Vehicle Electrification Market Poised to Expand Steadily Owing to Rising Global Vehicle Sales

Vehicle Electrification Market

The Vehicle Electrification Market consists of components involved in integrating electric drivetrains into vehicles to improve fuel efficiency and reduce emissions. Key components include electric motors, batteries, transmission systems, power electronics components, and motor controllers. There is rising demand for hybrid vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV) to curb urban air pollution and comply with stringent emission norms. Government incentives and subsidies for electric vehicles across countries are encouraging more consumers to switch from conventional vehicles.

The global Vehicle Electrification Market is estimated to be valued at US$ 97.25 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period of 2024 to 2031.

Key Takeaways
Key players operating in the Vehicle Electrification Market are AMETEK Inc., Alleima, Teshima International Corporation, Om Steel Tubes Ltd., Tech Tube, Inc., Bison Stainless Tube, LLC, Vita Needle Company, M&M International, Fuji Seiko, Accu-Tube, Eagle Stainless Tube & Fabrication, Inc., Forefront Medical Technologies, Minitubes, Teleflex Incorporated, VIANT, and K-Tube Technologies.
Key opportunities in the market include developing electrified variants of heavy commercial vehicles and launching wireless EV charging solutions. Major automakers are expanding their electric mobility footprint in key global markets such as China, Europe and the U.S. to tap the growing demand.

Market Drivers
Rising global vehicle sales are necessitating lower emissions, driving Vehicle Electrification Market Demand for electrified vehicle variants. Stringent emission norms by regulatory bodies are compelling automakers to increase electric vehicle production. Government subsidies for electric mobility in countries are incentivizing consumers to buy electric vehicles. Falling battery prices and improved driving ranges are making electric vehicles more viable propositions against conventional vehicles.

Market Restraints
High costs of electric vehicles and components continue to restrain mass adoption. Lack of standardization in charging solutions results in range anxiety among consumers. Insufficient public charging infrastructure poses challenges, especially in emerging economies. Dependence on imported battery cell supply also affects automakers' pricing capabilities. Range limitations of commercial electric vehicles restrict their fleet applications.

Segment Analysis

The Vehicle Electrification Market is dominated by the passenger vehicles sub segment. This is because of the rising demand for electric vehicles from consumers for daily commute. The governments across globe are also promoting the adoption of electric vehicles to reduce carbon emissions. Factors like rising fuel prices and growing environmental concerns are making passenger electric vehicles popular among consumers.

The commercial vehicles sub segment is also growing due to the need for economically viable and low emission transportation solutions in logistics and goods delivery sector. The integration of advanced lithium ion batteries and efficient electric drivetrains in commercial electric vehicles are encouraging their adoption among fleet operators.

Global Analysis

The Asia Pacific region dominates the global Vehicle Electrification Market owing to presence of large automotive manufacturing base in countries like China, Japan and South Korea. The strong government support through subsidies and incentives for electric vehicles in countries like China, Japan, South Korea and India is stimulating market growth.

Europe is another major region for Vehicle Electrification Market spurred by stringent emission norms and increased focus on sustainable transportation solutions. Developed nations in Europe have well established electric vehicle charging infrastructure and supportive regulations which are attracting consumers.

North America market is driven by rapid adoption of electric vehicles in U.S. supported by incentives and initiatives for zero emission transport. However lack of standard charging network remains a challenge.

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