VEHICLE ELECTRIFICATION MARKET ANALYSIS

Vehicle Electrification Market, By Product Type (Start/Stop System, Electric Power Steering (EPS), Electric Air-Conditioner Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, Liquid Heater PTC, Integrated Starter Generator, Starter Motor, Alternator, Actuator), By End-Use (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Hybrid Electric Vehicle, Micro-Hybrid Vehicle & Internal Combustion Engine), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Mar 2024
Code : CMI1144
Pages :177
Formats :
Excel and PDF
Industry : Automotive and Transportation

Market Challenge: Battery Technology and Cost Challenges

The vehicle electrification market faces several challenges in its growth. Established automakers' dependence on internal combustion engines results in reluctance to transition fully to EVs. Developing affordable EV battery technologies with sufficient driving range per charge remains difficult due to high material costs. Building out charging infrastructure is a massive undertaking requiring coordination among automakers, energy companies, and governments. Customers are hesitant about EVs due to 'range anxiety' and long charging times. Moreover, shifting heavy industries like trucks and buses to electric power has technological and economic obstacles.

Market Opportunity: Expanding Consumer Market

Government policies pushing for electrification through regulations and incentives will drive automaker investments. As battery and motor technologies improve, EVs are projected to reach price parity with gas vehicles this decade. This will expand the potential customer base. The growing concern over air pollution and climate change boost social acceptance of EVs.