Automotive 48V System Market 2023-2030 by Architecture (Belt Driven, Crankshaft Mounted, Dual-Clutch Transmission-Mounted, and Transmission Output Shaft), Vehicle Class (Entry, Mid, Premium, and Luxury)

In 2019, the Global Automotive 48V System Market was valued at $2,227.70 million, and it is projected to reach $21,002.99 million by 2030, with a CAGR of 26.5% from 2023 to 2030. Among vehicle classes, the mid vehicle class segment was the top revenue contributor in 2019, accounting for $874.92 million, and is expected to reach $7,731.48 million by 2030, with a CAGR of 25.7% during the forecast period. The Asia-Pacific region was predicted to hold a significant market share in 2019.

The Global Automotive 48V System Market has been impacted by the COVID-19 pandemic, leading to the shutdown of manufacturing units due to lockdown measures imposed in many countries. The market has also been affected by the lack of skilled labor. However, the market is expected to experience substantial growth in the near future due to increasing technology adoption in vehicles in developed countries.

The introduction of the 48V system in automobiles provides cost-effective opportunities for hybridization, enabling various vehicle functions such as engine performance enhancement, power supply for electrical consumers, and the operation of high-power loads like air-conditioning compressors and electric heaters. The primary goals of this voltage level are to reduce CO2 emissions through recuperation and start-stop features and to power high-power electrical components. Additionally, the deployment of 48-volt technology allows for more dynamic handling and performance by providing additional torque.

The architecture of the 48V system involves integrating a new electric motor and 48V battery alongside the combustion engine and the traditional 12V battery. The main components of the automotive 48V system include a Belt Alternator Starter (also known as a Belt-driven Starter Generator or Motor Generator Unit, MGU), a DC-to-DC converter, a higher voltage battery, and other components such as a 48V inverter, power distribution boxes, electric motor/generator, and E-charger. Market trends in the automotive 48V system sector are based on forecasts from 2023 to 2030.

The growth of the global automotive 48V system market is driven by the increasing demand for hybrid and electric vehicles, as well as the rising demand for 48V battery systems. However, the high cost of the system in vehicles and the growth in sales of battery electric vehicles hinder market growth. Nevertheless, the market presents lucrative growth opportunities for players in terms of increased safety and comfort features in vehicles and the need to reduce CO2 emissions to comply with future emission regulations.

Impact of COVID-19: The global automotive 48V system market has been significantly affected by the COVID-19 pandemic, leading to the shutdown of manufacturing units due to lockdown measures imposed in major countries worldwide. The unavailability of skilled labor has also had an impact on the market. However, despite these challenges, the global automotive 48V system market is expected to experience significant growth in the near future, primarily driven by the increasing adoption of this technology in vehicles in developed countries.

The global automotive 48V system market is segmented based on architecture, vehicle class, and region. The architecture segment includes Belt Driven (P0), Crankshaft Mounted (P1), Dual-clutch transmission-mounted /input shaft of transmission (P2/P3), and transmission output shaft/rear axle (P4). Vehicle class categories consist of Entry, Mid, Premium, and Luxury. The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA in terms of region.

The key players operating in the global automotive 48V system market are BorgWarner Inc., Robert Bosch GmbH, CONTINENTAL AG, Dana Limited, Delphi Technologies, GKN (Melrose Industries PLC), Lear Corporation, Magna International Inc., MAHLE Powertrain Ltd, and Valeo SA.

Rise in demand for hybrid & electric vehicles
Lower emission standards implemented by governments have driven the adoption of hybrid cars and electric vehicles. In these vehicles, 48V systems are widely utilized for propulsion, lighting systems, pumps, and other applications. Hybrid vehicles particularly benefit from the use of 48V systems, as they provide additional power during acceleration and improve fuel efficiency. The integration of 48V systems has enabled the development of cost-effective mild hybrids that have gained popularity worldwide. Key suppliers like Bosch, Delphi Automotive, Continental, Valeo, and Gustanski are actively focusing on the development of 48V systems for mild hybrid vehicles. For example, Mercedes-Benz recently introduced the hybrid SUV GLE580, while Audi has already launched the hybrid SUV Q8, both equipped with hybrid engines and 48-volt battery systems. Therefore, the increasing demand for hybridization with 48V systems is expected to drive the growth of the automotive 48V system market in the near future.

There is also a growing demand for 48V battery systems in hybrid cars and electric vehicles, serving various functions such as propulsion and powering lighting systems and pumps. The 48V battery system, as a hybrid solution, offers greater cost-effectiveness compared to conventional battery-powered electric vehicles, resulting in reduced emissions. Additionally, 48V battery systems have the advantages of quick charging and longer-lasting batteries compared to traditional batteries. Recognizing the importance of the 48V battery as a critical component of the automotive 48V system, many battery manufacturers have started developing 48V batteries. Johnson Controls, for instance, offers 48V battery systems for mild hybrid electric vehicles (HEVs) that work in conjunction with 48V motors and electronics, delivering 15% more fuel economy compared to conventional vehicles. Consequently, the development of 48V battery systems is expected to propel the growth of the automotive 48V system market in the near future.

Looking ahead, there is an anticipated increase in the sales of fully powered battery electric vehicles (BEVs) in the coming years. BEVs offer several advantages over hybrid vehicles, primarily their zero fuel usage and greater environmental benefits. They also provide cost savings by eliminating the need for fuel. Additionally, BEVs offer a longer electric-only range compared to hybrids. Currently, sales of hybrid electric vehicles surpass those of battery electric vehicles. However, the expected rise in BEV sales, driven by their zero-emission production and fuel cost-effectiveness, may pose a challenge for the sales of 48V system-based vehicles in the future, potentially hindering the growth of the automotive 48V system market.

Increases the overall cost of the vehicle
For a long time, vehicles have been using the 12V system, which means manufacturers now need to redesign components and the electrical system to accommodate the shift to a 48V electrical system. The key components of the 48V electrical system include the inverter, lithium-ion battery, battery controller, and power distribution boxes. This necessitates the redesign of corresponding control units to meet the new requirements at higher voltages. The average cost for the 48V inverter, lithium-ion battery, and battery controller for power distribution boxes ranges from $80 to $750, respectively, which increases the overall cost of the vehicle. Additionally, the 48V system requires space within the vehicle for installation, which entails further redesigning of the car to accommodate the additional system, electrical circuitry, and required space. Moreover, extra safety precautions are necessary when designing the 48V electrical system. As a result, while manufacturers strive to reduce vehicle costs, the implementation of the 48V system increases costs, which is expected to hinder the growth of the automotive 48V system market.

There is an increasing demand for advanced safety and comfort features in vehicles, leading original equipment manufacturers (OEMs) to incorporate more electronic units, lightweight designs, and powertrain electrification in their vehicle models. The European Union's goal of achieving carbon-dioxide emissions of 95 g/km by 2023 has prompted OEMs to estimate that 70% of new cars in Europe will require electrification. For example, Audi, BMW, Daimler, Porsche, and Volkswagen, the five premier German car manufacturers, have agreed to collaborate on incorporating various architectural components for on-board power networks in their vehicles, including a 48V power supply.

This has created a need for suppliers to actively engage in the research and development of components for vehicles with a 48V electric system. The demand for enhanced safety and comfort features such as heated seats, power steering, and advanced driver assistance systems has driven the adoption of electronic units, placing a higher load on the vehicle's battery system. Additionally, safety features like reverse cameras, adaptive speed control, blind-spot monitoring, road condition sensors, and motion detectors for automatic emergency braking are becoming standard in upcoming vehicles. These requirements have compelled OEMs to develop a dual voltage architecture that includes a 48V supply to meet the power demands of vehicle components. Considering that the safety voltage level for vehicles is 60V, the preference for the 48V system has grown to ensure compliance with safety standards. Therefore, the increasing demand for advanced safety and comfort features in upcoming vehicles provides an opportunity for the automotive 48V system market.

Key Benefits for Stakeholders:
• This study provides an analytical depiction of the automotive 48V system market analysis, including current trends and future estimations, to identify profitable investment opportunities.
• The report helps understand the overall market potential and identifies profitable trends to gain a stronger market position.
• It presents information related to key drivers, restraints, and opportunities in the market, accompanied by a detailed impact analysis.
• The current automotive 48V system market size is quantitatively analyzed from 2019 to 2030 to assess financial competency.
• Porter's five forces analysis illustrates the bargaining power of buyers and suppliers in the hybrid vehicle industry.