Global Vehicle Electrification Market Size, Share, Growth Analysis, By Hybridization(Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle, HEV), By Product(Start/Stop System, Electric Power Steering) - Industry Forecast 2024-2031

Global Vehicle Electrification Market size was valued at USD 90.04 billion in 2022 and is poised to grow from USD 98.86 billion in 2023 to USD 208.86 billion by 2031, growing at a CAGR of 9.8% during the forecast period (2024-2031).

The market's goal is to address the urgent issues of carbon emissions from conventional vehicles and environmental pollution. The growing global emphasis on cutting greenhouse gas emissions and addressing climate change is driving the expansion of the vehicle electrification market. To promote the use of electric vehicles, governments everywhere are putting stronger laws and policies into place. These include building infrastructure for charging, offering incentives and subsidies for buying electric vehicles, and raising emission requirements. The market is also confronted with a number of obstacles and restraints. The high initial cost of electric vehicles in comparison to conventional automobiles is one of the main obstacles. For some users, electric vehicles are not as economical due to the continued high cost of parts, especially batteries.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Vehicle Electrification Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Vehicle Electrification Market Segmental Analysis

Based on product, geography, and hybridization, the global market for vehicle electrification is divided into segments. The market is divided into internal combustion engine (ICE) and micro-hybrid vehicles, such as HEV, PHEV, and BEV, in terms of hybridization. Electric power steering, liquid heater PTC, electric air conditioner compressor, electric vacuum pump, electric oil pump, electric water pump, starter motor & alternator, integrated starter generator, and actuators are the main categories into which the market is divided. Geographically, the market is extensive throughout Latin America, the Middle East and Africa, Asia Pacific, North America, and Europe.

Drivers of the Global Vehicle Electrification Market

Governments all throughout the world have been encouraging the use of electric vehicles and vehicle electrification by enacting supportive laws, rules, and incentives. For instance, the US announced in 2022 that it would be extending and expanding its federal tax credits for electric vehicles, which would give consumers financial incentives and encourage the use of electric vehicles.

Restraints in the Global Vehicle Electrification Market

The restricted accessibility of infrastructure for charging electric vehicles continues to be a major obstacle to their broad adoption. This limitation was brought to light in 2022 as a possible impediment to market expansion, especially in areas with insufficient charging networks and slower infrastructure development.

Market Trends of the Global Vehicle Electrification Market

The market for vehicle electrification is driven by developments in battery technology and ongoing improvements in the range of electric vehicles. In order to provide greater driving ranges and lessen range anxiety, automakers concentrated on improving battery energy density. Examples are the Model S Plaid from Tesla, which has a range of more than 520 miles (837 km), and the Ioniq 5 from Hyundai, which has a range of up to 300 miles (483 km) with cutting-edge battery technology. These developments boost consumer confidence and help electric vehicles become more widely used.