ResearchAndMarkets report says,Global Vehicle Electrification Market Achieves Remarkable Growth, Predicted to Reach $131.9 Billion by 2028.
The global vehicle electrification market has experienced substantial growth, reaching an impressive $85.2 billion in 2022. Industry experts are optimistic about its continued expansion, with the market forecasted to surge to $131.9 billion by 2028. This projected growth reflects a remarkable Compound Annual Growth Rate (CAGR) of 7.29% during the period 2023-2028.
Revolutionizing Transportation: Vehicle Electrification
Vehicle electrification is a transformative process that involves the integration of electricity to power vehicles while replacing components traditionally dependent on conventional energy sources. This transformation encompasses electric powertrains, as well as auxiliary systems such as on-board and off-board charging systems, wireless power transfer, electronic power-assisted steering, electronic stability programs, electronic traction control, intelligent light systems, smart electromagnetic suspension, all-wheel drive, and airbag deployment systems. The applications of vehicle electrification are extensive and are seen in distribution and field services, as well as long-haul transportation on a global scale.
Key Trends Driving the Vehicle Electrification Market
Several significant trends are propelling the global vehicle electrification market:
- Rising Demand for Electric Vehicles (EVs): The flourishing automotive industry is witnessing a growing global demand for electric vehicles, serving as a primary catalyst for market growth.
- Environmental Concerns: Heightened awareness regarding environmental issues and concerns about rising carbon dioxide emissions are driving the adoption of vehicle electrification as a viable alternative to conventional hydraulic and mechanical systems.
- Weight Reduction: The industry’s focus on reducing the weight of automotive components to enhance fuel efficiency and operational performance is fueling demand within the market.
- Government Initiatives: Governments in various countries are actively endorsing the use of fuel-efficient vehicles, further boosting the vehicle electrification market.
- Declining Battery Prices: Falling battery prices on a global scale are opening up new opportunities for investors and end-users in the market.
- Advanced Technologies: The incorporation of advanced technologies, such as e-axle in electric vehicles, is positively impacting the market.
- R&D and Investment: Leading market players are making substantial investments in research and development, product launches, mergers, and acquisitions, all of which contribute to enhancing overall profitability.
The global vehicle electrification market is segmented based on:
- Product Type: Including 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.
- Vehicle Type: Encompassing internal combustion engine (ICE) and micro-hybrid vehicles, plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV), and hybrid electric vehicles (HEV).
- Sales Channel: Divided into original equipment manufacturers (OEM) and the aftermarket.
Key players in the vehicle electrification market include Aisin Corporation, BorgWarner Inc., Continental AG, DENSO Corporation, Ford Motor Company, Hitachi Ltd., Johnson Electric Holdings Limited, Magna International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo, and ZF Friedrichshafen AG.