Dublin, Oct. 07, 2020 (GLOBE NEWSWIRE) -- The "Vehicle Electrification Market by Product (Start-Stop, PTC, EPS, Electric Air Conditioner, ISG, Starter Motor, Alternator, Actuator, Electric Pump-Vacuum, Oil & Water), 48V, ICE, BEV, HEV, PHEV, Vehicle Type, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The Vehicle Electrification Market is Projected to Grow at a CAGR of 11.9% to Reach USD 129.6 Billion by 2025 from USD 73.7 Billion
Demand for increased fuel economy, low maintenance cost, and improved performance are boosting the trend of vehicle electrification.
OEMs are switching from conventional technology to advanced technology for complying with the norms and increasing vehicle efficiency. There are multiple engines, transmission, and hybrid technologies that can help in improving the fuel efficiency of a vehicle.
For instance, according to the US Department of Energy (US DOE), the start-stop system can improve fuel efficiency by up to 5%, based on driving and traffic conditions. Also, components such as electric oil pumps and electric vacuum pumps consume lesser energy than their conventional counterparts. However, the higher cost of electric vehicles can undermine the demand for vehicle electrification.
The market for BEVs is estimated to witness the fastest growth in the vehicle electrification market.
BEVs are projected to lead the vehicle electrification market, in terms of value, during the next 10 years. Automakers are seeing BEVs as a gateway to achieving fuel emission and economy standards set by governments. Government tax incentives and state rebates have boosted the proliferation of BEVs. Asia Oceania and North America are the fastest growing regions for BEVs. Increasing charging infrastructure in North America would be responsible for the shift from conventional ICE vehicles to BEVs. OEMs of this region have also invested significantly in vehicle electrification. This would also drive the demand for BEVs.
The electric power steering (EPS) is estimated to be the largest segment of the vehicle electrification market.
Electric Power Steering (EPS) systems are power-assisted steering products that eliminate the association between the steering system and the engine. EPS is the most popular steering system in the global market as it reduces fuel consumption and emissions, limits the required servicing, and improves maneuverability. In Europe and North America, almost all vehicles have EPS, and in Asia Oceania, the trend is growing rapidly. Hence, the EPS segment is estimated to hold the largest market share during the forecast period.
Asia Oceania: the largest vehicle electrification market in the automotive industry.
Asia Oceania is the leading vehicle electrification market as the region represents countries such as China, Japan, South Korea, and India, with the world's highest vehicle production. The automobile industry is flourishing, especially in South Asia. Additionally, Asia Oceania has created hubs for automobile manufacturers and automotive component suppliers. Considering the vehicle electrification market in the Asia Oceania region in 2019, the passenger car segment is estimated to lead the market, comprising more than 80% of the vehicle electrification market in the region, followed by the LCV segment, in terms of both volume and value.
As Asia Oceania has the largest share of passenger cars, ICE vehicles are expected to dominate the vehicle electrification market in Asia Oceania. Countries such as China and India have plans to upgrade their emission regulations by 2020. For instance, India is planning to skip BS V regulations by leapfrogging to BS VI. This is a positive development for the vehicle electrification market. Additionally, the demand for more electric and electronic components in vehicles helps drive vehicle electrification.
The vehicle electrification market comprises major manufacturers such as Bosch (Germany), Continental (Germany), Denso (Japan), BorgWarner (US), and Mitsubishi Electric (Japan).
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