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Vehicle electrification in general is converting a vehicle to use electric energy by integrating electric components and technological solutions for the operations in the vehicle. It usually covers the electrification of propulsion and different components of the vehicles. It is made to design mild to full hybrid vehicle to full electric vehicles and also converting non-electrical system such as hydraulic suspension system to smart electromagnetic suspension. It can be done for different types of vehicle at different voltage type.
It provides benefits such as improved fuel economy when installing in conventional ICE vehicles, eliminates or reduces carbon emission, and increases vehicle efficiency. It also serves as a substitute solution to traditional hydraulic and mechanical systems and reduces dependency on oil and non-renewable resources making it one of the most revolutionary technological process of all times.
The global vehicle electrification market is poised to grow at a thriving CAGR in the upcoming years.
The growth of this market is attributed towards major relying factors including; the growth in adoption of fuel-efficient mobility solution along with effective performance requirements in the automotive industry, the declining prices of batteries per KWH, the advent of newer technologies in electric vehicles, rise in demand for EVs and the displacement of conventional components with electric propulsion in the automobiles, growing number of strict environmental regulations and government initiatives regarding vehicle emission norms, the increasing need for 48v architecture, the rapidly shifting of automobiles from hydrocarbon energy to electrical energy due to scarcity of resources such as oil for use in the future, the development of new intelligent transport systems and the growing environmental awareness leading to increased demand for eco-friendly vehicles etc.
Additionally, the enormous increase in global pollution and traffic has resulted has augmented the demand for mobility solution in most cities in the world. The governments all across the world have been developing new strategies to reduce emission and to improve urban environmental conditions. The introduction and development of intelligent transport system is comprehensively enhancing the transport system for developing new ways to reduce traffic. Along with that, support in the form of tax credits, subsidies, investment in R&D, and encouraging the communities to invest in the growth of infrastructures is aided by the governments for the development of these technologies and this is creating space for massive growth opportunities in the vehicle electrification market.
Moreover, the initiatives taken by the key and major automotive players for implementing vehicle electrification, transforming the public transport with vehicle electrification, and aiming to add electrified vehicles to their product portfolio in the future is projected to amplify the growth of the market at an astounding rate in a short span of time.
Furthermore factors such as the increasing vehicle production worldwide, growing demand for fuel efficient vehicles, the rising concerns regarding energy security, fossil fuel emissions, and long-term industrial competitiveness, the rising demand for alternatives to petroleum-based fuels from the automotive industry, the increasing prices of conventional fuels and the growth in the sales of electric vehicles will further propel the growth of the market.
However, high dependence on mechanical & hydraulic systems in existing vehicles, the high cost associated with electric vehicles, the high cost of vehicle electrification due to the high costs of batteries that are used to run the vehicle, unavailability of proper infrastructure for proper operations of electric vehicles, disadvantages such as longer recharge time, limitation of range and speed in electric vehicles and difficulty in achieving optimum power-to-weight ratio in electric vehicles are a few factors hindering the growth of this market.
VEHICLE ELECTRIFICATION MARKET SEGMENTATION:
By Product Type:
By Degree Of Hybridization:
By Sales Channel:
By Vehicle Type:
The Asia Pacific region holds the largest share in the vehicle electrification market and is projected to continue to dominate in the market in the next few years as well. The growth in the region can be attributed to factors such as the rising adoption of electrically-powered vehicles, the growing automotive industry in countries such as India and China in the region, the rising population in countries, the increasing government regulations to reduce emission, the increasing per capita income stimulating the demand for personal vehicles, the development of electric vehicles in the region, the massively rising demand for green mode of transportation in the region and the increasing presence of prominent automotive manufacturers in developing economies of the region etc. The major contributors in the region include India, China, Japan and South Korea among others.
The European region holds the second largest share in the vehicle electrification market and is expected to witness monumental growth in the times to come due to factors such as the growing governmental initiatives to practice sustainable development in the region along with the implementation of measures, such as tax credit and subsidies for infrastructure growth, the presence of well-established players in the region and the increasing investments in the automotive sector etc. The major contributors in the region include Germany, France, Italy, and the U.K.
The North American region is the fastest growing regional market for vehicle electrification and is also estimated to grow at a substantial growth rate in the forthcoming years owing to factors such as the growing charging infrastructure for electric vehicles in the region, the significant investments by OEMs in the development of vehicle electrification in the region, the spurring technological advancements and growing automobile industry in the region, the rising formulation and implementation of federal tax credits and rebate incentives in the region, the increasing adoption of electric components in ICE vehicles, BEVs, HEVs, and PHEVs and the presence of major OEMs and Tier I players in the region etc. The major contributor in the region is the U.S.
FEW KEY PLAYERS IN VEHICLE ELECTRIFICATION MARKET:
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