Vehicle Electrification Market to Reach US$ 157 Billion by 2030 - Coherent Market Insights

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.

Key Developments

1. In July 2021, ARBOC Specialty Vehicles, one of the world’s leading independent global bus manufacturers and XL Fleet Corp, a company that provides fleet electrification of commercial vehicles, announced their partnership. Through this partnership, they will electrify ARBOC’s Freedom low floor buses with the XL Hybrid (XLH) electric propulsion system.
2. In February 2021, Ford Motors Company, an American automobile manufacturing company announced that by 2026 the company will offer plug-in hybrid and electric models in the market, as the European division of the company will be out of fossil fuel-powered vehicle manufacturing.

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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https://www.coherentmarketinsights.com/market-insight/vehicle-electrification-market-1144

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Key Trends and Analysis of the Global vehicle electrification market:

• Asia Pacific region held a dominant position in the global vehicle electrification market in 2021 and is expected to retain its dominance throughout the forecast period, chiefly owing to the presence of some of the world’s largest manufacturing and sales hubs in the region. According to Coherent Market Insights analysis, motor vehicles production of the countries that include China, India, Japan, South Korea, and Thailand accounted for over 50% of the global production. Moreover, high inclination of consumers towards better comfort offered by vehicle electrification technologies, is expected to provide consistent demands in the developed economies of Europe and North America.
• North America is expected to be the fastest-growing market for vehicle electrification in the forecast period. Growing charging infrastructure in North America is also encouraging people to purchase electric vehicles or move towards vehicle electrification. The use of electric vehicles has increased in the U.S. For instance, a in June 2021, International Energy Agency (IEA), reported that almost 1.8 Billion EVs were registered in the U.S. as of 2020 because of which investment in charging stations has increased and people find it easy to switch to electric vehicles and hence the vehicle electrification market has gained significant growth in the North America region.
• Electric power steering (EPS) was the largest product segment by value in 2021, predominantly owing to its less complicated installation, compact space requirements, and high durability. Moreover, these are incorporated with sensors that sense the vehicle speeds and respond accordingly, that in turn, improves the user safety. Based on degree of hybridization, Micro-Hybrid Vehicle and Internal Combustion Engine (ICE) dominated the industry share, are expected to dominate the industry share over the next following years, owing to the highest adoption of these vehicles across the globe.
• 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