The global Vehicle Electrification Market is estimated to be valued at US$ 97.25 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Vehicle Electrification Market are AMETEK Inc., Alleima, Teshima International Corporation, Om Steel Tubes Ltd., Tech Tube, Inc., Bison Stainless Tube, LLC, Vita Needle Company, M&M International, Fuji Seiko, Accu-Tube, Eagle Stainless Tube & Fabrication, Inc., Forefront Medical Technologies, Minitubes, Teleflex Incorporated, VIANT, and K-Tube Technologies. Growing environmental concerns and stringent government regulations regarding vehicle emissions are fueling demand for electrified vehicles. Leading automakers are expanding their electrified vehicle portfolio and production capabilities globally to transition to electric mobility and reduce dependence on internal combustion engines.

Market Drivers

Stringent government regulations regarding vehicular emissions are a major driver propelling the Vehicle Electrification Market Demand. Various regions and countries have implemented stringent emission norms such as Euro 6, China 6, and BS 6 to curb air pollution from the transportation sector. This is encouraging automakers to develop electrified vehicles with lower emissions. Government initiatives in the form of fiscal incentives for buying electrified vehicles and building out electric vehicle charging infrastructure are further boosting market growth.

Impact of Geopolitical Situation on the Growth of Vehicle Electrification Market
The ongoing geopolitical conflicts and tensions have disrupted supply chains and increased economic uncertainties across many regions globally. This volatility in the political and economic landscape is negatively impacting the growth of the Vehicle Electrification Market. Many automotive players are facing challenges in sourcing critical raw materials and components due to restrictions and trade barriers imposed between major trading partners. Rising raw material costs and difficulties in logistics are hindering the mass production plans of electric vehicles. Additionally, domestic policies providing incentives for electric vehicles are also getting affected amid fiscal pressures faced by governments.

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