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The global vehicle electrification market size valued at USD 27.9 billion in 2018 and is projected to reach USD 53.3 billion by 2026, exhibiting a CAGR of 8.5% during the forecast period.
Vehicle electrification is the method of electrifying all components of the vehicle which are required for its propulsion; this is done by replacing conventional systems by electrical systems. For example, conventional starter motor and alternator are replaced with an integrated starter generator system (ISG). Vehicle electrification increases the efficiency of the vehicle and reduces dependency on conventional fuels and lowers carbon emissions; this, in turn, provides various environmental and economic benefits. Additionally, vehicle electrification offers less operational cost and require less maintenance as it eliminates the use of coolants in the vehicles.
Increasing Utility Programs to Support the Adoption of Electric Vehicles has led to Witnessed Significant Market Trend
As per Rocky Mountain Institute by 2022, 2.9 million electrified vehicles would be on the road, which would add over 11000 gig watts-hour of electricity demand. Governments and OEMs across the globe are trying to meet the rising demand for electric power for vehicles by building new charging infrastructure. The US and Europe have installed a smart-grid charging system, which allows managing charging loads of EVs remotely.
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The Increasing Use of Advanced Technologies Such as Engine Shut Down System is Likely to Drive the Market
Increasing use of engine shut down system is one of the major market trends in vehicle electrification market. During heavy traffic or at the signals, if the vehicle comes at the halt, the integrated starter generator system automatically shuts off the engine. For example, if the vehicle is running slower than the specified threshold, the driveline is opened, and the power supply system supports the electrical load when the vehicle is at a halt, the engine starts again when the accelerator is depressed. The electric motor and offers additional power to the IC engine; the fuel consumption is reduced without affecting the power output.
Stringent Government Emission Regulations is expected to drive the growth of this market
The vehicle emission has caused a significant impact on the environment and human life; therefore, several governments’ bodies across the globe have imposed stringent emission norms for vehicles. This, in turn, has forced automotive manufacturers to produce cars that cause fewer emissions and stick to the regulations imposed by the government. Governments in developing countries are implementing new strategies such as tax exemptions; to attract consumers to purchase hybrid and electric vehicles.
The Increasing Demand for Hybrid Vehicles is expected to drive the market over the Forecast Period
Increasing demand for hybrid vehicles is expected to drive the market over the forecast period. Key manufacturers have heavily invested in R&D to produce hybrid vehicles that do not cause emission, have higher efficiency than conventional vehicles, and also meet the industry standards. Increasing awareness among the consumers regarding vehicular emissions is anticipated to fuel the demand for hybrid and electrified vehicles during the forecast period. All these factors are likely to drive the growth of the vehicle electrification market over the forecast period.
The Cost of Vehicle Electrifications is Anticipate to Restraint the Growth of the Market
The maintenance and replacement cost of vehicle electrifications is expensive; this factor is anticipated to restrain the growth of vehicle electrification market over the forecast period. Key OEMs are focusing on developing cost-effective components that are sturdy and have a high life.
An Infographic Representation of Vehicle Electrification Market
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Integrated Starter Generator (ISG) is estimated to dominate the market over the Forecast Period
By product type, the vehicle electrification market is segmented into the start/stop system, PTC Heater, starter motor and alternator, integrated starter generator, actuators, electric oil pump, electric vacuum pump, electric water pump, and electric air conditioner compressor. The integrated starter generator segment is anticipated to dominate the market over the forecast period. Increasing greenhouse gas emission has from conventional vehicles have fuelled the demand for advanced vehicles integrated with the ISG system, which helps to curb the emissions from the vehicle. The integrated starter generator replaces the starter motor and alternator in the conventional vehicles by automatically controlling its start/stop system and, in turn, offer better fuel efficiency. Integrated starter generator acts as two-directional power convertor by changing mechanical energy into electrical energy and vice versa. It also provides noiseless and vibration-less operation of the engine.
Passenger Car Segment is Likely to Experience Significant Growth during the Forecast Period
Based on the vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment is anticipated to dominate the market over the forecast period. Rising sales of passenger cars are likely to drive the market over the forecast period. The light commercial vehicle segment is estimated to show good growth in the market. Increasing government initiatives to reduce emission levels caused by commercial vehicles is one of the significant reasons fuelling the growth of the LCV over the forecast period.
Asia Pacific Vehicle Electrification Market Size, 2018
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By region, further, the market has been segmented into Europe, North America, Asia-Pacific, and the Rest of the World. Asia-Pacific is expected to dominate the market over the forecast period. The government initiatives in countries such as China, India and South Korea for the usage of the electrified vehicles and offer consumers tax exemption for the purchase of these vehicles is expected to drive the growth of the market in this region.
Europe is the second-largest market holder of the vehicle electrification market and is also estimated to show decent growth in the market over the forecast period. Early adoption of advanced technologies and hybrid vehicles in this region is one of the major factors which is maintaining the second-largest position of Europe in this market.
North America is expected to show steady growth in the vehicle electrification market over the forecast period.
Robert Bosch GmbH is the dominant player in the vehicle electrification market.
Robert Bosch GmbH is expected to be the dominant player in the vehicle electrification market. Bosch has adopted various strategies for expansion, partnerships, and acquisition and new product development to maintain its leading position in the electrification market. Robert Bosch has a presence in emerging markets such as Brazil, India, and China. The presence of both emerging markets and building strategic customer relationships have strengthened its global position in the market.
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The vehicle electrification market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD billion) & Volume (Million Units)
By Product Type
By Vehicle Type
Fortune Business Insights says that the global market was worth USD 27.9 billion in 2018.
This market is projected to be worth USD 53.3 billion in 2026,globally.
The global Vehicle Electrification market will grow at a CAGR of 8.5% in the forecast period (2019-2026).
Asia Pacifics Market for Vehicle Electrification, was valued to be USD 12.3 billion in 2018.
In terms of product type, the integrated starter generator segment will dominate the global market during the forecast period.
Stringent government emission regulations are vital to market drivers. However, the initial cost of Vehicle Electrification may hinder market growth.
Delphi, Bosch & Denso are among the top companies in this market.
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