Vehicle Electrification Market Size To Hit USD 150.72 Bn By 2027 – A Research Report by Precedence Research.
Summary : The vehicle electrification market size is estimated to hit around USD 150.72 billion by 2027 and is expected to grow at a CAGR of 8.9% from 2022 to 2027.
Challenges and developments in Vehicle Electrification Market
Vehicle electrification is the primary engine behind the automotive industry’s transformation. The need for electrification of automobiles is mostly driven by a growth in automotive production and sales around the world. The vehicle electrification industry is also expected to grow in importance as a result of the technology’s capacity to improve fuel efficiency when used in classic internal combustion engine-based automobiles. Over the projected period, government restrictions and incentives based on growing concerns about fossil-fuel emissions and energy security will play a crucial role in boosting vehicle electrification market share.
Vehicle electrification would be the preferable option for original equipment manufacturers in the future because to several benefits such as reduced vehicle weight, higher fuel efficiency, and improved driving comfort. Moreover, vehicle electrification helps in the reduction of operational and maintenance costs of vehicles and automobiles. Vehicle electrification is largely used in passenger vehicles, heavy commercial vehicles, and light commercial vehicles. The surge in sales of passenger vehicles is driving the growth of global vehicle electrification market. In addition, light commercial vehicles are also used on a large scale.
Vehicle Electrification Market Scope
What are the key trends in the vehicle electrification market?
The increased utility programs to encourage the adoption and acceptance of electric vehicles have resulted in a noticeable market trend in the global vehicle electrification market. The growing number of government initiatives for the development of electric vehicle charging infrastructure. The original equipment manufacturers are installing smart grid for electric vehicle charging stations and infrastructure. This factor is driving the growth of global vehicle electrification market. In addition, the vehicle electrification market is also driven by the growing utilization of advanced and latest technologies such as motor shut down system. Such technology is vehicle electrification, which is helping engine to start automatically during traffic congestions. Thus, this factor is providing lucrative opportunities for the growth of global vehicle electrification market.
The vehicle electrification market is likely to develop as a result of strict government emission norms and regulations. The government is providing tax benefits to automotive manufacturers such as tax incentives and tax rebates for the production of vehicle electrification systems. Moreover, government is also collaborating with market players for the development of global vehicle electrification market. Over the forecast period, the vehicle electrification market is likely to be driven by rising demand for hybrid vehicles. The hybrid vehicles run on vehicle electrification as well as fuel or gasoline. In addition, the growing research and development activities are also boosting the growth of global vehicle electrification market.
What are the challenges in the vehicle electrification market?
One of the major factors that hindering the growth of global vehicle electrification market is the high cost of vehicle electrification. The cost of maintenance and replacement of vehicle electrification is quite high in nature. Therefore, original equipment manufacturers must focus on developing cost-effective technologies and systems. Another factor restricting the growth of global vehicle electrification market is slow growth of automotive sector. The sales and production of automotives had declined since a decade. This factor is directly impacting the growth and development of global vehicle electrification market. In addition, the high adoption of vehicle electrification system alternatives or substitutes is also restricting the growth of global vehicle electrification market. The original equipment manufacturers are dependent upon hydraulic or mechanical systems for vehicles.
Which regions are driving the vehicle electrification trend?
North America is leading the global vehicle electrification market in terms of region. The growth of vehicle electrification market in North America region is attributed to the growing investments by key market players or original equipment manufacturers for the development of vehicle electrification systems. Moreover, the development and expansion of electric vehicle charging infrastructure is also providing lucrative prospects for the growth of global vehicle electrification market. In addition, the U.S. government is also providing tax benefits to the manufacturers of vehicle electrification systems. Furthermore, the region is highly adopting vehicles such as hybrid vehicles, internal combustion engine-based vehicles, plug in hybrid vehicles, and electric vehicle battery. All of these aforementioned factors are driving the growth of vehicle electrification market in North America region.
The other region dominating global vehicle electrification market is Europe. The factors such as growing adoption of innovative and advanced technologies combined with hybrid vehicles are driving the growth of vehicle electrification market in Europe region. In Europe, emerging countries such as Germany, the UK, and France are dominating the vehicle electrification market. The vehicle electrification market in the region is also being driven by the government initiatives for the adoption of electric vehicles. In addition, government of these nations is also providing tax exemptions to original equipment manufacturers for the production of vehicle electrification systems in the global market. These factors are providing lucrative opportunities for the growth of vehicle electrification market in the region.
Key Companies & Market Share Insights
The global electric vehicle charging station market is highly competitive owing to rapid changing consumer preference and continuous technological development. Nearly every market player has their prime focus towards developing fast and ultra-fast charging stations. In 2015, ChargePoint Inc., Volkswagen Group, and BMW AG announced their plan to install 100 DC fast chargers on the West and East coasts of U.S. Some players also prefer merger & acquisition strategy for consolidating their market share. In 2018, BP Plc announced the acquisition of Charge master Plc, one of the leading suppliers of EV chargers and in UK. After the acquisition, Chargemaster Plc was rebranded as BP Charge master.
Some of the prominent players in the electric vehicle charging station market include:
Segments Covered in the Report
This research report estimates revenue growth at global, regional, and country levels and offers an analysis of present industry trends in every sub-segment from 2017 to 2027. This research study analyzes market thoroughly by classifying global electric vehicle charging station market report on the basis of different parameters including charging station type, power output, supplier type, end user, and region:
By Level of Charging
- Level 1
- Level 2
- Level 3
By Charging Station Type
- AC Charging
- DC Charging
- Wireless Charging
By Power Output
By Supplier Type
- OE Charging Station
- Private Charging Station
By Vehicle Type
- Passenger Cars
- Battery Electric Vehicle (BEV)
- Plug-in Hybrid Vehicle(PHEV)
- Heavy Commercial Vehicles
- Light Commercial Vehicles
- Two-wheelers & Scooters
By Installation Type
By Connector Type
- Normal Charging
- Type 2
- Tesla SC
By Mounting Type
- Wall Mount
- Pedestal Mount
- Ceiling Mount
By Charging Service
- EV Charging Service
- Battery Swapping Service
By End User
- Commercial EV Charging Stations
- Commercial Public EV Charging Stations
- On-Road Charging
- Parking Spaces
- Destination Chargers
- Commercial Private EV Charging Stations
- Fleet Charging
- Captive Charging
- Commercial Public EV Charging Stations
- Residential EV Charging Stations
- North America
- Latin America
- Middle East & Africa (MEA)
About the Author :
Rohit is a subject matter expert with multiple years of experience in Market Research, Consulting, Business Intelligence, Forecasting, Matrix-Modelling, Data Analytics, Competitive Intelligence, Primary research and Report writing. He is result-oriented professional with cumulative experience of more than 8 years in Market Research, and Business Consulting.
Rohit has been helping multi-billion-dollar enterprises to identify new revenue opportunities in high growth niche markets such as IOT, autonomous vehicles, Electric & Hybrid ecosystem, on & off highway vehicles ecosystem. He holds an MBA degree in Finance and Marketing as a specialization.
Email : [email protected]
A Research Report by Precedence Research
Mr. Saurabh S
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