Automotive 48V System Global Market Opportunities and Strategies to 2033

This report describes and explains the automotive 48V system market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global automotive 48V system market reached a value of nearly $5.64 billion in 2023, having grown at a compound annual growth rate (CAGR) of 23.2% since 2018. The market is expected to grow from $5.64 billion in 2023 to $18.03 billion in 2028 at a rate of 26.2%. The market is then expected to grow at a CAGR of 25.2% from 2028 and reach $55.48 billion in 2033.

Growth in the historic period resulted from strong economic growth in emerging markets, increased sales of hybrid electric vehicles (HEVs), growing demand for commercial vehicles and rise in disposable income. Factors that negatively affected growth in the historic period was fluctuating prices of raw materials.

Going forward, increasing demand for safety features in automobiles, growing adoption of electric vehicles, rising automobile production and rise in fuel prices will drive the growth. Factor that could hinder the growth of the automotive 48V system market in the future include lack of skilled workers.

The automotive 48V system market is segmented by type into mild-hybrid vehicles, low-power BEVs (battery electric vehicles) and other types. The mild-hybrid vehicles market was the largest segment of the automotive 48V system market segmented by type, accounting for 50.9% or $2.87 billion of the total in 2023. Going forward, the low-power BEVs (battery electric vehicles) segment is expected to be the fastest growing segment in the automotive 48V system market segmented by type, at a CAGR of 30% during 2023-2028.

The automotive 48V system market is segmented by architecture into belt driven (P0), crankshaft mounted (P1), dual-clutch transmission-mounted or input shaft of transmission (P2/P3) and transmission output shaft or rear axle (P4). The belt driven (P0) market was the largest segment of the automotive 48V system market segmented by architecture, accounting for 51.8% or $2.91 billion of the total in 2023. Going forward, the crankshaft mounted (P1) segment is expected to be the fastest growing segment in the automotive 48V system market segmented by architecture, at a CAGR of 28.7% during 2023-2028.

The automotive 48V system market is segmented by application into entry-level vehicles, mid vehicles, premium vehicles and luxury vehicles. The mid vehicles market was the largest segment of the automotive 48V system market segmented by application, accounting for 62.1% or $3.5 billion of the total in 2023. Going forward, the mid vehicles segment is expected to be the fastest growing segment in the automotive 48V system market segmented by application, at a CAGR of 27.3% during 2023-2028.

Asia-Pacific was the largest region in the automotive 48V system market, accounting for 45.9% or $2.58 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the automotive 48V system market will be Western Europe and Asia Pacific where growth will be at CAGRs of 28.1% and 27.1% respectively. These will be followed by Eastern Europe and North America where the markets are expected to grow at CAGRs of 26.4% and 26.2% respectively.

The global automotive 48V system market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 68.7% of the total market in 2022. Valeo SA was the largest competitor with 13.3% share of the market, followed by Robert Bosch GmbH with 9.9%, BorgWarner Inc. with 9.1%, Mitsubishi Electric Corporation with 6.8%, Hyundai Mobis Co Ltd with 6.5%, Hitachi, Ltd. with 6.3%, Denso Corporation with 5.3%, Continental AG with 4.6%, Lear Corporation with 3.9%, and Magna International Inc. with 3.1%.

The top opportunities in the automotive 48V system market segmented by type will arise in the mild-hybrid vehicles segment, which will gain $5.61 billion of global annual sales by 2028. The top opportunities in the automotive 48V system market segmented by architecture will arise in the belt driven (P0) segment, which will gain $6.44 billion of global annual sales by 2028. The top opportunities in the automotive 48V system market segmented by application will arise in the mid vehicles segment, which will gain $8.21 billion of global annual sales by 2028. The automotive 48V system market size will gain the most in China at $2.73 billion.

Market-trend-based strategies for the automotive 48V system market include innovative product launches with focus on hybrid vehicles and more compact systems, fully integrated compact 48V electric powertrain systems to simplify the integration process, development of 48V lithium-ion batteries for electric vehicles for enhanced energy storage and power capabilities, growing adoption of 48-volt electrical architecture to improve overall vehicle efficiency and strategic partnerships and collaborations among market players.

Player-adopted strategies in the automotive 48V system market include focus on strategic partnerships and collaborations, strengthening operational capabilities through the launch of new product, enhancing business operations through strategic acquisitions, enhancing business operations by introducing new product lines and strengthening production capabilities through new product developments.

To take advantage of the opportunities, the analyst recommends the automotive 48V system companies to focus on innovative product development, focus on integrated compact 48v powertrain solutions, focus on advancing 48v battery technology for electric vehicles, focus on low-power BEVS (battery electric vehicles), focus on belt driven (P0) and crankshaft mounted (P1) segments for accelerated growth, expand in emerging markets, continue to focus on developed markets, focus on strategic collaborations focus on broadening distribution channels for automotive 48v systems, provide competitively priced offerings, focus on strategic pricing, participate in trade shows and events, continue to use b2b promotions, focus on comprehensive, promotion strategies, focus on mid and entry-level vehicles and focus on tailored engagement for end-user satisfaction.