Automotive 48V System Market Size

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.