Vehicle electrification is the process of using electricity to power a vehicle, this involves replacing components that use conventional energy sources with components that operate on electricity. In vehicle electrification, the powertrain is driven by electricity and its auxiliary systems such as off-board charging systems and on-board charging systems and wireless power transfer. The other functionalities include smart electromagnetic suspension, electronic stability program, electronic power-assisted steering, electronic traction control, all-wheel drive, an intelligent light system, and more. The advantages of vehicle electrification include cleaner environment, low running cost, reduced noise pollution, no congestion charge, and others.
Recent Developments:
Advancement in the electronic components enhances the safety and awareness of the driver is expected to be the key factor in motivating the consumer for increased adoption of vehicle electrification. Actuators control a mechanism or system, which operates on receiving an input signal in the form of current, voltage, hydraulic pressure, pneumatic pressure or human input. These are extensively used for functionalities that include climate control, transmission, engine cooling, and headlights for enhancing the user comfort. Utilization of other electronic technologies that include brakes, vacuum, axles, and boosters, among others substantially enhance the user convenience and automotive efficiency. This in turn, has led to increased consumer inclination towards adoption of these features driving the growth of the global vehicle electrification market.
Restraint:
Vehicle electrification uses advance technologies with use of electric power components. There are various risks related to the use of advanced technologies that include explosion, short circuit, battery runway, and others. All these risks need to be thoroughly assessed. The other factors that hamper the popularity of the vehicle electrification is high battery cost, accidents from high voltage battery, overheating, hydrogen fuel issues, etc. All these factors are restraining the global vehicle electrification market growth.
Global Vehicle Electrification Market - Impact of Coronavirus (Covid-19) Pandemic
The world has been dealing with an unprecedented surge in COVID-19 cases for the past few years. Lockdowns were imposed by the government to suppress the spread of coronavirus as a safety measure. Hence, the automotive sector faced a complete shutdown or alter manufacturing operations. The movement of material required for manufacturing stopped and the supply chain operation halted leading to slow production rate. Automotive OEMs in the mobility industry are among the hardest hit and the sales of electric vehicles also declined tremendously.
Asia Pacific held a dominant position in the global vehicle electrification market in 2021
Statistics:
Asia Pacific held dominant position in the global vehicle electrification market in 2021, accounting for 32.0% share in terms of volume, followed by North America.
Report Coverage | Details | ||
---|---|---|---|
Base Year: | 2021 | Market Size in 2021: | US$ 70.4 Bn |
Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
Forecast Period 2022 to 2030 CAGR: | 9.5 % | 2030 Value Projection: | US$ 157 Bn |
Geographies covered: |
|
||
Segments covered: |
|
||
Companies covered: |
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 |
||
Growth Drivers: |
|
||
Restraints & Challenges: |
|
Figure 1: Global Vehicle Electrification Market Share (%), By Region, 2021
The Asia Pacific is expected to account for the largest market share of the global vehicle electrification market during the forecast period. Countries such as China, India, Japan and Indonesia in the Asia Pacific region are fast emerging economies. Hence, the disposable income of the people has increased and the spending ability of people has increased. The advantages provided by the vehicle electrification though being expensive is diverting people to buy electric vehicles such as Plug-In Hybrid Electric Vehicle (PHEV) and Hybrid Electric Vehicle (HEV). Hence the vehicle electrification market shows significant growth in the forecast period.
North America is expected to gain traction during the forecast period owing to broader and more ambitious policies by the state governments to transition to electric vehicles is driving the vehicle electrification market in North America region. Significant tax breaks aided the early adoption of electric light-duty vehicles (LDVs) and helped the expansion of the EV manufacturing and battery industries. Subsidies on electric vehicle purchase and registration tax rebates were designed so that the gap between the conventional vehicle and electric vehicle can be reduced. All these initiative by the government is accelerating the growth of vehicle electrification market in North America.
HEV (Hybrid electric vehicles) segment is expected to drive the global vehicle electrification market during the forecast period
HEV (Hybrid electric vehicles) provides the ability to transition between different power sources, such as internal combustion engines and electric motors. The HEV system captures energy that is normally wasted during braking. The electric motor acts as a generator and stores the energy in the battery. Thus, HEV (Hybrid electric vehicles) provide the advantages of both fuel-based motors and electric-based motors, this helps to meet distinct objectives such as additional auxiliary power for power tools or electronic devices, increased power, and improved fuel economy.
Figure 2: Global vehicle electrification market (US$ Bn) Analysis and Forecast, 2017 - 2030
The global vehicle electrification market was valued at US$ 70.4 Bn in 2021 and is expected to reach US$ 157 Bn by 2030, growing at a CAGR of 9.5% between 2022 and 2030.
Major players operating in the global vehicle electrification market include 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
Conventional internal combustion engines featuring mechanical linkages were characterized by significant loss of efficiency, owing to its friction and high energy requirement. Electric components that prominently include the electric power steering, positive temperature coefficient liquid heater, air compressor, vacuum, pumps, starter generators, and actuators among others, enhance the automotive fuel efficiency, add to the users comfort, and also reduce the environmental impacts of the carbon emissions from these automotive. Advent of electric vehicles with better battery backup and optimum driving speeds has in turn fueled the demand for the vehicle electrification market for environment friendly automotive industry over the near future.
Market Dynamics
Requirement to improve automotive fuel economy, reduce carbon footprint, need to enhance driver awareness regarding the safety in conjunction with the added comfort and compliance with the regional regulations is expected to be among the prominent factors driving the market growth. Moreover, feature enhancements that include less space requirements, highly sensitive outputs, and robust performance with relatively better durability also adds to the consumer motivation for the adoption of these systems. For instance, hydraulic power steering systems are more complicated, weight more, require regular maintenance of hydraulic fluids, and are more prone to faults in relation to electrical power steering (EPS) system. EPS system also offer better sensitive response at distinct speeds and consume less power, adding to the mileage of the automotive. However, high cost of the electronic and electric components are expected to be the major factors hampering the global vehicle electrification market growth.
Key features of the study:
Detailed Segmentation
“*” marked represents similar segmentation in other categories in the respective section.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients