In recent times, there have been several news stories dealing with vehicle Electrification. These have highlighted the opportunities that lay ahead for the vehicles in terms of their mobility and environmental friendliness. Vehicle Electrification has got the support of many leading organizations. While Electrification is a new field, it is getting popular day by day. The demand for electric vehicles has increased over the years across the globe. With a growing focus on reducing carbon footprint, the demand for electric vehicles is likely to increase shortly. As per the International Energy Agency (IEA), in 2019, electric car sales reached 2.1 million globally, registering a growth rate of 2.6%. According to the Edison Electric Institute (EEI), as of March 2019, there were around 1.18 million electric vehicles on U.S. roads, with EV sales increasing by 81% in 2018 as compared to 2017. Hence, such factors can stimulate the growth of the vehicle electrification market.
The primary motive behind Vehicle Electrification is to ensure environmentally friendly modes of transport by overcoming the energy requirements of the internal combustion engine. Vehicle Electrification can be applied to any automobile, van, truck, bus, RV, motorcycle, or bicycle. Vehicle Electrification makes use of the existing power source and changes it into AC electricity suitable for charging the batteries and various other energy requirements. The efficiency and power features of these systems make them suitable for domestic and industrial applications. When it comes to geographical impact, Asia Pacific seems to be gaining robust traction in the vehicle electrification market. This is because there is high demand for vehicle supplements in India and China. On the contrary, Europe is exhibiting a lucrative growth rate, owing to the increasing demand for electric vehicles.
The benefits of using Vehicle Electrification techniques for vehicles are that they provide an alternate and cheaper source of electrical energy. These systems reduce the fuel consumption of the vehicle as well as improve its performance and increase its longevity. The vehicles using these systems do not get affected by voltage fluctuations and therefore do not suffer from irregular power outages. Despite these advantages, the higher cost of electric systems remains one of the major challenging factors in the development of the market. Besides, there are challenges associated with maintaining an optimum power-to-weight ratio. Therefore, these factors can limit the growth of the vehicle electrification market shortly.
Another key factor governing the development of the said market is stringent government regulations. Many countries have started implementing strict regulations on carbon emission with growing incentives for electric vehicles. As a matter of fact, in September 2020, the Government of California issued an executive order that new passenger cars are required to be zero-emission by 2035. Thus, these factors can augment the growth of the vehicle electrification market.