Vehicle Electrification Market Analysis By Product (Start/Stop Systems, Electric Power Steering, Liquid Heater Ptc, Electric Oil Pump, Electric Water Pump, Starter Motor & Alternator), By Hybridization And Segment Forecasts, 2018 - 2025

Report Overview

The global vehicle electrification market size was estimated at USD 58.92 billion in 2016. The industry witnessed substantial growth owing to a rise in demand for EVs and the displacement of conventional components with electric propulsion in the automobiles. Moreover, multi-functional benefits to the consumer such as functional efficiency and reduced reliance on fossil fuels stimulate the growth of the market.

Vehicle electrification refers to a vehicle with electrical means of propulsion as well as electricity paying a major role in components functionality. It covers many aspects of electrification in the such as start/stop systems, electric power steering, electric vacuum pump, electric oil pump, and many other accessories which utilize mode of electric propulsion as well as help user to gain improved fuel economy when installing in conventional ICE vehicles. 

The adoption of clean power generation sources in such vehicles significantly impacts the environment with reduced harmful emissions of tailpipes as well as the power grid. Additionally, the electrification process incurs less operating costs and requires low maintenance as it eliminates the use of lubricant or coolant in the vehicle. The mechanical integration through electrification improves the overall working and efficiency which is anticipated to boost the market over the forecast period.

Vehicle electrification influence consumer with higher efficiency and power decoupled from manual transmission in automobiles. The process is being observed in many automobiles that have ICE. For instance, the engine shuts down when the vehicle is idle or parked, and the electricity from the battery is used to power the car using a “start/stop system.” The convention system for powering up engines uses a lot of fuel, where else using an electric motor for start/stop systems reduces the engine load thereby improving fuel efficiency. 

Product Insights

The electric power steering witnessed high demand in 2016 and is anticipated to grow at a CAGR of 6.3% over the forecast period. Automakers are switching to electric power steering in pursuit of the primary benefit of fuel economy in the conventional ICE which is estimated to be the key factor in the current demand for application in automotive. Additionally, the flexibility of the electric power steering provides comfort to its users which estimated to another potential factor to its application growth.

Electric power steering (EPS) increasing benefits coupled with advanced technology displaces hydraulic assist with a computer-controlled electric motor in the vehicle. EPS are smaller and lighter than HPS as it eliminates various conventional components and thus, result in an energy-efficient solution for automobiles. Lack of reliability in hydraulic power steering further supports the growth of EPS in this market.

Similarly, the electric oil pump in the product type segment is expected to witness a significant CAGR of 10.7% over the forecast period. The effective mechanical integration fuels electric oil pump application in the automotive. This results in oil lubrication to be equally distributed amongst the required area of the engine as well as the other parts of the vehicle. 

Hybridization Insights

Plug-In Hybrid Electric Vehicle (PHEV) is anticipated to grow at a relatively higher CAGR of 15.6 % than other hybridization types over the forecast period. The modern technology and mechanical integration prospect in the automobiles deliver consumers with optimum desired solution for efficiency. Growing demand for PHEV is attributed to increasing consumer preference on benefits of fuel efficiency and lower operational and maintenance cost of the vehicle.

Substantial growth in the technological environment resulted in features to PHEV such as switching to conventional mode while the battery is emptied, lowered tailpipe emission. Government emphasis on decarbonization is further positively impacting the demand for PHEV. The aforementioned factors and several exemptions from the government are expected to upsurge the demand for plug-in hybrid electric automobiles during the forecast period.

In terms of value, Battery Electric Vehicle (BEV) is expected to grow at a healthy CAGR of 14.2% over the forecast period. The growth in the segment is owed to changing environmental standards across all nations' governments. The aim to minimize the impact of global carbon footprints is further anticipated to fuel the demand of the market in the automobile industry.

Regional Insights 

The market in Asia Pacific was valued at USD 31.71 billion in 2016. The growing automotive industry in countries such as India and China owing to the demand for vehicle supplements the growth for the industry. Moreover, the combination of a rising population in countries and increasing per capita income stimulates the demand for the personal transport automobile that is supportive of a sustainable environment.

China witnessed a significant decline in the technology cost owing to innovation in automobiles. For instance, battery cost has significantly dropped in recent years further supporting the lower operational cost of BEV. This has resulted in the growing adoption of BEVs across the emerging markets. Moreover, the growing infrastructure of electric vehicle charging stations in China accredits the growth of the market.

In terms of value, Europe is estimated to account for the second-largest market for vehicle electrification. The government in the region is focused to practice sustainable development in their infrastructure growth which has resulted in the OEM of vehicle electrification to expand their business in major countries such as Germany, France, Italy, and the U.K.

Additionally, the European government has initiated some progressive measures, such as tax credit and subsidies to encourage the sale in the market. Upcoming investment opportunities owing to government support to the manufactures is further anticipated to the increasing demand of the market in the region. 

Key Companies & Market Share Insights

Globally, this market is highly competitive, the key industry competitors include Robert Bosch GmbH, Continental AG, Denso Corporation, Delphi Automotive PLC, Johnson Electric, Mitsubishi Electric Corporation, and others. The companies are accelerating towards providing the electrical driven solution to its user which is efficient and affordable. The vehicle electrification vendors are using strategies such as acquisition, partnership, and research & development strategies to broaden their product portfolio.

Robert Bosch GmbH is expected to hold a major share in the global market when compared to other key competitors. The company offers vehicle electrification products through the Mobility solution segment. Moreover, the company emphasizes on new product development, product enhancement strategy, and expansion to strengthen its market position in the industry.

Continental AG, Denso Corporation, Delphi Automotive PLC, Johnson Electric, Mitsubishi Electric Corporation, significantly contribute to a major share in the global vehicle electrification market. The competitors are encouraging penetration of technological growth in the automotive industry to displace the conventional ICE trends. Significant efforts from OEM in the vehicle electrification market has uplifted the standards of EVs for providing the optimum result to the users and gain a competitive edge over other players

Vehicle Electrification Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global vehicle electrification market on the basis of product, hybridization, and region:

• Product Outlook (Revenue, USD Billion, 2014 - 2025)

  • Start/Stop System

  • Electric Power Steering (EPS)

  • Liquid Heater Ptc

  • Electric Air Conditioner Compressor

  • Electric Vacuum Pump

  • Electric Oil Pump

  • Electric Water Pump

  • Starter Motor & Alternator

  • Integrated Starter Generator (ISG)

  • Actuators

• Hybridization Outlook (Revenue, USD Billion, 2014 - 2025)

  • Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle

  • HEV

  • PHEV

  • BEV

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Rest of the World

    • Brazil

    • Mexico