Electric Powertrain Market Size, Share & Trends Analysis Report By Electric Vehicle (BEV, HEV/PHEV), By Component (Motor/Generator, Battery, Power Electronics Controller) and Region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Electric Powertrain market size was estimated at USD 96.7 billion in 2023 and is projected to reach USD 233.2 billion in 2030 at a CAGR of 13.2% during the forecast period 2023-2030.
The burgeoning automotive market is moving towards electric vehicles as the primary mode of transportation, with traditional fuel vehicles expected to be phased out over the coming years. This shift can be attributed to the myriad advantages that electric vehicles offer, including improved environmental benefits and a lower total cost of ownership as compared to their internal combustion engine vehicle counterparts. As a result, numerous countries have implemented strict policies to encourage the adoption of alternative fuel vehicles, particularly electric vehicles. Historically, the automotive industry has relied on the same internal combustion engine powertrain over the past decade. However, the industry has undergone a significant transformation in recent years, with a broad powertrain mix that is focused on providing more efficient and environmentally friendly transportation. This portfolio now includes a wide range of pure electric and hybrid powertrains. Furthermore, the overall powertrain landscape is becoming increasingly dynamic and complex with the emergence of electric powertrains.
Electric powertrains can be comprehensively and exhaustively gauged and assessed through a careful and meticulous analysis of four key and pivotal determinants: infrastructure, regulations, consumer preference, and technology, each of which plays an instrumental and critical role in shaping and influencing the trajectory and direction of electric powertrain adoption. The pervasive and ubiquitous penetration and proliferation of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) would unequivocally and significantly shape and impact the future and trajectory of electric powertrain adoption and utilization on a worldwide and global scale. The regulatory landscape and milieu in relation to monitoring and tracking carbon dioxide (CO2) emissions are increasingly and progressively becoming more exacting, rigorous, and demanding in the United States and Europe, thereby underscoring and highlighting the importance and significance of regulatory frameworks and guidelines in influencing and shaping the adoption and utilization of electric powertrains.
The COVID-19 pandemic has exerted a significant impact on the entirety of the automotive industry, thereby engendering a subsequent and consequent decrease in the expansion of the electric powertrain industry on account of the meager automotive sales and novel requisites. Nevertheless, the market is being propelled by the exacting emission norms implemented by the government authorities, such as the greenhouse gas (GHG) emissions standards for the U.S. Environmental Protection Agency (EPA), India's BS-VI norms, and China VI.
The advent of innovations in battery technologies has brought about a greater level of competitiveness between electric vehicles and conventional internal combustion engine (ICE) vehicles. This is due to the increased range that electric cars can now achieve on a single charge. Batteries, which are an essential component of the electric powertrain system, constitute a significant portion of the total cost of electric vehicles. Nevertheless, the cost of batteries has been significantly reduced due to technological advancements, production process optimization, and economies of scale. It is anticipated that the price of electric vehicles will continue to decline over the forecast period, thus paving the way for the mass-market penetration of electric vehicles and reaching a Total Cost Ownership (TCO) parity. The COVID-19 pandemic has had a profound impact on the global economy, resulting in an economic slowdown. The lockdown measures imposed in various parts of the world to curb the spread of the virus have led to disruptions in the supply chains, and several production facilities have temporarily ceased operations. The electric powertrain market is particularly vulnerable to the impact of the crisis due to its dependency on global sourcing for the core technology of its batteries.
The cost of purchasing electric vehicles is initially higher than that of gas-powered and hybrid vehicles. In addition, the market growth is being hampered by the growing price sensitivity of customers during the current crisis. Furthermore, Europe, which is one of the leading regions for the adoption of electric vehicles, is experiencing a sharp decline in the sales of electric cars. Among the worst-hit nations are Italy, Spain, and Germany.
Asia pacific to Dominate the Market