Electric Powertrain Market Size, Share, And Trend Analysis Report By Component, By Electric Vehicle, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global electric powertrain market size was valued at USD 86.71 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 36.7% from 2022 to 2030. The COVID-19 pandemic affected the overall automotive sector, with a subsequent decline in the growth of the market for electric powertrains 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.

In the past decade, the automotive industry primarily 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 post-COVID-19 recovery in the sales of pure and hybrid electric vehicles is a prominent driving factor for the electric powertrain market. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production ofelectric vehiclesis also anticipated to boost the demand for electric powertrains globally.

电动汽车是汽车的未来market, as traditional fuel vehicles are expected to phase out in 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.

The growing adoption of electric powertrain 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 American has set the emission limit to 99 g/km following the Corporate Average Fuel Economy (CAFE) standards for passenger vehicles till 2025. To efficiently meet emission targets and avoid penalties, OEMs would have to increase the sales of electrified vehicles in the coming years.

Innovations in battery technologies have made EVs more competitive than conventional ICE vehicles by providing increased range in 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 chain 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.

Electric Vehicle Insights

The BEV segment accounted for the largest share of 70.2% of the overall market in 2021. A battery electric vehicle (BEV) is a vehicle that is powered entirely on electric energy. BEV has no internal combustion engine or fuel tank and runs on an electric drivetrain powered via rechargeable batteries. BEV needs to be plugged into a power source to charge. The high share attributes to a decline in the sales of ICE vehicles and restrictions on CO2 targets. Moreover, advancements in battery technology and reduction in lithium-ion battery prices are also expected to boost the demand for BEVs in the forecast years.

The HEV/PHEVs segment is projected to register a CAGR of over 39.2% during the forecast period. Customers are aggressively adopting PHEVs to exploit various benefits, such as a more powerful electric motor and a larger battery that are quickly recharged with the help of an external source of power associated with PHEV. They serve as a flexible and convenient option for consumers. These vehicles are designed to enhance the use of the internal combustion engine in interaction with a low-range, High Voltage electric powertrain. These factors bode well for the segment growth during the forecast period.

Component Insights

The battery segment accounted for the largest share of 64.2% of the overall market in 2021. The battery is the most prominent component when it comes to the electrification of vehicles. It is either used as the sole power source in BEVs or is combined with other power sources in green vehicles. In BEVs, the battery pack constitutes around 50% of the total cost. Increasing demand for electric vehicles, improvements in battery technology, and supportive government policies are the major factors responsible for market growth in this segment.

The motor/generator segment is projected to register a CAGR in excess of 30% during the forecast period. The demand for e-motors is driven by the increased penetration of BEVs and PHEVs globally. These vehicles can be equipped with similar e-motor configurations. Moreover, suppliers and OEMs are likely to leverage the growing demand for electric powertrains by forming joint ventures for the development of e-motors. For instance, in 2019, Nidec Corp., an e-motor manufacturer with GAC Components Co., Ltd., formed a joint venture to manufacture automotive traction motors.

Regional Insights

Europe captured the largest revenue share of the market for the electric powertrain, accounting for 45.2% in 2021. Countries such as the Netherlands, Norway, France, and Sweden have witnessed high adoption of EVs, which is likely to contribute to the growth of the regional market in the region. Germany is one of the largest automotive hubs globally, with most automobile manufacturers such as Audi AG, Volkswagen AG, and BMW AG, among others, focusing on the production and sales of electric vehicles, leading to an increase in demand for the electric vehicle powertrain market.

Asia Pacific captured the second-largest revenue share of the market for the electric powertrain, accounting for 41.6% in 2021. Countries such as China, Japan, South Korea, and India are among the prominent automobile manufacturers in this region. Stringent government regulations and emission norms to solve the global warming issues resulting from substantial Co2 emissions are expected to contribute to the growth of the Asia Pacific market.

Furthermore, the growing adoption of electric vehicles in countries such as India and China is expected to boost the demand for the market. Countries such as China are increasingly focusing their efforts on developing their electric infrastructure. For instance, China's Didi Chuxing (DiDi) and BP, a British gas, energy, and oil company, entered into a joint venture to develop an electric vehicle charging infrastructure in China. Such strategic collaborations are expected to encourage the adoption of electric cars.

North America also witnesses high adoption of electric vehicles. The region is characterized by the presence of major players such as Tesla, Chevrolet, and Ford. Moreover, the U.S. and other countries have developed infrastructure for electric vehicles, such as charging stations, also known as Electric Vehicle Supply Equipment (EVSE). These factors are expected to boost the demand for the market.

Key Companies & Market Share Insights

关键球员,主导全球电动战俘ertrain industry in 2021 include BorgWarner, ZF Friedrichshafen AG, Schaeffler AG, Mitsubishi Electric Corp., and Magna International Inc. These players are pursuing various organic and inorganic growth strategies, such as mergers & acquisitions, strategic partnerships, and new product launches, to strengthen their foothold in the market.

For instance, in October 2020, Continental AG’s Powertrain segment Vitesco Technologies announced the launch of a new transmission control system. It is the world’s first transmission control system equipped with over-molding control electronics technology.

Several international electric vehicle manufacturers are investing and are expanding their production units in the country. For instance, in August 2020, Magna International Inc. announced to expand its powertrain business in Slovakia, Europe. The company initiated the construction of the manufacturing facility in Slovakia to develop powertrain metal forming solutions. Some of the prominent players in the electric powertrain market include:

• BorgWarner

• Bosch Limited

• Mitsubishi Electric Corp

• Magna International Inc.

• Schaeffler AG

• ZF Friedrichshafen AG

• Valeo

• Nidec Corporation

• Continental AG

• Magneti Marelli Ck Holdings

Electric Powertrain Market Report Scope

Report Attribute	Details
Market size value in 2022	USD 108.65 billion
Revenue forecast in 2030	USD 1,322.99 billion
Growth rate	CAGR of 36.7 % from 2022 to 2030
Base year for estimation	2021
Actual estimates/Historical data	2018 - 2020
Forecast period	2022 - 2030
Quantitative Units	Revenue in USD Billion and CAGR from 2022 to 2030
Report coverage	收入预测,公司排名、竞争局域网dscape, growth factors, and trends
Segments covered	Electric vehicle, component, region
Regional scope	北美;欧洲;亚太地区;拉丁美洲; MEA
Country scope	U.S.; Canada; U.K.; Germany; China; Japan; South Korea; India
Key Company Profiled	BorgWarner Inc.; Continental AG; Cummins Inc.; Hitachi Ltd; Magna International Inc.; Marelli Holdings Co., Ltd.
Customization scope	Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options.

Segments covered in the report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electric powertrain market report based on electric vehicle, component, and region:

• Electric Vehicle Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • BEV

  • HEV/PHEV

• BEV Electric Powertrain, By Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Motor/Generator

  • Battery

  • Power Electronics Controller

  • Converter

  • Transmission

  • On-Board Charger

• HEV/PHEV Electric Powertrain, By Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Motor/Generator

  • Battery

  • Power Electronics Controller

  • Converter

  • Transmission

  • On-Board Charger

• Regional Outlook (Revenue, USD Billion; Volume, Units, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • 拉丁美洲

  • Middle East and Africa