Top Facts You Didn’t Know About Electric Powertrain market & Impact of COVID-19

Electric Powertrain market to Eyewitness Huge Marginal Growth by 2030

San Francisco, 27 February 2024: The Report Electric Powertrain Market Size, Share & Trends Analysis Report By Electric Vehicle (BEV, HEV/PHEV), By Component (Motor/Generator, Battery, Power Electronics Controller), By Region, And Segment Forecasts, 2023 - 2030

The global electric powertrain market size is expected to reach USD 260.91 billion by 2030, registering a CAGR of 15.3% over the forecast period, according to a new report by Grand View Research, Inc. The market for pure electric and plug-in hybrid vehicles has been growing significantly, in turn creating an increasing demand for automotive electric powertrains. Governments in various countries are taking initiatives to promote the development of Electric Vehicles (EVs). For instance, in 2020, the U.S. Department of Energy announced a public investment of USD 400 billion in clean energy. The investment would help develop 500,000 charging outlets for electric vehicles by the end of 2030.

The rising sales of electric vehicles have propelled prominent automotive component manufacturers to aggressively focus on developing essential EV components to gain a competitive edge. Prominent manufacturers in the market are primarily focusing on enhancing their facilities in countries such as Europe, China, and the U.S. For instance, in February 2020, Nidec Corporation invested around USD 1.8 billion to expand its electric vehicle powertrain business. The company’s three new facilities located in Poland, China, and Mexico would deliver up to 8.4 million electric motors every year.

Asia Pacific is projected to grow at a substantial pace over the forecast period owing to the increase in demand for electric vehicles and the rise in the per capita income of people. Countries such as China, South Korea, and India are among the prominent manufacturers of automobiles. Stringent government regulations and emission norms, including BS-VI in India and China VI, are also expected to contribute to the growth of the Asia Pacific market.

Stringent rules for monitoring CO2 emissions are becoming more demanding in the United States and Europe. North America has set the emission limit to 99g/km following corporate average fuel economy standards; similarly, Europe has set the emission limit to 9s5g/km by 2020 and a further reduction of 37.5% by 2030. To efficiently meet the emission target, OEMs are promoting and increasing sales of electric vehicles, which in turn will lead to an increase in demand for the electric vehicle powertrain market.

The COVID-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the electric powertrain industry due to low automotive sales and new requirements. However, stringent emission norms by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), BS-VI norms in India, and China VI, are driving the market growth. The post-COVID-19 recovery in the sales of pure and hybrid electric vehicles is a prominent driving factor for the growth of the electric powertrain industry. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production of electric vehicles is also anticipated to boost the demand for electric powertrains globally.

Request sample report of Electric Powertrain Market@ https://www.grandviewresearch.com/industry-analysis/electric-powertrain-market/request/rs1

Electric vehicles are the future of the automotive market as traditional fuel vehicles are expected to phase out over the coming years. These vehicles are gaining traction as they provide improved environmental benefits and lower total cost of ownership compared to their internal combustion engine vehicle counterpart. Numerous countries have come up with stringent policies to encourage the adoption of alternative fuel vehicles, including electric vehicles.

Electric Powertrain Market Report Highlights

  • The motor/generator component segment is anticipated to witness a high CAGR of over 16.7% from 2022 to 2030 owing to the increasing penetration of BEVs and PHEVs globally
  • The HEV/PHEV electric vehicle segment is anticipated to witness the highest CAGR of 15.9% over the forecast period. This can be attributed to the charging flexibility benefit that these vehicles offer
  • The passenger segment dominated the market in 2022. The increasing demand for vehicles for daily transportation, along with the adoption of electric vehicles, particularly in developing countries, is fueling the electric vehicle powertrain market growth in this segment
  • Asia Pacific is expected to expand at a high CAGR of more than 14.2% over the forecast period owing to the increasing adoption of electric vehicles in countries such as China and India

In the past decade, the automotive industry comprised of the same internal combustion engine powertrain. However, the industry now is a broad powertrain mix as it has been shifting toward more efficient and environmentally friendly transportation. The automotive powertrain portfolio is diversified and includes many pure electric and hybrid powertrains. Additionally, the overall powertrain landscape is becoming more dynamic and complex with the emergence of electric powertrains.

The growing adoption of electric powertrains can be determined by four factors: infrastructure, regulations, consumer preference, and technology. The penetration of PHEVs and BEVs would strongly determine the future adoption of electric powertrains globally. Regulations for monitoring CO2 emissions are becoming more demanding in the U.S. and Europe.

Europe has set its emission limit to 95 g/km by 2020 and an additional reduction of 37.5% by 2030, resulting in a limit of 59 g/km. Meanwhile, North America has set the emission limit to 99 g/km following Corporate Average Fuel Economy (CAFE) standards for passenger-vehicle till 2030. To efficiently meet emission targets and avoid penalties, OEMs would have to increase the sales of electrified vehicles over the coming years.

Electric Powertrain Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 96.08 billion

Revenue forecast in 2030

USD 260.91 billion

Growth rate

CAGR of 15.3% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Innovations in battery technologies have made electric vehicles more competitive than conventional ICE vehicles by providing an increased range on a single charge. Batteries are an integral part of the electric powertrain system. They constitute a significant portion of the total cost of electric cars, and their cost has reduced significantly due to technological advancements, production process optimization, and economies of scale. With the price expected to decline over the forecast period, EVs are expected to reach a Total Cost Ownership (TCO) parity, paving the way for the mass-market penetration of electric vehicles.

The COVID-19 crisis has resulted in a global economic slowdown. Lockdowns implemented in various parts of the world to curb the spread of the virus led to disruptions in the supply chains and a temporary ceasing of production at several production facilities. The electric powertrain market is particularly vulnerable due to its dependency on global sourcing for its batteries' core technology.

The initial purchase cost of electric vehicles is more significant than their gas-powered and hybrid counterparts. The market growth is also being impacted by the growing price sensitivity of customers during the current crisis. Moreover, Europe, which is one of the most prominent regions for the adoption of electric vehicles, is also witnessing a sharp decline in the sales of electric cars. Countries such as Italy, Spain, and Germany are among the worst-hit nations.

List of Key Players in the Electric Powertrain Market

  • BorgWarner
  • Bosch Limited
  • Mitsubishi Electric Corp
  • Magna International Inc.
  • Schaeffler AG
  • ZF Friedrichshafen AG
  • Valeo
  • Nidec Corporation
  • Continental AG
  • Magneti Marelli Ck Holdings

 

 


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