Automotive 48V System Market Statistics - 2027
The global automotive 48V system market was valued at $2,227.70 million in 2019, and is projected to reach $21,002.99 million by 2027, registering a CAGR of 26.5% from 2020 to 2027. By vehicle class, the mid vehicle class segment was the highest revenue contributor in 2019, accounting for $874.92 million, and is estimated to reach $7,731.48 million by 2027, registering a CAGR of 25.7% during the forecast period. In 2019, Asia-Pacific was anticipated to account for major market share.
The 48V system market opens up more cost-effective opportunities for hybridization by enabling a wide variety of different vehicle functions, from boosting engine performance to supplying the growing number of electrical consumers to powering functions. The primary purpose of this new voltage level is to reduce CO2 emissions by means of recuperation and start-stop features and to power electrical components classed as high-power loads (such as air-conditioning compressors, electrical heaters, pumps, and steering drives). Moreover, the deployment of 48-Volt technology, providing additional torque enables more dynamic handling and performance.
The 48V system architecture is designed with a structure that adds a new electric motor and 48V battery onto the combustion engine and normal 12V battery. The automotive 48V system consists of the primary component unit that includes three main components such as a Belt Alternator Starter (also called a Belt-driven Starter Generator or Motor Generator Unit, MGU), a DC-to-DC converter, and a higher voltage battery, and also other components such as 48v inverter, power distribution boxes, electric motor/generator, and E-charger. The automotive 48V system market trends are decided on the basis of forecast from 2020 to 2027.
The global automotive 48V system market is driven by increase in demand for hybrid and electric vehicle and rise in demand for 48V battery system. However, high cost of system in vehicles and rise in sale of battery electric vehicles restrain the growth of the market. Furthermore, increased safety & comfort features in vehicles and reduction of CO2 emission to meet future emission legislations are anticipated to provide lucrative growth opportunities for the players operating in the automotive 48v system market.
COVID Impact Analysis: With the advent in COVID-19 pandemic across the globe, the global automotive 48v system market has been affected as the manufacturing units have been shut down due to the imposed lockdown in major countries across the globe. Also, the unavailability of skilled labor has affected the market but the global automotive 48v system market is expected to register a significant growth in the near future owing to its rising technology adoptions in many vehicles of the developed countries.
The global automotive 48V system market is segmented on the basis of architecture, vehicle class, and region. Belt Driven (P0), Crankshaft Mounted (P1), Dual-clutch transmission-mounted /input shaft of transmission (P2/P3), and transmission output shaft/ rear axle (P4) are studied under the architecture segment. Entry, mid, premium, and luxury are categorized under the vehicle class. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global automotive 48V system market are BorgWarner Inc., Robert Bosch GmbH, CONTINENTAL AG, Dana Limited, Delphi Technologies, GKN (Melrose Industries PLC), Lear Corporation, Magna International Inc., MAHLE Powertrain Ltd, and Valeo SA.
Rise in demand for hybrid & electric vehicles
The lower emission standards set by the governments led to the adoption of hybrid cars and electric vehicles. The 48V systems are widely used in hybrid cars and electric vehicles for driving the vehicle as well as for lighting systems, pumps, and other applications. These systems are popular among hybrid vehicles as they benefit from the use of these systems to create extra power during acceleration and increase fuel efficiency. The 48V systems have led to the development of low-cost mild hybrids that are becoming widely popular across the globe. Major suppliers such as Bosch, Delphi Automotive, Continental, Valeo, and Gustanski are focusing on the development of 48V systems for mild hybrid vehicles. For instance, Mercedes-Benz has announced a new hybrid SUV GLE580, while its rival Audi has already launched hybrid SUV Q8, in the same segment. Both of the vehicles come packed with hybrid engines along with 48-Volt battery systems. Thus, the hybridization of the vehicles with 48V system and increase in the demand for the same is fueling the growth of the automotive 48V system market in near future.
Increase in demand 48V battery system
The 48V batteries are widely used in hybrid cars and electric vehicles for driving the vehicle as well as for lighting system, pumps, and other applications. Furthermore, the 48V battery system hybrid solution is more cost-effective than the conventional battery-powered electric vehicle to reduce the emission. In addition, the 48V battery systems get charged quickly and batteries lasts for a longer period compared to conventional batteries. As the 48V battery comprises a crucial component of the automotive 48V system, most battery manufacturers have begun developing 48V batteries. For instance, Johnson Controls offers 48V battery systems for mild HEVs for use with 48V motors and electronics to deliver 15% more fuel economy over conventional vehicles. Therefore, the development of 48V battery system is expected to drive the growth of the automotive 48v system market in the near future.
Transmission output shaft segment is projected as the most lucrative segments
Anticipated rise in sale of fully powered battery electric vehicle in coming years
The battery electric vehicles offer several advantages over hybrid vehicles. The main advantage is that battery electric vehicles benefit the environment more than hybrids, since they do not use any fuel at all. In addition, battery electric vehicles help save more money than hybrids do, since they do not use any fuel. They also offer a longer electric-only range than hybrids. Currently sales of hybrid electric vehicles is more as compared to battery electric vehicles. Anticipated to zero emission production and fuel cost-effectiveness of BEV over HEV, if sales of BEV rise then it will create hurdle for sales of 48V system-based vehicle in future and thus, will hinder the growth of the automotive 48V system market.
Increases the overall cost of the vehicle
12V system is being used in the vehicles since a very long time; therefore, manufactures need to redesign the components and electrical system which will run over the 48V electrical system. The key components of the 48V electrical system are inverter, battery – currently based on lithium ion technology, battery controller, and power distribution boxes. This requires a new design for all corresponding control units to ensure that they meet the changed requirements that apply at higher voltages. The average cost for the 48V inverter, 48V lithium ion battery, and battery controller for power distribution boxes ranges from $80 to $750, respectively, which increases the overall cost of the vehicle. Furthermore, the 48V system will need space in the vehicle to be installed and that means redesigning of the car for that additional system, electrical circuit, and required space. In addition, additional safety precautions are needed while designing the 48V electrical system. Thus, while almost all the manufacturers are working on decreasing the cost of the vehicle, the 48V system increases the cost of a vehicle, which is expected to hinder the growth of the automotive 48v system market.
By Vehicle Class
Entry level segment is projected as the most lucrative segments
Increase in demand for advanced safety and comfort features in vehicles
The OEMs are implementing more electronic units, lightweight designs, and electrification of powertrains in their vehicle models. Speakers at the ICE Powertrain Electrification & Energy Recovery conference in May 2013 estimated that 70% of new cars in Europe in 2020 will need electrification to meet the European Union’s goal of 95 g/km of carbon-dioxide emissions. For instance, the five premier German car manufacturers, Audi, BMW, Daimler, Porsche, and Volkswagen announced their agreement to jointly incorporate a variety of architectural components for on-board power networks into their vehicles. The five OEM’s are implementing a 48V power supply, and appealed to suppliers to actively engage in R&D of components for vehicles with a 48V electric system. The demand for increased safety and comforts such as heated seats, power steering, and advanced driver assistance systems among consumers have propelled the adoption of electronic units, which will subsequently, put a high load on the vehicle’s battery system. In addition, vehicle safety gears such as reverse cameras, adaptive speed control, blind-spot monitoring, road condition sensors, and motion detectors for automatic emergency braking are becoming commonplace in upcoming vehicles. Such requirements have prompted the OEMS to develop a dual voltage architecture, which includes 48V supply and can be used to satisfy the power demand for components in the vehicle. Since the safety voltage level for vehicles is 60V, it has further contributed to the growing preference for the 48V system so that the system does not exceed the safety voltage level. Thus, advanced comfort and safety features in upcoming vehicle provides opportunity to the automotive 48v system market.
Europe by region segment is projected as the most lucrative segments
Key Benefits For Stakeholders
- This study presents analytical depiction of the automotive 48v system market analysis along with the current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
- The current automotive 48V system market size is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the hybrid vehicle industry.
Automotive 48V System Market Report Highlights
By VEHICLE CLASS
Key Market Players
CONTINENTAL AG, BorgWarner Inc, Delphi Technologies, Magna International Inc, GKN (Melrose Industries PLC), Robert Bosch GmbH, MAHLE Powertrain Ltd, Dana Limited, Valeo, Lear Corporation
The 48V system range is effective, regardless of capping voltages below a 60V cut-off, as meet Safety-Extra Low-Voltage (SELV) requirements. 48V can distribute power to commercial EV components, minimizing copper losses without causing unsafe SELV issues. 48V battery and system supply power to the hybrid motor and super-charger to launch the vehicle faster and smoother, eliminating turbo lag. It also supports heavier electrical load items such as air conditioning. The 12-volt battery and system are enhanced from the 48-volt system via a hybrid generator, inverters, and DC/DC converter. This keeps the 12-volt battery charged and thermally managed, allowing it to provide the power needed for active safety and infotainment features. Moreover, the 48V architectures provide the optimal trade-off of meeting regulations, performance, weight, and cost. The automotive 48V system market is segmented on the basis of architecture, vehicle class, component, and region.
The automotive 48V system market is analyzed on the basis of its prospect and future growth rate. The report highlights numerous factors that influence the growth of the global automotive 48V system market, which include market forecast, drivers, restraints, opportunities, and role of different key players operating in the market.
The global automotive 48V system market is driven by increase in demand for hybrid and electric vehicle and rise in demand for 48V battery system. However, high cost of system in vehicles and anticipated rise in sale of battery electric vehicles are expected to hinder the growth of the market. Furthermore, increased safety & comfort features in vehicles and reduction of CO2 emission to meet future emission legislations provide lucrative growth opportunities for the players operating in the automotive 48V system market.
Among the analyzed regions, Asia-Pacific is the highest revenue contributor, and the Europe region is anticipated to dominant during the forecast period, followed by North America and LAMEA. This growth is attributed to proactive development, rise in disposable income, and expected electric vehicle sales.