Vehicle Electrification Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI1222
Vehicle Electrification Market size is set to register lucrative gains from 2020 to 2026 owing to rising demand for alternatives to petroleum-based fuels from the automotive industry. The damaging effects of fossil-fuel based technologies on the environment have initiated increasing debates regarding pollution control, which is expected to boost the adoption of sustainable technology alternatives such as electrification in the years ahead.
Vehicle electrification refers to cars and other automobiles that use electrical propulsion systems, with electricity playing an integral role in managing the functionality of the vehicle’s components. It covers electric power steering, electric oil pump, start/stop systems and other electrification aspects and accessories. The vehicle electrification industry is also poised to gain prominence owing to the ability of the technology to enhance fuel economy when installed in traditional ICE-based vehicles.
Stringent government regulations and incentives stemming from burgeoning concerns regarding fossil-fuel emissions and energy security are playing a major role in stimulating vehicle electrification market share over the forecast spell. For instance, the EVI (Electric Vehicles Initiative), a multi-government policy launched under the CEM (Clean Energy Ministerial) among Energy Ministers from prominent economies across the globe, is designed to accelerate the worldwide integration and adoption of electric vehicles. Such global initiatives, as well as those put into effect by individual governments across the glove to enhance fuel efficiency and mitigate carbon footprint are projected to boost the market share over the forthcoming years.
EPS (Electric power steering) is emerging as a major technology in the vehicle electrification industry. EPS systems are powered by a computer that analyzes driver and road inputs to calculate and optimize the electronic output of the vehicle, thereby enhancing overall performance. These systems help mitigate risk of human error and distracted driving by providing various assistance features such as lane stability, blind spot detection and auto-braking, among others.
HEV (Hybrid electric vehicles) are also expected to attain a commendable share in the overall market, given the ability to switch between multiple power sources, including the combination of internal combustion engines and electric motors. The HEV system operates by capturing energy that is generally lost during braking, by employing the electric motor to act as a generator and store the capture energy within a battery. HEVs thus combine the benefits of both electric and fuel-based motors, and are configurable to fulfill distinct objectives, including enhanced power, more auxiliary power for power tools or electronic devices as well as better fuel economy.
Major players operating in the vehicle electrification industry include Mitsubishi Electric Corporation, Robert Bosch GmbH., TRW Automotive Holdings, Continental AG, JTEKT Corporation (Toyota Group), Denso Corporation (Toyota & Toyota Industries) and Nexteer (Pacific Century Motors).
These players are focused on implementing several strategic moves such as partnerships and mergers to develop a more advanced portfolio and maintain a competitive position in the vehicle electrification market. For example, Tata Motors has entered a long-term partnership with Lithium Urban Technologies to boost the electrification of the transport service sector.
Meanwhile, CATL, a China-based manufacturer of EV batteries is expanding its collaborations with Netherlands-based Coach B.V & VDL Bus and Germany-based Quantron AG to further develop commercial vehicles electrification in Europe, by optimizing local services and product solutions.
Despite the intense impact of the COVID-19 pandemic on the auto industry, there are strong reasons for the industry to stay the course regarding vehicle electrification. The cost of renewable energy has declined to a significant extent, making it more viable under long-term forecasts for prices of crude oil.
While the ongoing crisis has left a considerable financial hole and disrupted several new vehicle initiatives, including EVs, the momentum of the automotive sector towards electrification is still strong. For instance, Volkswagen had committed a nearly $66 billion investment for the development of three bespoke EV platforms to be built across 8 facilities across the globe, prior to the emergence of the COVID-19 pandemic, which it is planning to uphold by ensuring that the first VW vehicle to be produced in the post-pandemic production period will be the electric ID3 model. These initiatives are expected to bolster the market outlook in the years ahead once the crisis abates.
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