From the period 2022 to 2028, the Global Electric Powertrain Market is expected to reach USD 388.4 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 32.80%.
The market for electric vehicles is rapidly expanding, creating a high demand for automotive electric powertrains. Electric vehicles have seen tremendous growth all over the world. To capitalize on the increasing sales of electric and hybrid vehicles and increase their market share, major automotive component manufacturers have been investing in electric axle drives. Major automotive companies' massive investments in electric vehicles are expected to drive the electric motor market in the near future. Furthermore, evolving partnerships between motor manufacturers and automotive companies are expected to expand the global market for electric vehicle powertrains. The electric motor market is projected to have challenges in obtaining rare earth metals used in permanent magnets for synchronous motors, as these metals are subject to export restrictions and supply issues. Apart from the increased activity in the development of electric vehicles in the global market, one of the major factors driving automakers to shift from IC powertrain to Electric Powertrain is the depletion of oil and gas reserves.
Key Highlights from the Report
- On the basis of vehicle type, the market is segmented into Hybrid and Plug-In Hybrid Vehicle (HEV/PHEV), Battery Electric Vehicle (BEV), and 48V Mild Hybrid Vehicle (MHEV). 48V MHEV is expected to be the fastest-growing market between 2021 and 2028. The slowing of diesel-powered vehicles, as well as CO2 targets, have fueled the 48V MHEV powertrain market. Furthermore, developments and a drop in Lithium-ion battery prices have fueled the MHEV powertrain component market. The ease with which a 48V MHEV powertrain may be fitted into an existing ICE vehicle architecture is also driving the mild hybrid vehicle Electric Powertrain industry.
- On the basis of the HEV/PHEV powertrain components, the market is segmented into Motor/Generator, HV Battery, 12V Battery, Battery Management System, Controller, DC/AC Inverter, DC/DC Converter, Power Distribution Module, Idle Start-Stop, Onboard Charger, and Regenerative Braking. Over the forecast period, the motor/generator segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 30%. The increased global penetration of PHEVs is driving demand for e-motors. Similar e-motor configurations can be used in these vehicles. Furthermore, suppliers and OEMs are likely to capitalize on the rising demand for electric powertrains by forming joint ventures to develop e-motors.
- Asia Pacific is the fastest regional segment in terms of growth. Due to increasing government regulations on emission norms, allocations of funds by the respective governments to incentivize sales of electric vehicles, and developments in powertrain components such as lithium-ion batteries, battery management systems, and motors, the Asia Pacific region are experiencing the fastest growth rates in the Electric Powertrain Market. In addition, continuous R&D and partnerships among automotive firms in these regions are projected to propel the Electric Powertrain Market forward.
Some of the key players in the Electric Powertrain Market include, Bosch (Germany), Mitsubishi Electric(Japan), Magna (Canada), Continental AG (Germany), Hitachi (Japan).
The implementation of stringent vehicle emission regulations by the government is expected to drive the growth of this market
Increasing carbon and particulate matter emissions from automobiles have resulted in severe depletion of air quality, which has a negative impact on human health and the environment. As a result, governments all over the world have imposed stringent emission standards on automakers. As a result of this factor, manufacturers have increased R&D for electric vehicles in order to provide customers with a cost-effective alternative, which has fueled the growth of e-powertrains.
Increasing Electric Vehicle Sales and Increasing Fuel Prices
The ongoing rise in fuel prices, combined with existing environmental concerns, has resulted in a greater shift of consumers toward electric mobility solutions, particularly in developed countries. As a result, automakers are concentrating on the development of lightweight and compact e-powertrain solutions suitable for everyday transportation. Furthermore, appealing government policies and support, such as grants and subsidies, incentives for domestic production, and mass adoption of electric vehicles, as well as other non-monetary incentives, are expected to drive the electric vehicle powertrain market.
This market is expected to grow steadily in North America. Customers in the United States typically drive longer distances and prefer larger vehicles. However, electric vehicle Powertrains are expected to have a larger market share in certain regions, particularly coastal areas. As a result, market growth in this region is aided. Powertrain demand in North America is being fueled by rising automotive production as well as increased product innovation for powertrain components. The growing demand for hybrid electric vehicles in the United States and Canada is driving up sales of electric powertrains. The United States is one of the most lucrative markets for electric powertrains in the world. Because of the exponential growth in demand and sales of electric vehicles, the US Electric Powertrain Market will expand in the coming years.