Vehicle electrification involves the use of electric motors and batteries to power vehicles. This reduces dependence on fossil fuels and lowers emissions levels. Governments across regions are promoting vehicle electrification through subsidies and tax benefits to boost adoption of electric vehicles such as hybrids, plug-in hybrids and battery electric vehicles. OEMs are also focusing on development of efficient electric powertrain systems and batteries with longer ranges to meet consumer needs.

The global vehicle electrification market is estimated to be valued at US$ 84.41 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing demand for fuel efficient and low emission vehicles is one of the major factors accelerating growth of the vehicle electrification market. Stringent emission norms by regulatory bodies along with rising environmental concerns among consumers have increased focus on development of electric vehicle technologies. Various countries have introduced policies to curb emissions from transportation sector which is a major contributor of pollution. This has prompted auto makers to invest heavily in electric powertrain development to comply with regulations and offer greener vehicles. For instance, the European Union has mandated that average CO2 emissions from new cars and vans need to be less than 95g/km by 2021 which is driving electrification of vehicles in the region.
 

Segment Analysis
The global vehicle electrification market is dominated by the hybrid electric vehicles segment due to increasing adoption of energy-efficient and low emission vehicles. Within hybrid electric vehicles, the hybrid electric passenger car sub-segment holds the largest share and is expected to witness significant growth during the forecast period. Countries worldwide are promoting hybrid vehicles to reduce dependency on fossil fuels.This increase the production and sales of hybrid electric cars, thereby driving the growth of this sub-segment.

Key Takeaways
The Global Vehicle Electrification Market Size is expected to witness high growth during the forecast period of 2023-2030. The Asia Pacific region currently dominates the market and is projected to maintain its leading position throughout the forecast period. Countries like China and Japan are focusing on developing electric vehicle charging infrastructure which will boost the adoption of electric vehicles in the region.

Key players operating in the vehicle electrification market are Intertek Group Plc, SGS SA, Cenergy International Services, L.L.C., UL International Gmbh, Mistras Group, James Fisher and Sons plc, Global Wind Service, Force Technology, Vestas, and Siemens Wind Power GmbH & Co.KG. These companies are investing heavily in research and development of various vehicle electrification technologies and components to gain a competitive edge in the market.

Regional analysis
The Asia Pacific vehicle electrification market is the largest as well as the fastest growing regional market. Countries like China, Japan, and South Korea are at the forefront of adopting electric vehicles. Significant investments are being made to develop charging infrastructure in major cities. Growing environmental concerns and stringent emission norms are compelling automakers in the region to increasingly focus on hybrid and electric vehicle production.

Key players
Key players operating in the vehicle electrification market are Intertek Group Plc, SGS SA, Cenergy International Services, L.L.C., UL International Gmbh, Mistras Group, James Fisher and Sons plc, Global Wind Service, Force Technology, Vestas, and Siemens Wind Power GmbH & Co.KG. These companies offer testing, inspection and certification services for hybrid and electric vehicle components as well as charging infrastructure to gain approvals and ensure safety and reliability. They also support vehicle OEMs and infrastructure developers with technical consultancy.

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