Global Vehicle Electrification Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2027

Global Vehicle Electrification Market: Overview

Vehicle electrification is a process of building vehicle models ranging from mild to full hybrid electric vehicle, and even converting some non-electrical vehicle systems such as hydraulic suspensions system into smart electro-magnetic suspensions, or all-wheel-drive (AWD) to e-AWD.

The global vehicle electrification market is expected to register significant growth rate over the forecast period, owing to inclination of automobile manufacturers towards production of electrified vehicles, coupled with growing emphasis and support given by governments across the globe to environment-friendly transportation alternatives.

The government’s initiative in supporting electrification of vehicle by providing tax exemption and subsidies is also expected to drive growth of the global vehicle electrification market. Regional legislation policies and regulatory efforts have been initiated worldwide to strengthen CO2 emissions standard which have been a key factor contributing to growth of the global vehicle electrification market

Various hydraulic or mechanical system in a vehicle is replaced with electric system which increases vehicle efficiency. For example, hydraulic power steering is replaced with electric power steering, mechanical or hydraulic pump with electric pump, etc. In addition, the electrification of vehicle reduces the dependency over oil which is a limited resource. All these factors are expected to fuel revenue growth of the global vehicle electrification market. Moreover, the electrification of vehicles is expected to replace conventional fuels whose prices are increasing faster.

Although the global vehicle electrification market is estimated to grow substantially over the forecast period, the major limitation will be the high cost of electric systems and components. Furthermore, disadvantages of electric vehicles such as longer recharge time, limitation of range and speed could affect the demand for electric vehicle, which in turn may impact growth of the global vehicle electrification market to a certain extent.

Global Vehicle Electrification Market: Segment Analysis

Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle is mostly used due to mechanical integration which yields significant fuel economy when it is idle in traffic or at a signal.

Global Vehicle Electrification Market: Region Analysis

Asia Pacific market is dominating in the global vehicle electrification market and is expected to grow at a much faster rate, due to presence of prominent automotive manufacturers in developing economies such as India, China, South Korea. In addition, stringent regulations by the governments to reduce emission and to improve urban environmental conditions in Asia Pacific, is expected to create drive growth of Asia Pacific market, over the forecast period.

Global Vehicle Electrification Market Segmentation:

Segmentation by Product Type:

• Start–Stop System
• Electric Power Steering (EPS)
• Liquid Heater PTC
• Electric Air-Conditioner Compressor
• Electric Vacuum Pump
• Electric Oil Pump
• Electric Water Pump
• Thermoelectric Generator
• Electric Turbocharger

Segmentation by Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Two – Wheeler

Segmentation by Degree of Hybridization:

• Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle
• Hybrid Electric Vehicle (HEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Battery Electric Vehicle (Bev)
• Fuel Cell Electric Vehicle (FCEV)

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa