Global Automotive 48V System Market Extends at a Healthy CAGR of 26.7% by 2031

Introduction

Reliance on 12V DC systems is quickly waning as more complex and powerful engine designs are developed for premium, mid-range, and luxury vehicles. The market for automotive 48V systems is expanding due to the growing demand for 48V systems to offset resistive losses. Additionally, rising luxury vehicle ownership due to installing infotainment systems is fueling increased adoption. The electricity input needs to be higher because these infotainment systems consume much power. The 48V system range is effective regardless of capping voltages below a 60V cut-off and satisfies the Safety-Extra Low-Voltage (SELV) requirements. Components for commercial EVs can be powered at 48V, which lowers copper losses without compromising SELV safety. The hybrid motor and supercharger are powered by a 48V battery and system, which also helps to reduce turbo lag during acceleration. It also supports devices like air conditioning with a higher electrical load. The 12-volt battery and system are an improvement over the 48-volt system thanks to a hybrid generator, inverters, and a DC/DC converter. Thermal management and charging of the 12-volt battery are both maintained. As a result, they make it possible for it to provide the necessary power for infotainment and active safety features.

Market Dynamics

The Rise In Demand For Hybrid & Electric Vehicles

The government's lowering of emission standards sparked the adoption of hybrid and electric vehicles. Driving electric and hybrid vehicles frequently involves using the 48V to power lighting systems, water pumps, and other devices. Automotive 48V systems are frequently used in hybrid cars because they increase fuel economy and allow for the production of extra power during acceleration. 48V systems have made mild hybrids affordable, and they are growing in popularity across the globe. Important suppliers like Bosch, Delphi Automotive, Continental, Valeo, and Gustanski focus on developing 48V systems for mild hybrid vehicles. For instance, in the same segment, Audi's rival Mercedes-Benz has already introduced the Q8, a hybrid SUV, while Mercedes-Benz has unveiled the GLE580, a new hybrid SUV. The hybrid engines and 48-Volt battery systems are installed in both vehicles. As a result, the demand for 48V system hybridizing will soon drive growth in the automotive 48V systems market.

Increase In Demand For Advanced Safety And Comforts Features In Vehicles

OEMs are adding more electronic parts, using lighter materials, and electrifying drivetrains in their new car models. The five original equipment manufacturers (OEMs) are putting 48-volt power supplies into use, and they've urged suppliers to get involved in the R&D of parts for 48-volt electric vehicle systems. The adoption of electronic components is driven by consumer demand for more safety and comforts, such as heated seats, power steering, and sophisticated driver assistance systems, which significantly load the vehicle's battery system. Future vehicles will also increasingly include safety features as standard equipment, including motion detectors for automatic emergency braking, blind-spot monitoring, adaptive speed control, reverse cameras, and road condition sensors. Due to these requirements, the OEMs had to develop a dual voltage architecture with a 48V supply that could be used to supply the power needed for vehicle components.

Regional Analysis

Asia Pacific is the highest contributor to the global automotive 48V system market and is anticipated to grow at a CAGR of 26.8% during the forecast period. The growth of automotive manufacturing facilities and the demand for 48V systems with topologies like Belt Driven (P0) and Crankshaft Mounted (P1) are significant factors in the expansion of the Asian market. Additionally, it is anticipated that this will quicken market expansion in the years to come. The availability of raw materials, government regulations, growing urbanization, rising fuel prices, a surge in the uptake of non-fossil fuel-based vehicles, low labor costs, and rising disposable income significantly impact the market for automotive 48V systems. The rising standard of living in Asian countries positively impacts automobile sales in this region. Automobile safety equipment producers work hard to develop newer products to meet shifting consumer demands locally.

Europe is expected to grow at the fastest CAGR of 27.4% during the forecast period. Rising demand for electric vehicles in the area and increased spending on R&D for them are expected to support market growth during the forecast period. European vehicles are among the world's safest, cleanest, and quietest because they are produced with lower levels of CO2 and GHG. The manufacturers and suppliers must create 48V systems that are fuel-efficient to achieve the target of 95 grams of CO2 per kilometer. This would help reduce environmental pollution and fuel consumption. Market expansion is expected to be boosted by adopting environmentally friendly and fuel-efficient vehicles in the region.

Key Highlights

• The global automotive 48V system market was valued at USD 4.51 billion in 2022. It is projected to reach USD 37.97 billion by 2031, growing at a CAGR of 26.7 % during the forecast period (2023–2031).
• Based on architecture, the global automotive 48V system market is bifurcated into belt-driven (P0), crankshaft mounted (P1), dual-clutch transmission-mounted /input shaft of transmission(P2/P3), transmission output shaft/ rear axle (P4). The belt-driven (P0)segment is the highest contributor to the market and is anticipated to grow at a CAGR of 23.4% during the forecast period.
• Based on vehicle class, the global automotive 48V system market is bifurcated into the entry, mid, premium, and luxury. The middle segment owns the highest market share and is forecasted to grow at a CAGR of 25.7% during the forecast period.
• Asia Pacific is the highest contributor to the global automotive 48V system market and is expected to grow at a CAGR of 26.8% during the forecast period.

Competitive Players

Competitive Players

The global automotive 48V system market’s major key players are Continental AG, Bayerische Motoren Werke AG, Delphi Technologies, Ford Motors Company, Honda Motor Company, Hyundai Motor Company, Magma International Inc., MAHLE GmbH, Mazda Motor Corporation, Mitsubishi Motors, Schaeffler Ag, BorgWarner Inc., DENSO CORPORATION, Hella Gmbh & Co. Kgaa (Hella), Hitachi Automotive Systems, Ltd., Robert Bosch GmbH.

Recent Developments

Market News

• In October 2022, A BorgWarner HVH250 electric motor will power an e-axle for light-duty commercial trucks powered by a European customer. This e-axle is intended for use with new electric light commercial trucks up to 7.5 tons and fleets of existing internal combustion engine-powered delivery vehicles being converted.

• In July 2022, The most muscular electric motor on the market was created by automotive supplier MAHLE. The traction motor, exceptional on the market, can operate continuously at peak efficiency. This technological advance is made possible by a novel cooling idea.

Segmentation

Global Automotive 48V System Market: Segmentation

By Architecture

• Belt Driven(P0)
• Crankshaft Mounted (P1)
• Dual-clutch transmission-mounted /input shaft of transmission(P2/P3)
• Transmission output shaft/ rear axle (P4) Silicone

By Vehicle Class

• Entry
• Mid
• Premium
• Luxury

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA