Global vehicle electrification market is estimated to be valued at USD 110.78 billion in 2024 and is expected to reach USD 227.83 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Report Description:
Global vehicle electrification market is expected to witness growth significantly over the next decade. Factors such as rising environmental concerns, strict emission norms, and decreasing battery prices are driving automakers to shift their focus towards electrified vehicles. Various governments around the world are also promoting electric vehicles through fiscal incentives and rebates to reduce dependence on fossil fuels. According to estimates, electrified vehicles which include hybrids, plug-in hybrids and battery electric vehicles will account for over 30% of total new vehicle sales by 2030. Both passenger as well as commercial vehicles are expected to undergo electrification at a rapid pace. Startups and new players are introducing innovative technologies that are enabling faster adoption of electric vehicles.
Market Dynamics:
The global vehicle electrification market is experiencing robust growth, driven by various factors. Stringent emission regulations implemented by governments worldwide, coupled with a growing awareness of the environmental impact of vehicles, are key catalysts for this trend. Decreasing battery costs and increased investments by Original Equipment Manufacturers (OEMs) further contribute to market expansion. Despite these positive drivers, challenges such as the limited driving range of electric vehicles and an underdeveloped charging infrastructure hinder widespread adoption. However, the market presents ample opportunities for growth, with the introduction of new battery technologies enhancing range at reduced costs and the development of fast and ultra-fast charging solutions. Additionally, the rising popularity of shared mobility models provides a promising avenue for market expansion. Geographically, regions like China and Europe are at the forefront of promoting electrification, benefiting from strong policy support, while the U.S. market is also gaining momentum in embracing this transformative shift.
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