Market Introduction

The global automotive 48V system market was valued at USD 17 billion in 2023 and grew at a CAGR of 26% from 2024 to 2033. The market is expected to reach USD 171.45 billion by 2033. The rising production and demand of electric and hybrid vehicles will drive the growth of the global automotive 48V system market.

An automotive 48V system is an electrical platform introduced over the concept of 12V electrical system to offer higher power supply for various operations. Initially, automobiles electrical system used 12V circuit. However, the need for incorporating high power devices such as electric turbochargers, enhanced media player systems, electric steering system, and regenerative braking, the limitations of 12V systems was realized. The enhanced 48V system has been introduced to overcome this which delivers more power, effectiveness and safety. A major characteristic of the 48V system is the relative proportions of voltage and current that can be used to power vehicles’ electrical loads with minimum wiring weight and expense. Often this system comprises of battery of 48V, DC/DC converter and an electric motor for uses such as start/stop system, electric supercharger and mild hybrid operations. The system aims at enhancing fuel economy by allowing regenerative brakes and increasing power when required without affecting performance. On the plus side, a 48V system provide more favourable fuel economy, reduced CO2 emissions as well as improvements on the driving experience since the system can supply power to ICE as well as electrified systems. It also offloads some of the load from 12V battery and wiring thus improving the reliability of the whole system.

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Recent Development

• Before being expanded to additional models, Stellantis' new 48V hybrid technology is now available on the Peugeot 3008 and 5008 vehicles. It will add to PEUGEOT's already wide range of electric engines, which includes fuel cell, plug-in hybrid, and fully electric models. A new 6-speed dual-clutch electrified transmission with an electric motor and a new generation 136-bhp PureTech petrol engine make up the Peugeot 48V HYBRID system. This technology reduces fuel consumption by up to 15% while providing additional performance at low engine speeds thanks to a battery that recharges while driving.

Market Dynamics

Drivers

The increasing electrification of automotive vehicles – The first factor influencing the growth of 48V systems is the ongoing conversion of vehicles to electric systems. With automakers moving from ICE automobiles to EV and hybrids, effective electric architectures to power both types of platforms are becoming critical. The 48V system is satisfactory strategy for application to hybridization especially in the mild hybrids that helps to incorporate some extra functions like start stop system and regenerative breaking /braking etc. without the necessity of high-cost high voltage system used in the full electric vehicle or PHEV. Stricter emissions regulation is also driving the uptake of 48V systems as well. The regulatory authorities across countries have increased the requirements for RE emissions and CO2 emission reduction in an attempt to address climate change. They make the auto-makers look for improved efficiency in their cars and in the process result to the production of cars that consume less fuel. The existence of the 48V system helps in achieving these legislations in areas of better fuel economy, low emissions and better driving dynamics through features such as electric turbo charger, recuperation system, efficiency-oriented energymodules. Therefore, the increasing electrification of automotive vehicles drives the market’s growth.

Restraints

The high initial costs of investments – The initial costs incurred in the integration of automotive 48V systems are extremely high. Incorporating 48V system into a car means the addition of components that are not included in standard 12V designs including, 48V battery, DC/DC converter, electric motor, and wiring harness. These components include higher efficiency and performance, but at a cost that is higher when compared with a traditional 12V parts. For this reason, the integration of a 48V system in a vehicle can significantly raise the price of the vehicle and therefore is disadvantageous especially for car buyers who are conscious about the price of cars. While for automakers this means that the production costs of vehicles increase, which sometimes cannot be easily transferred to consumers in highly competitive segments. therefore, higher price point of 48V automotive batteries will hamper the market’s growth.

Opportunities

Technological advancements and other developmental factors – The advances in the components that make up the 48V systems including batteries, DC/DC converters and motors have made these systems compact, reliable and cheaper to manufacture. For example, the efficiency and performance of lighter batteries has improved the capabilities of mild hybrid vehicles making the 48V system an attractive option to auto makers looking to electrify their models without incurring the costs of high voltage systems. Governmental support encouraging the production and adoption of electric vehicles through favourable legislations, financing and other incentives also drives the market’s growth.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant global automotive 48V system market, with a 40% market revenue share in 2023.

Europe is currently the largest market for automotive 48V system due to the increased concern for emissions, automotive industries in the region, and initial adoption of hybrid systems. European countries have some of the most exacting CO2 emission standards, thus to meet these requirements auto makers have no option but to adopt 48V mild hybrid systems as the least expensive option. European governments have also been endorsing the change with cleaner vehicles through incentives, subsidies, and tax rebates that has subsequently driven the growth of 48V-integrated mild hybrid vehicles. In addition to these incentives, there is growing charging facilities for electric and hybrid cars and the 48V system in the region. Pressure from regulations, development of technologies, and government support has made Europe the largest market for automotive 48V systems, and the market will continue to grow and evolve as Europe strives towards a sustainable economy.

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• In 2025, Vicor introduced three automotive-grade power modules for 48V EV systems that enable tier one and OEM automobile production while delivering an industry-leading power density. The AEC-Q100 certified Vicor-designed ICs used by the BCM6135, DCM3735, and PRM3735 have successfully finished the PPAP procedure with automotive clients.  By converting 800V from the traction battery to 48V, the BCM6135, a 98% efficient 2.5kW BCM bus converter, gives the car a safety extra-low voltage (SELV) power source. By providing internal isolation between high and low voltage, the BCM6135 significantly reduces the amount of space needed for DC-DC conversion.

Architecture Segment Analysis

The architecture segment is divided into belt driven, crankshaft mounted, transmission output shaft, and dual clutch transmission mounted. The belt driven segment dominated the market, with a market share of around 35% in 2023. The belt-driven architecture is the most popular architecture used in automotive 48V systems particularly in mild hybrid electric vehicles (MHEVs). In this system, a 48V electric motor is coupled with the engine by a belt, common for triggering minor accessories such as the alternator, compressor, among others. The electric motor boosts the combustion engine by boosting torque, this improves overall fuel consumption, emission levels and general performance of the combustion motor. Also, the belt-driven architecture accumulates other functions such as start-stop, regeneration, and electrical boost as well as facilitating the enhancement of efficiency of the powertrain without causing a high cost or complexity of the vehicle. Furthermore, it has a lower cost compared to other layouts or configurations.

• A highly integrated, high voltage-tolerant MCU was unveiled by Infineon to streamline and enhance car battery management capabilities. For electric and software-defined vehicles to last a long time and function properly, battery management and health are essential. The new Infineon MCUs simplify development, reduce the number of components and board space needed, and offer a higher voltage tolerance in a single package than their predecessors.

Vehicle type Segment Analysis

The vehicle type segment is divided into passenger vehicles and commercial vehicles. The passenger vehicles segment dominated the market, with a market share of around 56% in 2023. Passenger cars are one of the biggest segments within the automotive market sharing a large portion of the car market globally. The incorporation of 48V systems in these vehicles makes it possible for automakers to impose emissions standards cost-effectively, as well as boost the performance and Mileage rates of the car. The 48V system allows element such as start stop operation, recuperation operation, electric torque assistance which are desirable in passenger car applications. All these features do not only help to limit emissions but also enhance the ride’s comfort and performance, which is appealing to a consumer. The increasing demand for cars where environmental impact is a consideration and government encouragement of ecological friendly hybrid and electric vehicles place passenger cars as key consumers of 48V automotive battery. This dominance is expected to continue as manufacturers extend same hybrid range and improve 48V full system.

• For the first time, Opel is incorporating 48-volt hybrid technology into the new Corsa. The system includes new 1.2-liter three-cylinder petrol engines with 74 kW/100 hp and 100 kW/136 horsepower that were created expressly for the hybrid application, as well as a lithium-ion battery that recharges itself under specific driving conditions. A 21 kW/28 hp electric motor and a new electrified six-speed dual clutch gearbox are connected to the engines.

Vehicle class Segment Analysis

The vehicle class segment is divided into entry, mid, premium and luxury. The mid segment dominated the market, with a market share of around 38% in 2023. Currently, the mid-vehicle class holds a majority market share of automotive 48V systems because it is a transition from entry-level cars and expensive cars, catering to a vast number of customers. Such cars are in great demand among people with middle income who want a car which is cheap, but at the same time reliable, fuel-efficient, and stylish. These vehicles are best suited to adopt 48V systems because, from experience, they provide the best of performance and costs that do not spike or push up prices in the market, thus blending well with mild hybrid systems. The use 48V systems in mid-class vehicles let the manufacturer increase the vehicle’s fuel economy, decrease emissions, and improve the overall dynamics. These attributes are in sync with the increasing trend in consumer preference, mid-vehicles class which are eco-friendly but pocket friendly hence are dominant in the market. In addition, the mid-vehicle class constitutes a large size of automobile consumption worldwide and, therefore, the best market for 48V system. Large auto manufactures also reap economies of scale within this segment because the high production rates of these systems make the costs of integration of a 48V technology low.

• With its new 48-volt lithium-ion battery, Bosch claims that the standardized technology is totally adaptable to all automobile sizes. According to Germany's Automobilwoche, one of the main problems that some people think casts doubt on the potential benefits of 48-volt mild hybrid systems is cost. However, Bosch designed and built the battery as an off-the-shelf solution for any manufacturer or start-up company. Bosch made the lithium-ion battery without active cooling, which is difficult, and the cells are housed in a plastic cover instead of a metal one.

Some of the Key Market Players

• BorgWarner Inc.
• Continental AG
• Delphi Technologies
• East Penn Manufacturing Company
• GS Yuasa International Ltd.
• Hitachi, Ltd.
• Johnson Controls International
• Magna International Inc.
• Robert Bosch GmbH
• Schaeffler AG
• Valeo
• ZF Friedrichshafen AG

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players