Global Vehicle Electrification Market to Reach US$ 162.0 Billion by 2032, Stimulated by Rising Adoption of EVs

According to the latest report by IMARC Group, titled “Vehicle Electrification Market Report by Product Type (Starter Motor, Alternator, Electric Car Motors, Electric Water Pump, Electric Oil Pump, Electric Vacuum Pump, Electric Fuel Pump, Electric Power Steering, Actuators, Start/Stop System), Vehicle Type (Internal Combustion Engine (ICE) and Micro-Hybrid Vehicle, Plug-in Hybrid Electric Vehicle (PHEV) and Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV)), Sales Channel (Original Equipment Manufacturers (OEM), Aftermarket), and Region 2024-2032,” the global vehicle electrification market size reached US$ 91.4 Billion in 2023. Vehicle electrification refers to the process of replacing components or systems that were traditionally powered by the internal combustion engine (ICE) and its associated systems with electrically powered components and systems. It involves the integration of electric motors, batteries, power electronics, and charging infrastructure into the design and operation of vehicles. It helps reduce reliance on fossil fuels, lower emissions, and promote sustainability in the transportation sector. It offers numerous other benefits, including lower operating costs, reduced environmental impact, and enhanced energy efficiency. Besides this, as it helps reduce respiratory problems and promotes a healthier living environment for communities, the demand for vehicle electrification is increasing globally.

Global Vehicle Electrification Market Trends:

The rising need for eco-friendly transportation options and the shift towards sustainable practices due to the growing environmental concerns with harmful vehicular emissions represent one of the key factors propelling the adoption of electric vehicles around the world. Additionally, governments and regulatory bodies in numerous countries are implementing stringent emission standards and offering incentives to promote the use of EVs, encouraging both consumers and businesses to embrace vehicle electrification technology. Apart from this, the growing infrastructure for EV charging stations, along with the development of fast-charging technologies, is contributing to market growth. Furthermore, leading automotive manufacturers are investing in research and development (R&D) activities to introduce new EV models and expand their electrified vehicle portfolios. Moreover, the advent of autonomous driving technologies and the integration of electric powertrains in commercial vehicles, such as buses and delivery vans, are driving the market. Additionally, rapid urbanization, coupled with changing mobility patterns, such as car sharing and ride-hailing services, and the emergence of smart cities are the other factors propelling market growth. Looking forward, the market value is projected to reach US$ 162.0 Billion by 2032, expanding at a CAGR of 6.4% during 2024-2032.

Market Summary:

• On the basis of the product type, the market has been segmented into starter motor, alternator, electric car motors, electric water pump, electric oil pump, electric vacuum pump, electric fuel pump, electric power steering, actuators, and start/stop system. Electric power steering currently dominates the market.
• Based on the vehicle type, the market has been divided into internal combustion engine (ICE) and micro-hybrid vehicle, plug-in hybrid electric vehicle (PHEV) and battery electric vehicle (BEV), and hybrid electric vehicle. Internal combustion engine (ICE) and micro-hybrid vehicle accounts for the highest market share.
• On the basis of the sales channel, original equipment manufacturers (OEMs) hold the majority of the market share, followed by the aftermarket.
• Region-wise, the market has been categorized into North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. Amongst these, Asia Pacific enjoys the leading position in the market.
• The competitive landscape of the market has also been examined, with some of the key players being Aisin Corporation, BorgWarner Inc., Continental AG, DENSO Corporation, Ford Motor Company, Hitachi Ltd., Johnson Electric Holdings Limited, Magna International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo, and ZF Friedrichshafen AG.

Report Scope:

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