The vehicle electrification market is projected to grow at a CAGR of 11.9% to reach USD 129.6 billion by 2025 from USD 73.7 billion according to MarketsandMarkets in their market research report. Nearly 1.4 million BEVs and PHEVs were registered in Europe during 2020, 137% more than in 2019, in a vehicle market that was down by 20% year-on-year. Other available electrical types (EREV/REEV extended-range electric vehicle, FCEV fuel cell electric vehicle and SEV solar electric vehicle) currently have a small market share and are not expected to grow as fast.
Various benefits are offered by electrification (such as decreased vehicle weight, lower emissions, increased fuel efficiency, improved driving comfort and safety) and due to legislative and environmental pressures it is the key focus area for OEMs.
Electrifying both light and heavy-duty vehicles is something many automakers are now working on. Dayco’s strategic partnership with Ningbo Physis Technology Co., Ltd. is headed towards the electrification of vehicles. Bosch adopted the strategies of expansion, new product development, partnership, and merger & acquisition to retain its leading position in the vehicle electrification market. Continental, BorgWarner, Mitsubishi Electric are all working toward the same goal. Other Hybrid-electric retrofit car companies are also coming out around the world no matter if the technology is going to be used on automatic or manual transmission cars.