Rising fuel prices coupled with increasing demand for improved fuel economy in vehicles are expected to drive the global vehicle electrification market growth over the forecast period. Rise in pollution and stringent government regulations on Carbon Monoxide (CO) emissions may propel drive the electrification market over the next few years. The vehicle electrification market is also estimated to witness high growth owing to the growing demand for electric systems in vehicles, tax exemptions, and subsidies specified by the government along with rise in petrol and diesel prices. Growth in overall automotive industry may also fuel market growth.
The vehicle electrification market may face challenges in developing batteries with high storage capacities. High cost of electrification and electric systems may increase the price of the finished vehicle, which may hinder market growth. In addition, fail-safe electronic and electrical components may pose challenge to the vehicle electrification market growth.
Emerging economies exhibit high-growth potential and scope for electrical systems, and may provide growth opportunities to the vehicle electrification market. Increasing adoption of hybrid vehicles containing electrification systems paired with rise in sales of electric vehicles are further estimated to escalate market growth.
The products which make up the vehicle electrification market are start-stop system, electric air conditioner compressor, Electric Power Steering (EPS), electric turbocharger, liquid heater PTC, thermoelectric generator, electric mobile phone charger, electric water pump, electric oil pump, and electric vacuum pump. Electric Power Steering (EPS) is estimated to account for significant market share owing to its capability to ensure safe driving through hydraulic power steering in vehicles. This is further expected to provide better handling, reduced weight, and lower energy consumption in vehicles eventually giving a stronghold position to Electric Power System (EPS) in the market. Electric air conditioner compressor may also witness potential growth in the market owing to its large-scale implementation in mid-sized vehicles such as cars and buses. Governments across the globe have enacted direct subsidies, regulatory policies and fiscal incentives to help accelerate the movement of electric vehicles into the marketplace
The vehicle electrification market can be classified on the basis of degree of hybridization into Internal Combustion Engine (ICE) & micro-hybrid vehicle, Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and Fuel Cell Electric Vehicle (FCEV). Amongst these, Hybrid Electric Vehicle (HEV) may witness substantial growth in the vehicle electrification market due to its competence in combining two different power sources such as diesel/petrol and electrical power.
North America is anticipated to hold a major market share owing to its mature vehicle market, stringent norms for emissions, and government subsidize provided for electric vehicles. Similar pattern is expected in European market as the market penetration of vehicle electrification technologies in passenger vehicles is increasing across the region. Asia Pacific may hold potential growth in the market owing to the increasing growth of automotive industry in the region. Rising demand for improved fuel-efficiency and the increasing number of vehicle manufacturing companies due to low cost production facilities in the region may propel market growth over the forecast period.
Key players in the vehicle electrification market include Robert Bosch GMBH, ZF Friedrichshafen AG, Mitsubishi Electric Corporation, Denso Corporation, Continental AG, TRW Automotive Holdings Corporation, Delphi Automotive PLC, Borgwarner Inc., JTEKT Corporation, Nexteer Automotive Group Ltd., Visteon Corporation, Mando Corporation, and NSK Ltd. A major market strategies adopted by market leaders in vehicle electrification market include geographic expansion and new product development. For example, in May 2015, Robert Bosch GMBH presented Bosch boost recuperation system at the International Vienna Motor Symposium 2015. This technology offers fuel-efficiency, better vehicle performance, and lesser carbon emissions into the atmosphere. Its electric supported coasting technology provides a relatively higher torque to the car.
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