Vehicle Electrification Global Market Report 2024

The vehicle electrification market size has grown rapidly in recent years. It will grow from $84.04 billion in 2023 to $93.88 billion in 2024 at a compound annual growth rate (CAGR) of 11.7%. The growth seen in the historical period was propelled by various pivotal factors. Notably, substantial investments in research and development (R&D) spurred innovation throughout the industry. The entry of major players into the market further fueled its expansion. Advances in charging infrastructure, alongside declining battery costs, played a crucial role in driving this growth trajectory. Moreover, heightened consumer awareness and a surging demand for these technologies significantly contributed to the market's expansion during this period.

The vehicle electrification market size is expected to see rapid growth in the next few years. It will grow to $143.56 billion in 2028 at a compound annual growth rate (CAGR) of 11.2%. The projected growth in the forecast period is expected to stem from several key factors. Stringent emission regulations, along with government support and incentives, will continue to act as major drivers. Cost reductions in battery production and the ongoing expansion of charging infrastructure will further propel market expansion. Automaker commitment and substantial investments will also contribute significantly to this anticipated growth.

The vehicle electrification market is witnessing significant growth due to the surge in demand for hybrid vehicles. These vehicles, equipped with both internal combustion engines and electric motors, offer improved fuel economy and reduced emissions. The shift towards reducing emissions, coupled with rising income levels and a burgeoning young population, drives the demand for hybrids. In the US, hybrid vehicle sales surged by 76% in 2021, reaching 801,550 vehicles, while electric vehicle sales increased by 83% to 434,879 units, reflecting the market's upward trajectory. This escalating demand for hybrid vehicles is anticipated to power the vehicle electrification market further.

The vehicle electrification market is experiencing growth driven by the increasing urban population. Urban areas globally are witnessing a surge in residents, with cities becoming hubs of economic and social activities. For example, in the US, about 83.3% of the population resides in urban areas, and the annual urbanization rate is anticipated to be 0.96% from 2020 to 2025. Similarly, the UK's urban population stands at 84.6%, with an expected urbanization rate of 0.8% over the same period. As cities grow, vehicle electrification becomes pivotal, promoting sustainability and technological advancement in these densely populated areas.

The vehicle electrification market is witnessing a surge in technological advancements, driving innovation among major companies. ABB, a Switzerland-based automation company, unveiled Terra 360 in September 2021 - a groundbreaking electric car charger that can simultaneously charge four vehicles. With dynamic power distribution, it can deliver 100km of range in under three minutes, catering to urban charging stations, refueling stations, and fleet applications. Its customizable features, allowing personalization through different foiling and LED light strips, mark a significant advancement in the market.

Companies within the vehicle electrification market are strategically focusing on innovative product development, notably in areas such as specialized EV tires, to enhance profitability. For instance, in August 2032, Apollo Tyres - a prominent Indian tire manufacturer - unveiled its EV-specific tires, the Apollo Amperion series for electric passenger cars and the Apollo WAV range for electric two-wheelers. These tires, designed for vehicles such as the Tata Nexon and Hyundai Kona, integrate pioneering technologies such as "AQuT Tech" and "BEST Tech" to minimize noise and extend the battery range of electric vehicles through advanced low RR technology.

In June 2021, Ford Motor Company, a US-based automotive manufacturer, completed the acquisition of Electriphi, a provider of charging management software for electric vehicles. The move aims to propel Ford's advancement in cutting-edge charging and energy management solutions for both commercial and retail customers, positioning the company at the forefront of the electrification revolution in the automotive industry.

Major companies operating in the vehicle electrification market report are Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Mercedes-Benz Group AG, General Motors Company, Bayerische Motoren Werke AG, Hyundai Motor Company, Honda Motor Co. Ltd., Robert Bosch GmbH, Tesla Inc., Nissan Motor Co. Ltd., Kia Corporation, BYD Company Limited, Audi AG, Volvo Group AB, Denso Corporation, Continental AG, Magna International Inc., Mitsubishi Electric Corporation, Aisin Seiki Co. Ltd., Jaguar Land Rover Automotive PLC, BorgWarner Inc., Adient PLC, NIO Inc., Li Auto Inc., XPeng Inc., Rivian Automotive Inc., Delphi Technologies, Polestar AB, Lucid Motors Inc., Fisker Inc., Lordstown Motors Corp., Canoo Inc., Arrival Ltd., Proterra Inc., Faraday Future Inc., Rimac Automobili d.o.o.

Asia-Pacific was the largest region in the vehicle electrification market in 2023. The regions covered in the vehicle electrification market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle electrification market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle electrification market encompasses diverse product types, including starter motors, alternators, electric car motors, electric water pumps, electric oil pumps, electric vacuum pumps, electric fuel pumps, electric power steering systems, actuators, and start/stop systems. A starter motor is an electrical apparatus employed to initiate an internal combustion engine's operation independently. This technology finds application in a wide array of vehicle types, including internal combustion engine vehicles, micro and full hybrid vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). These products are distributed through sales channels such as original equipment manufacturers (OEM) and the aftermarket.

The vehicle electrification market research report is one of a series of new reports that provides vehicle electrification market statistics, including vehicle electrification industry global market size, regional shares, competitors with a vehicle electrification market share, detailed vehicle electrification market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle electrification industry. This vehicle electrification market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The vehicle electrification market includes revenues earned by entities by light, medium, and heavy-duty vehicle electrification. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.