May 25, 2024
Vehicle Electrification Market

Vehicle Electrification Market is Estimated to Witness High Growth Owing to Rise in Demand for Fuel Efficient Vehicles

The Vehicle Electrification Market involves production of vehicle components that help reduce emissions and improve fuel efficiency in automobiles. Some key products in the market include electric motors, batteries, and power electronics modules that aid in partial or fully electrified powertrains. The increasing stringency of emission norms along with rising fuel prices have driven automakers to increasingly adopt hybrid and electric vehicle technologies. Vehicle electrification allows automakers to comply with strict emission standards while offering customers fuel-efficient mobility solutions.

The Global Vehicle Electrification Market is estimated to be valued at US$ 97.25 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the vehicle electrification are AMETEK Inc., Alleima, Teshima International Corporation, Om Steel Tubes Ltd., Tech Tube, Inc., Bison Stainless Tube, LLC, Vita Needle Company, M&M International, Fuji Seiko, Accu-Tube, Eagle Stainless Tube & Fabrication, Inc., Forefront Medical Technologies, Minitubes, Teleflex Incorporated, VIANT, and K-Tube Technologies. The growing demand for electric vehicles especially in the commercial sector is opening up new opportunities for market players. Major automakers are also expanding their electric vehicle lineups and production capacities globally which will help drive the Vehicle Electrification Market size during the forecast period.

Key opportunities in the Vehicle Electrification Market Demand include developing affordable and high-performance battery solutions, standardization of vehicle charging infrastructure across regions, and local production of electric vehicle components to reduce costs. Automakers are establishing electric vehicle production plants and supply chains in international markets like Europe, China, and India to leverage the growing demand and incentives. This will help strengthen their global expansion plans.

Market drivers
The rise in demand for fuel-efficient vehicles is a major market driver for vehicle electrification. Stringent government regulations around the world related to vehicular emissions are also encouraging automakers to introduce more electrified vehicle options. With fuel prices rising consistently, consumers are also gravitating towards hybrids and electric vehicles to reduce fuel expenditure. The increasing electrification of vehicles is expected to result in substantial emissions savings. This, along with growing environmental awareness, is expected to drive further adoption of electric vehicles during the forecast period.

PEST Analysis

Political: Government policies and regulations regarding emissions standards have been tightened over the years, fuelling demand for vehicle electrification technologies. Countries have introduced subsidies and incentives for electric vehicle adoption.

Economic: High fuel prices and increased cost of ownership of conventional vehicles compared to electric vehicles are driving consumers to opt for electrified vehicles. Falling battery prices are making electric vehicles more affordable.

Social: Rising environmental concerns and awareness about climate change have increased social acceptance of electric vehicles. Customers prefer technologies that reduce dependency on fossil fuels.

Technological: Advancements in battery technologies offering higher energy density and faster charging are enabling increased vehicle range and shorter charging times. Connected vehicle technologies are enhancing the electric mobility experience.

North America and Europe

The markets in North America and Europe are among the most concentrated regions for the Vehicle Electrification Market in terms of value. This is attributable to the presence of major automotive hubs and EV markets like the US, Canada, Germany, France and the UK in these regions. Countries in these regions have been at the forefront of promoting electric vehicle adoption through fiscal incentives and supportive infrastructure development.

Asia Pacific

The Asia Pacific region holds promise as the fastest growing market for vehicle electrification over the forecast period. China has emerged as the largest electric vehicle producer and adopter globally. Other emerging economies in the region like India are also ramping up initiatives to popularize electric mobility. With a large automotive manufacturing base and growing consumer purchasing power, the Asia Pacific market is positioned for high growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it