denso Corporation, Hitachi Automotive Systems Ltd., Johnson Controls Inc., Johnson Electric, Jtekt Corporation, Magna International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo SA, Wabco Holdings Inc., and ZF Friedrichshafen AG. Continental AG and Robert Bosch GmbH have established themselves as technology leaders with wide product portfolio and global presence.

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