Automotive 48V System Market size was over USD 7.1 billion in 2023 and is estimated to reach USD 73.7 billion by the end of 2036, growing at a CAGR of 26.8% during the forecast period, i.e., 2024-2036. In 2024, the industry size of automotive 48V system is assessed at USD 11.3 billion.
The growing sales of hybrid and electric cars are likely to drive the demand for automotive 48V systems since it has been determined as the ideal voltage for hybrid vehicles due to their power balance and energy efficiency. According to the International Energy Agency, sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual rise. As the automotive industry shifts towards greater electrification, there is an increasing need for technologies that bridge the gap between traditional internal combustion engines (ICEs) and fully electric vehicles (EVs).
Automotive 48V systems are particularly in the context of mild-hybrid vehicles, which are becoming more popular as a transitional technology. These systems help improve fuel efficiency and reduce emissions in ICE vehicles, which complement the broader trend towards electrification. Additionally, advancements in 48V technology can support certain features in hybrid and electric vehicles such as enhanced energy recovery and efficient power management.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
26.8% |
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Base Year Market Size (2023) |
USD 7.1 billion |
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Forecast Year Market Size (2036) |
USD 73.7 billion |
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Regional Scope |
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Architecture (Crankshaft Mounted, Belt Driven, Transmission Output Shaft, Dual-Clutch Transmission-Mounted)
The belt driven segment in the automotive 48V system market is estimated to gain the largest revenue share of 41.5% by 2036 on account of the rising sales of mild hybrid vehicles led by rising environmental awareness and a shift in customer preferences toward more environmentally friendly modes of transportation. According to Deloitte Group's 2023 Global Automobile Consumer Survey, Japan has the highest preference for hybrid cars (48%), followed by Korea (40%), and India (32%). The United States has a preference for hybrid automobiles with 28%, while Germany and China both have 26%.
A mild hybrid setup includes a belt-driven alternator/starter, with start-stop technology, regenerative braking, and power assist features, which helps increase mild hybrid capabilities at a minimal cost. An MGU, or motor generator unit a key component in hybrid systems, may be part of a hybrid car's belt-driven generator starter system, which includes a second pulley and functions as both an electric motor and a generator to charge a battery while the car's engine is running. The internal combustion engine of the mild hybrid automobile models is started by belt drive via the motor generator unit or MGU that helps the vehicle's engine accelerate.
Vehicle Class (Premium, Mid, Entry, Luxury)
By the end of 2036, the mid vehicle class segment in the automotive 48V system market is predicted to register a significant revenue due to its widespread adoption of 48V systems.as fuel efficiency and emissions become more critical across all vehicle classes, mid-range vehicles equipped with 48V systems can meet regulatory requirements more effectively while maintaining competitive pricing.
48V is also capable of more than just modest hybridization in mid-sized cars as it can accommodate a large number of devices, including sophisticated driver aid systems and electric power steering. The power output of a 48 V system is far higher than that of a 12 V system which was mostly used to power starting batteries and electric parts such as infotainment, lighting, and safety systems in the past. In light of recent advancements, businesses are increasingly incorporating 48V technology into their new car systems, including Mercedes-Benz, and Fiat Chrysler Automobiles (FCA).
Our in-depth analysis of the automotive 48V system market includes the following segments:
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Vehicle Class |
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Architecture |
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APAC Market Statistics
Automotive 48V system market in Asia Pacific is anticipated to hold the largest share of 45.5% by the end of 2036. The market growth in the region is expected on account of the increasing popularity of battery-powered cars and the expansion of automotive manufacturing facilities. Moreover, customers in the region are placing a higher priority on fuel efficiency, which has led to the development and adoption of the low-cost 48V system. The market for fuel-efficient automobiles has experienced significant expansion, mostly due to rising gasoline prices in key Asian economies.
The governments of China and India have subsidized the purchase of electric vehicles, which may drive the demand for automotive 48V systems. Additionally, an upfront subsidy from the federal or state governments lowers the overall cost of electric vehicles, making them more affordable for individuals. China spent roughly USD 72 billion in subsidies to support the new energy-vehicle sector, which encompasses electric and plug-in hybrid vehicles, between 2009 and 2022.
Europe Market Analysis
Europe will encounter enormous growth in the automotive 48V system market during the forecast period. In Europe, electric cars (EVs) have emerged as the driving force in the quickly changing landscape of sustainable transportation due to rising social demand and public awareness of decarbonization. A shift towards a broader EV uptake may augment the demand for automotive 48V systems. Moreover, Europe is unquestionably leading the 48-volt movement as by 2025 more than 10% of vehicles produced will be 48-volt systems.
The Automotive 48V system is a cutting-edge innovation that is gaining immense attention in Germany as the German federal government offers financial advantages to anyone who wants to buy plug-in hybrid or all-electric cars.
The automotive 48V system market in Italy for plug-in hybrid electric vehicles is expected to expand, therefore manufacturers and suppliers will need to create fuel-efficient 48V systems. In Italy, BEV adoption is growing well owing to the growing partnerships, collaborations among automotive 48V system market players, and new product releases.
The automotive 48V system market consists of many key players who are launching various strategic initiatives to expand their market position in the industry.
Author Credits: Saima Khursheed
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