Electric Powertrain Market by Type (Series Hybrid, Parallel Hybrid, MHEV, BEV), Vehicle Type (48V Mild Hybrid Vehicle (MHEV), Battery Electric Vehicle (BEV), Hybrid & Plug-In Hybrid Vehicle (HEV/PHEV)), Component (Controller, DC/AC Inverter, DC/DC Converter, Motor), & Region for 2024– 2031

Electric Powertrain Market Valuation – 2024-2031

Stricter environmental rules and the growing popularity of electric vehicles are the main factors driving the global market for electric powertrains, which is driven by the increased emphasis on lowering carbon emissions and improving fuel efficiency. According to the analyst from Market Research, the electric powertrain market is estimated to reach a valuation of USD 211.7 Billion by 2031 over the forecast subjugating around USD 85.71 Billion valued in 2024.

The quick development of battery technology, which raises the electric vehicle’s price, performance, and range and speeds up global acceptance, is another important factor propelling the electric powertrain market. These innovations enable the market to grow at a CAGR of 13.20% from 2024 to 2031.

Electric Powertrain MarketDefinition/Overview

An electric powertrain is a system in electric vehicles (EVs) that includes an electric motor, battery, inverter, and other components that generate and transmit power to move the vehicle. This technology replaces the conventional internal combustion engine powertrain used in gasoline and diesel automobiles.

Furthermore, electric powertrains are largely used in electric automobiles, buses, and trucks as a cleaner, more efficient alternative to traditional powertrains. They are also used in hybrid automobiles, which mix electric and traditional engines to improve fuel efficiency and minimize pollutants. The use of electric powertrains is critical for developing sustainable transportation, decreasing reliance on fossil fuels, and minimizing environmental effects.

What are the Aspects Influencing the Growth of the Electric Powertrain Market?

The popularity of electric vehicles (EVs) is being fueled by governments around the world enforcing higher emission rules to tackle climate change. As rules limit the usage of internal combustion engines, automakers are shifting their focus to electric powertrains, which considerably reduce vehicular emissions and will be a fundamental component in new EV designs.

The electric powertrain market is benefiting from rapid advances in battery technology, such as increased energy density, charging speed, and lifetime. These developments have reduced the cost of electric vehicles while increasing their range and efficiency, making them more appealing to consumers and quickening the transition away from traditional fuel-powered vehicles.

Furthermore, many countries are providing incentives such as tax breaks, grants, and subsidies to encourage the use of electric vehicles. This support includes infrastructure development, such as charging stations, which encourages consumers and businesses to switch to electric vehicles. These activities directly increase the demand for electric powertrains, which are a key component of EVs.

What are the Primary Challenges Faced by the Electric Powertrain Market?

Despite technological breakthroughs, electric powertrains are still much more expensive to construct than traditional internal combustion engines. The expensive cost of components like batteries and advanced electronics raises vehicle pricing, potentially discouraging buyers and delaying market expansion.

The lack of extensive and reliable charging infrastructure is a significant hurdle to EV adoption. In many places, particularly rural and underdeveloped areas, limited charging alternatives limit the practicality of owning an electric car, reducing demand for electric powertrains.

Furthermore, the electric powertrain market is significantly reliant on resources like lithium, cobalt, and rare earth elements, which are vulnerable to geopolitical conflicts and supply disruptions. Fluctuations in the availability and cost of these crucial resources cause production delays and higher costs, creating difficulties in market stability and growth.

Category-wise Acumens

What Factors Contribute to the Increasing Demand for BEV Powertrains?

According to analyst, the battery electric vehicle (BEV) powertrain segment is expected to dominate within the electric powertrain market. Increased environmental consciousness and stronger emission restrictions around the world are major drivers of BEV adoption. These vehicles, which run entirely on electricity, create no exhaust pollutants, coinciding with worldwide initiatives to reduce carbon emissions and enhance air quality.

The BEV segment benefits from rapid advances in battery technology, which have increased the cars’ range and efficiency. Advances in lithium-ion battery capacity and cost reduction have made BEVs more accessible and appealing to a wider market.

Furthermore, many governments provide significant incentives for BEV adoption, including tax breaks, subsidies, and grants, as well as expenditures in charging infrastructure. These regulations reduce the cost of ownership and encourage both customers and companies to switch to electric vehicles.

What Benefits Does the Motor Offer for Electric Powertrain Market?

The motor segment is estimated to hold the largest share in the electric powertrain market during the forecast period. The motor is an essential component of the electric powertrain, transforming electrical energy into mechanical energy to propel the vehicle. This fundamental position makes it critical to the total performance of electric vehicles, including efficiency, torque, and speed, resulting in a considerable market share.

Continuous breakthroughs in motor technology, such as increased motor efficiency, power density, and the usage of rare-earth magnet motors, improve the propulsion system’s effectiveness. Weight-saving innovations and increased power output drive up demand for more sophisticated and capable motors, bolstering their dominance in the powertrain market.

Furthermore, as global demand for electric vehicles develops due to environmental concerns and favorable government policies, so will the demand for high-performance electric motors. The huge scale of production and the importance of motors in all-electric vehicles directly contribute to their dominance in the electric powertrain market.

Gain Access to Electric Powertrain Market Report Methodology

Country/Region-wise Acumens

What are the Drivers Contributing to the Dominance of Asia Pacific in the Market?

The Asia Pacific region is estimated to dominate the electric powertrain market during the forecast period. Many Asia Pacific countries, including China, Japan, and South Korea, have strong government regulations that encourage the use of electric cars (EVs). Subsidies, tax breaks, and large expenditures in EV infrastructure, such as charging stations, are all examples. This support hastens the development and acceptance of electric powertrains in the region.

Asia Pacific is the world’s largest market for electric vehicles, driven by rising environmental awareness, economic growth, and urbanization. The huge sales volume of EVs inevitably increases demand for electric powertrains, which are critical components of these cars.

Furthermore, the region is home to some of the world’s largest and most technologically advanced producers of electrical components and vehicles. Countries such as China and Japan are pioneers in battery technology and electric motor manufacture, both of which are essential components of electric powertrains. This scientific and manufacturing prowess serves as a solid foundation for Asia Pacific’s dominant position in the electric powertrain market.

What Factors Influence the Market of Electric Powertrains in the North American Region?

North America region is estimated to exhibit substantial growth during the forecast period. North America, particularly the United States, is home to some of the world’s leading automotive and technology businesses, including Tesla, General Motors, and Ford, who are pioneering electric car technology. These firms are constantly inventing in areas such as battery technology, motor efficiency, and power electronics, hence accelerating the adoption and development of electric powertrains.

The United States and Canada have established a variety of federal and state-level regulations to reduce carbon emissions, including California’s Zero Emission Vehicle (ZEV) program. These regulations encourage manufacturers to produce electric vehicles and consumers to embrace them, ultimately expanding the electric powertrain market.

Furthermore, the growth of EV charging infrastructure across North America, aided by both government subsidy and private investment, is lowering one of the most significant hurdles to EV adoption. Improved access to charging stations makes electric vehicles more appealing to a wider spectrum of buyers, thus influencing demand for electric powertrains.

Competitive Landscape

The competitive landscape of the electric powertrain market is characterized by rapid technical innovation, strategic collaborations, and increased R&D investment. Regulatory rules aimed at lowering carbon emissions and encouraging renewable energy transportation are spurring competitiveness, as manufacturers attempt to fulfill severe requirements.

Some of the prominent players operating in the electric powertrain market include

• Robert Bosch GmbH
• Mitsubishi Electric Corp.
• Magna International Inc.
• Continental AG
• Hitachi Astemo Ltd.
• BorgWarner Inc.
• ZF Friedrichshafen AG
• Valeo
• Nidec Corporation
• Schaeffler AG
• Cummins Inc.
• Dana Incorporated
• GKN Plc
• Eaton Corporation

Electric Powertrain Market Latest Developments

• In February 2022, Valeo SA agreed to acquire Siemens AG’s stake in its five-year-old electric car components business to strengthen its position in the fast-growing electric vehicle market.
• In February 2022, ZF Friedrichshafen AG is poised to overtake Continental AG as auto parts competitors face stiff headwinds in managing the disruptive shift to electric and autonomous vehicles.
• In December 2021, ZF Friedrichshafen increased its stake and is the majority shareholder with 51 percent of the Rane Group’s joint venture Rane TRW Steering Systems.
• In November 2020, Valeo launched a 48-volt electric drive train in India to support the affordable electrification of electric two-wheeled vehicles and tricycles. In India, Valeo manufactures electric drivetrains at its manufacturing facility
• In May 2020, ZF Friedrichshafen entered into a partnership with Visnic Technologies, a leading provider of Gan power semiconductors. Together, the companies focused on developing the next generation of powerful, highly efficient electric vehicle drives.

Report Scope

Electric Powertrain Market, By Category

Type

• Series Hybrid Powertrain
• Parallel Hybrid Powertrain
• MHEV Powertrain
• BEV Powertrain
• Others

Vehicle Type

• 48V Mild Hybrid Vehicle (MHEV)
• Battery Electric Vehicle (BEV)
• Hybrid & Plug-In Hybrid Vehicle (HEV/PHEV)

Component

• Controller
• DC/AC Inverter
• DC/DC Converter
• Motor
• Others

Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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