Vehicle Electrification Market Size, Share, and Growth Analysis, By Voltage (14 V, 12 V), By Product (Electric Power Steering (EPS), Integrated Starter Generator (ISG)), By Hybridization, By Region - Industry Forecast 2025-2032

Global Vehicle Electrification Market size was valued at USD 99.6 billion in 2023 and is poised to grow from USD 110.06 billion in 2024 to USD 244.64 billion by 2032, growing at a CAGR of 10.5% during the forecast period (2025-2032).

The vehicle electrification market is gaining traction due to heightened global awareness of environmental pollution and carbon emissions linked to traditional vehicles. This growth is propelled by stringent government regulations aimed at reducing greenhouse gas emissions, including incentives for electric vehicle (EV) purchases, tighter emission standards, and expanded charging infrastructure. However, challenges persist, particularly the high upfront costs of EVs, driven largely by expensive battery components, which can limit accessibility for consumers. Despite these hurdles, the market brims with opportunities, especially as demand for EVs stimulates technological advancements in battery technology, charging solutions, and power management systems. Investments in charging infrastructure and renewable energy integration will further catalyze the evolution of a sustainable mobility landscape, shaping the future of vehicle electrification.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Vehicle Electrification market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Vehicle Electrification Market Segments Analysis

Global Vehicle Electrification Market is segmented by Voltage, Product, Hybridization and region. Based on Voltage, the market is segmented into 14 V, 12 V, 48 V and 24 V. Based on Product, the market is segmented into Electric Power Steering (EPS), Integrated Starter Generator (ISG), Stop/Start System, Liquid Heater PTC, Electric Oil Pump, Electric Vacuum Pump and Starter Motor. Based on Hybridization, the market is segmented into Internal Combustion Engine (ICE) & Micro-Hybrid Vehicle, Battery Electric Vehicle ((BEV), Plug-In Hybrid Electric Vehicle (PHEV) and 48 Mild-Hybrid. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Vehicle Electrification Market

The global vehicle electrification market is being significantly propelled by supportive measures from governments around the world, which are putting in place a variety of policies, incentives, and regulations designed to foster the adoption of electric vehicles. Notably, in 2022, the United States introduced an expansion and extension of federal tax credits specifically for electric vehicles, offering substantial financial incentives to consumers. This move is expected to enhance the attractiveness of electric vehicles, thereby accelerating their uptake and fostering a broader shift towards vehicle electrification in line with global sustainability goals.

Restraints in the Global Vehicle Electrification Market

The restricted access to charging infrastructure poses a critical obstacle to the broad acceptance of electric vehicles within the Global Vehicle Electrification market. In 2022, this limitation became evident as a potential hindrance to market expansion, especially in areas where charging networks are insufficient and the pace of infrastructure development lags. The lack of widespread charging stations not only affects consumer confidence but also slows down the transition to electric mobility. As long as these infrastructure gaps exist, they will continue to present significant challenges to the growth and adoption of electric vehicles globally.

Market Trends of the Global Vehicle Electrification Market

The Global Vehicle Electrification market is witnessing a remarkable trend driven by significant advancements in battery technology and increased vehicle range. Automakers are prioritizing enhancements in battery energy density, enabling electric vehicles (EVs) to achieve longer driving ranges, effectively alleviating range anxiety among consumers. Notable examples, such as Tesla's Model S Plaid, boasting an impressive range of over 520 miles, and Hyundai's Ioniq 5, capable of 300 miles, exemplify these innovations. As these advancements bolster consumer confidence, they play a pivotal role in the mainstream adoption of EVs, propelling the electrification market forward and reshaping the automotive landscape.