The electric roads market, known as electrified roads, delivers dynamic power solutions for moving electric vehicles, with a focus on revolutionizing vehicle power by installing conductive or inductive technologies, enabling electric vehicles to charge on the go or while stationary. These roads have the potential to improve
range & provide a constant charging flow, gaining prominence as the need for carbon emissions reduction grows.
Key Takeaways
- By Technology, Overhead charging technology leads in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, Wireless charging technology is expected to have significant growth over the forecasted period.
- By Vehicle, Public Transportation takes the lead & drives the market in 2023.
- North America has a 46.5% share of revenue in the Global Electrified Roads Market in 2023
Market Dynamic
In 2022-23 National Plan for Transport Infrastructure Proposal, Sweden plans to minimize carbon emissions to more than two-third by 2030, emphasizing the growth of charging infrastructure as a crucial aspect of the plan. Moreover, the European Climate Law further highlights the commitment to a more than half reduction in greenhouse gas emissions by 2030, positioning the drive to cut carbon emissions as a key market driver.
Electrified roads emerge as a sustainable solution to address the significant carbon emissions stemming from global transportation, currently heavily dependent on fossil fuels. As countries globally prioritize
carbon reduction goals, electrified roads align with these objectives, supporting the boardly adoption of electric vehicles & contributing to global climate change-reducing efforts.
However, the installation of electrified roads requires substantial initial investments, including charging technology embedding, station construction, & other infrastructure development. While some governments provide tax reductions or subsidies for large charging infrastructure, the return on investment may not be immediately evident, mainly in regions with lower electric vehicle density, such high-cost infrastructure factor creates a significant constraint on market growth.
Research Scope and Analysis
By Technology
The overhead segment holds the majority share of the market in 2023, the segment is anticipated to persist in the lead during the forecasted period, as this technology has been proven for many years as it is utilized in trains to provide them power. Further, this technology typically uses overhead power lines or catenary systems to supply electricity to electric vehicles (EVs), can be more effective & affordable in some areas in comparison to other electrification methods.
Moreover, these are mainly used for heavy-duty electric vehicles, like electric buses & trucks, which can contribute to their adoption in the electrified road sector, as there is a more reliability & efficiency in these applications.
Also, the wireless segment is anticipated to have significant growth, as can revolutionize transportation infrastructure by allowing electric & autonomous vehicles to operate with more effectiveness & sustainably, with the large goal of transitioning to cleaner & more enhanced transportation systems.
By Vehicle
The driving force in the market in 2023, is the public transportation sector, while anticipated to maintain a significant share throughout the forecast period. As vital to urban mobility, electrifying public transit routes holds immense potential to restrict emissions & enhance air quality in cities. Further, governments are likely to allocate higher funding & incentives to drive the electrification of public transportation routes, supporting the presence of public transit in the electrified roads market.
Also, successful integration with existing public transportation networks is critical for the effective implementation of electrified roads. Moreover, public transit vehicles can smoothly integrate into electrified road systems, aligning naturally with these technologies.
By Scale
The long-distance electrified roads segment dominates the market in 2023 and is anticipated to do so throughout the forecasted period, as attaining broader implementation, however, involves higher infrastructure investments, and needs commitment from private companies, governments, and stakeholders to build & maintain the required facilities. Further, long-distance electrified roads provide a constant power source to electric vehicles, expanding their span without the burden of heavy, large batteries, which is particularly significant for heavy-duty vehicles like trucks & buses, which need extended ranges for their operational needs.
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Moreover, the local electrified roads sector is anticipated to experience significant growth, as operating in proximity to schools, residential areas, & other sensitive locations, local electrified roads play a vital role in restricting air pollution. By allowing the utilization of electric vehicles with zero tailpipe emissions, these roads contribute to enhanced air quality & public health, fostering a cleaner environment within local communities.
The Electrified Roads Market Report is segmented on the basis of the following:
By Technology
- Inductive Charging
- Overhead Charging
- Wireless Charging
By Vehicle
- Public Transportation
- Electric Cars
By Scale
- Local Electrified Roads
- Long-distance Electrified Roads
Regional Analysis
North America leads the electrified roads market in
2023 with a share of 46.5% and is anticipated to witness the highest growth in coming years, as the region's eagerness to adopt advanced solutions fuels rapid innovation, mainly in wireless electrified roads, as many countries are already experimenting with this technology, highlighting North America's dominance. Further, public & private sector investments in R&D can propel electrified road technologies through collaborations between universities, research institutions, & tech companies.
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Further, Europe holds the significant position, driven by proactive efforts to encourage sustainable transportation, with initiatives for green transportation aligned with the growing adoption of electric vehicles, generating the need for strong electrified roads & charging infrastructure. Also, Asia Pacific, home to major economies like China, India, Japan, & South Korea, experiences significant growth, with active participation in programs supporting electric vehicle adoption, the region focuses on developing innovative electrified road technologies, making China the major contributor with a projected significant global market share in electric vehicle sales by 2030. Moreover, Japan, too, focuses on integrating such technologies by 2025 through collaborative efforts with companies like Denso.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global electrified road market is a relatively new market characterized by strong competition among companies looking to innovate & establish supremacy, as key players focus on R&D, technological development, and strategic collaborations to gain a competitive edge, with a market shaped by driving for sustainable transportation solutions, encouraging continual developments and a race to lead the market in the evolving electrified roads industry.
In September 2023, Siemens reported a collaboration with eRoadArlanda to create an electric road system personalized for heavy-duty vehicles in Sweden, which aims to showcase the practicality & advantages of wireless charging for electric trucks, opening the possibility for wider acceptance & implementation of this innovative technology.
Some of the prominent players in the global Electrified Roads Market are:
COVID-19 Pandemic & Recession: Impact on the Global Electrified Roads Market:
The COVID-19 pandemic & the following economic downturn have exerted both challenges & opportunities on the global electrified roads market, with the pandemic disruptions leading to project halts, funding uncertainties, & supply chain disruptions, impacting the market's growth. However, the crisis allowed a renewed focus on sustainable solutions, & governments globally introduced stimulus packages with green initiatives, encouraging increased interest in electrified road projects.
Further, the recession caused a reevaluation of transportation systems, with a growing focus on reducing carbon footprints. As nations look towards economic recovery, electrified roads have become integral to sustainable infrastructure plans. Also, the pandemic-induced switch towards cleaner & more resilient transportation solutions, along with a renewed commitment to environmental goals, has influenced the electrified roads market's dynamics, presenting a fine landscape shaped by both challenges & opportunities.
Recent Developments
- In September 2022, the Indian Union Minister unveiled plans for the development of electrified roads meeting heavy-duty buses & trucks as in July 2022, the ministry announced the intention to construct an electrified road connecting Delhi & Mumbai, as such initiatives signify India's commitment to developing sustainable transportation & embracing electric road infrastructure for major transport routes.
- In November 2023, the Government of India plans for sustainable transportation with the introduction of electric highways & environmentally conscious roads that supply power to electric vehicles, as Union Road & Transport Minister announced its plans for an electric cable highway connecting Jaipur to Delhi, a groundbreaking initiative expected to transform the scenic 326.8 km journey into a convenient 2-hour drive, marking a significant step in sustainable and efficient travel.
- In June 2023, MOVIN introduced Electric Vehicles (EVs) to its quick initial & final-mile deliveries. With a commitment to less carbon emissions & adhering to long-term sustainability objectives installation of EVs kicks off in Delhi-NCR & is slated to expand to Mumbai, Chennai, Bangalore, Kolkata, and Pune by the year's end.