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The global vehicle electrification market is expected to grow from $67.47 billion in 2021 to $74.60 billion in 2022 at a compound annual growth rate (CAGR) of 10.56%. The vehicle electrification market is expected to grow to $114.25 billion in 2026 at a compound annual growth rate (CAGR) of 11.25%.
The vehicle electrification market consists of sales of vehicle electrification products by entities (organizations, sole traders, and partnerships) that are used to power the vehicle by electricity. It is the process of replacing vehicle components that operate on a conventional energy source with those that operate on electricity.
There are different types of vehicle electrification technologies such as hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs). Vehicle electrification relies on collaboration from interdisciplinary teams responsible for areas such as electric machines, power electronics, thermal management, and others.
The main product types included in the vehicle electrification market are starter motors, alternators, electric car motors, electric water pumps, electric oil pumps, electric vacuum pumps, electric fuel pumps, electric power steering, actuators and start/stop systems. The starter motor is an electrical device used to rotate an internal combustion engine to initiate the engine operation on its own.
Vehicle electrification is mainly used in various vehicle types such as internal combustion engine vehicles, micro and full hybrid vehicles and plug-in hybrid electric vehicle (PHEV) and battery electric vehicle (BEVs) and are sold through sales channels original equipment manufacturers (OEM) and aftermarket.
The Asia Pacific was the largest region in the vehicle electrification market in 2021. The regions covered in the vehicle electrification market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The vehicle electrification market research report provides vehicle electrification market statistics, including vehicle electrification industry global market size, regional shares, competitors with a vehicle electrification market share, detailed vehicle electrification market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle electrification industry.
The increasing demand for hybrid vehicles is propelling the growth of the vehicle electrification market. Hybrid vehicles have an internal combustion engine and one or more electric motors, any one source can be used to run the vehicle. Hybrid vehicles provide fuel economy and help in reducing emissions as they provide an option to run on an electric battery.
The increasing demand for hybrid vehicles is due to the shift of focus to reducing emissions by opting for electric vehicles. The demand is also due to the rise in income levels and the young population. As the demand increases for hybrid vehicles, there will be a significant need for electrification of vehicles as it is the way to make a normal vehicle a hybrid one.
For instance, according to the data from US-based analytics firm Wards Intelligence, the US sales of hybrid vehicle sales increased by 76% to 801,550 vehicles in 2021, representing 5% of US light vehicle sales. Sales of electric vehicles also increased by 83% to 434,879, representing 3% of the market. Therefore, the increasing demand for hybrid vehicles is expected to drive the vehicle electrification market.
Technological advancement is a key trend gaining popularity in the vehicle electrification market. Technological advancements are the discovery of knowledge that helps in developing products using advanced technology. Major companies operating in the vehicle electrification market are focused on developing new technological solutions to meet customer demand and make vehicle electrification more advanced.
These new technological solutions may include the introduction of advanced electrification methods and components such as an advanced and fast charger. For instance, in September 2021, ABB, a Switzerland-based automation company launched the world’s fastest electric car charger named Terra 360. The Terra 360 is an innovative customizable all-in-one electric vehicle (EV) charger which can simultaneously charge up to four vehicles with dynamic power distribution and can deliver 100km of range in less than three minutes.
To personalize, customers can ‘brand’ the chargers by using different foiling or changing the colour of the LED light strips to tailor the appearance. It is ideal for urban charging stations, refuelling stations, and fleet applications.
In June 2021, Ford Motor Company, a US-based automobile manufacturing company acquired Electriphi, for an undisclosed amount. The acquisition is expected to develop the most advanced charging and energy management experiences for commercial customers and enables Ford to lead the electrification revolution for commercial and retail customers. Electriphi is a US-based provider of charging management and fleet monitoring software for electric vehicles and also offers fleet electrification.