Vehicle Electrification Industry

The global vehicle electrification market size was valued at USD 89.26 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.9% from 2023 to 2030.

The market is expected to grow significantly due to the automotive industry's demand for alternatives to petroleum-based fuel and government initiatives for environmentally sustainable transportation options globally. The governments of various nations are launching green initiatives; various environmental agencies are setting aggressive targets for emission cuts globally. At the same time, environmentally conscious consumers are increasingly adopting electric vehicles and contributing toward reducing their overall carbon footprint. As a result, the demand for vehicle electrification products is expected to increase during the forecast period. Furthermore, various advantages linked to electrification are improving the vehicle's performance, adding additional features, and providing benefits such as reduced vehicle weight, fewer emissions, higher fuel economy, enhanced driving comfort, and safety. All these factors are expected to propel the growth of the market.

Gather more insights about the market drivers, restrains and growth of the Global Vehicle Electrification market

Vehicle Electrification Market Segments:

Product Insights

The electric vacuum pump segment accounted for the largest revenue share of 13.3% in 2022 and is expected to grow at the fastest CAGR of 12.4% over the forecast period. Technological developments are being carried out in the automotive industry to save fuel, gaining prominence due to increased engine energy efficiency. The reliable performance of electric vacuum pumps in vehicles helps automakers meet new emission marks by fulfilling the vacuum required for the brake booster. The rise in demand for electric vacuum pumps can be attributed to their ability to deliver customers a smooth and consistent break-pedal feel.

Hybridization Insights

The Internal Combustion Engine (ICE) and micro-hybrid vehicle segment accounted for the largest revenue share of around 58.5% in 2022. Technological advancements in the automotive industry have led to the introduction of battery electric vehicles. Demand for the product is increasing across agriculture, construction, mining, and power generation sectors. The lack of global EV infrastructure availability is also responsible for the uptake of the ICE market. Also, the growing popularity of vehicles using gasoline and the ever-increasing shale gas production is an additional factor driving the market growth.

Vehicle Type Insights

The passenger vehicle segment held the largest revenue share of 71.1% in 2022 and is expected to grow at the fastest CAGR of 10.2% over the forecast period. Increasing environmental consciousness among consumers, government incentives promoting electric vehicles (EVs), advancements in battery technology leading to longer ranges, and expanding charging infrastructure have all contributed to the rising popularity of electric passenger vehicles. Additionally, automakers' efforts to offer a wide range of EV models with improved performance and attractive features have further fueled the adoption of electric cars among consumers worldwide.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 52.2% in 2022. The government’s initiatives to promote electric vehicles and give subsidies for purchases drive demand in the market within this region. The rising population in the countries and increasing per capita income stimulate the demand for personal transport automobile that supports a sustainable environment.

Europe is expected to see considerable growth in the vehicle electrification industry due to the government’s focus on implementing sustainable infrastructure growth. Furthermore, future investment because of government support is expected to boost the expansion of the market during the forecast period.

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• The global commercial vehicles market size was estimated at USD 1.35 trillion in 2022 and is projected to register a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030.
• The global electric vehicle market size was estimated at USD 1,070.77 billion in 2023 and is anticipated to grow at a CAGR of 33.6% from 2024 to 2030.

Key Companies & Market Share Insights

Market players are focusing on inorganic growth strategies, such as acquisitions & mergers, and collaborations to augment their market share. For instance, in 2020, CATL, a Chinese EV battery manufacturer, is extending its relationships with Coach B.V. & VDL Bus in the Netherlands and Quantron AG in Germany to advance commercial vehicle electrification in Europe by improving local services and product solutions. Such partnerships, mergers, and acquisitions have created an environment for all contemporaries to employ ideas and innovation for enhanced manufacturing and technologies.

Many companies have introduced innovative technology that has enhanced the user experience. For instance, Continental Technology supplied the necessary components for a pleasant and straightforward user experience in the new BMW iX. Regarding vehicle digitalization, the continental's cockpit high-performance computer is integrated into the electric car.

It keeps track of the increasing software complexity and the cockpit's continuously expanding functional scope. Furthermore, it also includes ultra-wideband transceivers in the electrified variant for smartphone connectivity. Hence, these technological changes are further impacting the market.

Key Vehicle Electrification Companies:

• Robert Bosch GmbH
• Continental AG
• DENSO CORPORATION
• Aptiv
• Johnson Electric Holdings Limited
• Mitsubishi Electric Corporation
• BorgWarner Inc.
• Magna International Inc.
• AISIN CORPORATION
• Johnson Controls
• ZF Friedrichshafen AG
• Valeo SA
• JTEKT Corporation
• Hitachi Astemo, Ltd.
• Wabco Holdings Inc.

Segments Covered in the Report

Grand View Research has segmented the global vehicle electrification market report on the basis of product, hybridization, vehicle type, and region:

Vehicle Electrification Product Outlook (Revenue, USD Billion, 2018 - 2030)

• Start/Stop System
• Electric Power Steering
• Liquid Heater Ptc
• Electric Air Conditioner Compressor
• Electric Vacuum Pump
• Electric Oil Pump
• Electric Water Pump
• Starter Motor & Alternator
• Integrated Starter Generator
• Actuators

Vehicle Electrification Hybridization Outlook (Revenue, USD Billion, 2018 - 2030)

• Internal Combustion Engine (ICE) & Micro-hybrid Vehicle
• HEV
• PHEV
• BEV

Vehicle Electrification Vehicle Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Passenger vehicle
• Commercial vehicle

Vehicle Electrification Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• RoW
  • Latin America
  • Middle East and Africa

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