Vehicle Electrification Market Size, Industry Outlook, Regional Analysis, Application Development & Forecast, 2020 - 2026
Report ID: GMI1222
Vehicle Electrification Market size is expected to witness an exponential growth over the forecast timeline owing to the rising demand for petroleum-based fuel alternatives for transportation purposes. Increasing emphasis on pollution control and awareness about the destructive effects of fuel-based technologies on the climate are among the prominent factors, which will surge the vehicle electrification market share from 2016 to 2024.
High efficiency and lower maintenance costs of electric vehicles have led to an increase in the electrification business. The next generation technological advancements indicate that automotive electrification can open new pathways for consumer engagement along with various financial and environmental benefits such as reduced dependence on conventional fuels and high energy efficiency.
The development of stringent regulations to reduce carbon emissions and economy standards from conventional automotive will present potential growth opportunities for the vehicle electrification market share from 2016 to 2024. Emerging economies are expected to possess a high growth potential for reliable electric automotive systems. Along with this, declining supply of fuels due to its scarce availability and fossil fuel prices are consistently increasing. The easy availability of electric power sources and modulating convenience of these energy sources according to the requirements will catapult vehicle electrification market size over the forecast period.
Industry growth is highly dependent on the availability of specialized infrastructure and use of charging stations, which require high investments. The high cost of ownership of these vehicles and the need for the development of batteries with high-storage capacity will challenge industry growth. Moreover, low output power in comparison to conventional automobiles is anticipated to hinder vehicle electrification market growth over the coming years. The existing uncertainty of the Return On Investment (ROI) of these technologies is likely to hinder the industry growth.
Global vehicle electrification market share can be segmented on the basis of products into Electric Power Steering (EPS), start-stop system, Electric Vacuum Pump (EVP), electric water pump, electric air-conditioner compressor, and electric oil pump. Intense competition among manufacturers to develop electric and self-driven automobiles is anticipated to fuel the global EPS market. EPS is expected to register a high growth owing to its characteristics such as improved fuel efficiency and better driving experience. Electric water pumps are a part of next-generation automobile technologies, which help in attaining high efficiency over the coming years. Along with standard engine cooling, these electric water pumps help in engine load reduction and can be controlled by sensors to provide the necessary amount of coolant at any time.
On the basis of the degree of hybridization, vehicle electrification market is segmented into Internal Combustion Engine (ICE) & micro hybrid, Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV), and Hybrid Electric Vehicle (HEV). HEVs are expected to dominate the industry share owing to their featured switching between two or more distinct types of power, such as internal combustion engine combined with the electric motor. The availability of charging stations on the road network is expected to dictate the development of plug-in hybrid automotive segment. Furthermore, diesel hybrid automotive is likely to witness the highest growth in Africa and Asia Pacific due to its high fuel efficiency.
Asia Pacific vehicle electrification market size is estimated to dominate the overall industry share during the forecast timeline and experience the highest growth. China, Korea, and Japan are anticipated to be the key contributors to the growth of the region. To cater to the increasing demand, OEMs are increasingly investing to expand their operations in these countries.
Europe vehicle electrification market share is expected to experience a high growth rate owing to the presence of major industry participants across the region. Germany accounts for the largest vehicle sales in the region.
Manufacturers operating in the global vehicle electrification market include Continental AG, Denso Corporation, Mitsubishi Electric Corporation, Robert Bosch GmbH., Nexteer, JTEKT Corporation, and TRW Automotive Holdings. The industry is highly characterized by mergers & collaborations for the development of advanced portfolios to gain a competitive edge. For instance, in May 2016, PSA Group and China's Dongfeng Motor entered into an agreement to create a common platform to develop electric cars from 2019.
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