Vehicle Electrification Market Size, Share, Growth Analysis, By Product Type(Start/Stop System, Electric Power Steering (EPS), Electric Air-Conditioner Compressor, Electric Vacuum Pump), By Vehicle Type(Passenger Car and Light Commercial Vehicle), By Degree of Hybridization(Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle, Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV) and 48 V vehicle.), By Region - Industry Forecast 2024-2031

Global Vehicle Electrification Market size was valued at USD 90.04 Billion in 2022 and is poised to grow from USD 98.86 Billion in 2023 to USD 208.86 Billion by 2031, at a CAGR of 9.8% during the forecast period (2024-2031).

The purpose of this market is to address the pressing concerns of environmental pollution and carbon emissions associated with conventional vehicles. The growth of the vehicle electrification market is the increasing global focus on reducing greenhouse gas emissions and combating climate change. Governments around the world are implementing stringent regulations and policies to encourage the adoption of electric vehicles, including incentives and subsidies for electric vehicle purchases, stricter emission standards, and the establishment of charging infrastructure. The market also faces several restraining factors and challenges. One of the primary challenges is the high initial cost of electric vehicles compared to conventional vehicles.

The cost of electric vehicle components, particularly batteries, remains relatively high, making electric vehicles less affordable for some consumers. The vehicle electrification market presents significant opportunities. The growing demand for electric vehicles has opened avenues for technological innovation and the development of advanced electric vehicle components and systems. There is a need for improved battery technology, charging solutions, and power management systems. The market presents opportunities for investment in charging infrastructure development and the integration of renewable energy sources. The ongoing development of electric vehicle technologies and infrastructure will continue to shape the future of the vehicle electrification market and pave the way for a cleaner and more sustainable mobility ecosystem.