Automotive 48V System Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global automotive 48V system market size 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).

With the development of more sophisticated and power-hungry engine designs for premium, mid-range, and luxury vehicles, reliance on 12V DC systems is quickly eroding. As a result, the need for 48V systems to compensate for resistive losses is increasing, driving the market for automotive 48V systems to grow. Additionally, increased adoption is likely fueled by rising luxury vehicle ownership due to the installation of infotainment systems. These infotainment systems require much power, so the electricity input needs to be higher. The 48V system range satisfies the Safety-Extra Low-Voltage (SELV) requirements and is effective regardless of capping voltages below a 60V cut-off. Commercial EV components can receive power at 48V, reducing copper losses without endangering SELV safety. To launch the vehicle more quickly and smoothly while reducing turbo lag, a 48V battery and system supply power to the hybrid motor and supercharger. Additionally, it supports equipment with a higher electrical load, like air conditioning. Using a hybrid generator, inverters, and DC/DC converter, the 12-volt battery and system are improved from the 48-volt system. The 12-volt battery is kept charged and thermally controlled. As a result, they are enabling it to supply the necessary power for active safety and infotainment features.

Market Dynamics

What are the driving factors for automotive 48v system?

The rise in demand for hybrid & electric vehicles

Hybrid and electric car adoption was sparked by the government’s lowering of emission standards. The 48V is frequently used for pumping water, lighting systems, and other purposes when driving electric and hybrid cars. Automotive 48V systems are widely used in hybrid vehicles because they enable them to produce additional power during acceleration and improve fuel efficiency. Mild hybrids that are inexpensive have been made possible by 48V systems and are gaining much worldwide popularity. Significant suppliers are concentrating on creating 48V systems for mild hybrid vehicles, including Bosch, Delphi Automotive, Continental, Valeo, and Gustanski. For instance, in the same segment, Mercedes-Benz has unveiled the GLE580, a new hybrid SUV, while Audi's rival has already debuted the Q8, a hybrid SUV. Both of the vehicles are outfitted with 48-Volt battery systems and hybrid engines. Thus, shortly, the market for automotive 48V systems will grow as demand for hybridizing 48V system vehicles rises.

Increase in demand for 48v battery systems

The 48V batteries are frequently used in electric and hybrid vehicles for driving, pumping, lighting, and other functions. Additionally, the hybrid 48-Volt battery system is less expensive than a traditional battery-powered electric vehicle for reducing emissions. Additionally, the 48V battery systems charge quickly, and the batteries last longer than regular batteries. Most battery manufacturers have started producing 48V batteries because they are an essential part of the automotive 48V system. For mild HEVs, Johnson Controls, for example, offers 48V battery systems for use with 48V motors and electronics to deliver 15% more fuel efficiency than conventional cars. Therefore, shortly, the automotive 48V system market will experience growth due to the development of 48V battery systems.

Why are automotive 48v systems limiting the market?

Increases the overall cost of the vehicle

Since the 12V system has been a requirement for all vehicles since the beginning, manufacturers must redesign the parts and electrical systems to work with the 48V electrical system. The inverter, battery, currently based on lithium-ion technology, battery controller, and power distribution boxes are the main elements of the 48V electrical system. Ensure that all corresponding control units meet the modified specifications applicable at higher voltages, which necessitates a new design. The typical price for a battery controller, 48V inverter, and 48V lithium-ion battery Additionally, the 48V system will require room inside the car to be installed, necessitating a redesign of the vehicle to accommodate the new system, electrical circuit and necessary room. In addition, more safety measures are required when designing the 48V electrical system.

What are the future opportunities for automotive 48v system?

Increase in demand for advanced safety and comforts features in vehicles

OEMs are incorporating more electronic components, lightweight construction, and electrification of powertrains into their vehicle models. The five original equipment manufacturers (OEMs) are implementing a 48-volt power supply, and they have urged suppliers to actively participate in the R&D of parts for 48-volt electric vehicle systems. Consumer demand for more safety and comforts, such as heated seats, power steering, and sophisticated driver assistance systems, propels the adoption of electronic components, placing a heavy burden on the car’s battery system. In addition, upcoming cars increasingly come standard with safety features like reverse cameras, adaptive speed control, blind-spot monitoring, road condition sensors, and motion detectors for automatic emergency braking. These demands compelled the OEMs to create a dual voltage architecture that includes a 48V supply and can be used to meet the power requirements for vehicle components.

Regional Analysis

The global automotive 48V system market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia pacific dominates the global market.

Asia Pacific is the highest shareholder in the global automotive 48V system market and is expected to grow at a CAGR of 26.8% during the forecast period. China, Australia, India, Japan, and the rest of Asia-Pacific are all included in the Asia-Pacific automotive 48V system market analysis. The demand for Belt Driven (P0) and Crankshaft Mounted (P1) types of topologies for 48V systems and the rise in automotive manufacturing facilities significantly contribute to the expansion of the Asian market. Additionally, this is anticipated to accelerate market growth in the upcoming years. The market for automotive 48V systems is significantly impacted by the availability of raw materials, government regulations, rising urbanization, rising fuel prices, a surge in the adoption of non-fossil fuel-based vehicles, low labor costs, and rising disposable income. Automobile sales in this region are boosted by the rising standard of living in Asian nations. Manufacturers of automotive safety equipment put their efforts into creating newer products to adapt to local consumer demand changes.

Europe is expected to grow at the fastest CAGR of 27.4% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in the analysis of Europe's automotive 48V system market. During the forecast period, growth in the market is anticipated to be aided by rising demand for electric vehicles in the region and increased investment in R&D related to them. Europe produces its cars, vans, trucks, and buses with lower levels of CO2 and GHG, making them among the world's safest, cleanest, and quietest vehicles. To meet the goal of 95 grams of CO2 per kilometer, the producers and suppliers will need to produce 48V systems that are fuel-efficient. This would aid in saving fuel and lowering the environmental pollution. A rise in the region's adoption of fuel-efficient and environmentally friendly vehicles is anticipated to spur market expansion.

Segmental Analysis

The market is segmented by architecture and vehicle class. 

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 expected to grow at a CAGR of 23.4% during the forecast period. In the belt-driven architecture (P0), the electric motor drives the combustion engine's crankshaft using a belt drive. These architectures, in which the electric machine is integrated with the Front-End Accessory Drive, are also known as Belt Integrated Starter Generators (BiSG) in mild hybrid topologies. In this instance, the role and packaging of the electric machine take the place of the alternator. The 48-volt starter generator's initial topology position is at the engine belt; it resembles a car alternator but is slightly larger. The minimal impact of the 48V system on the current vehicle architecture makes this mild hybrid topology the most economically viable. Compared to 12-volt systems, P0 drives based on a 48-volt system enable a significant amount of braking energy to be recovered and a dynamic and comfortable start for the internal combustion engine.

Based on vehicle class, the global automotive 48V system market is bifurcated into entry, mid, premium, and luxury.

The middle segment is the highest contributor to the market and is expected to grow at a CAGR of 25.7 during the forecast period. A mid-level vehicle, also referred to as an intermediate vehicle, belongs to the size class of vehicles between compact and full-size vehicles but is more significant than either. Sedans, coupes, and station wagons are just a few different body types that mid-level automobile manufacturers produce. Mid-range vehicles typically have a three-box layout with distinct spaces for the engine, passengers, and cargo. The C-segment, the segment for medium-level vehicles, is the European market for passenger cars. Mid-level vehicles are primarily used for long-distance individual passenger transportation. The load on the 12V system is increased by upcoming mid-level vehicles' numerous advanced and convenient features like the engine start-stop system, automatic emergency braking (AEB), telematics, and highly loaded infotainment systems. To support advanced features in mid-level vehicles, manufacturers are switching to 48V systems.

Recent Developments

• 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.

• 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.