Vehicle Electrification Market
Vehicle electrification is an emerging and revolutionary trend in the automotive industry. Electrified vehicles point to numerous technologies in which electricity is a major contributor for propelling a vehicle. Figure below shows its various implementations:
Vehicle electrification is a preferred option because it reduces CO2 emissions. The option provides immense support to the transportation sector in challenging times when the price of petrol and associated products rise globally. When the idea of electrical machines, motors, and electric vehicles gained prominence in 2018, the global sales of electric vehicles hit the volume of 174,000 units and consistent growth of this sector was recorded up to the extent of 67 per cent. China leads the exports of electric vehicles and the other major exporters include the United States, Norway, Japan, and Germany.
The concept of electrification is implemented in vehicles differently by various vendors. A particular implementation depends on the degree of electrification that is affordable for a given business model. The figure below shows that the degree of electrification in the case of an internal combustion engine may range from mild hybrid to fully electric driving:
Electrification in vehicles is also differentiated by the level of functionality. A micro-level functionality will only include electrification of auxiliaries, start/stop, and braking. However, full electrification will modify the entire operating unit together with regenerative braking and full power electric drive as shown in the Figure below:
The strategies of vehicle electrification have created a huge market potential for electrical machines, motors, and electric vehicles. According to the projections, the current demand for electric vehicles in 2020 is 540 million units. There will be significant growth in the future and the demand will reach 735 million units by 2025. In terms of revenues, the vehicle electrification market will expand by 11.9% to reach the volume of $129.6 billion by 2025. The increase in the adoption of electric vehicles will provide huge environmental, sustainability, and personal benefits such as lower carbon emissions, light-weight vehicle, enhanced driving comfort, fuel/energy-efficient product, and increased safety.
When the vehicle electrification market is analysed by different product types, some segments emerge as lucrative and the organisations should particularly focus on these sectors to gain profitability and also contribute to the sustainability initiatives. As shown in Figure below, the segments such as Electric Car Motors, Electric Fuel Pump, Electric Power Steering, Actuators, and Start/Stop Systems are expected to gain huge adoption by 2027.
Various success factors together define the growth potential of vehicle electrification market. There is a constant reduction in the price of battery per KWH. The awareness of the environmental factors and the increase in sustainability initiatives have persuaded the people to use energy and fuel-efficient products. Electric vehicles are also efficient in performance compared to gasoline vehicles. The prominence of 48V architecture has also contributed to this phenomenon. The 48V system provides efficiency by using a 48V Li-ion battery, Integrated Starter Generator (ISG), and DC/DC converter. As shown in Figure below, the architecture can work in parallel with the current 12V architecture, and boosts the effectiveness of electric parts. Due to the strict emission norms expected soon, there will be a corresponding rise in the vehicle electrification market.
The promising future of vehicle electrification has attracted engineers as well as investors. Qualified graduates are anticipating a lucrative job market for this sector. According to O*NET, the bright outlook occupations include service technicians, first-line supervisors, and electrical engineers. According to a report by The European Association of Electrical Contractors, the new, permanent jobs created in the electric vehicles sector will reach the count of 200,000 by 2030 as shown below:
The report also describes that the jobs will not be created equally in all sectors of vehicle electrification. Some sectors such as maintenance will have a higher proportion of new job creation as shown in the Figure below. Maintenance and battery cell manufacturing have higher job demands because specialised skills are required in these sectors of electric vehicles compared to gas vehicles.
All these are encouraging signs for vehicle electrification market. Electrical engineers, design engineers, and investors should consider this sector for investment and working. This future of the automotive industry provides attractive jobs to the graduates and competitive advantages to the organisations.
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