Vehicle electrification refers to replacing conventional internal combustion engine vehicles with electric vehicles in order to reduce carbon emissions from the transportation sector. Electric vehicles have zero direct emissions and require less maintenance as they have fewer moving parts. Rising fuel costs and stringent emission norms have increased the demand for electric vehicles. The global Vehicle Electrification Market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased government investments in electric vehicle charging infrastructure is one of the major trends influencing the Global Vehicle Electrification Market Size positively. Governments across regions are heavily investing in electric vehicle charging infrastructure to promote the adoption of electric vehicles. For instance, the USA has announced an investment plan of $7.5 billion to build a nationwide network of electric vehicle chargers along all major highways and in rural and disadvantaged communities. The European Commission has committed nearly €2 billion to support the deployment of 1 million public charging points across Europe by 2025. Increased focus on expanding the charging infrastructure is encouraging more consumers to purchase electric vehicles, thereby driving the demand for vehicle electrification solutions.
SWOT Analysis
Strength: Vehicle Electrification provides opportunities for reduced emissions and improved efficiency. It allows automakers to comply with strict emission norms.
Weakness: High manufacturing costs and lack of charging infrastructure are challenges. Changing consumer mindsets and preferences also impacts adoption.
Opportunity: Government initiatives and subsidies for electrified vehicles provide opportunities for growth. Advancements in battery technologies boost the market.
Threats: Dependency on raw material prices poses risks. Established internal combustion engine technology remains a threat.
Key Takeaways
The global vehicle electrification market is expected to witness high growth. Demand is driven by stringent emission policies along with reducing battery pack prices. The Asia Pacific region currently dominates the market due to the large production hubs in China and government initiatives for clean mobility.
Regional analysis
The Asia Pacific region is currently dominating the global vehicle electrification market with countries like China, Japan and South Korea emerging as major manufacturing hubs. Stringent emission norms along with incentives and subsidies by various governments in the region are boosting adoption. Europe is another fast growing regional market supported by regulatory push for electrified vehicles.
Key players operating in the vehicle electrification market are Robert Bosch, Continental, Denso, GM, Tesla, Toyota, Valeo. Key players are focusing on developments including electric vehicle supply equipment, battery management systems and more efficient electric drive units. Strategic partnerships are helping automakers electrify their product portfolio and meet emission compliance requirements.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it