Report ID: SQMIG45J2173
Vehicle Electrification Market Size, Share, Growth Analysis, By Product Type (Electric Power Steering, Electric Vaccum Pump), By Vehicle Type (Passenger Car, Light Commercial Vehicle), By Degree of Hybridization (Internal Combustion Engine (ICE), Plug-In Hybrid Electric Vehicle (PHEV)), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45J2173 |
Region:
Global |
Published Date: August, 2024
Pages:
197
|
Tables:
71 |
Figures:
75
Vehicle Electrification Market Dynamics
Vehicle Electrification Market Drivers
Government Incentives and Regulations
- Governments worldwide have been implementing favorable policies, incentives, and regulations to promote electric vehicles and vehicle electrification. For example, in 2022, the United States announced an extension and expansion of federal tax credits for electric vehicles, providing financial incentives for consumers and driving the adoption of electric vehicles.
Technological Advancements
- Ongoing advancements in battery technology, charging infrastructure, and electric powertrain systems have played a significant role in driving the vehicle electrification market. For instance, in 2022, Tesla introduced its new 4680 battery cell technology, which promises increased energy density and range for electric vehicles.
Environmental Concerns and Sustainability
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Environmental concerns and sustainability are increasingly becoming pivotal factors in the vehicle electrification market. As the global community becomes more aware of the environmental impact of traditional combustion engines, there is a growing push towards electric vehicles (EVs) as a cleaner alternative. The shift is driven by the need to reduce greenhouse gas emissions and mitigate climate change. Governments worldwide are implementing incentives and regulations to promote EVs, further fueling the market’s growth. Advancements in battery technology and charging infrastructure, along with rising fuel costs, are also contributing to the transition. Consumers are showing a heightened interest in electric and hybrid vehicles, recognizing the long-term benefits of sustainability and fuel efficiency.
Vehicle Electrification Market Restraints
Charging Infrastructure Challenges
- The limited availability of charging infrastructure remains a significant challenge for the widespread adoption of electric vehicles. In 2022, this constraint was highlighted as a potential barrier to market growth, particularly in regions with inadequate charging networks and slower infrastructure development.
Supply Chain Disruptions
- The global semiconductor shortage and other supply chain disruptions experienced in 2022 impacted the automotive industry, including the vehicle electrification market. Delays in the production of electric vehicles and associated components, such as batteries, hindered market growth and led to increased costs.
High Initial Cost
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The substantial upfront cost associated with electric vehicles (EVs) acts as a significant barrier to widespread adoption. This cost primarily stems from the expensive battery packs used in EVs. Factors contributing to this high expense include the use of rare metals (such as lithium, cobalt, nickel, and manganese) in battery production and the overall battery capacity. Additionally, EVs have higher manufacturing costs due to their more intricate chassis and body design compared to internal combustion engine vehicles. The need for additional electrical and electronic components, including electric motors, power electronics, and battery management systems, further adds to the overall cost.
Vehicle Electrification Market Report Snapshots
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