February 25, 2024

The Global Vehicle Electrification Market Is Estimated To Propelled By Increasing Environmental Awareness And Stringent Emission Norms

Vehicle electrification involves the use of electric powertrain components in vehicles including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs). Adoption of such vehicles provides advantages like lower fuel costs, reduced tailpipe emissions, and fewer maintenance requirements. With growing environmental concerns and stringent government regulations regarding vehicular emissions, automobile manufacturers are increasingly focusing on vehicle electrification to produce more efficient and sustainable vehicles.

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 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

 Governments of various countries are promoting the use of electric vehicles through incentives and subsidies in order to reduce dependence on fossil fuels and curb vehicular emissions. For instance, the government of India announced its FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme in 2015 with an allocation of Rs 95 billion (US$ 1.4 billion) to promote electric mobility in the country. Similarly, China has also provided large subsidies for buyers of electric vehicles. Rising consumer inclination towards electric vehicles to lower fuel costs and reduce carbon footprint will further propel the vehicle electrification market over the forecast period.

SWOT Analysis

Strength: Vehicle Electrification technology helps reduce emissions and improve fuel efficiency. It allows hybrid and electric vehicles to store and utilize electricity more effectively.

Weakness: High costs associated with upgrading existing vehicle technologies and manufacturing facilities to support electrified vehicles. Range anxiety among consumers is also a challenge.

Opportunity: Stringent government regulations towards carbon reduction are driving automakers to increasingly adopt electrified vehicle solutions. Growing consumer awareness about environmental protection offers a massive market opportunity.

Threats: Delay in setting industry-wide EV charging standards poses limitations. Dependency on rare earth materials used in batteries can impact costs.

Key Takeaways

The Global Vehicle Electrification Market Demand is expected to witness high growth. According to estimates, the market was valued at US$ 97.25 Mn in 2024 and is projected to reach US$ 166.4 Mn by 2031, expanding at a CAGR of 5.9% during the forecast period.

Regional analysis: North America dominates the global market currently, owing to supportive government policies and investments by leading automakers in the US and Canada to accelerate electrified vehicle adoption. The Asia Pacific region is anticipated to emerge as the fastest growing market in the coming years on account of rising electric vehicle sales and manufacturing activities in China, Japan and South Korea.

Key players: 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. These companies are focused on developing advanced electrified vehicle components and solutions to strengthen their presence across major automotive manufacturing hubs.

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