Vehicle Electrification Market worth $91.30 billion by 2032 | MarketsandMarkets
DELRAY BEACH, Fla., Sept. 11, 2025 /PRNewswire/ -- The global vehicle electrification market is forecast to grow from USD 56.94 billion in 2025 to USD 91.30 billion by 2032 at a CAGR of 7.0%, according to a new report 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.
Key Market Players of Vehicle Electrification Industry:
Prominent players in the Vehicle Electrification Companies include Robert Bosch GmbH (Germany), Continental AG (Germany), Denso Corporation (Japan), BorgWarner Inc. (US), and Aptiv (Ireland).
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This report provides insights on:
- Market Dynamics: Analysis of key drivers (rising consumer demand for safety and convenience features, rising EV adoption accelerating the vehicle electrification ecosystem and technical benefits of electrified components over conventional mechanical systems), restraints (high cost of electric components), opportunities (SDVs transforming the vehicle electrification market, intelligent thermal management), and challenges (integration with ICE platforms) influencing the growth of the vehicle electrification market
- Product Development/Innovation: Detailed insights into upcoming technologies and product & service launches in the vehicle electrification market
- Market Development: Comprehensive market information (the report analyzes the authentication and brand protection market across varied regions)
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the vehicle electrification market
- Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Robert Bosch GmbH (Germany), Continental AG (Germany), Denso Corporation (Japan), BorgWarner Inc. (US), and Aptiv (Ireland) in the vehicle electrification market
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