Electrified Roads Market Drive Type (All-wheel Drive, Rear Wheel Drive, Front Wheel Drive)Fuel Type, (Mono Fuel, Bi-fuel)Vehicle Type (Passenger Vehicle, Commercial Vehicle) By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Electrified Roads Market size is predicted to reach approximately USD 211.7 Billion by 2032, from a valuation of USD 85.1 Billion in 2022, growing at a CAGR of 9.8% during the forecast period from 2023 to 2032.

Electrified roads are highways that charge electric vehicles as they drive. They are being used to address range anxiety, one of the main barriers to the mass adoption of electric vehicles. The system works by installing electric rails on the road itself, which a special receiver on the electric vehicle connects to while driving. This is transmitting power to charge the battery.

Electrified roads are currently being tested in Germany, Sweden, and Israel on highway stretches of up to 10 kilometers. By charging while driving, electrified roads are removing the need to stop at charging stations, enabling electric vehicles to undertake longer journeys. The technology shows promise but is still being developed to scale up and reduce costs.

The share of electric cars in total car sales increased from 9% in 2021 to 14% in 2022, showcasing a robust expansion of the EV market. Early indications for 2023 suggest a positive market, with an estimated 35% increase in electric car sales compared to 2022, reaching around 14 million units globally.

The Electrified Roads Market is expected to experience significant growth in the coming years driven by several key factors. Governments around the world are increasingly focused on reducing greenhouse gas emissions from the transportation sector.

This is leading many countries to invest in electrifying their transport infrastructure, including roads and Electric highways. Major markets like the United States, China, and the European Union have already announced plans and allocated funding for piloting and deploying electric road technology.

Sweden is constructing the world's first permanent electrified road for electric vehicles (EVs) along the E20 highway, connecting logistic hubs between Hallsberg and Örebro. This initiative, a response to the EU's law mandating zero CO2 emissions for new cars by 2035, enables cars and trucks to recharge while driving. The dynamic charging system may allow longer travel distances with smaller batteries, reducing the need for waiting at charging stations.

Additionally, advancements in electric vehicle battery technologies are making electric trucks and buses more viable. As these heavy commercial vehicles transition to electric power, there will be a growing need for charging infrastructure like the Electrified Roads Market can provide through in-road charging. Commercialization of autonomous truck platooning is also expected to accelerate the adoption of electric roads.

In 2023, Israeli company Electron is partnering with Michigan to test wireless electric road chargers in Detroit. The 1-mile stretch will be the first public deployment in the US, allowing drivers to charge on the go. This innovation aims to address EV charging and range anxiety issues, potentially accelerating widespread electric vehicle adoption in the US.

The Electrified Roads Market enables safe and efficient platooning by powering lead trucks via in-road charging. With multiple technology trends aligning, the electrified roads have strong drivers for potentially rapid growth over the next decade. Significant investments and increasing adoption are expected from transportation departments looking to enable electric, connected, and autonomous vehicles through cutting-edge road infrastructure like the Electrified Roads Market. Vehicle-to-grid technology is revolutionizing the electrified roads market by allowing electric vehicles to feed power back into the grid, enhancing energy sustainability.

Driving Factors

Carbon Emission Reduction Goals Fuel Electrified Roads Demand

The increasing focus on reducing carbon emissions from traditional petrol or diesel-based vehicles is a key driver for the demand for electrified roads. As global efforts to combat climate change intensify, governments and industries are seeking sustainable transportation solutions.

Electrified roads, which facilitate the operation of electric vehicles (EVs) by providing on-the-go charging, emerge as a viable solution to cut down emissions. This trend is not merely a response to environmental concerns but also aligns with broader policy shifts towards green energy, indicating a long-term commitment to electrified road infrastructure as part of sustainable urban planning.

Continuous Charging Solutions Boost EV Attractiveness

Electrified roads, offering continuous charging solutions, play a significant role in making electric vehicles more attractive to consumers. One of the major hurdles in EV adoption has been range anxiety - the fear of running out of battery power.

Electrified roads alleviate this concern by enabling EVs to charge while in motion, thus extending their range and usability. This innovation enhances the practicality and appeal of EVs, likely leading to increased consumer adoption and a subsequent rise in the demand for more electrified road infrastructure.

EV Adoption Surge Supports Electrified Roads Growth

The increasing adoption of electric vehicles, driven by higher affordability, enhanced battery technology, extended charging infrastructure, and the emergence of autonomous electric vehicles, is a crucial factor propelling the electrified roads market.

As EVs become more accessible and technologically advanced, the need for supporting infrastructure, including electrified roads, becomes paramount. This growing EV market creates a symbiotic relationship with electrified road development - each driving the other's growth. The trend indicates a future where electrified roads are integral to transportation networks, supporting the widespread use of EVs.

Electrified Roads' Role in Mitigating Range Anxiety Reinforces Market Expansion

The role of electrified roads in mitigating range anxiety and enhancing the attractiveness of electric vehicles reinforces their market expansion. By providing a reliable and continuous charging solution, electrified roads address one of the key consumer concerns regarding EV usage. This feature not only makes EVs more user-friendly but also encourages broader consumer acceptance and adoption of EVs. The anticipated long-term implication is an integrated transportation ecosystem where electrified roads and EVs co-evolve, supporting a shift towards more sustainable and efficient transportation methods.

Restraining Factors

Economies of Scale and Scope Limitations Restrain Electrified Roads Market Growth

The growth of the electrified roads market faces constraints due to the economies of scale and scope. Achieving cost-effectiveness in this sector requires large-scale implementation, which is challenging given the current infrastructure and technological limitations.

Constraints such as speed limits, harbor depth, and capacity also pose significant hurdles. These factors limit the practicality and efficiency of electrified roads, particularly in areas with less traffic or where extensive modifications to existing infrastructure are unfeasible. Without achieving economies of scale, the per-unit cost of Ev remains high, deterring widespread adoption and investment, thus hindering market expansion.

Extensive Funding Requirements for Research and Development Restrains Electrified Roads Market Growth

The development of electrified roads is significantly hampered by the need for extensive funding for research and development activities. This innovative technology requires substantial investment in the early stages to refine the concept, conduct trials, and establish viable models for large-scale implementation.

While government support can play a crucial role in facilitating this development, securing consistent and adequate funding remains a major challenge. The uncertainty and magnitude of required investment can be a deterrent for both public and private entities, slowing down research progress and the subsequent rollout of electrified road systems, thereby limiting the market's growth potential.

Electrified Roads Market Segmentation Analysis

Technology Type

Conductive technology is the leading segment in the Electrified Roads Market. This system, which involves direct electrical contact between the road and the vehicle, is currently preferred due to its higher efficiency and lower energy losses. Typically, conductive electrified roads use rails or embedded systems that connect with vehicles through retractable arms or similar mechanisms. The efficiency and relative simplicity of conductive systems, along with their proven technology in applications such as trams and electric railways, have established their dominance in the market.

Inductive technology, which enables wireless power transfer, is a growing area within the market. Although it currently has a smaller market share due to higher costs and lower efficiency compared to conductive systems, it offers the advantage of being more aesthetically pleasing and less susceptible to weather-related disruptions.

Vehicle Type

In the Electrified Roads Market, buses are the primary vehicle type utilizing this technology. The dominance of buses is driven by their predictable routes, which make them ideal candidates for electrified roads, especially in urban areas. Many cities globally are investing in electrified bus routes as a means to reduce carbon emissions and improve air quality. The feasibility of electrifying specific bus routes, as opposed to entire road networks, also contributes to this segment's growth.

While buses lead the market, there is increasing interest in expanding electrified roads to other vehicle types. Two/three-wheelers and passenger cars stand to benefit significantly as electrification expands. Trucks, especially those used in logistics and transportation, are also potential beneficiaries, particularly for routes with high freight traffic.

Electrified Roads Market Industry Key Segments

Drive Type

• All-wheel Drive
• Rear Wheel Drive
• Front Wheel Drive

Fuel Type

• Mono Fuel
• Bi-fuel

Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

Growth Opportunities

Reducing Carbon Emissions Drives Demand for Electrified Roads Market

The increasing global focus on reducing carbon emissions from traditional petrol and diesel vehicles is a major driver for the demand in the electrified roads market. As countries strive to meet their carbon neutrality goals, electrified roads present an innovative solution for powering electric vehicles (EVs) while in transit, reducing the reliance on fossil fuels.

This shift towards sustainable transportation methods is driven by heightened environmental awareness and the urgent need to address climate change. The trend towards electrification in the automotive sector, coupled with environmental policies, signals a substantial growth opportunity for the electrified roads market.

Government Initiatives Fuel Growth in Electrified Roads Market

Increased government initiatives, particularly in Europe, for constructing electrified roads are expected to significantly drive market growth. Governments are playing a crucial role in promoting sustainable transportation through funding, policy-making, and infrastructural development.

European countries, being at the forefront of environmental initiatives, are actively investing in the development of electrified roads as part of their commitment to reduce carbon emissions. These government-led initiatives, often supported by public-private partnerships, are essential in accelerating the deployment of electrified road technologies, indicating a strong growth trajectory for the market in these regions.

Rising Concerns About Carbon Emissions and EV Market Share Growth Propel Electrified Roads Market

The electrified roads market is expected to grow at a significant rate, driven by rising concerns about carbon emissions and the increasing share of electric vehicles in the auto market. The global push towards electric vehicles as a solution to reduce greenhouse gas emissions has necessitated the development of supporting infrastructure, like electrified roads.

This infrastructure is crucial to address the range anxiety associated with EVs and to facilitate their widespread adoption. The growing percentage of EVs in the overall auto market share, combined with environmental policies, underscores a significant expansion potential for the electrified roads market soon.

Regional Analysis

North America Dominates with a 40% Market Share

North America's commanding 40% share of the Electrified Roads Market is largely driven by the region's commitment to sustainable transportation and infrastructure innovation. The United States and Canada are at the forefront of integrating electric vehicle (EV) technology with road infrastructure, reflecting a strong push towards reducing carbon emissions. The presence of major technology companies and automotive manufacturers investing in electrified road projects, such as dynamic wireless charging systems, significantly contributes to this market dominance.

The market dynamics in North America are influenced by supportive government policies and funding aimed at promoting EV adoption and sustainable transportation infrastructure. The region’s focus on research and development in smart transportation solutions and the growing public-private partnerships in infrastructure projects are pivotal.

Looking ahead, the electrified roads market in North America is poised for significant growth. The ongoing advancements in EV technology, coupled with increasing environmental awareness and governmental support, are expected to drive further development of electrified road systems. The region’s commitment to reducing greenhouse gas emissions and its strategic investments in smart infrastructure will likely sustain and enhance its market leadership.

Europe: Pioneering Sustainable Road Solutions

Within Europe's dynamic business landscape, the electrified roads sector stands out for its avant-garde endeavors in sustainable transportation. Notably, nations such as Sweden and Germany take the lead, implementing visionary pilot projects that incorporate cutting-edge technologies like dynamic wireless charging and solar roads.

The European Union's strategic emphasis on carbon emission reduction and the promotion of clean energy sources harmonizes seamlessly with the evolution of electrified roads, fostering a conducive environment for market expansion throughout the region.

Asia-Pacific: Rapid Technological Advancements and Infrastructure Development

In Asia-Pacific, the electrified road market is growing rapidly, driven by technological advancements and large-scale infrastructure development. Countries like China and South Korea are investing heavily in smart city projects, which include the integration of electrified roads. The region's increasing adoption of EVs, supported by government incentives and a focus on reducing pollution, creates a conducive environment for the growth of the electrified road market.

Electrified Roads Industry by Region

North America

• The US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of the Middle East & Africa

Key Player Analysis

In the Electrified Roads Market, the listed companies are getting involved shows that there's a growing industry where transportation and technology come together. ALE International, although lesser-known, plays a crucial role with its specialized focus on developing innovative charging solutions, indicative of niche players' importance in pioneering specific technologies in this sector.

Honeywell International Inc. and Cisco Systems Inc., leveraging their vast experience in industrial automation and networking, respectively, are instrumental in integrating advanced communication and control systems into electrified road infrastructure. Their expertise is crucial for ensuring the seamless operation and connectivity of electrified roads.

IBM Corporation, with its prowess in data analytics and AI, provides the necessary technological backbone for managing the vast data generated from electrified road systems, ensuring efficiency and optimizing energy usage. ABB Limited and Siemens AG, renowned for their engineering excellence, are at the forefront of providing the electrical infrastructure and smart grid technologies essential for the effective functioning of electrified roads.

Together, these companies drive the Electrified Roads Market's growth, each contributing through their expertise in technology and infrastructure. Their collective efforts are pivotal in shaping this innovative market, which stands at the forefront of transforming transportation and energy consumption patterns globally.

Major Market Players in the Electrified Roads Market

• Siemens
• Scania
• Elonroad
• Electron
• Wattway
• Coilway
• WiTricity
• Momentum Dynamics
• Hallelujah Power Technologies

Recent Developments

• In September 2022, the Union Minister of India stated that they are working on developing/building electrified or electric roads for heavy-duty buses and trucks. In July 2022, the minister announced to development of an electrified road between Delhi and Mumbai.
• In September 2023, Siemens announced a partnership with eRoadArlanda to develop an electric road system for heavy-duty vehicles in Sweden. The project will demonstrate the feasibility and benefits of wireless charging for electric trucks, potentially paving the way for wider adoption of the technology.
• In 2023, eRoadArlanda announced a partnership with Siemens to develop an electric road system for heavy-duty vehicles in Sweden. This project will focus on wireless charging for electric trucks, demonstrating its feasibility and potential benefits for wider adoption of the technology.

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