Global Vehicle Electrification Market to Grow with a CAGR of 9.5% through 2028
The Global Vehicle
Electrification Market is primarily driven by heightened environmental
awareness, prompting a shift towards electric vehicles (EVs) to combat emissions.
Government incentives and stringent emissions regulations further accelerate EV
adoption, while continuous advancements in battery technology and charging
infrastructure are enhancing the practicality and appeal of electric vehicles
for consumers and automakers alike.
According to
TechSci Research report, “Global Vehicle Electrification Market – Global
Industry Size, Share, Trends, Competition Forecast & Opportunities,
2028”, the Global Vehicle Electrification Market stood at USD 74 Billion in
2022 and is anticipated to grow with a CAGR of 9.5% in the forecast period,
2024-2028. The Global Vehicle Electrification Market is driven by several key
factors. One of the primary drivers is the increased environmental awareness
among consumers and the implementation of stringent emission laws by
governments worldwide. These factors are pushing automakers to shift towards
more sustainable and low-emission solutions, such as electric vehicles. Furthermore,
the advancements in battery technologies, including the development of more
efficient and long-lasting batteries, are playing a vital role in facilitating
the growth of electric vehicles. The decreasing battery costs are also making
electric vehicles more affordable and accessible to a broader range of
consumers.
In addition to
these factors, government incentives and subsidies aimed at promoting electric
vehicle adoption are significantly contributing to the overall market growth.
These incentives not only encourage consumers to choose electric vehicles but
also support the development of charging infrastructure, further boosting the
adoption rate. Moreover, the rising fuel prices and the growing trend towards
autonomous vehicles are also driving the demand for vehicle electrification.
With electric vehicles offering a more cost-effective and environmentally
friendly alternative to traditional gasoline-powered vehicles, consumers are
increasingly inclined towards making the switch. Additionally, the integration
of electrification technologies in autonomous vehicles is seen as a key step
towards achieving a sustainable and efficient transportation system. Overall,
the Global Vehicle Electrification Market is witnessing significant growth due
to the combined influence of environmental awareness, technological advancements,
government support, and changing consumer preferences. As these trends continue
to evolve, the market is expected to expand further, offering new opportunities
for automakers and contributing to a greener and more sustainable future.
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"Vehicle Electrification Market.”
The global
vehicle electrification market has witnessed remarkable growth in recent years,
driven by a confluence of factors reshaping the automotive industry. As the
world transitions toward cleaner and more sustainable transportation solutions,
vehicle electrification has emerged as a pivotal trend. This market overview
explores the key dynamics, trends, and drivers propelling the global vehicle
electrification market forward.
The shift
towards vehicle electrification represents a fundamental transformation in the
automotive landscape. This transition is characterized by a move away from
traditional internal combustion engine (ICE) vehicles toward electric and
hybrid electric vehicles (EVs and HEVs). Electric vehicles are powered solely
by electricity, while hybrid vehicles combine internal combustion engines with
electric propulsion systems. The growing emphasis on reducing greenhouse gas
emissions and combatting climate change is a primary driver of this shift, as
governments worldwide enact stricter emissions standards and promote
eco-friendly transportation alternatives.
Government
initiatives and regulations play a pivotal role in shaping the global vehicle
electrification market. Many countries have implemented emissions reduction
targets and introduced a range of incentives to encourage the adoption of
electric and hybrid vehicles. These incentives include subsidies, tax credits,
and rebates for both manufacturers and consumers. Additionally, regulatory
measures, such as emissions caps and fuel efficiency standards, exert pressure
on automakers to develop and produce more electrified vehicles to meet
compliance requirements. Government support and regulatory frameworks are key
catalysts for market growth.
One of the
critical enablers of vehicle electrification is the continuous advancement in
battery technology. Lithium-ion batteries, in particular, have seen significant
improvements in terms of energy density, charging speed, and cost reduction.
These advancements have led to increased electric vehicle ranges, shorter
charging times, and more affordable electric vehicles, making them more
accessible to a broader range of consumers. As battery technology continues to
evolve, it will further drive the market's expansion and enhance the
competitiveness of electric vehicles.
The availability
of a robust charging infrastructure is vital for the widespread adoption of
electric vehicles. To address range anxiety and provide convenience to EV
owners, there has been substantial investment in developing charging networks.
This includes the establishment of fast-charging stations along highways,
public charging points in urban areas, and home-charging solutions. The growth
of charging infrastructure enhances the practicality and appeal of electric
vehicles, addressing one of the significant barriers to adoption.
Consumer demand
for electric and hybrid vehicles is on the rise. As consumers become more
environmentally conscious and fuel prices fluctuate, there is a growing
interest in vehicles that offer lower operating costs and reduced reliance on
fossil fuels. The appeal of electric vehicles extends beyond environmental
considerations; they also offer advanced technological features, quiet
operation, and a responsive driving experience. As consumer awareness of these
benefits increases, it is driving greater interest and demand in the vehicle
electrification market.
Leading
automakers are making significant commitments to vehicle electrification. They
are investing heavily in research and development, production facilities, and
expanding their electric vehicle portfolios. Some automakers have announced
ambitious plans to phase out internal combustion engine vehicles entirely in
favor of electric and hybrid alternatives. This industry-wide commitment to
electrification is accelerating innovation, fostering competition, and
expanding consumer choices, further driving market growth.
Technological
innovation is a constant driver of growth in the vehicle electrification
market. Automakers are developing cutting-edge electric drivetrains, battery
management systems, regenerative braking technologies, and vehicle-to-grid
(V2G) solutions. These innovations improve the efficiency, performance, and
capabilities of electric vehicles, addressing consumer needs and expectations.
Additionally, the integration of advanced driver-assistance systems (ADAS) and
autonomous driving features into electrified vehicles enhances their appeal.
In conclusion,
the global vehicle electrification market is undergoing a profound
transformation driven by environmental concerns, government initiatives,
advancements in battery technology, expanding charging infrastructure, growing
consumer demand, automaker commitments, and technological innovation. This
shift towards electrification represents a significant step toward a more
sustainable and eco-friendly future of transportation, and it is expected to
continue shaping the automotive industry for years to come.
Major companies
operating in Global Vehicle Electrification Market are:
- Robert
Bosch GmbH
- Continental
AG
- Denso
Corporation
- Delphi
Automotive PLC
- Johnson
Electric
- Mitsubishi
Electric Corporation
- Magna
- Aisin
Seiki
- Borwagner
- Johnson
Controls
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“The
Global Vehicle Electrification Market is driven by several key factors.
Increased environmental awareness and stringent emission laws are pushing
automakers towards more sustainable, low-emission solutions. The advancements
in battery technologies and decreasing battery costs are facilitating the
growth of electric vehicles. Government incentives and subsidies to promote
electric vehicle adoption also significantly contribute to the overall market
growth. Additionally, the rising fuel prices and an increasing trend towards
autonomous vehicles are playing crucial roles in driving the market forward.”
said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Global
Vehicle Electrification Market By Product Type (Starter Motor, Alternator,
Electric Car Motors, Electric Water Pumps, Electric Oil Pump, Electric Vacuum
Pump, Electric Fuel Pump, Electric Power Steering, Actuators, and Start/Stop
System), By Demand Category (Original Equipment manufacturers (OEMs) and
Aftermarket), By Vehicle Type (Internal Combustion Engine Vehicle, Micro &
Full Hybrid Vehicle, and Plug-in Hybrid Electric Vehicle (PHEV) & Battery
Electric Vehicle (BEV)), By Regional, By Competition, Forecast & Opportunities, 2018-2028F”, has evaluated the future growth
potential of Global Vehicle Electrification Market and provides statistics
& information on market size, structure, and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Global Vehicle Electrification Market.
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