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The vehicle power distribution market size is forecast to increase by USD 2.31 billion, at a CAGR of 6.14% between 2022 and 2027. Market expansion relies on several pivotal factors, including the surge in electric vehicle (EV) sales, which stimulates the demand for robust EV charging infrastructure. As more consumers opt for electric vehicles, the need for reliable charging stations becomes paramount, driving investment in infrastructure development. Additionally, the growth in vehicle production across various segments fuels market expansion, as manufacturers strive to meet escalating consumer demand for automobiles. Furthermore, the increasing awareness of safety features among consumers in developing countries plays a crucial role in shaping market dynamics. With safety becoming a top priority for car buyers, there is a growing emphasis on vehicles equipped with advanced safety technologies. These factors collectively drive the growth of the automotive market, creating opportunities for innovation and investment in infrastructure, production, and safety technologies.
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In the market, forces driving innovation include the demand for efficient off-highway vehicles and passenger cars, alongside the need for reliable power distribution solutions for light commercial vehicles and buses. As businesses focus on reducing operational costs and meeting stringent emission standards, there's a growing interest in electric buses and fuel-efficient powertrain systems. Power distribution boxes, including configurable ones and box-type variants, play a crucial role in managing electrical circuits, ensuring reliability and compliance with safety regulations. The market caters to diverse needs, offering solutions tailored for various vehicle types, from vans to power distribution boxes for optimized performance and minimized downtime in the transportation industry. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the increasing EV sales spurring demand for well-built EV charging infrastructure. There has been significant growth in the EV industry due to the incentives and subsidies provided by governments and regulatory bodies across the world. Additionally, several governments are offering financial incentives to EV buyers, depending on battery size.
For instance, the Sustainable Energy Authority of Ireland (SEAI) offers grants of up to USD 5,500- USD 6,000 and an exemption from vehicle registration tax to EV buyers in the US. Furthermore, in Italy, there is an exemption from the annual registration tax for five years for electric or hybrid vehicle owners. Hence, such initiatives will drive market growth during the forecast period.
A key factor shaping the market growth is the strategic initiatives by vendors in the market field. There is an increasing demand for power distribution units for vehicles due to the rising electrification of vehicles and increasing EV charging infrastructure. Additionally, several market players are increasingly focusing on strategic initiatives, including M&A and product launches, to achieve this cutting-edge technology.
For example, in March 2021, Furukawa Automotive Sysytems Inc. started delivering High-Voltage Power Distribution Component Modules for Toyota MIRAI (Hydrogen Fuel Cell Vehicle). Hence, such initiatives are positively impacting the market growth. Hence, it is expected to drive market growth during the forecast period.
The lack of charging infrastructure in potential markets is one of the key challenges hindering market growth. One of the crucial aspects influencing the growth of EVs is the infrastructure. The main challenge for EV owners is finding the optimal charging station. Additionally, EV owners do not have the luxury of standardized refueling facilities as the owners of f internal combustion engine (ICE)-based vehicles.
Hence, the lack of charging infrastructure is negatively impacting the market growth. For instance, one of the prominent automotive manufacturers, Mahindra and Mahindra Ltd (Mahindra) is unable to increase the sales of its EVs, especially due to the poor charging infrastructure available in cities in 2022. Hence, such factors are expected to hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The hardwired segment is estimated to witness significant growth during the forecast period. The main application of hardwired power distribution blocks in automotive is the continuous power supply for accessories and systems. Additionally, this segment is used as a substitute for the switched 12V supply that comes with vehicle engines.
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The hardwired segment was the largest segment and was valued at USD 3.33 billion in 2018. There is an increase in demand for r power distribution blocks due to their capacity to deliver a constant voltage supply to high-power circuits. The main advantage of this segment is that it eliminates the risk of voltage fluctuation during start-up processes. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the global vehicle power distribution market growth during the forecast period.
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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors for the significant growth of the market in North America is the presence of developed infrastructures and road networks. The main country which is a major contributor to the regional market is the US as it is home to several market players in the market which is fuelling the regional revenue growth.
Additionally, there is an increasing demand for electric vehicles and their components, such as vehicle power distribution blocks due to the presence of stringent government regulations related to fuel efficiency and vehicle emissions. Furthermore, there is an increasing focus on electrifying public transport and the adoption of hybrid trucks by fleet operators in North America which is expected to drive the market growth in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the dynamic landscape of the market, off-highway vehicles like agricultural tractors and construction equipment demand robust power distribution solutions to ensure optimal performance. As the industry evolves, competitive developments and joint ventures drive innovation, supported by thorough research methodology involving secondary sources and data triangulation for comprehensive insights. Market strategies incorporate a bottom-up approach and model-wise analysis to address diverse needs, from large transportation vehicles to hybrid commercial vehicles, emphasizing fuel-efficiency and sustainable electrical systems. Solutions range from box-type to configurable power distribution units, leveraging electric motors and inverters from key players like Molex. Amid environmental concerns and stringent regulations, power electronics materials and design continue to evolve, shaping the future of transportation in alignment with advancements in e-commerce and logistics industries across various countries and regions. Also, Off-highway vehicle often incorporate box type fuses, which are configurable to meet various electrical system requirements, ensuring reliable protection and adaptability in demanding operating conditions.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.14% |
Market growth 2023-2027 |
USD 2.31 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.21 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, BorgWarner Inc., Continental AG, Eaton Corp. Plc, Faurecia SE, Fujikura Ltd., Furukawa Electric Co. Ltd., Koch Industries Inc., KYOCERA Corp., Lear Corp., Leoni AG, Littelfuse Inc., Mersen Corporate Services SAS, Samvardhana Motherson International Ltd., Schaltbau Holding AG, STMicroelectronics International N.V., Sumitomo Electric Industries Ltd., TDK Corp., TE Connectivity Ltd., and Yazaki Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecasting period. |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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