Automotive 48V System Market

Automotive 48V System Market Outlook (2024 to 2034)

This latest study by Fact.MR reveals that the global automotive 48V system market size is set to accelerate to a value of US$ 24.98 billion by-end 2034, up from US$ 3.08 billion in 2024, expanding at a CAGR of 23.3% from 2024 to 2034.

The 48-volt DC electrical system, introduced in the 2010s, aims to enhance propulsion and battery recharge in internal combustion engine vehicles, especially mild hybrids, during braking to improve fuel efficiency. The market provides cost-effective opportunities for hybridization by enabling a wide range of vehicle functions, from improving engine performance to providing a growing number of electrical consumers with power functions.

Main goals of this system are to power electrical components categorized as high-power loads (such as air conditioning compressors, electrical heaters, pumps, and steering drives) and lower CO2 emissions through the use of recuperation and start-stop features. Thus, the introduction of 48-volt technology allows for more dynamic handling and performance by providing extra torque.

Key Market Growth Drivers

• Automotive 48-volt power systems have been around for a while and are mainly used to power large pumps and actuators in off-road vehicles and other specialized applications.
• The se systems are used to lower the currents needed to run electric superchargers, active suspension systems, and other power-hungry features in passenger cars and commercial vehicles during the last ten or so years.
• Manufacturers are becoming more interested in deploying 48 V to lower direct loads on the internal combustion engines of their vehicles due to growing regulatory pressure to increase fuel economy.
• Other high-power accessory systems, such as air conditioning, power steering, and coolant pumps, have been electrified to achieve this.
• Rising demand for electric and hybrid vehicles is one of the key automotive 48V system market trends.
• Electric vehicles (EVs) often utilize automotive 48V systems to power a variety of electrical components, including pumps, steering drives, lighting systems, electrical heaters, and air conditioning compressors.
• Another factor driving market growth is the increasing use of products to power auxiliary systems in cars, offering them mild hybrid functionality. This improves engine thermal performance, reduces emissions, improves fuel efficiency, and saves money.
• Sales of 48V systems are rising due to an increase in product applications that power high-end and cutting-edge safety features in cars, like adaptive cruise control, heated seats, infotainment systems, reverse cameras, road condition sensors, blind-spot monitoring, and motion detectors.

Report Attributes	Details
Automotive 48V System Market Size (2024E)	US$ 3.08 Billion
Forecasted Market Value (2034F)	US$ 24.98 Billion
Global Market Growth Rate (2024 to 2034)	23.3% CAGR
North America Market Share (2024E)	35.38%
Crankshaft Mounted Market Share (2024E)	31.6%
Luxury Level Vehicles Segment Value (2024E)	US$ 1.13 Billion
Key Companies Profiled	Robert Bosch GmbH BorgWarner Inc. Dana Limited Continental AG MAHLE GmbH GKN (Melrose Industries PLC) Delphi Technologies Magna International Inc. Lear Corporation Valeo SA Honda Motor Company Hyundai Motor Company Ford Motors Company

What is Key Factor Driving the Market for Automotive 48V Systems?

“Implementation of Government Initiatives to Promote Use of Electric Vehicles”

Widespread use of 48V systems in the development of self-driving cars to power energy-intensive components such as computers, cameras, and various sensors is driving market growth. Sales of these systems are also increasing due to the implementation of multiple initiatives by governments to encourage the adoption of EVs and subsequently reduce greenhouse gas emissions.

The industry is projected to expand due to several factors, such as growing environmental concerns, large investments made in research and development (R&D) activities, and the growing demand for fuel-efficient vehicles. The shift towards electric and hybrid vehicles is an additional factor propelling the market's expansion. One of the factors for the expansion of the automotive 48V system market size is the persistent demand for fuel efficiency.

What are the Hindrances to the Demand Growth for Automotive 48V Systems?

“High Initial Costs Associated with Automotive 48V Systems”

A 48V system is expensive to install in cars, discouraging certain car manufacturers from using it extensively. One such constraint is the need for infrastructure to support 48V systems, such as servicing and charging. Automotive 48V systems are still in the early stages of development, and their initial setup is costly.

Skilled technicians are required to detect and fix any problems that may occur with 48V systems in automobiles. Automotive 48V systems frequently require functioning in tandem with other vehicle systems, such as powertrains or the standard 12V electrical system. To ensure accurate integration, skilled professionals are required, and a lack of expertise can end up in compatibility issues. Therefore, a lack of specialized knowledge is projected to impede market growth.

Country-wise Insights

The East Asia region occupies a significant (42.7%) automotive 48V system market share, which is only expected to increase due to high demand for cutting-edge automotive technologies such as 48V systems. This region also accounts for a significant proportion of the world's automobile production and sales. Government programs, environmental concerns, and technological advancements are also contributing to an increase in the demand for electric vehicles in this region.

What are the Key Drivers Behind Adoption of Automotive 48V Systems in the United States?

“Growing Emphasis on Hybridization for Fuel Economy”

Attribute	United States
Market Value (2024E)	US$ 752.2 Million
Growth Rate (2024 to 2034)	22.3%
Projected Value (2034F)	US$ 5.63 Billion

Need for more effective power delivery and the rising electrical energy consumption of contemporary cars are the driving forces behind the switch to 48V systems in automobiles. The addition of 48V systems allows for hybridization, bringing greater fuel economy and reducing emissions to vehicles at a relatively low cost. The 48V system enables enhanced power delivery and the improves effectiveness of features such as window demisters and heated seats.

To reduce fuel consumption, the 2019 Dodge Ram 1500 pickup, for instance, has a mild hybrid setup. Ford and other major automobile manufacturers have been given access to Tesla's 48V implementation documentation, which is a leading EV manufacturer. This move is changing in a significant shift in how automakers wire, accessorize, and electrically engineer their vehicles.

How are Automakers Benefitting from Their Investments in China?

“Government Subsidies Promoting Widespread Adoption of EVs”

Attribute	China
Market Value (2024E)	US$ 780.3 Million
Growth Rate (2024 to 2034)	24.9% CAGR
Projected Value (2034F)	US$ 7.19 Billion

Government subsidies promoting the adoption of electric vehicles are one of the factors contributing to automotive 48V system market growth in China. Chinese automobile manufacturers are adopting 48V electrical systems developed by international suppliers such as Continental AG, Delphi Automotive, Valeo SA, and Robert Bosch GmbH.

Category-wise Insights

Why is Belt-Driven Architecture Widely Adopted by Manufacturers?

“Affordability of Belt-driven Architecture Driving its Adoption”

Attribute	Belt-Driven
Market Value (2024E)	US$ 978.3 Million
Market Share (2024)	31.8%
Projected Value (2034F)	US$ 6.27 Billion

The powertrain in mild hybrid vehicles is initially configured as belt-driven. Torque boost, regenerative braking, start-stop capability, power to the electric drive, compressors, and power steering are all efficiently provided by the belt-driven system. Automakers find the belt-driven system to be an appealing alternative due to its cost-effectiveness in comparison to alternative configurations. Due to these factors, the belt-driven segment is projected to expand at a significant pace over the forecast period.

Why Do Luxury Vehicles Hold a Significant Market Share?

“Higher Deployment of Infotainment Systems and Driver-Assistance Technology in Luxury Cars”

Attribute	Luxury Vehicles
Market Value (2024E)	US$ 1.13 Billion
Market Share (2024)	36.9%
Projected Value (2034F)	US$ 8.34 Billion

The advanced features of luxury or modern cars, such as sophisticated infotainment systems, climate control devices, and driver-assistance computers, result in higher electric energy consumption. High-end cars are frequently the first to use new technologies, such as 48V systems. Advanced safety systems, infotainment systems, and electric turbochargers are just a few of the high-end features that can be found in luxury cars and are powered by these systems.

Competitive Landscape

The key players in the automotive 48V system market are Robert Bosch GmbH, BorgWarner Inc, Dana Limited, CONTINENTAL AG, MAHLE GmbH, GKN (Melrose Industries PLC), Delphi Technologies, Magna International Inc., Lear Corporation, Valeo SA, Honda Motor Company, Hyundai Motor Company, and Ford Motors Company.

• The 48V hybrid powertrain, new 1.2-liter gasoline engine, and 28-horsepower electric motor in Vauxhall’s Corsa uses about 20% less fuel and emits 20% less CO2 compared to the petrol-powered variant of the company.
• BorgWarner Inc. has created one of the most extensive 48V technology portfolios for the luxury automobile market. It uses up to 20% less fuel, and its P2 on-axis hybrid module works with both automatic and manual transmission architectures and contributes to a peak efficiency of 95%.

Segmentation of Automotive 48V System Market Research

• By Architecture :

  • Belt-Driven
  • Crankshaft-Mounted
  • Dual-Clutch
  • Transmission-Mounted
  • Transmission Output Shaft

• By Vehicle Category :

  • Entry Level
  • Mid-Premium Level
  • Luxury

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa