The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vehicle electrification involves replacement of conventional internal combustion engines with advanced electric powertrains that provide improved efficiency and less emissions. Electric vehicles offer advantages like lower operating costs and minimal environmental impact.
Market key trends:
One of the major trends driving the growth of vehicle electrification market is the stringent government regulations and policies promoting electric vehicles. Several governments globally are offering incentives like tax rebates and priority access to electric vehicles to encourage their adoption over conventional petroleum fueled vehicles. Focus on developing charging infrastructure is another key trend as widespread charging stations are vital for commercial acceptance of electric vehicles. Growing partnerships between automakers and EV charging network operators are aimed at propelling the electrification transition.
SWOT Analysis
Strength: The vehicle electrification market is witnessing high growth due to stringent emission norms set by regulatory bodies globally which is pushing the automakers to produce electric vehicles.
Weakness: Developing charging infrastructure is a challenging task for many regions and countries which acts as a barrier in the adoption of electric vehicles. The high costs associated with production of electric vehicles also restrict its mass adoption.
Opportunity: Increasing consumer inclination towards adoption of eco-friendly vehicles and government subsidies & tax rebates on electric vehicles are expected to create significant growth opportunities for players in the vehicle electrification market.
Threats: Slow pace of setting up public charging infrastructure and range anxiety associated with electric vehicles restricts its adoption. Developing low-cost and high-performance batteries remain a technological challenge.
Key Takeaways
The Global Vehicle Electrification Market Size is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing strict regulatory norms regarding vehicular emissions. Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period due to the large consumer base in countries like China and India and supportive government policies and initiatives for electric mobility in the region.
Regional analysis:
The Asia Pacific region accounted for around 38% of the global vehicle electrification market share in 2023 owing to the presence of some of the largest automotive manufacturing hubs in the world such as China, Japan and South Korea. Government initiatives and policies to promote electric vehicle adoption including subsidies, tax rebates are further driving market growth in the region.
Key players:
Key players operating in the vehicle electrification market are Aisin Seiki Co. Ltd., Borgwarner Inc., Continental AG, Delphi Automotive PLC, Denso Corporation, Hitachi Automotive Systems Ltd., Johnson Controls Inc., Johnson Electric, Jtekt Corporation, Magna International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo SA, Wabco Holdings Inc., and ZF Friedrichshafen AG.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it