Vehicle Electrification

The global vehicle electrification market is projected to grow from USD 51.84 billion in 2025 to USD 83.87 billion by 2032 at a CAGR of 7.1% from 2025 to 2032. The growth in the vehicle electrification market is mainly driven by stringent emission norms and rapid advancements in 800V architectures. Additionally, OEM adoption of 48V mild hybrids, BEVs, PHEVs, and HEVs with electrified auxiliaries (e-compressors, e-pumps, EPS) is accelerating fleet and consumer transition.

Major companies in the vehicle electrification market are focusing on strategies like launching innovative products to broaden their customer reach and continuously improve their offerings. Key leaders driving the electrification in vehicles include Robert Bosch GmbH (Germany), Continental AG (Germany), Denso Corporation (Japan), BorgWarner Inc. (US), and Aptiv (Ireland).

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Robert Bosch GmbH has made deliberate strategic moves to reinforce its electrification leadership. In March 2025, it expanded production capabilities at its Budejovice facility in Czechia for eAxles, hydrogen power modules, and fuel-cell stacks, signaling a dual commitment to battery-electric and hydrogen-powered drivetrains (source). This aligns with Bosch’s long-term strategy to diversify its low-emission portfolio beyond batteries. Additionally, in October 2024, Bosch formed a joint venture with Jiangling Motors Corporation (JMCG) in China to co-develop and produce electric drive axles for light-duty commercial vehicles. This strategic partnership gives Bosch a stronger foothold in China’s fast-growing electrified commercial vehicle sector and supports economies of scale in eAxle production. These initiatives illustrate Bosch’s commitment to investing in regional manufacturing hubs and leveraging partnerships to accelerate innovation and market penetration.

Continental AG has made deliberate investments to strengthen its position in electrification. For example, in January 2023, the company expanded its production capacity in India with manufacturing facilities in Bengaluru and Gurugram, focusing on electronic control units, anti-lock braking, electronic stability control, and sensor systems. While not purely powertrain electrification, this expansion illustrates Continental’s strategic approach: pairing safety and motion control technologies with electrification trends to deliver integrated vehicle systems. Continental’s focus on 48-volt mild hybrids and ISG modules represents a practical response to OEM demands for scalable electrification solutions that improve fuel efficiency without full electrification.

Aptiv is pursuing a clear strategy to sharpen its focus on high-growth segments such as vehicle electrification and intelligent architecture. In January 2025, the company announced the planned separation of its Electrical Distribution Systems (EDS) division into a standalone entity by March 2026, enabling a more agile focus on core software-defined vehicle technologies and power distribution systems critical to EVs. This move aligns with Aptiv’s vision to lead the transformation of the vehicle architecture, while also optimizing capital allocation. Additionally, the company signed a strategic cooperation agreement with Jidu Auto (a Baidu-Geely JV) to jointly develop intelligent electrical/electronic architecture, automated driving control units, and vehicle dynamics management. These decisions reflect a commitment to expanding Aptiv’s role as an enabler of electrification and software-centric vehicle systems.

Denso Corporation has made deliberate strategic decisions to co-develop electrified propulsion systems with complementary partners, such as BluE Nexus and Aisin, allowing it to integrate inverters, motors, and control units into unified eAxle packages that can scale across different vehicle classes and markets. The company has also prioritized semiconductor partnerships to ensure a stable supply and early access to next-generation analog and power devices essential for high-efficiency EV platforms. Furthermore, Denso has committed to expanding production capabilities in growth markets—such as India and Southeast Asia—to support OEM localization strategies and cost competitiveness in emerging markets. By investing simultaneously in electrification and vehicle intelligence, Denso is positioning itself at the convergence of key industry megatrends.

Related Reports:

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 2032

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