Vehicle Electrification Market by Product Type (Start-Stop, EPS, EHPS, Liquid Heater PTC, Electric A/C Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, ISG), Propulsion, DOH, Vehicle Type, and Region - Global Forecast to 2033

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USD 87.81 BN
MARKET SIZE, 2033
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CAGR 6.9%
(2026-2033)
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320
REPORT PAGES
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350
MARKET TABLES

OVERVIEW

vehicle-electrification-market Overview

Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis

The global vehicle electrification market is projected to grow from USD 54.90 billion in 2026 to USD 87.81 billion by 2033 at a CAGR of 6.9% as OEMs are replacing mechanically driven functions with independently controlled pumps, compressors, steering, and braking systems to reduce parasitic losses and enable more precise energy management. The emergence of 48V architecture is extending electrification into higher-power auxiliary loads, while BEV/hybrid thermal architectures are increasing the need for e-compressors, PTC heaters and electric coolant/oil pumps. At the same time, centralized E/E architectures are enabling software-controlled operation of these auxiliaries based on real-time thermal, energy, and vehicle conditions. The key challenge is managing 12V/48V/HV platform fragmentation and the associated cost, control, diagnostics, and integration complexity. “According to Robert Bosch GmbH, the vehicle low-voltage power demand would reach 5 to 6 kW by the end of the decade, which would strengthen the case for higher-voltage auxiliary systems.”

KEY TAKEAWAYS

  • By Region
    The Asia Pacific vehicle electrification market accounted for a 48.3% revenue share in 2026.
  • BY Propulsion and Product Type
    The liquid heater PTC segment is expected to register the highest CAGR of 13.6%.
  • By Vehicle Type
    By vehicle type, the truck segment is projected to grow at the fastest rate from 2026 to 2033.
  • BY Degree of Hybridization
    By degree of hybridization, the ICE segment is expected to dominate the market.
  • Competitive Landscape
    Companies Robert Bosch GmbH (Germany), Denso Corporation (Japan), Valeo SE (France), ZF Friedrichshafen AG (Germany), and Aisin Corporation (Japan) were identified as some of the star players in the vehicle electrification market, given their strong market share and product footprint.
  • Competitive Landscape
    TCCI Manufacturing, Highly Marelli Holdings, and Zhejiang Boyang Compressor, among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.

Vehicle electrification is expanding rapidly as automakers transition toward BEVs, PHEVs, and 48V mild hybrid vehicles. This shift is creating strong demand for electrified components such as EPS, start-stop systems, electric water and oil pumps, electric A/C compressors, electric vacuum pumps, liquid heater PTC, and ISG. These components replace traditional mechanically driven systems, allowing independent operation from the engine, improved efficiency, and precise, on-demand control.

TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS

The vehicle electrification market at the component level is being reshaped by the transition from mechanically driven auxiliaries toward electrically driven and electronically controlled systems such as EPS, e-pumps, electric A/C compressors, electric vacuum pumps, and ISG, with suppliers focusing on variable-speed and demand-based operation and compact integrated modules. Support for 12V/48V/high-voltage vehicle architectures, multi-voltage compatibility, component integration, and lightweight designs is accelerating the development of flexible and efficient electrification solutions across vehicle platforms. Additionally, trends such as intelligent control, system-level integration, and lightweight component development are disrupting traditional component architectures and creating new opportunities for Tier 1 suppliers to deliver higher energy efficiency, independent auxiliary operation, emission reduction, and faster, cost-competitive electrification deployment for OEMs.

vehicle-electrification-market Disruptions

Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis

MARKET DYNAMICS

Drivers
Impact
Level
  • Elevated consumer demand for safety and convenience features
  • Rise in global adoption of EV
RESTRAINTS
Impact
Level
  • Fragmented electrical architectures complicate migration to next-generation auxiliaries
  • High cost of electric components
OPPORTUNITIES
Impact
Level
  • Shift toward software-defined vehicles
  • Need for intelligent thermal management
CHALLENGES
Impact
Level
  • Complex integration with ICE platforms
  • Increasing E/E architecture complexity and voltage-platform fragmentation

Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis

Driver: Software-defined E/E architectures turning auxiliaries into controllable vehicle functions

The shift toward centralized and zonal E/E architectures is changing electric auxiliaries from standalone components into software-controlled actuators. Instead of an electric water pump, oil pump, A/C compressor, or vacuum pump operating primarily according to a fixed component-level control strategy, the vehicle computer can coordinate their operation using real-time inputs such as battery state, thermal loads, vehicle speed, and powertrain operating conditions. Bosch specifically describes its centralized architecture as separating “thinking” in the vehicle computer from “acting” through zone ECUs, sensors, and actuators, creating a common platform for cross-domain functions. This creates additional value for components in the scope because software can dynamically determine when and how much auxiliary capacity is required, rather than simply switching components on/off. For example, coolant-pump speed, compressor output or thermal-system operation can be coordinated with battery/e-drive thermal requirements, while the same vehicle computer can host thermal-management functions alongside powertrain and chassis controls. The value proposition is shifting from “electrifying the auxiliary” to “making the auxiliary software-controllable” — increasing the importance of variable-speed motors, electronic controllers, diagnostics, communication interfaces and integrated control algorithms across pumps, compressors, steering, braking and thermal-management systems.

Restraint: Fragmented electrical architectures complicate migration to next-generation auxiliaries

The market is constrained by the coexistence of 12V, 48V, and high-voltage architectures across vehicle platforms, which prevents a uniform migration path for electric auxiliaries. A vehicle may require 48V for high-power loads while retaining a large installed base of 12V pumps, actuators, and ECUs, requiring DC/DC conversion, additional power distribution, and multiple component variants. Bosch specifically notes that 48V is not a simple drop-in replacement for 12V and that the optimal architecture depends on the number of 48V components and the extent of zonal power distribution. This restraint is particularly relevant to EPS/EHPS, electric pumps, e-compressors, PTC heaters, electric vacuum pumps, and ISGs, because their addressable market increasingly depends not just on whether the vehicle is electrified, but on which E/E and powernet architecture the OEM has selected for each platform. The issue becomes more significant as auxiliaries become networked, software-controlled, and safety-relevant. Electric pumps, compressors, steering, and braking actuators increasingly need communication, diagnostics, cybersecurity, and functional-safety capabilities in addition to the motor itself. Bosch notes that increasing electrification raises requirements for functional safety and energy-supply reliability, while Continental highlights the challenge of managing the rapidly expanding software scope and the need for standardized interfaces in zonal architectures.

Opportunity: Migration from component supply to integrated, software-controlled auxiliary systems

The biggest opportunity for the Tier I suppliers in the market is to move up the value chain from supplying individual electric auxiliaries to supplying integrated, electronically controlled auxiliary/thermal modules. As OEMs adopt centralized E/E architectures, electric pumps, compressors, valves, heaters, and actuators can be coordinated through vehicle controllers based on real-time thermal and energy requirements. Bosch's vehicle control unit, for example, combines 48V/HV coordination, thermal management, diagnostics, and powertrain control, indicating that auxiliary functions are increasingly becoming part of the vehicle's central control architecture. This creates a significant opportunity for suppliers to combine hardware + electronics + sensing + control software rather than competing only on the motor/pump/compressor. MAHLE provides a concrete example: its integrated thermal-management module combines the e-compressor, heat exchanger, coolant pumps, sensors, and valves, while its intelligent thermal-management system for Mahindra's XEV 9e/BE 6 uses software-based control and reduces e-compressor power consumption by 15–20%. MAHLE also secured two thermal-module orders worth almost €1.5 billion, demonstrating that OEM purchasing is moving toward higher-value integrated thermal solutions. The market opportunity is shifting from electrifying individual auxiliaries to supplying integrated, software-controlled auxiliary systems, enabling suppliers to capture additional value through electronics, sensing, controls, and system integration rather than competing solely on component hardware

Challenge: Increasing E/E architecture complexity and voltage-platform fragmentation

The strategic importance of 48V is not simply that it provides more electrical power. It acts as a bridge between legacy 12V systems and high-voltage electrification. At the same power output, moving from 12V to 48V reduces current by four times, enabling smaller cables, terminals, and connectors. The problem for OEMs is that a 48V component cannot simply replace every 12V component. The problem for OEMs is that a 48V component cannot simply replace every 12V component. A modern vehicle may therefore require: HV battery → DC/DC → 48V network → 48V loads. The issue is not simply component cost. OEMs must determine which functions should remain at 12V, migrate to 48V, or operate directly at HV, while simultaneously maintaining compatibility with existing platforms. This leads to multiple voltage domains, more power-conversion hardware, more component variants, more wiring/connectivity requirements, greater validation burden, and higher architecture complexity.

VEHICLE ELECTRIFICATION MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES

COMPANY USE CASE DESCRIPTION BENEFITS
company logo
Replace hydraulic steering with a motor-driven, electronically-controlled steering assist (servo/EPS) that integrates with ADAS and steer-by-wire. Used across passenger cars and light commercial vehicles Eliminates hydraulic pump parasitic losses, improves vehicle electrical efficiency. Enables easy integration with ADAS
company logo
Electrically-driven PTC liquid heaters (or PTC water heaters) provide fast cabin warm-up and local heating for battery thermal management in BEVs / PHEVs where engine waste heat is not available. Fast cabin heating improves perceived range (less heater draw from HV battery at cold start). Precise thermal control for battery life & charge performance.
company logo
ISG replaces conventional starter & alternator with a single motor/generator that enables smooth start/stop, torque assist (mild hybrid), and regenerative energy capture. Common in 48V and high-voltage mild hybrids. Improves fuel economy through longer engine-off operation and regenerative recovery. Seamless, fast restarts and added low-end torque for drivability.

Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.

MARKET ECOSYSTEM

The vehicle electrification market ecosystem connects raw material suppliers, component manufacturers, Tier 1 integrators, OEMs, and end users with regulatory bodies and R&D, driving compliance and innovation. Raw materials like lithium and copper flow into components such as motors, inverters, and pumps, which Tier-1s assemble into systems for OEMs. Adoption by customers and fleets fuels demand and market growth.

vehicle-electrification-market Ecosystem

Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.

MARKET SEGMENTS

vehicle-electrification-market Segments

Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis

Vehicle Electrification Market, By Propulsion and Product Type

EPS and EHPS represent the largest vehicle-electrification product markets primarily because steering is a high-penetration, high-content function that must be electrified across a very broad range of vehicles. EPS has effectively become the mainstream steering architecture across passenger cars, SUVs, vans, and increasingly commercial vehicles, replacing mechanically driven hydraulic assistance with an electric motor, torque/angle sensors, and electronic control. ZF reported production of 100 million EPS systems in July 2026, illustrating the enormous installed scale. Technically, EPS provides assistance only when steering input is required, eliminating the continuous parasitic load of an engine-driven hydraulic pump. More importantly, the electric actuator can generate steering torque independently of the driver, allowing lane keeping, automated parking, lane centering, and other ADAS functions. It is therefore one of the few electrification products whose technical requirement is simultaneously driven by efficiency, vehicle architecture, safety, and automation. EPS is also highly scalable from small-car column-assist systems to rack-assist systems capable of handling high front-axle loads in large SUVs, pickups and EVs making its addressable vehicle base exceptionally broad. EHPS remains a substantial market because it provides a lower-disruption pathway for electrifying steering while retaining the hydraulic steering architecture. Instead of mechanically driving the hydraulic pump from the engine, an electric motor drives the pump only when hydraulic pressure is required; this enables engine-off steering, on-demand hydraulic flow, and greater packaging flexibility, making EHPS particularly relevant to hybrids, ICE vehicles with start-stop functionality, and commercial vehicles where full EPS conversion can be technically more demanding because of steering loads. ZF, for example, offers electrically powered hydraulic steering for ICE, hybrid and electric commercial vehicles, with flow controlled according to vehicle speed and steering velocity.

Vehicle Electrification Market, By Vehicle Type

Battery electric heavy commercial vehicles are likely to be the fastest-growing vehicle segment for the vehicle electrification market because electrification of a heavy truck is not limited to replacing the engine with an electric motor it forces a much broader conversion of engine-driven auxiliaries into electrically controlled systems. In a conventional heavy truck, several functions are mechanically driven by the ICE or depend on engine vacuum/hydraulics. Once the engine disappears, these functions must be independently powered: electric oil/water pumps for drivetrain and battery cooling, electric A/C compressors and PTC heaters for cabin and battery thermal management, electric vacuum/air systems for braking, and electrically assisted steering. Heavy-duty electrification is increasingly becoming a “systems-electrification” opportunity rather than only a powertrain opportunity. Heavy trucks operate at high loads for long durations, making energy efficiency, uptime, payload preservation, and thermal control economically important; consequently, OEMs are adopting highly integrated electrical and thermal architectures. BorgWarner, for instance, is combining its heavy-duty e-drive with integrated oil-water heat exchange and a water pump to reduce OEM integration complexity, while also offering eHeaters, eCoolers, and other thermal solutions for commercial vehicles. Therefore, BE-HCVs can generate simultaneous demand across EPS/EHPS, electric pumps, electric compressors, PTC heaters and other auxiliaries, while ICE-heavy segments increasingly lose engine-dependent components. The result is a particularly strong electrification-content multiplier per vehicle, making BE-HCVs strategically important to suppliers even before they become the highest-volume vehicle category.

REGION

Asia Pacific is expected to be the largest market for vehicle electrification during the forecast period.

Asia Pacific is the largest market for vehicle electrification primarily because the region combines an exceptionally large commercial-vehicle production base with much deeper penetration of electrified vehicle architectures particularly in China creating a significantly larger installed opportunity for auxiliary electrification products. China is the key structural driver in 2025; it accounted for about 88–90% of global zero-emission medium- and heavy-duty vehicle sales, while electric truck sales exceeded 400,000 units and represented about 28% of heavy-truck sales. This is important for the defined product scope because Chinese OEMs are not simply adding an electric drivetrain; the transition is accelerating the replacement of engine-dependent auxiliaries with electric pumps, compressors, heaters, and steering systems. China's highly integrated ecosystem of OEMs, battery suppliers, power electronics, and component suppliers located in close proximity also allows these architectures to scale faster and at lower system cost. IEA notes that Chinese electric trucks are almost exclusively built with Chinese batteries and locally produced chassis, with CATL alone supplying around 80% of batteries used in Chinese electric trucks. The second strategic reason is that APAC is moving from “electrification adoption” to “electrification industrialization.” China is rapidly electrifying high-utilization applications such as port, mining, steel, logistics, and regional-haul trucks, where predictable routes make BEV economics and charging/battery swapping particularly viable. According to ICCT, electric heavy-truck sales in China nearly tripled in 2025 to roughly 232,000 units. Meanwhile, India is building the ecosystem for electric buses and trucks, including dedicated zero-emission freight corridors and initiatives around e-truck financing and charging standards. Hence, Asia Pacific's leadership is driven not just by vehicle volume, but by the region's ability to scale complete electrically driven auxiliary architectures across commercial and passenger vehicles.

vehicle-electrification-market Region

VEHICLE ELECTRIFICATION MARKET: COMPANY EVALUATION MATRIX

In the vehicle electrification market matrix, ROBERT BOSCH GMBH (Star) leads with a strong global presence, broad electrification portfolio, and established relationships with major automotive OEMs. The company maintains a strong position across core and advanced electrification technologies, including integrated eAxles, electric motors, SiC-based inverters, high-voltage DC/DC converters, charger-converters, vehicle control units, and power-electronics modules, enabling it to address evolving requirements for power density, energy efficiency, higher-voltage architectures, fast charging, driving range, and scalable electric powertrain integration.

vehicle-electrification-market Evaluation Metrics

Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis

KEY MARKET PLAYERS

MARKET SCOPE

REPORT METRIC DETAILS
Market Size Value in 2026 USD 54.90 BILLION
Market Size   Forecast in 2033 USD 87.81 BILLION  
Growth Rate 6.9%
Actual Data 2022 – 2033
Base eYar 2025
Forecast Period 2026 - 2033   
Units Considered USD Million/Billion (Value) and Thousand Units (Volume)
Report Coverage Revenue Forecast, Regional Market Shares, Competitive Landscape, Driving Factors, Trends & Disruptions, and Others
Segments Covered Propulsion and product type (ICE [Start-stop, electric power steering, electric-hydraulic power steering, liquid heater PTC, electric air conditioner compressor, electric vacuum pump, electric oil pump, electric water pump, integrated starer generator], BEV [electric power steering, liquid heater PTC, electric air conditioner compressor, electric vacuum pump, electric water pump], PHEV [Start-stop, electric power steering, liquid heater PTC, electric air conditioner compressor, electric vacuum pump, electric oil pump, electric water pump, integrated starer generator], HEV [Start-stop, electric power steering, liquid heater PTC, electric air conditioner compressor, electric vacuum pump, electric oil pump, electric water pump, integrated starer generator]), by vehicle type (passenger car, light commercial vehicle, truck, bus), by degree of hybridization (ICE & micro hybrid vehicle, HEV, PHEV, BEV, 48 V)
Regions Covered Asia Pacific, Europe, North America, and Rest of the World

WHAT IS IN IT FOR YOU: VEHICLE ELECTRIFICATION MARKET REPORT CONTENT GUIDE

vehicle-electrification-market Content Guide

DELIVERED CUSTOMIZATIONS

We have successfully delivered the following deep-dive customizations:

CLIENT REQUEST CUSTOMIZATION DELIVERED VALUE ADDS
48V MARKET, BY COMPONENT AND REGION •       Regional-level market for components such as a Start-Stop System, Electric Power Steering (EPS), Liquid Heater PTC, Electric A/C Compressor, Electric Vacuum Pump, Electric Oil Pump, Electric Water Pump, and Integrated Starter Generator is given •        Granular understanding of electrification maturity by region

RECENT DEVELOPMENTS

  • September 2026 : VALEO (France) launched production of high-voltage inverters at its Étaples, France facility, marking the site's transition from 12V/48V electrical technologies toward high-voltage EV power electronics. The company secured its first contracts, with production beginning in 2026 for electric commercial vehicles and 2027 for passenger cars, strengthening its localized inverter manufacturing capability in Europe.
  • September 2026 : ZF (Germany) expanded its EV aftermarket portfolio with new repair solutions for e-motors, inverters, hybrid modules, mechatronics, and electric-drive reducers. The development extends ZF's electrification strategy beyond original-equipment systems into component-level servicing of electrified drivetrains, supporting longer vehicle lifecycles and reducing the need for complete drive-unit replacement.
  • August 2026 : ROBERT BOSCH (Germany) introduced its Rigid eAxle for 18–49-ton commercial vehicles, integrating the electric motor and transmission directly into a rigid axle. The solution expands Bosch's electrified powertrain portfolio into heavier commercial vehicles and is designed to support higher-load electric applications.
  • August 2026 : DENSO, AISIN, and BluE Nexus (Japan) jointly developed a two-motor hybrid drive module, which was adopted for the new Stellantis Jeep Cherokee. The system combines a high-efficiency, high-torque transaxle with optimized motor and boost-converter control; AISIN manufactures the transaxle and motors while DENSO supplies the inverter, creating a vertically integrated electrified drive solution for the North American market.
  • August 2026 : DENSO (Japan) launched its Digital Product Passport Solution for Batteries, enabling automakers and battery manufacturers to collect, manage, and provide traceability data for individual batteries. The service is designed to support compliance with the European Battery Regulation and the planned February 2027 battery-passport requirement, adding a software/data layer to DENSO's vehicl electrification portfolio.

 

Table of Contents

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TITLE
PAGE NO
1
INTRODUCTION
 
 
 
15
2
EXECUTIVE SUMMARY
 
 
 
 
3
PREMIUM INSIGHTS
 
 
 
 
4
MARKET OVERVIEW
This section summarizes market dynamics, key shifts, and high-impact trends shaping demand outlook.
 
 
 
 
 
4.1
INTRODUCTION
 
 
 
 
4.2
MARKET DYNAMICS
 
 
 
 
 
4.2.1
DRIVERS
 
 
 
 
4.2.2
RESTRAINTS
 
 
 
 
4.2.3
OPPORTUNITIES
 
 
 
 
4.2.4
CHALLENGES
 
 
 
4.3
UNMET NEEDS AND WHITE SPACES
 
 
 
 
4.4
INTERCONNECTED MARKETS AND CROSS-SECTOR OPPORTUNITIES
 
 
 
 
4.5
STRATEGIC MOVES BY TIER 1/2/3 PLAYERS
 
 
 
5
INDUSTRY TRENDS
Captures industry movement, adoption patterns, and strategic signals across key end-use segments and regions.
 
 
 
 
 
5.1
MACROECONOMIC OUTLOOK
 
 
 
 
 
 
5.1.1.1
INTRODUCTION
 
 
 
 
5.1.1.2
GDP TRENDS AND FORECAST
 
 
 
 
5.1.1.3
TRENDS IN GLOBAL AUTOMOTIVE INDUSTRY
 
 
5.2
ECOSYSTEM ANALYSIS
 
 
 
 
 
5.3
SUPPLY CHAIN ANALYSIS
 
 
 
 
 
5.4
CASE STUDY
 
 
 
 
5.5
KEY CONFERENCES & EVENTS 2026-2067
 
 
 
 
5.6
INVESTMENT LANDSCAPE AND FUNDING SCENARIO
 
 
 
 
5.7
PRICING ANALYSIS
 
 
 
 
 
 
5.7.1
AVERAGE SELLING PRICE TREND, BY REGION, 2023-2025
 
 
 
 
5.7.2
AVERAGE SELLING PRICE TREND, BY PRODUCT TYPE, 2023-2025
 
 
 
5.8
TRADE ANALYSIS: VEHICLE ELECTRIFICATION MARKET
 
 
 
 
 
 
5.8.1
EXPORT SCENARIO
 
 
 
 
5.8.2
IMPORT SCENARIO
 
 
 
5.9
TRENDS & DISRUPTIONS IMPACTING CUSTOMER BUSINESS
 
 
 
 
5.10
VEHICLE HYBRIDIZATION STAGES OVERVIEW
 
 
 
 
5.11
PLATFORM MODULARIZATION & STANDARDIZATION TRENDS IMPACTING DESIGN OF COMPONENTS
 
 
 
 
5.12
COMPONENT-LEVEL CARBON FOOTPRINT ANALYSIS
 
 
 
 
5.13
SUPPLIER ECOSYSTEM MAPPING BY PRODUCT TYPE
 
 
 
 
 
 
5.13.1
ELECTRIC COOLANT PUMP
 
 
 
 
5.13.2
E-AXLE
 
 
 
 
5.13.3
ELECTRIC COMPRESSOR
 
 
 
 
5.13.4
ELECTRIC OIL PUMP
 
 
 
5.14
TOP 10 PASSENGER EV OEMS – ELECTRIC COOLANT PUMP SOURCING VOLUMES
 
 
 
 
5.15
TOP 10 COMMERCIAL EV OEMS – ELECTRIC COOLANT PUMP DEMAND LANDSCAPE
 
 
 
 
5.16
PRICING BENCHMARK – LEADING COOLANT PUMP SUPPLIERS,
 
 
 
 
5.17
TOP 10 OEMS PRICING DYNAMICS FOR ELECTRIC COOLANT PUMPS,
 
 
 
6
TECHNOLOGICAL ADVANCEMENTS, AI-DRIVEN IMPACT, PATENTS, INNOVATIONS, AND FUTURE STRATEGIC APPLICATIONS
 
 
 
 
 
6.1
TECHNOLOGY ANALYSIS
 
 
 
 
 
6.1.1
KEY TECHNOLOGIES
 
 
 
 
6.1.2
COMPLEMENTARY TECHNOLOGIES
 
 
 
 
6.1.3
ADJACENT TECHNOLOGIES
 
 
 
6.2
PATENT ANALYSIS
 
 
 
 
 
6.3
TECHNOLOGY ROADMAP
 
 
 
 
6.4
EVOLUTION OF VEHICLE ELECTRIFICATION MARKET
 
 
 
 
6.5
PATENT ANALYSIS
 
 
 
 
 
6.6
IMPACT OF AI/GEN AI ON VEHICLE ELECTRIFICATION MARKET
 
 
 
 
 
6.7
IMPACT OF EU-FTA TRADE DEAL ON VEHICLE ELECTRIFICATION MARKET
 
 
 
 
6.8
IMPACT OF ISRAEL-IRAN WAR ON VEHICLE ELECTRIFICATION MARKET
 
 
 
7
REGULATORY LANDSCAPE
 
 
 
 
8
CUSTOMER LANDSCAPE & BUYER BEHAVIOR
 
 
 
 
 
8.1
DECISION-MAKING PROCESS
 
 
 
 
8.2
BUYER STAKEHOLDERS AND BUYING EVALUATION CRITERIA
 
 
 
 
8.3
ADOPTION BARRIERS & INTERNAL CHALLENGES
 
 
 
 
8.4
UNMET NEEDS FROM VARIOUS END-USE INDUSTRIES
 
 
 
 
8.5
MARKET PROFITABILITY
 
 
 
9
VEHICLE ELECTRIFICATION MARKET, BY PROPULSION AND PRODUCT TYPE
Market Size, Volume & Forecast – USD Million
 
 
 
 
 
9.1
INTRODUCTION
 
 
 
 
9.2
INTERNAL COMBUSTION ENGINE (ICE)
 
 
 
 
 
9.2.1
START-STOP
 
 
 
 
9.2.2
ELECTRIC POWER STEERING (EPS)
 
 
 
 
9.2.3
ELECTRO-HYDRAULIC POWER STEERING (EHPS)
 
 
 
 
9.2.4
LIQUID HEATER PTC
 
 
 
 
9.2.5
ELECTRIC AIR CONDITIONER COMPRESSOR
 
 
 
 
9.2.6
ELECTRIC VACUUM PUMP
 
 
 
 
9.2.7
ELECTRIC OIL PUMP
 
 
 
 
9.2.8
ELECTRIC WATER PUMP
 
 
 
 
9.2.9
INTEGRATED STARTER GENERATOR (ISG)
 
 
 
9.3
BATTERY ELECTRIC VEHICLE (BEV)
 
 
 
 
 
9.3.1
ELECTRIC POWER STEERING (EPS)
 
 
 
 
9.3.2
LIQUID HEATER PTC
 
 
 
 
9.3.3
ELECTRIC AIR CONDITIONER COMPRESSOR
 
 
 
 
9.3.4
ELECTRIC VACUUM PUMP
 
 
 
 
9.3.5
ELECTRIC WATER PUMP
 
 
 
9.4
HYBRID ELECTRIC VEHICLE (HEV)
 
 
 
 
 
9.4.1
START-STOP
 
 
 
 
9.4.2
ELECTRIC POWER STEERING (EPS)
 
 
 
 
9.4.3
LIQUID HEATER PTC
 
 
 
 
9.4.4
ELECTRIC AIR CONDITIONER COMPRESSOR
 
 
 
 
9.4.5
ELECTRIC VACUUM PUMP
 
 
 
 
9.4.6
ELECTRIC OIL PUMP
 
 
 
 
9.4.7
ELECTRIC WATER PUMP
 
 
 
 
9.4.8
INTEGRATED STARTER GENERATOR (ISG)
 
 
 
9.5
PLUG-IN HYBRID ELECTRIC VEHICLE (PHEV)
 
 
 
 
 
9.5.1
START-STOP
 
 
 
 
9.5.2
ELECTRIC POWER STEERING (EPS)
 
 
 
 
9.5.3
LIQUID HEATER PTC
 
 
 
 
9.5.4
ELECTRIC AIR CONDITIONER COMPRESSOR
 
 
 
 
9.5.5
ELECTRIC VACUUM PUMP
 
 
 
 
9.5.6
ELECTRIC OIL PUMP
 
 
 
 
9.5.7
ELECTRIC WATER PUMP
 
 
 
 
9.5.8
INTEGRATED STARTER GENERATOR (ISG)
 
 
 
9.6
KEY INDUSTRY INSIGHTS
 
 
 
10
VEHICLE ELECTRIFICATION MARKET, BY VEHICLE TYPE
Market Size, Volume & Forecast – USD Million
 
 
 
 
 
10.1
INTRODUCTION
 
 
 
 
10.2
PASSENGER CAR
 
 
 
 
10.3
LIGHT COMMERCIAL VEHICLE
 
 
 
 
10.4
TRUCK
 
 
 
 
10.5
BUS
 
 
 
 
10.6
KEY INDUSTRY INSIGHTS
 
 
 
11
VEHICLE ELECTRIFICATION MARKET, BY DEGREE OF HYBRIDIZATION
Market Size, Volume & Forecast – USD Million
 
 
 
 
 
11.1
INTRODUCTION
 
 
 
 
11.2
INTERNAL COMBUSTION ENGINE (ICE) & MICRO HYBRID VEHICLE
 
 
 
 
11.3
HYBRID ELECTRIC VEHICLE (HEV)
 
 
 
 
11.4
PLUG-IN HYBRID ELECTRIC VEHICLE (PHEV)
 
 
 
 
11.5
BATTERY ELECTRIC VEHICLE (BEV)
 
 
 
 
11.6
48 V VEHICLE
 
 
 
 
11.7
KEY INDUSTRY INSIGHTS
 
 
 
12
VEHICLE ELECTRIFICATION MARKET, BY REGION
Market Size, Volume & Forecast – USD Million
 
 
 
 
 
12.1
INTRODUCTION
 
 
 
 
12.2
ASIA PACIFIC
 
 
 
 
 
12.2.1
CHINA
 
 
 
 
12.2.2
JAPAN
 
 
 
 
12.2.3
INDIA
 
 
 
 
12.2.4
SOUTH KOREA
 
 
 
 
12.2.5
REST OF ASIA PACIFIC
 
 
 
12.3
EUROPE
 
 
 
 
 
12.3.1
GERMANY
 
 
 
 
12.3.2
FRANCE
 
 
 
 
12.3.3
UK
 
 
 
 
12.3.4
SPAIN
 
 
 
 
12.3.5
ITALY
 
 
 
 
12.3.6
NETHERLANDS
 
 
 
 
12.3.7
REST OF EUROPE
 
 
 
12.4
NORTH AMERICA
 
 
 
 
 
12.4.1
US
 
 
 
 
12.4.2
CANADA
 
 
 
 
12.4.3
MEXICO
 
 
 
12.5
REST OF THE WORLD (ROW)
 
 
 
 
 
12.5.1
BRAZIL
 
 
 
 
12.5.2
SOUTH AFRICA
 
 
 
 
12.5.3
OTHERS
 
 
13
COMPETITIVE LANDSCAPE
 
 
 
 
 
13.1
INTRODUCTION
 
 
 
 
13.2
KEY PLAYER STRATEGIES/RIGHT TO WIN
 
 
 
 
13.3
REVENUE ANALYSIS,
 
 
 
 
 
13.4
MARKET RANKING FOR PRODUCT TYPE IN VEHICLE ELECTRIFICATION MARKET,
 
 
 
 
13.5
MARKET SHARE ANALYSIS FOR ELECTRIC COOLANT PUMPS,
 
 
 
 
 
13.6
MARKET SHARE ANALYSIS FOR ELECTRIC COMPRESSORS,
 
 
 
 
 
13.7
MARKET SHARE ANALYSIS FOR E-AXLES,
 
 
 
 
 
 
13.7.1
CHINA MARKET SHARE ANALYSIS FOR E-AXLE,
 
 
 
13.8
BRAND/ PRODUCT COMPARISON
 
 
 
 
 
13.9
COMPANY VALUATION AND FINANCIAL METRICS
 
 
 
 
13.10
COMPANY EVALUATION MATRIX: KEY PLAYERS,
 
 
 
 
 
 
13.10.1
STARS
 
 
 
 
13.10.2
EMERGING LEADERS
 
 
 
 
13.10.3
PERVASIVE PLAYERS
 
 
 
 
13.10.4
PARTICIPANTS
 
 
 
 
13.10.5
COMPANY FOOTPRINT: KEY PLAYERS,
 
 
 
 
 
13.10.5.1
COMPANY FOOTPRINT
 
 
 
 
13.10.5.2
REGION FOOTPRINT
 
 
 
 
13.10.5.3
VEHICLE TYPE FOOTPRINT
 
 
 
 
13.10.5.4
PROPULSION FOOTPRINT
 
 
13.11
COMPANY EVALUATION MATRIX: STARTUPS/SMES,
 
 
 
 
 
 
13.11.1
PROGRESSIVE COMPANIES
 
 
 
 
13.11.2
RESPONSIVE COMPANIES
 
 
 
 
13.11.3
DYNAMIC COMPANIES
 
 
 
 
13.11.4
STARTING BLOCKS
 
 
 
 
13.11.5
COMPETITIVE BENCHMARKING: STARTUPS/SMES,
 
 
 
 
 
13.11.5.1
LIST OF KEY STARTUPS/SMES
 
 
 
 
13.11.5.2
COMPETITIVE BENCHMARKING OF KEY START-UPS/SMES
 
 
13.12
COMPETITIVE SCENARIO
 
 
 
 
 
13.12.1
PRODUCT LAUNCHES
 
 
 
 
13.12.2
DEALS
 
 
 
 
13.12.3
EXPANSIONS
 
 
14
COMPANY PROFILES
 
 
 
 
 
14.1
KEY PLAYERS
 
 
 
 
 
14.1.1
ROBERT BOSCH GMBH
 
 
 
 
 
14.1.1.1
COMPANY OVERVIEW
 
 
 
 
14.1.1.2
PRODUCTS OFFERED
 
 
 
 
14.1.1.3
RECENT DEVELOPMENTS
 
 
 
 
14.1.1.4
MNM VIEW
 
 
 
14.1.2
DENSO CORPORATION
 
 
 
 
14.1.3
VALEO SE
 
 
 
 
14.1.4
AISIN CORPORATION
 
 
 
 
14.1.5
ZF FRIEDRICHSHAFEN AG
 
 
 
 
14.1.6
MAHLE GMBH
 
 
 
 
14.1.7
BORGWARNER INC.
 
 
 
 
14.1.8
JTEKT CORPORATION
 
 
 
14.2
OTHER PLAYERS
 
 
 
 
 
14.2.1
BROSE FAHRZEUGTEILE SE & CO. KG
 
 
 
 
14.2.2
NIDEC CORPORATION
 
 
 
 
14.2.3
SCHAEFFLER AG
 
 
 
 
14.2.4
PANASONIC AUTOMOTIVE SYSTEMS CO., LTD.
 
 
 
 
14.2.5
ASTEMO, LTD.
 
 
15
RESEARCH METHODOLOGY
 
 
 
 
 
15.1
RESEARCH DATA
 
 
 
 
 
15.1.1
SECONDARY DATA
 
 
 
 
 
15.1.1.1
MAJOR SECONDARY SOURCES
 
 
 
 
15.1.1.2
KEY DATA FROM SECONDARY SOURCES
 
 
 
15.1.2
PRIMARY DATA
 
 
 
 
 
15.1.2.1
PRIMARY INTERVIEWS WITH EXPERTS
 
 
 
 
15.1.2.2
KEY DATA FROM PRIMARY SOURCES
 
 
 
 
15.1.2.3
KEY INDUSTRY INSIGHTS
 
 
 
 
15.1.2.4
BREAKDOWN OF PRIMARY INTERVIEWS
 
 
15.2
MARKET SIZE ESTIMATION
 
 
 
 
 
15.2.1
BOTTOM-UP APPROACH
 
 
 
 
 
15.2.1.1
APPROACH FOR CAPTURING MARKET SHARE BY BOTTOM-UP ANALYSIS
 
 
 
15.2.2
TOP-DOWN APPROACH
 
 
 
 
 
15.2.2.1
APPROACH FOR CAPTURING MARKET SHARE BY TOP-DOWN ANALYSIS
 
 
15.3
MARKET BREAKDOWN & DATA TRIANGULATION
 
 
 
 
15.4
RESEARCH ASSUMPTIONS
 
 
 
 
15.5
RESEARCH LIMITATIONS AND RISK ASSESSMENT
 
 
 
16
APPENDIX
 
 
 
 

 

Methodology

The research study involved various secondary sources, such as company annual reports/presentations, industry association publications, EV magazine articles, directories, technical handbooks, World Economic Outlook, trade websites, technical articles, and databases, which were used to identify and collect information for an extensive study of the vehicle electrification market. Primary sources experts from related industries, automobile OEMs, and suppliers were interviewed to obtain and verify critical information and assess prospects and market estimations.

Secondary Research

Secondary sources for this research study included the vehicle electrification industry association, internal databases, corporate filings (such as annual reports, investor presentations, and financial statements), and data from trade and business. Secondary data was collected and analyzed to determine the overall market size, further validated by primary research.

Primary Research

In the primary research process, several primary interviews were conducted with market experts from the demand and supply sides across major regions: North America, Europe, Asia Pacific, and the RoW. 32%, 40%, and 26% of primary interviews were conducted with the OEMs, Tier 1 players, and Tier 2 players, respectively.

Primary data was collected through questionnaires, e-mails, and telephonic interviews. In the canvassing of primary data, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to validate the findings from the primaries. These and insights from in-house subject-matter experts led to the conclusions described in the remainder of this report.

Vehicle Electrification Market Size, and Share

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

  • The bottom-up approach was used to derive the market size based on volume and value. This was followed by primary interviews and vehicle model mapping on a regional basis from the MarketsandMarkets repository.
  • The market size was validated through in-depth interviews with industry experts—excerpts available in the discussion guide in the appendix—and secondary research. The report-writing phase begins after arriving at the final numbers for the market size.

BOTTOM-UP APPROACH:

The bottom-up approach was used to estimate and validate the size of the vehicle electrification market. In this approach, the country-level sales of each vehicle type (passenger cars, LCVs, trucks, and buses) were identified through country-level associations, paid databases like MarkLines, EV Volumes, and non-profit organizations like OICA. The vehicle sales forecast in each country was carried out based on multiple factors, such as country-wise macroeconomic indicators, emission regulations, automotive industry growth, GDP growth, and government initiatives.

Further, determining the vehicle electrification market in terms of volume and country-level penetration/ installation trends for each electrified component in each vehicle type was identified through model mapping for each country. The number of electric components per vehicle type was derived through secondary research and validated by industry experts.

The country-level vehicle type sales were then multiplied by the country-level penetration/ installation trend of each electrified component in each vehicle type, and the number of electric components installed in each vehicle type gave the country-level vehicle electrification market by vehicle type and by product type in terms of volume.
The country-level average selling price of each component/ product installed in each vehicle type was derived through secondary sources and further validated by industry experts. The country-level vehicle electrification market volume, by product type, was multiplied by the average selling price of component/ product, giving the vehicle electrification market in terms of value (USD million) by vehicle type and product type.

Further, the summation of country-level markets provided the regional-level markets in terms of volume (thousand units) and value (USD million). A further summation of regional-level markets provided the global vehicle electrification market in terms of volume (thousand units) and value (USD million) by region and product type.
A similar methodology has been followed for the vehicle electrification market of EVs (BEVs, HEVs, and PHEVs) based on component/ product.

Vehicle Electrification Market: Bottom-Up Approach

Vehicle Electrification Market  Top Down and Bottom Up Approach

Data Triangulation

All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All parameters expected to affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, supplemented with detailed inputs and analysis from MarketsandMarkets, and presented in the report.

Market Definition

The electrification of the conventional mechanically operated systems and components in the vehicle can be referred to as vehicle electrification. Over the last ten years, the automotive sector has shifted its focus to vehicle electrification, owing to certain key influencing factors such as the increasing and volatile oil prices, deteriorating urban air quality, and climate change, along with increasingly stringent emissions and fuel-economy regulations, the need to reduce dependence on petroleum-based fuels, advancements in battery and power-electronics technologies, and the expansion of charging infrastructure. The electrification of systems and components improves efficiency and helps reduce weight. It also enables higher vehicle energy efficiency, reduces dependence on mechanically driven auxiliaries, supports the adoption of electrified powertrains, and improves overall vehicle performance and controllability.

Key Stakeholders

  • Automotive sector associations, government authorities, and research organizations
  • Automobile OEMs
  • Component manufacturers of various electrification products such as electric oil pump, electric water pump, electric A/C compressor, start-stop system, PTC heater, and electronic power steering
  • Electric motor & E-drive suppliers
  • Thermal management system manufacturers
  • Raw material suppliers for electrification product manufacturers
  • Traders, distributors, and suppliers of vehicle electrification systems/components
  • Battery cell, module, and pack manufacturers
  • Battery management system (BMS) manufacturers
  • Power electronics and semiconductor manufacturers
  • Charging infrastructure / EVSE manufacturers and charging point operators
  • Automotive electronics, control-unit, and software suppliers

Report Objectives

  • To define, describe, and forecast the size of the global vehicle electrification market in terms of value (USD million) and volume (thousand units)
    • By vehicle type
    • By degree of hybridization
    • By propulsion and product type
    • By region
  • To identify and analyze key drivers, restraints, opportunities, and challenges influencing the market
  • To strategically profile key players and analyze their market shares and core competencies
  • To analyze recent developments, including product launches, deals, and expansions, by key market players
  • To study the following with respect to the market
    • Trends/Disruptions Impacting Customer Business
    • Ecosystem Analysis
    • Technology Analysis
    • Supply Chain Analysis
    • Patent Analysis
    • Regulatory Landscape
    • Case Study Analysis
    • Key Stakeholders and Buying Criteria
    • Key Conferences and Events
    • Trade Analysis
    • Pricing Analysis
    • Impact of EU-India FTA
    • Impact of Israel-Iran War

Available customizations:

Along with the market data, MarketsandMarkets offers customizations per company-specific needs.
The following customization options are available for the report:

  • Vehicle Electrification market, by product type, at the country level
  • Vehicle Electrification market, by propulsion type, at the country level
  • Vehicle Electrification market, by vehicle type, at the country level

 

 

 

Key Questions Addressed by the Report

What is the current market size of the Vehicle Electrification Market, and how is it expected to grow?

The global vehicle electrification market is projected to grow from USD 54.90 billion in 2026 to USD 87.81 billion by 2033 at a CAGR of 6.9%, during the forecast period.

What are the key factors driving the growth of the Vehicle Electrification Market?

The market is driven by the increasing adoption of electric and hybrid vehicles, stringent emission regulations, growing demand for energy-efficient vehicle systems, and advancements in electrified automotive components.

Which region is expected to dominate the Vehicle Electrification Market during the forecast period?

Asia Pacific is expected to dominate the Vehicle Electrification Market due to rapid EV adoption, strong automotive manufacturing, supportive government policies, and expanding production of electrified vehicle components.

What are the latest trends shaping the Vehicle Electrification Market?

Key trends include the adoption of 48V architectures, electrified auxiliary components, advanced thermal management systems, electric pumps and compressors, and the increasing integration of vehicle electrification technologies in passenger cars.

Who are the leading companies in the Vehicle Electrification Market, and what strategies are they adopting?

Leading companies are focusing on product innovation, advanced electrification technologies, strategic collaborations, and expanding their portfolios of electric powertrain and thermal management solutions to strengthen their market position.

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TESTIMONIALS

Growth opportunities and latent adjacency in Vehicle Electrification Market

avtar

Athur

Dec, 2022

Interested in knowing more about the Vehicle Electrification Market and competitive landscape.

avtar

Ronak

Dec, 2022

What are the growth estimates for the vehicle electrification market till 2025?.

avtar

TEDDY

Jun, 2026

Want to introduce electrical automotive parts in the business. .

avtar

Enrison

Jun, 2026

Electrification in South America .

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