Electric Powertrain Market Expected to Surge, Reaching New Milestones by 2031

The electric powertrain market has been gaining momentum in recent years, driven by the shift towards sustainability and the increasing adoption of electric vehicles (EVs) across the globe. As automakers continue to invest heavily in the development of electrified powertrains, this segment is witnessing significant growth. The electric powertrain encompasses all the components required to drive an electric vehicle, including the electric motor, battery, controller, inverter, and other essential components that work together to provide an efficient, high-performance vehicle. From the hybrid electric vehicle (HEV) to the fully battery-electric vehicle (BEV), the market is diversifying, creating a broad array of opportunities for manufacturers and suppliers. As of 2021, the market was projected to grow at a compound annual growth rate (CAGR) of 13% to 15%, signaling strong future prospects through the next decade.

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Market Statistics, Growth Drivers, and Leading Segments

The global electric powertrain market is experiencing a strong growth trajectory, buoyed by favorable policies, technological advancements, and the widespread adoption of electric vehicles. According to the latest study by Persistence Market Research, the demand for electric powertrain solutions is expected to grow substantially during the 2021-2031 period. This growth is supported by the rising adoption of electric vehicles, governments' stringent emission regulations, and the reduction in battery costs, making EVs more affordable for consumers. Among the various segments of the electric powertrain market, Battery Electric Vehicles (BEVs) lead the charge, capturing a significant share. The BEV segment is the largest contributor to market growth due to the increasing preference for fully electric vehicles over hybrids, as they are considered more environmentally friendly and cost-effective in the long run.

Geographically, the market is heavily concentrated in regions with established automotive industries and proactive environmental policies. Europe, in particular, is leading the global electric powertrain market. This region benefits from aggressive policies and incentives that encourage the adoption of electric vehicles, such as tax credits, grants, and rebates for both manufacturers and consumers. Additionally, Europe is home to some of the world's leading electric vehicle manufacturers, such as Volkswagen, BMW, and Renault, further solidifying its position as the dominant region in the electric powertrain market.

Key Highlights from the Report

• The global electric powertrain market is expected to grow at a CAGR of 13% to 15% from 2021 to 2031.
• BEV powertrains are the largest segment of the market, leading in both sales and growth.
• Stringent government regulations and policies are driving the adoption of electric powertrains across the world.
• Europe is the leading region in the electric powertrain market due to its strong focus on sustainability and green policies.
• Hybrid & Plug-In Hybrid Electric Vehicles (HEV/PHEVs) are gaining traction as an intermediary solution for consumers transitioning from traditional vehicles.
• Key manufacturers in the electric powertrain market include Bosch, Mitsubishi Electric, Magna International, Continental AG, and Hitachi.

Market Segmentation

• Product Type and Powertrain Components
The electric powertrain market is segmented into various product types, each catering to different types of electric vehicles. The three primary categories are Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and 48V Mild Hybrid Electric Vehicles (MHEVs). Each of these segments requires specific powertrain components to function efficiently. BEVs, for instance, rely on high-voltage (HV) batteries, DC/AC inverters, and controllers, which are essential for storing and converting electrical energy. On the other hand, HEVs and PHEVs have additional components such as internal combustion engines (ICE), which work in tandem with the electric motor to reduce fuel consumption and emissions.

The market also segments based on the specific powertrain components used, including electric motors/generators, HV batteries, 12V batteries, controllers, and power distribution modules. Among these, the motor/generator, HV battery, and inverter are some of the most crucial components driving the market's growth. The demand for these components is tied directly to the increasing number of BEVs and hybrid vehicles on the road.

• End-User Applications and Vehicle Types
The electric powertrain market also distinguishes itself based on end-user applications, which include the automotive sector and various other industries that are adopting electric drivetrains for different purposes. In terms of vehicle types, the key segments include BEVs, HEVs, PHEVs, and MHEVs. While BEVs are leading the charge in terms of market share and consumer adoption, HEVs and PHEVs continue to capture a sizable portion of the market due to their ability to combine the benefits of internal combustion engines and electric powertrains. As a result, these vehicles offer a good compromise for consumers hesitant to fully commit to electric-only vehicles due to concerns about range anxiety and charging infrastructure.

Regional Insights

• North America and Europe
North America is witnessing robust growth in the electric powertrain market, driven by increasing consumer demand for electric vehicles and favorable government policies. The United States, in particular, has been at the forefront of embracing electric vehicles, with major manufacturers like Tesla and General Motors leading the way. The country's focus on reducing its carbon footprint and diversifying its energy sources is expected to further spur the adoption of electric vehicles and powertrains in the region. Meanwhile, Europe remains the largest market for electric powertrains. With the European Union setting ambitious goals to phase out internal combustion engine vehicles, the market for BEVs and hybrid vehicles is expanding rapidly. Governments in countries like Germany, France, and the UK are offering strong incentives to consumers and manufacturers alike to support this transition.

• Asia-Pacific and Rest of the World
Asia-Pacific, particularly China, is also a key player in the electric powertrain market. China leads in electric vehicle production and adoption, with numerous local manufacturers such as BYD and NIO dominating the electric vehicle landscape. The country's emphasis on reducing pollution levels and dependence on imported oil has accelerated the growth of electric vehicles and related powertrain components. Other regions, such as South America and the Middle East, are showing increasing interest in electric powertrains, although they are still in the early stages of market development.

Market Drivers

Several key factors are driving the growth of the electric powertrain market. One of the most significant drivers is the growing emphasis on sustainability and reducing carbon emissions. Governments across the globe are implementing stringent emission standards that push automakers to innovate and adopt electric powertrains. Additionally, the reduction in the cost of batteries, which constitutes a significant portion of an electric vehicle's total cost, is making electric vehicles more affordable for consumers. Lastly, the growing availability of charging infrastructure is helping to mitigate the issue of range anxiety, further supporting the adoption of electric vehicles and the demand for electric powertrains.

Market Restraints

Despite the promising growth prospects, the electric powertrain market faces several challenges. High initial costs associated with electric vehicles, particularly in developing markets, can be a barrier to adoption. Additionally, while the charging infrastructure has been expanding, it still remains insufficient in many parts of the world, limiting the convenience of using electric vehicles. Furthermore, the environmental impact of battery production and disposal is an ongoing concern, which could slow the adoption of electric powertrains if not adequately addressed.

Market Opportunities

The electric powertrain market offers several opportunities, particularly in emerging markets where the demand for electric vehicles is on the rise. As governments in these regions implement supportive policies and incentives, automakers are increasingly investing in electric powertrain solutions tailored to local needs. Additionally, technological advancements, such as solid-state batteries and faster-charging solutions, are expected to further drive the growth of the market. The expansion of the global electric vehicle charging network also presents significant opportunities for market players to capitalize on.

Reasons to Buy the Report

✔ Gain in-depth insights into the electric powertrain market's size, trends, and growth drivers.
✔ Understand the competitive landscape, including the key players and their strategies.
✔ Identify emerging market opportunities and potential challenges to stay ahead of the competition.
✔ Access a comprehensive analysis of regional trends and their impact on the electric powertrain market.
✔ Benefit from expert recommendations on how to navigate the market dynamics and position your business for success.

Company Insights

Leading players in the electric powertrain market include:
• Bosch
• Mitsubishi Electric
• Magna International
• Continental AG
• Hitachi

Recent Developments

• In 2023, Bosch announced the development of a new generation of electric motors designed for increased efficiency and lower production costs, enabling broader adoption of electric powertrains.

• In early 2024, Continental AG unveiled its next-generation hybrid electric powertrain system, which aims to significantly reduce CO2 emissions while offering better performance and fuel efficiency for HEVs and PHEVs.

By understanding the electric powertrain market's evolving dynamics, businesses and investors can make informed decisions and capitalize on the growing demand for electric vehicles and their associated technologies.

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This release was published on openPR.