Automotive 48V System Market Size - By Architecture, By Vehicle, By Component, Analysis, Share, Growth Forecast, 2024 - 2032

Automotive 48V System Market Size

The global automotive 48V system market size was valued at USD 4.8 billion in 2023 and is projected to grow at a CAGR of 24.1% between 2024 and 2032. The global demand for hybrid and electric vehicles (HEVs) is driving the growth of the market. IN 2023, the revenue in the electric vehicles market is projected to reach a staggering over USD 700 billion worldwide and it is projected to reach a market value of USD 1 trillion by 2030. As governments implement stricter emission regulations and consumers become more environmentally conscious, automakers are increasingly adopting hybrid solutions to reduce fuel consumption and emissions.
 

The 48V system offers an affordable and efficient solution for mild hybrid vehicles, bridging the gap between conventional internal combustion engine (ICE) vehicles and fully electric vehicles (EVs). The rising popularity of mild hybrid electric vehicles (MHEVs) in regions such as Europe, Asia-Pacific, and North America is accelerating the demand for 48V systems. These systems provide enhanced fuel efficiency, lower emissions, and improved performance, making them an attractive option for both automakers and consumers seeking cleaner mobility solutions.
 

Moreover, stringent fuel efficiency regulations are driving the growth of the automotive 48V system market. To combat climate change and reduce air pollution, governments worldwide are enforcing tougher emission standards. These mandates compel automakers to adopt technologies that enhance fuel efficiency and reduce carbon emissions. Notably, 48V systems, especially in mild hybrid vehicles, significantly improve fuel economy by optimizing energy use through features such as start-stop functionality and regenerative braking.
 

By integrating 48V systems, manufacturers can meet regulatory requirements while offering consumers vehicles with better fuel economy without sacrificing performance. This alignment between regulatory demands and technological advancements fosters market growth, encouraging automakers to invest in and adopt 48V technology across various vehicle segments.
 

Automotive 48V System Market Trends

Automotive 48V systems are witnessing significant technological advancements in 48V technology. Innovations in power electronics, battery management, and energy recovery systems have enhanced the efficiency, performance, and reliability of these systems. These advancements enable automakers to improve fuel efficiency and reduce emissions without the complexity and cost of full hybrid or electric systems.
 

For example, improved electric turbochargers, regenerative braking systems, and more efficient DC/DC converters optimize energy usage, delivering better performance at a lower energy cost. Additionally, advancements in battery technology have increased the storage capacity and longevity of 48V systems, making them more viable for mass-market vehicles. These innovations also support integration with advanced driver assistance systems (ADAS) and other energy-demanding vehicle features, further boosting market demand.
 

For instance, in March 2024, Jeep launched the new Avenger e-Hybrid with its innovative 48V hybrid engine. The Avenger e-Hybrid features a 100hp internal combustion engine coupled with a 21kw electric motor. This setup is integrated into a double-clutch 6-speed automatic transmission and includes a 48V Belt Starter for smooth transitions between electric and combustion driving modes. The vehicle is equipped with a 0.9 kWh lithium-ion battery located under the driver's seat, which does not impact the interior space.
 

The high initial costs of implementing 48V systems present a significant barrier in the automotive 48V system market. These systems require advanced components such as electric motors, batteries, DC/DC converters, and inverters, which increase production costs compared to traditional 12V systems. Automakers must re-engineer parts, redesign vehicle architecture, and make substantial R&D investments to integrate 48V technology into vehicles, further raising costs.
 

For consumers, this results in higher vehicle prices, potentially limiting demand, particularly in price-sensitive markets. In regions with lower purchasing power or limited government incentives, the cost challenge hinders the widespread adoption of 48V systems, slowing market growth despite their long-term benefits in fuel efficiency and emission reduction.
 

Automotive 48V System Market Analysis

Based on the architecture, the market is segmented into belt-driven, crankshaft-mounted, dual-clutch, transmission-mounted, and transmission output shaft. In 2023, the belt-driven segment accounted for over 40% of the market share and is expected to exceed USD 15 billion by 2032. The belt-driven architecture holds the highest market share in the automotive 48V system market due to its cost-effectiveness, simplicity, and seamless integration with existing internal combustion engine (ICE) designs.
 

The belt-driven starter generator (BSG) system connects to the engine via a belt, making it easier and more affordable to implement compared to other architectures like in-wheel motors or fully electric drivetrains. It supports functions such as regenerative braking, engine start-stop, and mild hybrid power assist, enhancing fuel efficiency and reducing emissions without the complexity or cost of higher-voltage systems. Additionally, its compact size and compatibility with standard vehicle platforms make it attractive to automakers, particularly for mild hybrid electric vehicles (MHEVs), further driving its widespread adoption in both passenger and commercial vehicles.
 

Based on vehicles, the market is divided into passenger cars and commercial vehicles. The passenger cars segment held around 84% of the market share in 2023.The passenger cars segment holds the highest market share in the automotive 48V system market due to several key factors. Firstly, passenger vehicles, including sedans, SUVs, and hatchbacks, are produced in much larger volumes compared to commercial vehicles, leading to greater adoption of 48V systems. These systems significantly improve fuel efficiency and reduce emissions, aligning with increasingly stringent global regulations, particularly in regions like Europe and Asia Pacific.
 

Consumers also demand enhanced performance and advanced features such as start-stop technology, regenerative braking, and electric turbocharging, all supported by 48V systems. Additionally, automakers are focusing on integrating mild hybrid technology in passenger cars to meet emission norms without drastically increasing vehicle costs, making the 48V system an ideal solution. The broad availability and affordability of mild hybrid passenger cars further contribute to this segment's dominance.
 

Asia Pacific region accounted for an automotive 48V system market share of over 41% and is expected to exceed USD 14 billion by 2032. The country's robust automotive manufacturing base, along with government initiatives supporting vehicle electrification, drives the demand for 48V systems. China's commitment to reducing carbon emissions and adhering to stringent environmental regulations encourages automakers to integrate 48V systems in hybrid vehicles. Additionally, increasing consumer demand for fuel-efficient and eco-friendly vehicles accelerates adoption. Collaborations between local manufacturers and global companies are expanding the deployment of 48V technology, further strengthening China’s market position.
 

In North America, regulatory pressures to reduce vehicle emissions and enhance fuel efficiency are driving the growth of the automotive 48V system market. The U.S. and Canada are key markets, increasingly focusing on hybrid vehicle adoption to meet stringent emission standards. Regional automakers are integrating 48V systems in passenger and light commercial vehicles to improve performance without the complexity of high-voltage hybrid systems. Additionally, rising consumer demand for fuel-efficient vehicles and advancements in automotive technologies are further propelling market growth in North America.
 

Europe plays a pivotal role in the automotive 48V system market, driven by stringent emission regulations, notably the EU's CO2 targets, which compel automakers to adopt fuel-efficient technologies. Leading markets such as Germany, France, and the UK benefit from a robust presence of automotive OEMs and a growing demand for hybrid vehicles. The region's emphasis on electrification, supported by government incentives to reduce carbon emissions, has accelerated the adoption of 48V systems. Furthermore, Europe's commitment to sustainable mobility and innovation solidifies its position as a dominant market for 48V systems in both passenger and light commercial vehicles.
 

The automotive 48V system market in the MEA and Latin America regions is in its early growth stages. Adoption is slower due to limited infrastructure and lower demand for hybrid vehicles compared to developed markets. However, increasing environmental regulations, government initiatives to reduce emissions, and rising awareness of fuel-efficient technologies are expected to drive gradual market expansion, particularly in countries like South Africa, Brazil, and Argentina.
 

Automotive 48V System Company Market Share

Continental AG, Infineon Technologies, and BorgWarner collectively held a substantial market share of over 11% in the automotive 48V system industry in 2023. Continental is advancing its 48V mild hybrid systems to boost fuel efficiency and reduce CO2 emissions. Leveraging its expertise in power electronics and electric motors, the company is developing scalable and modular 48V solutions for cost-effective integration across a diverse range of vehicles. By collaborating with OEMs, Continental aims to enhance energy recuperation and optimize hybrid system performance.
 

Infineon Technologies prioritizes power efficiency in its 48V system solutions by developing advanced semiconductor components such as MOSFETs and power ICs. These innovations improve energy efficiency and enable higher power densities in electric vehicles. Infineon partners with automotive manufacturers to deliver customized, reliable solutions that meet safety standards and enhance vehicle energy management.
 

BorgWarner is committed to providing innovative 48V hybrid solutions, including electric motors and power electronics, to enhance vehicle performance and fuel efficiency. Focusing on the growing hybrid and mild-hybrid vehicle market, BorgWarner is expanding its product range through strategic acquisitions and collaborations with OEMs. The company is also advancing technologies like eBooster and integrated drive modules to support the adoption of 48V systems.
 

Major players operating in the automotive 48V system industry are:

• Aptiv PLC
• BorgWarner
• Continental AG
• Denso Corporation
• Infineon Technologies
• Magna International
• Panasonic
• Robert Bosch
• Valeo
• ZF Friedrichshafen
   

Automotive 48V System Industry News

• In December 2023, Tesla took a significant step in the automotive industry by sharing its innovative 48-volt (48V) architecture with competitors, including major players like Ford. This move is part of Tesla's broader strategy to promote advancements in electric vehicle (EV) technology across the sector. The Tesla Cybertruck is the first vehicle to utilize a comprehensive 48V electrical system, replacing the traditional 12V systems that dominate the automotive market. This transition allows for reduced current losses and the use of lighter wiring, which can lead to weight and cost savings.
   
• In September 2023, Toyota officially launched a new 48V mild-hybrid system for its popular SUV, the 2024 Fortuner. This new variant is designed to enhance fuel efficiency and performance while maintaining the vehicle's robust capabilities. The Fortuner will feature a 2.8-litre diesel engine paired with the 48V mild-hybrid system. This setup is already available in South Africa and is expected to arrive in other markets, including India, by the end of 2024
   

The automotive 48V system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) from 2021 to 2032, for the following segments:

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Market, By Architecture

• Belt-driven
• Crankshaft-mounted
• Dual-clutch
• Transmission-mounted
• Transmission output shaft

Market, By Vehicle

• Passenger cars
• Commercial vehicles
  • Trucks
  • Vans
  • Buses

Market, By Component

• 48V battery
• Electric motor/generator
• Power inverter
• DC/DC converter
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa