The global vehicle electrification market was valued at US$ 70.4 Billion in 2021 and is expected to surpass US$ 157 Billion by 2030, registering a CAGR of 9.5% during the forecast period (2022-2030), according to the Global Vehicle Electrification Market Report, by Product Type (Start/Stop System, Electric Power Steering (EPS), Liquid Heater PTC, Electric Air Conditioner Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, Starter Motor & Alternator, Integrated Starter Generator (ISG), and Actuators), by Degree of Hybridization (Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), Micro-Hybrid Vehicle & Internal Combustion Engine (ICE)), by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa), published by Coherent Market Insights.
The key reason driving the growth of the vehicle electrification market is the rising use of technological breakthroughs in electric vehicles, such as e-axles, battery management technologies, signal isolation, and others. The advantages associated with the advancements in technology such as the use of e-axles offers more packaging space, the driveline efficiency is high that reduces gear loss, use of BMS (battery management system) technology that protects the battery from operating outside the safe range, reporting data, controlling the battery environment, and others. All these technological advancements are proving to benefit the customers and hence they are switching from conventional fuel-based vehicles to electric vehicles. Hence, the global vehicle electrification market is expected to gain traction in the forecast period.
Buses and trucks are utilized for public transit and logistics all over the world. Public transport is preferred over private transportation in many regions of the world. People are also becoming aware of global warming and are preferring electric vehicles for public and private transport. OEMs (Original equipment manufacturers) are now encouraging the adoption of electric vehicles in order to reduce the global carbon footprint. The governments of different countries across the globe are taking steps to boost the usage of electric vehicles in public transportation in order to minimize CO2 emissions by offering incentives and tax breaks to those who use e-trucks and e-buses. Hence, e-vehicles for public transport and logistics is driving the growth of global vehicle electrification market.
Global Vehicle Electrification Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic has created financial crises in the automobile sector. The pandemic hampered the sales of vehicles across the globe. The vehicle manufacturing companies in different countries were either shut down or operated partially as strict lockdowns were followed. This directly hampered the manufacturing process of vehicles including manufacturing of Plug-In Hybrid Electric Vehicle, Hybrid Electric Vehicle, and others. The supply chain operations were also disrupted and hence the global vehicle electrification market witnessed significant downturn during the pandemic.
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