Vehicle electrification products help improve the fuel efficiency of vehicles and reduce emissions, by partially or fully powering vehicles using electricity. These products include electric engines, batteries, chargers, which are increasingly being used in hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) to provide cleaner mobility. This has encouraged automakers to focus on developing electric vehicles (EVs) in order to meet stringent emission regulations.
The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing public awareness about the environmental benefits of electric vehicles has accelerated their adoption across the world in recent years. Governments in many countries are promoting EVs and hybrid vehicles through financial incentives like tax credits and investments in charging infrastructure to curb emissions from transport sector. Automakers are also expanding their electrified vehicle lineups in response to rising consumer demand for sustainable mobility solutions. This growing demand for electric powertrains is expected to drive significant growth in the vehicle electrification market during the forecast period.
Strength: Vehicle electrification aims to reduce greenhouse gas emissions and oil dependency by making transportation more energy efficient and using renewable sources of energy. It offers lower operating costs compared to internal combustion engine vehicles due to less maintenance and fuel costs.
Weakness: The initial costs of electric vehicles and infrastructure are high compared to gasoline-powered vehicles which makes them less affordable for many consumers. Range limitation due to battery capacity is also a challenge for long distance travel.
Opportunity: Growing environmental concerns and stringent emission norms are driving the demand for electric vehicles. Government initiatives in the form of subsidies and tax benefits are encouraging adoption. Rising consumer acceptance for greener transportation presents significant market opportunity.
Threats: Dependence on rare earth materials for batteries increases risks related to supply constraints and price volatility. Slow charging times compared to refueling internal combustion engines act as a deterrent. Technology advances by competitors could disrupt existing products and solutions.
The Global Vehicle Electrification Market Size is expected to witness high growth over the forecast period supported by policy push for emissions reduction and consumer shift towards greener mobility solutions. Europe currently dominates the market owing to strong EV promotion schemes and regulations restricting gasoline vehicles sales. However, China is emerging as a major hub for electronic vehicles with government targets to shift largely towards new energy vehicles.
Key players operating in the vehicle electrification market are Intertek Group Plc, SGS SA, Cenergy International Services, L.L.C., UL International Gmbh, Mistras Group, James Fisher and Sons plc, Global Wind Service, Force Technology, Vestas, and Siemens Wind Power GmbH & Co.KG. These companies provide testing, inspection and certification services and are focusing on expanding EV related testing capabilities to gain market share.
The global vehicle electrification market size for 2023 is estimated to be US$ 84.41 Billion. With worldwide push for lower emissions and preference for more fuel efficient vehicles, the market is projected to rise at a strong CAGR of 10% during the forecast period of 2023 to 2030. Asia Pacific region especially China is expected to drive a major share of the growth led by policy mandates and investments in charging infrastructure by both public and private entities.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it