Global Vehicle Electrification Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

Growing trend of electrification of commercial vehicles and fleets are expected to provide lucrative opportunities for worldwide market advancement during the forecast period

The Global Vehicle Electrification Market is estimated to be USD 92.76 Bn in 2023 and is expected to reach USD 176.1 Bn by 2028 growing at a CAGR of 13.68%.

Vehicle electrification is the process of using electricity to power a vehicle, this involves replacing components that use conventional energy sources with components that operate on electricity. In an electrified vehicle, the powertrain is propelled by electricity and its auxiliary systems, including wireless power transfer, off-board charging, and on-board charging. By reducing the usage of fossil fuels and greenhouse gas emissions, this technology hopes to lessen the effects of climate change. Many also include regenerative braking systems, which collect energy during braking and store it in the battery for later use. It may be charged using electricity from the grid. They offer several advantages over traditional gasoline-powered vehicles, including lower operating costs, reduced air pollution, and a quieter ride. By substituting electrical systems for traditional ones, the process of 'vehicle electrification'involves electrifying all the vehicle's propulsion-related parts.

The market is driven by increasing demand for hybrid vehicles. There is a substantial need for vehicle electrification due to rising consumer demand for fuel-efficient vehicles. In comparison to normal gasoline-powered vehicles, hybrid vehicles offer increased fuel efficiency and lower emissions thanks to the combination of a typical gasoline engine, an electric motor, and a battery system. Cleaner air, less operating costs, less noise pollution, avoiding congestion fees, and other benefits are provided by vehicle electrification. Improvement in the electronic components enhances safety and awareness and is the major reason in pushing the consumer for increased adoption of vehicle electrification. Hybrid car demand has grown recently as governments and consumers place a higher priority on environmentally friendly transportation solutions. Hybrid vehicles are becoming more effective and capable of longer electric-only driving ranges as battery technology advances, making them a more appealing choice for consumers.

However, the high cost incurred in vehicle electrification is restraining the market. The electrification of vehicles makes use of cutting-edge technologies and electric power components. The usage of modern technologies carries several concerns, such as explosions, short circuits, battery runways, and others. The expensive cost of batteries, incidents involving high voltage batteries, overheating, problems with hydrogen fuel, etc., are factors in the popularity of vehicle electrification. All these concerns constrain the expansion of the global market for vehicle electrification. Despite the many advantages, electric vehicles are rather pricey. Installing home charging infrastructure, modernizing electrical systems, and ongoing maintenance and repairs all come with additional costs in addition to the initial cost of buying an electric vehicle. The cost of electric vehicles rises as a result of automakers' significant investments in R&D to advance battery technology.

However, the market has an opportunity with stringent government emission regulations in developed countries. Since car emissions have a considerable negative influence on both the environment and human life, several governmental agencies have enforced strict emission standards for automobiles worldwide. As a result, automakers are now under pressure to create vehicles that emit fewer pollutants and comply with governmental rules. Governments in developing nations are implementing new policies, such as tax exemptions, to encourage people to buy hybrid and electric cars. To minimize carbon emissions and transition to a more sustainable transportation system, numerous governments and corporations worldwide are investing in the electrification of vehicles. In the upcoming years, the market for vehicle electrification will experience favorable growth opportunities due to the use of substitute materials for total weight reduction to create new avenues in electric vehicle technologies and the electrification of commercial vehicles. A smart grid charging system has been deployed in the US and Europe that enables remote management of EV charging loads.

• However, the lack of infrastructure for charging facilities is one of the main challenges facing the widespread adoption of electric vehicles. The accessibility and availability of charging stations are a major worry for many prospective owners of electric vehicles, particularly for longer trips or in places with poor infrastructure. Advanced technology and electric powertrain components are now available in automobiles thanks to electric vehicles. These technologies come with several concerns that need to be carefully considered, including the thermal runaway of a battery bank and fire.

Market Segmentations

• The Global Vehicle Electrification Market is segmented based on Product, Vehicle Type, Hybridization, and Geography.
• By Product, the market is classified into Start/Stop Systems, Electric Power Steering, Liquid Heater Ptc, Electric Air Conditioner Compressors, Electric Vacuum Pumps, Electric Oil Pump, Electric Water Pump, Starter Motors & Alternators, Integrated Starter Generator, and Actuators.
• Starter Motor & Alternator holds the largest share of the market. The alternator produces electricity to power the vehicle's electrical systems and recharges the battery, while the starter motor oversees starting the engine. A generator or alternator is required to provide electricity for the vehicle's auxiliary systems and battery recharging. The starting motor and alternator, which have long occupied a sizable portion of the market, are essential parts of the vehicle's electrical system. As vehicle electrification technology develops, the market for starting motors and alternators is anticipated to transition away from less sophisticated electric motors and generators. The starting motor is still required to start the engine in hybrid vehicles because they have both an electric motor and a conventional gasoline engine.
• By Vehicle Type, the market is classified into Passenger Cars, Heavy Commercial Vehicle, and Light Commercial Vehicle.
• The Light Commercial Vehicle segment is anticipated to dominate the market over the forecast period. As technology advances and businesses look to save operating expenses and carbon emissions, the electrification of LCVs is gaining steam. Electric LCVs have several advantages, such as lower fuel and maintenance costs, lower pollutants, and quieter operation than their gasoline or diesel equivalents. One of the key factors driving the expansion of the LCV over the projection period is an increase in government measures to lower emission levels generated by commercial vehicles.
• By Hybridization, the market is classified into HEV, PHEV, and BEV.
• BEV holds the largest CAGR of the market. This is because of several things, such as the continued advancement of more sophisticated and effective battery technology, more investment in infrastructure for electric car charging, and government incentives and rules that favor the use of electric vehicles. BEVs are becoming more accessible and useful for daily usage as battery technology advances, with greater driving ranges and quicker charging periods. This is causing a rise in the demand for electric vehicles, especially in areas with tougher emission standards and more expensive fuel. It is a kind of electric car that doesn't use a conventional gasoline engine; instead, it runs entirely on electricity stored in rechargeable batteries. An electric motor propels the wheels and needs to be charged from an outside power source like a wall outlet or a charging station. In comparison to conventional gasoline-powered vehicles, it has several benefits, including lower operating costs due to the lower price of electricity, lower maintenance costs because an electric motor has fewer moving parts than an internal combustion engine, and zero tailpipe emissions, making them more environmentally friendly.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• Americas held a dominant position in the global vehicle electrification market. It is likely to gain pace during the forecast period owing to broader and more ambitious plans by the state governments to migrate to electric vehicles, driving the vehicle electrification market in the Americas region. Significant tax advantages facilitated the early adoption of electric light-duty vehicles (LDVs) and the growth of the EV manufacturing and battery industries. To close the gap between conventional and electric vehicles, subsidies on the purchase of electric vehicles and registration tax rebates were created. All these government initiatives are helping the market for vehicle electrification in this area grow faster. With the help of factors including a surge in car electrification businesses.

Recent Development

• BYD Motors introduced the innovative ECC32 advanced battery electric forklift. The 7,000-pound forklift has no charge restrictions and can operate in multiple shifts without needing to replace or change batteries.¬ - March 2022
• Daihatsu Motor Co. Ltd. and Suzuki Motor Corp. announced that they collaborated to work on the commercial Japan Partnership commercial vehicle project which is to accelerate carbon neutrality initiatives in mini vehicles. - July 2021

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are ABB, Aisin Seiki, BMW, BorgWarner, BYD Auto, Continental, Delphi Automotive, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
• The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Vehicle Electrification Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Vehicle Electrification Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Vehicle Electrification Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
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Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market