Vehicle Electrification Market By Vehicle Type (Commercial Vehicle, Passenger Car {Hatchback, Sedan, SUV and MUV}, Light Commercial Vehicles {Pickup Trucks, Light Trucks, Others}, Heavy Commercial Vehicles {Heavy Trucks, Buses & Coaches}, Sports Car, Others), Technology (Hybrid Electric Vehicles, Fully Electric Vehicles), System (Power Generation, Cooling Systems, Energy Storage, Traction Drive Systems, Power Conversions, Others), Mode of Sales (OEM, Aftermarket), by Region (North America, Europe, Asia Pacific, the Middle East & Africa, South America) – Market Size & Forecasting To 2032

The Global Vehicle Electrification Market report includes a global opportunity analysis and industry forecasts for the period 2023-2032. The global market was valued at USD 83.91 Billion in 2022, registering a CAGR of 10.2% from 2023 to 2032. The base year considered for the study is 2021, and the forecast has been provided for the period, 2023 to 2032.

Vehicle electrification is a way of electrifying all the parts of the vehicle, which are needed for its propulsion by replacing conventional systems by electrical systems. Electrification of vehicles help in increasing the efficiency of the vehicle and further reduces the dependency on conventional fuels and diminishes the emissions of carbon. This will in future help in offering various environmental benefits.

Vehicle electrification provides less operational costs and needs less maintenance because it diminishes the use of coolants in the vehicles. The rise in the use of automatic smart engine shut down system is the primary market trend in the vehicle electrification market. For instance, when the vehicle is at the signals or during heavy traffic, if the vehicle is at a halt, the engine automatically shuts off.

Vehicle emissions has caused negative impact on the human life as well as the environment. So, governments from various nations have started imposing strict rules regarding vehicle emissions. This has forced all the automotive manufacturers for producing cars that cause fewer emissions and follow the rules laid by the government. The rising demand for hybrid vehicles is anticipated to drive the market over the forecast period. Key manufacturers have started to make huge investment in research and development for producing hybrid vehicles, which do not cause emissions to have higher efficiency as compared to conventional vehicles. 

On the other hand, the replacement and maintenance cost of vehicle electrification is costly, which is estimated to affect the vehicle electrification market over the forecast period.

TABLE 1: GLOBAL VEHICLE ELECTRIFICATION MARKET OVERALL SNAPSHOT

table 1

Impact Of COVID 19 On Global Vehicle Electrification Market

In 2020, vehicle electrification market observed a major slump, owing to a decrease in vehicle manufacturing. Pre-COVID-19, global vehicle production was predicted to reach 90-95 million units in 2020 and 110-115 million units by 2025, with Asia and North America contributing the most to passenger car production and North America accounting for the biggest proportion of LCV production.

COVID-19 had negative impacts on the entire automotive sector. The lower production rate during the lockdown period severely affected the labor capital. However, the vehicle electrification industry is witnessing the rapid growth after ease of restrictions in various regions. 

Segmentation

The global vehicle electrification market is segmented into vehicle type, technology, system, mode of sales, and region.

FIGURE 1: GLOBAL VEHICLE ELECTRIFICATION MARKET OVERALL SNAPSHOT

fig 1

Global Vehicle Electrification Market, by Vehicle Type

Based on the vehicle type, the global vehicle electrification market is segmented into commercial vehicles, passenger cars, light commercial vehicles, heavy commercial vehicles, sports car, and others. Among these, the passenger cars segment holds the largest market share owing to its increasing sales. Due to rising fuel prices, the use of electric cars has gained pace in several nations.

Electric automobiles, which are powered by lithium-ion batteries with hybrid charging capabilities, serve as an alternative for gasoline and diesel vehicles. Several ride-hailing businesses are working to replace their fleets of internal combustion engines with electric passenger cars. All these factors are expected to drive the passenger cars segment growth during the forecast period.

Global Vehicle Electrification Market, by Technology

Based on the technology, the global vehicle electrification market is segmented into hybrid electric vehicles, and fully electric vehicles. Among these, hybrid electric vehicles segment holds the largest market share. With the introduction of modern technology, in automobile, consumers look for the optimum and desired solutions with increased efficiency. Moreover, the increasing demand for hybrid electric vehicles is attributed to the rising consumer preference on the benefits of fuel efficiency and lower maintenance cost of the vehicle.

Global Vehicle Electrification Market, by System

Based on system, the global vehicle electrification market is segmented into power generation, cooling systems, energy storage, traction drive systems, power conversions, and others. Among these, power generations segment holds the largest market share as automobile manufacturers are switching to electric power steering to benefit from fuel economy in the conventional ICE, which is the major factor in the current demand for application in automotive.

Global Vehicle Electrification Market, by Mode of Sales

Based on the mode of sales, the global vehicle electrification market is segmented into OEM and aftermarket. Among these, OEM is anticipated to show the faster growth over the forecast period as they can help in saving the time and money. Many people assume that conventional big automakers will automatically take over all electric vehicle production. This is a reasonable assumption since, historically, the automobile sector has always had exceptionally high entry barriers due to economies of scale—a distinct advantage enjoyed by huge multinational OEMs.

Global Vehicle Electrification Market, by Region

Based on region, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Among these, Asia Pacific holds the largest market share due to various initiatives taken by the government in countries like India, South Korea, and China for the use of electrified vehicles and providing consumers tax exemption for the purchase of such vehicles. The technological, as well as economic advancement in this region with the increasing disposable income of the people, are also other factors, which are supporting the regional growth. 

TABLE 2: GLOBAL VEHICLE ELECTRIFICATION MARKET OVERVIEW

table 2 

Recent Developments in the Global Vehicle Electrification Market

  • June 2021- Ford (U.S.) acquired Electriphi (California), which is a charging management as well as fleet monitoring software.
  • February 2021- GM (U.S.) launched its electric utility vehicle, the 2022 Chevrolet Bolt EUV.
  • July 2021- XL Fleet Corp. (U.S.) partnered with ARBOC Specialty Vehicles, LLC (U.S.) to electrify ARBOC Freedom low floor buses.

Figure 2: Global Vehicle Electrification Market (USD Billion), 2021–2030

fig 2

What Does This Report Provide? 

This report provides a detailed understanding of the global vehicle electrification market from qualitative and quantitative perspectives during the forecast period. The major market drivers, challenges, and opportunities for the global vehicle electrification market have been covered in the report. This report further includes the market shares of the leading companies operating in the global market, along with their production capacities and the growth strategies adopted by them.


Market Segmentation

By Vehicle Type

  • Commercial Vehicle
  • Passenger Cars
    • Hatchback
    • Sedan
    • SUV And MUV
  • Light Commercial Vehicles (LCVS)
    • Pickup Trucks
    • Light Trucks
    • Others
  • Heavy Commercial Vehicles
    • Heavy Trucks
    • Buses and Coaches
  • Sports Car
  • Others

By Technology

  • Hybrid Electric Vehicles
  • Fully Electric Vehicles

By System

  • Power Generation
  • Cooling Systems
  • Energy Storage
  • Traction Drive Systems
  • Power Conversion
  • Others

By Mode of Sales

  • OEM
  • Aftermarket

By Region:

North America Vehicle Electrification Market

  • North America, by Country
    • U.S.
    • Canada
    • Mexico
  • North America, by Vehicle Type
  • North America, by Technology
  • North America, by System
  • North America, by Mode of Sales

Europe Vehicle Electrification Market

  • Europe, by Country
    • Germany
    • Russia
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe 
  • Europe, by Vehicle Type
  • Europe, by Technology
  • Europe, by System
  • Europe, by Mode of Sales

Asia Pacific Vehicle Electrification Market

  • Asia Pacific, by Country
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia Pacific 
  • Asia Pacific, by Vehicle Type
  • Asia Pacific, by Technology
  • Asia Pacific, by System
  • Asia Pacific, by Mode of Sales

Middle East & Africa Vehicle Electrification Market

  • Middle East & Africa, by Country 
    • UAE
    • Saudi Arabia
    • Qatar
    • South Africa
    • Rest of Middle East & Africa
  • Middle East & Africa, by Vehicle Type
  • Middle East & Africa, by Technology
  • Middle East & Africa, by System
  • Middle East & Africa, by Mode of Sales

South America Vehicle Electrification Market

  • South America, by Country 
    • Brazil
    • Argentina
    • Rest of South America
  • South America, by Vehicle Type
  • South America, by Technology
  • South America, by System
  • South America, by Mode of Sales

Major Companies: In this report, the major companies studied are: Robert Bosch GmbH (Germany), Continental AG (Germany), Denso Corporation (Japan), Delphi Automotive PLC (Ireland), Johnson Electric Holdings Ltd. (Hongkong), Volkswagen (Germany), Toyota Motor Corporation (Japan), Honda Motor Co. Ltd (Japan), Mitsubishi Electric Corporation (Japan), and TRW Automotive Holdings Corp (U.S.).

Objectives of this Report:

  • To estimate the market size for the vehicle electrification market on a regional and global basis
  • To identify major segments in the vehicle electrification market and evaluate their market shares and demand
  • To provide a competitive scenario for the market with major developments observed by the key companies in the historical years
  • To evaluate the key factors governing the dynamics of the vehicle electrification market with their potential gravity during the forecast period
  • To evaluate the leading company-wise pricing analysis for the mentioned applications

Key Questioned Answered in the Study:

  • What are major growth drivers and market trends that are impacting the global vehicle electrification market?
  • What is the market size both in terms of value and volume for the global vehicle electrification market?
  • Who are the leading market players and who are the new market players that operate in the global market with an estimated market share?
  • What are the future investment pockets and opportunities in the global vehicle electrification market?
  • Major list of customers and potential futuristic customer list along with an estimated buying volume
  • Impact of COVID-19 on the global vehicle electrification market

Customization:

This study is customized to meet your specific requirements:

  • By sub-segment
  • By client-specific country, type, and application market analysis
  • Pricing analysis along with the potential list of customers
  • Product-specific competitive analysis

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