Electrification Market (By Source: Renewable Energy, Nuclear Power, Fossil Fuel-based; By Application: Transportation, Industrial, Buildings) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global electrification market size was exhibited at USD 73.69 billion in 2022 and is projected to hit around USD 173.17 billion by 2032, growing at a CAGR of 8.92% during the forecast period 2023 to 2032.

Key Pointers:

• North America captured maximum revenue share in 2022.
• Asia-Pacific is expected to expand at the fastest CAGR between 2023 and 2032.
• By source, the renewable energy source segment held the largest revenue share in 2022. 
• By source, the fossil fuels segment is predicted to grow at a moderate CAGR between 2023 and 2032.
• By application, the transportation segment captured the maximum market share in 2022. 
• By application, the building segment is likely to grow at a remarkable CAGR from 2023 to 2032.

Electrification Market Report Scope

The need for electrification is being driven primarily by a rise in automotive manufacturing and vehicle sales across the world. The vehicle electrification market is gaining popularity as a replacement alternative for old hydraulic and mechanical systems. Vehicle electrification improves fuel economy and lowers pollution levels.

Because of the soaring demands for environmental balance, initiatives towards carbon neutrality and novel technological milestones are supporting new trend evolution in vehicle electrification, OEMs have seen substantial weight reduction of automotive components, which, in turn, regulates fuel consumption and improves vehicle operating efficiency, thus emerging as a significant growth initiator. However, the smooth growth trajectory of the electrification market is likely to face skewered curve due to high pricing costs of maintenance and part replacement charges. These existing bottlenecks are therefore paving new growth opportunities allowing market participants to develop highly competitive and cost-efficient vehicle components.

Factors such as an increase in the adoption of fuel-efficient mobility solutions, as well as effective performance requirements and a decrease in the price of batteries per KWH, are projected to drive the global vehicle electrification market’s growth. However, a drop in automotive production and sales over the last two years, as well as a high reliance on mechanical and hydraulic systems in existing cars, are likely to restrict the growth of the vehicle electrification market during the forecast period. On the contrary, growths in the need for cost-effective solutions, as well as an increase in the trend of electrification of commercial vehicles and fleet management solutions, are expected to provide lucrative opportunities for global market advancement over the forecast period.

Electrification is the process of powering anything with electricity, and it is generally connected to a primary power source with the help of switches. Electrification, in broad terms, is the construction of electrical production and distribution networks in the United States, Britain, and other nations from the mid-1880s until approximately 1950 and is still ongoing in rural regions in certain developing countries.

Because of its low tailpipe emissions, the electrification of the transportation industry is gaining popularity. It is seeing significant growth as a consequence of the rising need for new innovations and green technology. Due to increasing expenditures in military vehicle electrification solutions, the European countries will lead the market. Electric cars are one of the most rapidly expanding sectors of the electrification market. With the shifting dynamics of the automobile industry, the electric power steering market is constantly developing. OEMs are inventing their traditional steering systems in response to the introduction of self-driving vehicles.

Some of the prominent players in the Electrification Market include:

• ABB
• ZAPI GROUP
• Powersys Solutions
• Siemens
• Enel Spa
• Schneider Electric
• Duke Energy Corporation
• General Electric
• Enel X S.r.l.
• ICF International Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Electrification market.

By Source

• Renewable Energy 
• Nuclear Power
• Fossil Fuel-based

By Application

• Transportation
• Industrial
• Buildings

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)