According to Custom Market Insights (CMI), The Global Industrial Electrification Market size was estimated at USD 82.9 Billion in 2021 and is expected to hit around USD 129 Billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 10.6% from 2022 to 2030.
Electrification refers to the essential step in the energy decarbonization process, which converts waste energies into usable power sources that can subsequently be used for a variety of purposes. The term “energy transition” describes the movement aside from using conventional energy sources, such as fossil fuels, and towards the adoption of cleaner energy sources, such as sustainable power. Services based on a system for the supply, maintenance, and creation of electricity are included in the “electrification” market in particular. One noticeable illustration of how transit depends on electrical power obtained from renewable sources is the electrification of vehicles..
Browse the full “Industrial Electrification Market Size, Trends, and Insights By Product (Starter motor & alternator, Start/stop system, Electric oil pump, Electric power steering (EPS), Electric air conditioner compressor, Liquid heater PTC, Electric water pump, Electric vacuum pump, Actuators, Integrated starter generator (ISG)), By Hybridization (Hybrid Electric Vehicle, Internal Combustion Engine, Micro-Hybrid Vehicle, Plug-In Hybrid Electric Vehicle, Battery Electric Vehicle), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” report at https://www.custommarketinsights.com/report/industrial-electrification-market/
Market Dynamics
Drivers
The market has witnessed expansion as a result of increased demand for green energy and measures to reduce toxic gas emissions.
Carbon emissions and other environmental issues have resulted from the excessive use of fossil fuels. As a result of the depletion of fossil fuels, there is an increased necessity for green energy resources for energy generation. Additionally, the government has implemented a number of programs to reduce carbon emissions and Greenhouse gases, which fuels the market growth for electrification.
Increased consumer demand and investments from major players propel the market growth
Customers’ increased demand and the rise of investors have encouraged manufacturers to reach the goal of total electrification by 2035, which is expected to fuel the market expansion for industrial electrification throughout the subsequent years. Nearly 60% of the manufacturers created plans and strategies to help a company reach the intended goal over the coming years.
Restraints
The problems associated with battery backup and power shortages of electric vehicles restrain the market growth for electrification systems. The high maintenance cost is another factor that can possibly hamper the market growth. On the other hand, the surge to obtain the optimal power to weight ratio restrains the market growth. The power-to-weight ratio is estimated by the fraction of vehicle output vs. its weight in kg. The manufacturers tend to adopt such processes which can provide optimal power-to-weight ratio, but it is not implemented at the present.
Opportunities
The surge in demand associated with the environment leading to decarbonization increases the demand for renewable sources which in turn creates ample opportunities for the Industrial electrification market growth. The increase in key assets involving wind and solar systems along with the development of battery storage for intermittent grids provides multiple opportunities for the growth of the industrial electrification market. The densely populated cities demand public transportation for mobility. To reduce the carbon footprint, there has been rapid adoption of electric vehicles, which is likely to enhance their market position.
Challenges
Despite the rapid adoption of electric vehicles over the coming years, the electrification market is likely to face certain challenges which can impede the market growth. The multiple risks associated with the electrification technologies include thermal runaway of battery, high battery cost, fewer charging facilities, overheating, etc. Such factors can create multiple challenges for electric vehicles.
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Report Highlights
Based on product, the electric power steering (EPS) segment has dominated the market, which accounted for around 12.0% of the total market share in 2021. The EPS segment implements multiple favours across multiple end-user industries. Their widespread use is widely attributed to the many advantages it provides, such as reduced mechanical complexity and energy efficiency, etc.
According to hybridization, the internal combustion engine category held a 60.1% market share with domination in 2021 and is anticipated to continue to lead the market with a huge economic rate over the course of the forecast period. This can be ascribed to the advancement of technology and the rise in popularity of battery-powered electric vehicles, which are expected to fuel market expansion for the ICE segment.
Regional Snapshots
Asia-Pacific region dominated the market in 2021, which was estimated to be worth USD 43.52, according to geographical distribution. It is moreover anticipated to grow at a remarkable economic rate during the projection period. The government’s attempts to encourage the use of electric vehicles as well as to offer subsidies for acquisitions fuel the market growth in such areas; it can also be attributed to the increase in the electrification systems in this region. In addition, the market demand for electric vehicles as a result of a sustainable environment along with the population growth increase in living standards, propel the market growth across APAC.
Key Players
- Aisin Seiki Co. Ltd.
- Continental Ag
- Borgwarner Inc.
- Wabco Holdings Inc.
- Delphi Automotive Plc
- Hitachi Automotive Systems Ltd.
- Denso Corporation
- Johnson Controls Inc.
- Jtekt Corporation
- Johnson Electric
- Magna International Inc.
- Robert Bosch Gmbh
- Mitsubishi Electric Corporation
- Valeo Sa
- Zf Friedrichshafen Ag
Recent developments
- Suzuki Motor Corporation established cooperation with Daihatsu Motor Corporation in July 2021 to support the adoption of small electric vehicles. The collaboration will carry out a business endeavour including the electrification of small cars.
- The Japanese company Mitsubishi Electric Corporation announced in June 2022 that it will invest 3.1 billion yen (2.2 billion Indian rupees) in its Indian subsidiary Mitsubishi Electric India PVT. Ltd. to develop a new production line abroad.
Table of Contents: https://www.custommarketinsights.com/report/industrial-electrification-market/#table-of-contents
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