Vehicle Electrification Market worth $83.87 billion by 2032, Globally, at a CAGR Of 7.1%, Says MarketsandMarkets™

Delray Beach, FL, Sept. 23, 2025 (GLOBE NEWSWIRE) -- The global Vehicle Electrification Market is forecast to grow from USD 51.84 billion in 2025 to USD 83.87 billion by 2032 at a CAGR of 7.1%, as per the recent study by MarketsandMarkets™. Vehicle electrification is accelerating across internal combustion engines (ICE) & mild hybrids, HEVs, PHEVs, and BEVs, with a major shift from mechanically driven auxiliaries to electric systems to enhance efficiency, increase vehicle performance, and support advanced systems such as ADAS. Enhanced thermal management is evolving with electric water, oil, and vacuum pumps in mild hybrids, BEVs, PHEVs, and HEVs for optimized cooling and brake systems, supporting the growing installation of vehicle electrification components market.

Vehicle electrification is accelerating across internal combustion engines (ICE) & mild hybrids, HEVs, PHEVs, and BEVs, with a major shift from mechanically driven auxiliaries to electric systems to enhance efficiency, increase vehicle performance, and support advanced systems such as ADAS. Enhanced thermal management is evolving with electric water, oil, and vacuum pumps in mild hybrids, BEVs, PHEVs, and HEVs for optimized cooling and brake systems, supporting the growing installation of vehicle electrification components market.

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The passenger car segment is expected to hold the largest share in the vehicle electrification market.

Passenger cars account for the largest share of the global vehicle electrification market, driven by their high production volumes and rapid adoption of advanced technologies across all propulsion types, including ICE & mild hybrid, hybrid, and pure electric vehicles. Passenger cars hold the maximum production and sales share worldwide and offer the scale for OEMs and suppliers to integrate electrified components more cost-effectively compared to commercial vehicles. Within this vehicle segment, electric power steering (EPS) dominates as being integrated into nearly all newly developed hatchbacks, sedans, and compact & mid-size SUVs. On the other hand, electro-hydraulic power steering (EHPS) is also significantly installed in full-size SUVs. EPS units deliver 60-200+ Nm assist torque with motors rated at 0.4-2.0 kW, depending upon the vehicle size & weight. Furthermore, battery electric cars are driving the rapid shift toward liquid heaters, PTC, and electric air conditioner compressors, both of which are essential for cabin comfort, battery preconditioning, and thermal management of power electronics. Electric coolant pumps are the second-largest components in passenger cars, supporting critical thermal cycles across hybrid and electric vehicles. Also, electric oil pump emerges as a promising component for electrification in passenger cars, as being used in hybrid transmissions and e-axles, typically rated at 200-600 W with 5-15 L/min flow capacity. Thus, rising adoption of premium vehicles, battery electric & hybrid cars combined with increasing ADAS integration requiring high steering precision, and advanced thermal & safety systems to safeguard powertrain performance, is driving the growth of EPS/EHPS, electric coolant pumps, electric oil pumps, and other electrified components in the passenger car segments.

Liquid heater PTC is expected to be the fastest-growing component in the EV segment during the forecast period.

Liquid heater PTC represents the fastest-growing segment within the vehicle electrification market, primarily driven by its key adoption in BEVs for cabin heating, battery preconditioning, and thermal management of power electronics. In passenger cars, compact PTC heaters rated between 2 kW and 7 kW operating on 400-800 V systems are increasingly standard. Liquid heater PTC is crucial in dual-zone or multi-zone climate control systems of premium cars as it ensures quick and independent heating for different cabin zones, improving passenger comfort. Its precise, energy-efficient operation supports electrified vehicles by reducing reliance on the ICE for heating. In light commercial vehicles, the demand is rising for 5-8 kW units to support delivery fleets requiring reliable heating in cold climates. Heavy-duty trucks and buses utilize larger capacity systems ranging from 10–15 kW to maintain stable battery and cabin temperatures during long-haul or public transit operations. In premium EVs and a few light trucks, vans & heavy CVs and liquid heater PTCs are integrated directly with battery cooling loops and HVAC systems to improve overall energy consumption and driving range. Also, especially in the coolest locations like Nordic countries, OEMs are focusing on stringent thermal management requirements to ensure safety, energy efficiency, and longer driving ranges. The liquid heater PTC enables us to achieve optimized cold-weather performance. Furthermore, the shift toward L2/L2.5 of automation, liquid heater PTCs will increasingly be paired with intelligent control units, optimizing thermal performance in real-time based on driving conditions. In line with the changing requirements, suppliers are developing some new-age solutions & expanding contracts to meet the global demand. For instance, in February 2024, BorgWarner extended its contract to supply 400V high voltage coolant heaters (HVCH) to a major global OEM for battery electric light vehicle platforms, specifically SUVs and passenger trucks in North America. This integration trend of liquid heater PTC across all electrified vehicles is expected to accelerate innovation, reduce system complexity, and promote widespread adoption across vehicle segments.

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, with China leading through large-scale adoption of BEV, with over 6.3 million units in 2024. This growth is supported by strong local supply chains and the commercialization of advanced components such as electric compressors and electric pumps, widely used across passenger cars and commercial vehicles. Japan continues to play a key role in hybrid electrification, with Toyota and Honda refining 48 V and Integrated Starter Generator systems, while India is emerging as a fast-growing market, particularly for buses and LCVs. India’s climate conditions also drive demand for efficient liquid PTC heaters and advanced cooling systems for passenger comfort and battery safety, supported by government initiatives like FAME-II.

Southeast Asian countries, including Thailand and Indonesia, are becoming important manufacturing hubs, supported by localization policies and investments from global OEMs. These markets focus on modular and scalable electrification components for applications such as e-buses and logistics fleets. Thus, with strong regulatory support, expanding production capacity, and cost advantages, the Asia Pacific will continue to remain dominant and act as a key driver of global innovation and adoption in the vehicle electrification landscape.

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What are the main drivers of growth in the Vehicle Electrification Market?

Stringent Emission Regulations and Fuel Economy Standards
Growing global enforcement of CO₂ reduction mandates and stricter fuel efficiency norms are pushing OEMs to adopt electrification technologies.
Rising Demand for Hybrid and Electric Vehicles
Expanding consumer awareness and adoption of battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrids (HEVs) are creating higher demand for electrified components.
Advancements in Electric Powertrain and Battery Technologies
Continuous R&D in high-energy density batteries, lightweight materials, and efficient electric motors are improving performance and range, accelerating market penetration.
Government Incentives and Subsidies for EV Adoption
Supportive policies such as tax credits, subsidies for EV purchases, and grants for charging infrastructure are directly stimulating electrification.
Growing Investments in Charging Infrastructure
Expansion of public and private EV charging networks worldwide is reducing range anxiety and making electrification more practical for mass adoption.
Integration of 48V Systems and Electrical Architecture Upgrades
Adoption of 48V mild hybrid systems and the shift toward advanced electrical platforms in vehicles open new growth opportunities for electrification technologies.
Rising Focus on Vehicle Safety, Efficiency, and Comfort
Electrification supports advanced features such as electric power steering, electric air conditioning, and e-braking, enhancing safety and driving experience.
OEM and Supplier Collaborations with Tech Players
Automakers are partnering with battery manufacturers, semiconductor companies, and software firms to accelerate innovations in electrified systems.
Growing Fleet Electrification and Urban Mobility Demand
Logistics companies, ride-hailing operators, and public transportation agencies are rapidly electrifying fleets to reduce costs and emissions.

Which regions and countries are leading in Vehicle Electrification Market adoption?

North America

United States: Strong government policies, major EV manufacturing facilities, and large-scale investment in charging infrastructure.
Canada: Supportive green mobility initiatives and incentives promote EV and hybrid adoption.

Europe

Germany, France, UK, Norway, Netherlands: Leading adoption due to strict CO₂ targets, strong EV sales, and robust charging infrastructure.
Nordic countries: Highest per capita EV adoption supported by tax exemptions, incentives, and strong environmental focus.

Asia-Pacific

China: Largest growth hub backed by aggressive government support, local manufacturing capacity, and dominance in battery supply chains.
Japan & South Korea: Leaders in hybrid technologies and advanced battery innovations driven by strong domestic OEMs.
India & Southeast Asia: Rapidly emerging markets supported by government EV mobility schemes and urbanization.

Middle East & Africa

UAE, Saudi Arabia: Early adopters of EV infrastructure under smart city and sustainability initiatives (Vision 2030 programs).
South Africa: Gradual adoption aligned with green transport policies and imported EV models.

Latin America

Brazil, Mexico: Growing investments in EV assembly plants, pilot electrification projects, and supportive government measures targeting cleaner transport.

Who are the top players in the Vehicle Electrification Market?

Robert Bosch GmbH (Germany)
Continental AG (Germany)
Denso Corporation (Japan)
BorgWarner Inc. (US)
Aptiv (Ireland)

Key Findings of the Study:

By product type, electric power steering and electric hydraulic power steering are projected to be the largest in the vehicle electrification market.
Battery electric heavy commercial vehicles are projected to be the fastest-growing segment in the vehicle electrification market.
Asia Pacific is expected to be the largest market for vehicle electrification during the forecast period.

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