The Electric Powertrain Market is estimated to be valued at US$ 81.7 Bn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The electric powertrain consists of an electric motor that converts electrical energy into mechanical energy to propel the vehicle. It comprises of components such as electric motor, power electronics, gearbox, and battery. Electric powertrains allow zero emission and provide better torque and power conversion efficiency. They are increasingly being used in hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles and fuel cell electric vehicles.
Market Dynamics:
The increasing stringent emission regulations along with growing awareness about environmental protection have necessitated automobile manufacturers to focus on electric vehicles. Various governments are also providing subsidies and tax benefits to promote electric vehicles adoption. For instance, the Indian government announced ₹10,000 crore (US$ 1.39 billion) to promote electric vehicles in the country. Moreover, falling battery prices and increasing vehicle range per charge are stimulating the demand for electric vehicles. However, high upfront costs and insufficient charging infrastructure are some of the challenges restraining the electric powertrain market growth.
Segment Analysis
The global electric powertrain market is dominated by the passenger vehicles segment. Over 70% of the powertrains sold in the market are used in passenger vehicles like cars and SUVs. The high demand for electric vehicles from individual users and shared mobility service providers has increased the adoption of electric powertrains in passenger vehicles. Commercial vehicles and mass transit vehicles segments are also growing rapidly with rising focus on electrification of fleet. However, these segments still account for under 30% share due to the higher costs involved.
PEST Analysis
Political: Growing regulations around the world to ban diesel and petrol vehicles have pushed OEMs to increase investment in electric vehicles. Many countries offer subsidies and tax benefits for electric vehicles purchase.
Economic: Lower operating costs of electric vehicles compared to ICE vehicles and falling battery prices are positively impacting the adoption of electric powertrains. However, high upfront costs remain a challenge.
Social: Increasing awareness about environmental pollution and climate change has led consumers to prefer electric vehicles over conventional vehicles. Many see electric vehicles as a modern, sustainable and socially responsible choice.
Technological: Advancements in battery technology, electric motors and power electronics are improving the driving range and efficiency of electric vehicles. Integrated electric drivetrains with cloud connectivity are also enhancing driving experience.
Key Takeaways
The Global Electric Powertrain Market Size is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing stringent emission regulations worldwide and declining battery prices.
The Asia Pacific region is expected to dominate the market, accounting for over 40% share due to the large EV production and sales in China. Europe is also emerging as a major market for electric powertrains due to strong push for electrification from governments and automakers in the region.
Key players operating in the electric powertrain market are Borgwarner Inc., Continental Ag, Magna International Inc., Marelli Holdings Co Ltd., Mitsubishi Electric Corporation, Nidec Corporation, Robert Bosch Gmbh, Schaeffler Group Usa Inc., and Valeo Sa. Borgwarner is a leading supplier of electric motors and chargers to OEMs globally. Continental focuses on developing integrated electric drive solutions that include motor, power electronics and battery management systems. Magna has a comprehensive portfolio including e-motors, inverters, battery enclosures and chargers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
