Electric Powertrain Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Electric Powertrain market size was estimated at USD 96.7 billion in 2023 and is projected to reach USD 233.2 billion in 2030 at a CAGR of 13.2% during the forecast period 2023-2030.

The burgeoning automotive market is moving towards electric vehicles as the primary mode of transportation, with traditional fuel vehicles expected to be phased out over the coming years. This shift can be attributed to the myriad advantages that electric vehicles offer, including improved environmental benefits and a lower total cost of ownership as compared to their internal combustion engine vehicle counterparts. As a result, numerous countries have implemented strict policies to encourage the adoption of alternative fuel vehicles, particularly electric vehicles. Historically, the automotive industry has relied on the same internal combustion engine powertrain over the past decade. However, the industry has undergone a significant transformation in recent years, with a broad powertrain mix that is focused on providing more efficient and environmentally friendly transportation. This portfolio now includes a wide range of pure electric and hybrid powertrains. Furthermore, the overall powertrain landscape is becoming increasingly dynamic and complex with the emergence of electric powertrains.

Electric powertrains can be comprehensively and exhaustively gauged and assessed through a careful and meticulous analysis of four key and pivotal determinants: infrastructure, regulations, consumer preference, and technology, each of which plays an instrumental and critical role in shaping and influencing the trajectory and direction of electric powertrain adoption. The pervasive and ubiquitous penetration and proliferation of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) would unequivocally and significantly shape and impact the future and trajectory of electric powertrain adoption and utilization on a worldwide and global scale. The regulatory landscape and milieu in relation to monitoring and tracking carbon dioxide (CO2) emissions are increasingly and progressively becoming more exacting, rigorous, and demanding in the United States and Europe, thereby underscoring and highlighting the importance and significance of regulatory frameworks and guidelines in influencing and shaping the adoption and utilization of electric powertrains.

The COVID-19 pandemic has exerted a significant impact on the entirety of the automotive industry, thereby engendering a subsequent and consequent decrease in the expansion of the electric powertrain industry on account of the meager automotive sales and novel requisites. Nevertheless, the market is being propelled by the exacting emission norms implemented by the government authorities, such as the greenhouse gas (GHG) emissions standards for the U.S. Environmental Protection Agency (EPA), India's BS-VI norms, and China VI.

Delvens Industry Expert's Standpoint

The advent of innovations in battery technologies has brought about a greater level of competitiveness between electric vehicles and conventional internal combustion engine (ICE) vehicles. This is due to the increased range that electric cars can now achieve on a single charge. Batteries, which are an essential component of the electric powertrain system, constitute a significant portion of the total cost of electric vehicles. Nevertheless, the cost of batteries has been significantly reduced due to technological advancements, production process optimization, and economies of scale. It is anticipated that the price of electric vehicles will continue to decline over the forecast period, thus paving the way for the mass-market penetration of electric vehicles and reaching a Total Cost Ownership (TCO) parity. The COVID-19 pandemic has had a profound impact on the global economy, resulting in an economic slowdown. The lockdown measures imposed in various parts of the world to curb the spread of the virus have led to disruptions in the supply chains, and several production facilities have temporarily ceased operations. The electric powertrain market is particularly vulnerable to the impact of the crisis due to its dependency on global sourcing for the core technology of its batteries.

The cost of purchasing electric vehicles is initially higher than that of gas-powered and hybrid vehicles. In addition, the market growth is being hampered by the growing price sensitivity of customers during the current crisis. Furthermore, Europe, which is one of the leading regions for the adoption of electric vehicles, is experiencing a sharp decline in the sales of electric cars. Among the worst-hit nations are Italy, Spain, and Germany.

Market Portfolio

Key Findings

• On the basis of vehicle, the rationale behind the notable proportion alluded to herein is primarily because of the decline in sales of Internal Combustion Engine (ICE) automobiles and the tightening of Carbon Dioxide (CO2) targets. In order to curtail pollution and ultimately lower the overall cost of ownership, it is imperative that a greater number of people purchase Battery Electric Vehicles (BEVs). Furthermore, foreseeable advancements in battery technology coupled with declining prices of Lithium-ion batteries are expected to foster an increase in demand for BEVs in the foreseeable future. The overarching objective of these vehicles aims to enhance the efficiency of the internal combustion engine by integrating a high-voltage, low-range electric powertrain. These vehicles are equipped with an electric motor that is considerably more potent, as well as a battery that is significantly larger and can be externally charged. This grants consumers a flexible and user-friendly alternative.

• On the basis of component, the escalating quantity of Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs) across the globe has propelled the exigency for electric motors. The electric motors installed in these vehicles can be configured in a similar fashion. Moreover, it is likely that suppliers and Original Equipment Manufacturers (OEMs) will come together in collaborative partnerships to advance electric motors in order to capitalize on the growing impetus for electric powertrains. Among the various types of component segmentation, the battery reigns supreme. The rationale behind this is the proliferation of battery-powered cars that exhibit performance on par with their gasoline-fueled counterparts.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The Asia Pacific region, which is known for its substantial contribution to the global automotive production and sales, is currently experiencing an escalating demand for electric vehicles.

Regional Analysis

Asia pacific to Dominate the Market

• The Asia Pacific region, which is known for its substantial contribution to the global automotive production and sales, is currently experiencing an escalating demand for electric vehicles.
   
• As of 2021, the number of electric vehicles has remarkably increased to around 6.6 million units, which has doubled compared to the previous year. It is noteworthy that China is currently spearheading the electric vehicle market, and it has taken the lead as the largest electric powertrain market as well. It is projected by the Society of Automotive Engineering of China that the sales of electric vehicles in China may augment up to 15 million units.

Competitive Landscape

• BorgWarner
• Bosch Limited
• Mitsubishi Electric Corp
• Magna International Inc.
• Schaeffler AG
• ZF Friedrichshafen AG
• Valeo
• Nidec Corporation
• Continental AG
• Magneti Marelli Ck Holdings
• Tesla, Inc.
• Nissan Motor Co., Ltd.
• General Motors Company
• BMW AG
• Ford Motor Company
• Volkswagen Group
• Hyundai Motor Company
• Kia Corporation
• Daimler AG (Mercedes-Benz)
• Audi AG
• Rivian Automotive, Inc.

Recent Developments

• In August 2021, Borgwarner Inc., a leading global supplier of advanced propulsion systems, announced with great pleasure and enthusiasm a momentous and highly significant series C equity investment in Cellink Corporation, a cutting-edge and innovative bioprinting company that has been at the forefront of the rapidly evolving and dynamic field of 3D bioprinting, to facilitate and foster the company's strategic expansion and growth in the critical and pivotal area of electrification strategy, which has been identified as a top priority and key driver of the company's long-term success and prosperity.
   
• In July 2021, the esteemed Continental AG, a multinational automotive manufacturing company renowned for its innovative and cutting-edge products, has recently introduced a novel and exceptional product into the market, which has been christened as the EMR4 (Electronics Motor Reducer) next-generation electric axle drive.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Electric Powertrain Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

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