The car electrification market will reach US$250 billion

NEW YORK, USA, Dec. 09, 2022 (GLOBE NEWSWIRE) — According to a comprehensive research report by Market Research Future (MRFR), “Market of vehicle electrification Research Report: Product, Channel, Voltage, Region and Vehicle Insights – Forecast to 2030,” the global automotive electrification market is projected to grow substantially during the review period from 2022 to 2028, at a healthy growth rate of approximately 12, 52%. Reports also predict that the market will reach approximately $250 billion by the end of 2028.

Market of vehicle electrification review:

The electrification of vehicles is considered to be the most important driving force behind the transformation of the automotive industry. The need for car electrification is mainly due to the development of car production and sales worldwide. Electrification of vehicles is becoming a viable option for conventional hydraulic and mechanical systems. Electrification of cars increases fuel economy and also reduces emissions. Manufacturers of complete equipment have experienced a significant reduction in the weight of automotive components due to the growing trend towards electrification of vehicles, increased efficiency of their operation and reduced fuel consumption. The electrification of the IC engine is a significant step forward as it allows for lower fuel consumption.

Competitive analysis of the car electrification market

The directory of leading participants in the global car electrification market includes players such as:

  • Mitsubishi Electric Corporation (Japan)
  • Johnson Electric (Hong Kong)
  • Hitachi Automotive Systems Ltd. (Japan)
  • JTKET Corporation (Japan)
  • ZE Friedrichshafen AG (Germany)
  • Hitachi Automotive Systems Ltd. (Japan)
  • Robert Bosch GmbH (Germany)
  • Command Corp. (South Korea)
  • Denso Corporation (Japan)
  • Nexteer Automotive (USA)
  • Continental AG (Germany)
  • Borgwarner Inc. (WHICH)
  • Magna International Inc. (Canada)
  • Delfi Automotive PLC (UK)

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In addition, electric vehicles are superior to conventional vehicles in terms of maintenance and carbon emissions, fuel economy, lower engine noise, easier charging and refueling, and smoother driving. Since the introduction of cost-effective mobile solutions, the drop in battery price per kWh and practical performance needs are also likely to drive market growth in the coming years. The global car electrification market has shown tremendous expansion over the past few years. Electric vehicles help save energy and also reduce environmental pollution. In addition to this, it can help in improving the performance of vehicles significantly. Therefore, the demand for electrification of cars will grow in the coming years. Governments of different countries also have different policies for the introduction of electric vehicles. Moreover, major market players are disclosing key mergers, acquisitions, and partnerships with each other. Hence, the revenue from the car electrification market will increase towards the end of the estimation period.

Vehicle Electrification Market Report:

Report metrics Details
Vehicle Electrification Market Size to 2028 250 billion dollars
CAGR during 2022-2028 12.52%
Base year 2021 year
Forecast 2022-2030
Report coverage Revenue forecast, competitive landscape, growth drivers and trends
Key market opportunities New intelligent transport systems
Key market drivers The demand for electric cars is growing
Strict government regulations combined
Ecological vehicles

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The vehicle electrification market covered by the USP

Market drivers

In recent years, the global car electrification market has shown tremendous expansion. The world is witnessing a simultaneous rise in energy disasters, and the concentration of pollution is considered to be the main parameter driving the growth of the market. Moreover, the growing environmental concern of governments regarding the deployment of electric vehicles is also likely to boost the market growth in the coming years. Moreover, the growing demand for public transport due to population growth will open up new opportunities. In addition, these vehicles are known to reduce carbon dioxide emissions, which will be beneficial for the growth of the market over the considered time period.

Limitations of the vehicle electrification market

On the other hand, number of risks such as low availability of charging points and lack of battery life may limit the market growth. In addition, the high costs of electrical systems can lead to a significant limitation in the operation of the market.

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Impact of COVID-19 on the vehicle electrification market

Recently, the global car electrification market has seen some unexpected changes, given the rise of the global health threat in the form of COVID-19. The global automotive market witnessed a massive drop in demand during the pandemic. In 2020, global car sales fell by 15%. In addition, the demand for cars fell sharply and caused a temporary stoppage of production lines. In addition, transit restrictions during the lockdown have affected the supply chain. On the other hand, the automotive sector is gradually showing impressive and rapid development.

Vehicle Electrification Market Segment Analysis

Among all products, the electric power steering (EPS) segment is expected to secure the leading position in the global vehicle electrification market during the review period. This segment is given the maximum preference among end users worldwide as compared to other steering systems. This provides several advantages, such as simpler interface setup, reduced mechanical complications, and energy savings. On the other hand, the electric vacuum pump segment is likely to exhibit the maximum growth rate in the coming years. Technological developments are carried out in the automotive industry to save fuel and achieve advantages in the energy efficiency of the engine.

Among all the hybridization models, the ICE segment is expected to provide the leading position in the global vehicle electrification market during the assessment period. Considering the technological development, the launch of new battery electric vehicles is considered to be the main aspect contributing to the growth of the segment. In contrast, the PHEV segment is projected to show the highest growth rate in the coming years.

Regional analysis of the car electrification market

The global automotive electrification market is analyzed across five important geographic regions: Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa.

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MRFR analysis reports indicate that Asia Pacific is expected to hold the leading position in the global vehicle electrification market in the coming years. The growth of the regional market is attributed to aspects such as large presence of several key players, technological advancement, supportive government policies, and growing demand for electric vehicles.

The North America regional market for vehicle electrification is likely to show significant development in the coming years due to high demand for electric vehicles and availability of better infrastructure.

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