- North America is expected to be the fastest growing market for vehicle electrification.
- Plug-in hybrid electric vehicle (PHEV) is estimated to witness the fastest growth in the market.
- 48V architecture is expected to be dominated by Europe.
The Vehicle Electrification Market is projected to grow at a CAGR of 9.1% to reach $142.1 billion by 2027 from $71 billion in 2019.
The vehicle electrification market is driven by factors such as stringent emission and fuel efficiency regulations around the globe. Increasing demand for passenger cars is boosting this electrification effect. Alternatively, the higher cost of electric vehicles can undermine the demand for vehicle electrification.
- Use of Alternate Materials for Overall Weight Reduction to Open New Avenues in Electric Vehicle Technologies
- Electrification of Commercial Vehicles
Some of the key suppliers operating in the market are Robert Bosch GmbH (Germany), Continental AG (Germany), Delphi Automotive PLC (UK), Denso Corporation (Japan), and Johnson Electric (Hong Kong).
According to MarketsandMarkets analysis, Europe is estimated to have a 45.5% share of the total 48V vehicle market in 2019. Developed infrastructure such as charging stations, limited range of present-day BEVs, and high cost of HEVs and PHEVs are the few reasons why 48V vehicles are preferred over hybrid vehicles in Europe. This trend is estimated to continue for the next 10 years. The 48V system consists of a 48V Li-ion battery, DC/DC converter, and an integrated starter generator (ISG). Without replacing the present 12V architecture completely, 48V architecture can work parallelly with the combustion engine and regular 12V battery. This parallel combination helps boost the efficiency of electric parts like electrical oil, coolant, and vacuum pump. Considering the fact that emission norms in Europe are very strict, 48V vehicle is expected to hold a significant market in the near future.
Electric power steering (EPS) is expected to be the largest market. EPS reduces fuel consumption and improves the maneuverability of vehicles. In Europe and North America, almost all the vehicle has EPS, and in Asia Oceania, the trend is growing rapidly. In Asia Oceania, the installation rate of EPS is almost 90%. Hence, the EPS segment is estimated to hold the largest market share during the forecast period.
North America is expected to be the fastest-growing market for vehicle electrification. The growth in this region is propelled by growing charging infrastructure and significant investments by OEMs in the development of vehicle electrification. Federal tax credits and rebate incentives are accelerating the growth of the market, especially in the US. The US is set to dominate the North American market, holding the highest market share in 2019. As the country has the presence of major OEMs and Tier I players, adoption of electric components in ICE vehicles, BEVs, HEVs, and PHEVs is very high. Hence, North America is expected to be the fastest-growing market during the forecast period.
Electrification of a vehicle is considered the best way to reduce carbon emissions, increase vehicle efficiency, and reduce dependency on oil. Vehicle electrification generates newer opportunities for consumer engagement, along with various environmental and economic benefits. The production of passenger cars is very high compared to other vehicle types. The production of passenger cars is also expected to increase at a CAGR of 3.0% from 2018 to 2025. The production of passenger cars in Asia Oceania is the highest with more than 49 million units, followed by Europe with more than 18 million units.
- In 2019, Bosch assumed full control of EM-motive, one of Europe’s most successful manufacturers of electric motors. Bosch and Daimler set up EM-motive GmbH as a 50-50 joint venture in 2011, and from 2019 onward, Bosch has gained complete control over EM-motive.
- In 2017, Bosch developed a new 48V battery to meet the growing demand for 48V architecture across the globe.
- In 2017, Changchun Branch of Robert Bosch Motor (China) Co., Ltd. signed an agreement with the Changchun High Tech Industrial Development Zone to establish a starter motor plant in the area with an annual capacity of 3 million sets. A total of $29 million was invested in the project.