Vehicle electrification involves introducing electric-powered components or systems into conventional internal combustion engine vehicles. These components aim to improve fuel efficiency and reduce emissions by implementing technologies such as micro-hybrid, mild-hybrid, strong-hybrid, plug-in hybrid, and electric vehicles. Vehicle electrification provides advantages like lower operating costs due to improved fuel efficiency, reduced noise and vibration levels, and decreased emissions. The need for electrified vehicles has been rising globally due to growing environmental concerns and stringent emission norms.
The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising demand for fuel-efficient vehicles has been a major trend fueling the growth of the Vehicle Electrification Market. With depleting fossil fuel reserves and growing environmental concerns, consumers are gravitating towards electrified vehicles which provide better mileage and produce fewer emissions as compared to conventional vehicles. According to industry estimates, plug-in electric vehicle sales saw an year-over-year increase of 38% in the U.S. in 2021. This rising demand is encouraging automakers to increasingly invest in electrified vehicle technologies and accelerate their electrification plans.
Hybrid vehicles reduce emissions and improve fuel economy by using both an electric motor and an internal combustion engine. Rising environmental consciousness among consumers and favorable government policies promoting hybrid and electric vehicles have driven the adoption of hybrid vehicles in recent years.
The Global Vehicle Electrification Market Size is expected to witness high growth over the forecast period of 2023 to 2030.Growing demand for lower emission and more fuel-efficient vehicles is a key driver for market growth. The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.
Asia Pacific is currently the fastest growing and largest regional market for vehicle electrification. China dominates the Asia Pacific market backed by strong government support for alternative fuel vehicles to reduce air pollution and dependence on imported oil. The growing middle class in countries like India also presents significant opportunities for hybrid and electric vehicles in the coming years.
Key players operating in the vehicle electrification market are AME, Bosch, Continental, Magna, Denso, Johnson Electric, Mitsubishi, Valeo etc. AME has been rapidly expanding its presence in hybrid and electric vehicle components. Bosch is a leading supplier of electric motors and battery management systems. Continental provides complete electric drive systems. Magna specializes in electric powertrains and power electronics for hybrid, plug-in hybrid and battery electric vehicles. Denso and Valeo also offer a wide range of electrified powertrain components.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it