Market Insight-Global Electric Vehicle Powertrain Market Overview 2023
The Global Electric Vehicle Powertrain market size is projected to reach US$ 138.66 billion by 2029 from US$ 45.27 billion in 2022 at a CAGR of 15.19% during 2023-2029.– Bossonresearch.com
The Electric Vehicle Powertrain Market is continuously evolving, driven by the convergence of autonomous and electric technologies, increased power density, and the adoption of multi-motor configurations. These trends not only fuel innovation but also define the future of transportation. The integration of autonomous features into electric vehicles enhances convenience and safety, aligning with global sustainability goals. Simultaneously, higher power density enables electric vehicles to achieve remarkable performance, challenging the dominance of traditional gasoline-powered cars. The widespread use of multi-motor configurations revolutionizes traction, handling, and vehicle stability. As these trends evolve, the Electric Vehicle Powertrain Market remains at the forefront of shaping a cleaner, safer, and more powerful automotive landscape.
Figure Global Electric Vehicle Powertrain Market Size
Source: Bossonresearch.com, 2023
The global Electric Vehicle Powertrain market size is projected to reach US$ 138.66 billion by 2029 from US$ 45.27 billion in 2022 at a CAGR of 15.19% during 2023-2029. Government support, strict emission regulations, and innovations in battery technology are driving the growth of the Electric Vehicle (EV) Powertrain Market. Government incentives, such as tax credits and rebates, encourage consumers to buy EVs, boosting sales. Stringent vehicle emission regulations push automakers to develop electric powertrains to meet clean energy standards. The development of lithium-ion batteries and ongoing innovations in battery technology extend EV range and improve performance. With lower operating costs, reduced environmental impact, and the convenience of charging, EVs offer clear benefits, further fuelling their adoption and the growth of the EV Powertrain Market. On the other hand, rising crude oil prices, coupled with technological advancements, provide additional momentum to the development of the Electric Vehicle (EV) Powertrain Market.
At the same time, factors such as lack of charging infrastructure for EVs, high cost of electric components, initial purchase cost of electric vehicles, recycling and disposal challenges have brought considerable challenges to the development of the global Electric Vehicle Powertrain market.
Segment by Type, the global Electric Vehicle Powertrain market can be split into Battery, Electric Motor, Transmission, etc. In 2022, the Battery segment already holds the highest market share at 54.66%. Batteries are the heart of any electric vehicle's powertrain. They store and provide the electrical energy necessary for propulsion, making them a fundamental component of EVs. As such, they command a significant portion of the market share. Consumers are increasingly concerned about the range of their electric vehicles, and improvements in battery capacity and energy density have allowed manufacturers to offer EVs with longer ranges, addressing a critical consumer concern. Battery technology also has a direct impact on the environmental footprint of electric vehicles. As batteries become more efficient and environmentally friendly, they align with global sustainability goals, attracting consumers who are environmentally conscious.
According to the application field, the global Electric Vehicle Powertrain market can be split into BEVs, PHEVs, HEVs and others. The BEVs segment brings 72.41% of the market revenue and will expand at a CAGR of 15.28% during the forecast period. There are several reasons why BEVs account for a larger share of the EV Powertrain market: First, BEVs are known for producing zero tailpipe emissions, making them a cleaner and more environmentally friendly alternative to traditional internal combustion engine vehicles. As environmental concerns and emissions regulations increase, there is a growing demand for zero-emission vehicles, driving the market share of BEVs. On the other hand, BEVs have a simpler powertrain compared to plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs), which require both an internal combustion engine and an electric motor. This simplicity leads to lower manufacturing costs and potentially lower maintenance costs, making BEVs more appealing to consumers.
On basis of geography, the global Electric Vehicle Powertrain market is segmented into North America, Europe, Asia-Pacific, South America, Middle East and Africa, etc. Currently, the Asia-Pacific market contributes more than 62% of the revenue, while North America’s market size will expand at the highest growth rate during the forecast period. The Asia-Pacific region, with its massive population and rapid urbanization, has a higher demand for transportation solutions. This, in turn, drives the adoption of electric vehicles, which contribute significantly to the powertrain market's revenue. The region is home to several key automotive manufacturing countries, including China, Japan, and South Korea, where many electric vehicles and their powertrains are produced. This manufacturing base contributes to a substantial market share. While the Asia-Pacific market is well-established, North America is considered an emerging market for electric vehicles. As awareness of EV benefits grows and charging infrastructure expands, the North American market is expected to experience a surge in demand for electric vehicles and their powertrains. North American companies, including Tesla and newer startups, are at the forefront of EV technology innovation. Their advancements in battery technology, powertrain efficiency, and autonomous driving systems make North America an attractive market for EV powertrains.
Driving Factors
Rising Electric Vehicle Production
The global sales of electric vehicle have remained favorable for the industry in recent years, with China and the United States topping the list both in terms of production and sales. As the U.S. economy steadily recovers, automotive industry in the country embraces an acceleration, particularly in the auto components vertical. Meanwhile, China prepares to enter a maturity phase with a higher sensitivity towards macroeconomic implications.
The emerging markets, including Brazil, India and Mexico are also coming under the spot light. Demand for commercial vehicles and passenger vehicles has grown significantly in these countries. In 2016, Toyota, Volkswagen, HYUNDAI, G.M., and Ford ranked among the top five manufacturers. Rising electric vehicle production remains a major driver for the global electric vehicle powertrain market.
Government support to increase EV sales
Governments worldwide are offering incentives to encourage people to buy electric vehicles. These incentives can include tax breaks, rebates, and free parking. These incentives make electric cars more affordable for consumers, which can help to boost demand. Stricter emission norms imposed by the government for lower CO2 emissions force automakers to make their vehicles more efficient and environmentally friendly. Companies across the globe, including governments, are investing in infrastructure to support electric vehicles. This includes building charging stations and improving the electrical grid. This will make it easier for people to own and operate electric vehicles, which will also help to boost demand. The government policies are helping to create a more favorable environment for electric powertrain manufacturers and electric vehicle consumers. As a result, the market is expected to grow rapidly in the coming years.
Strict vehicle emission regulations
The environment and human health are being negatively impacted by rising levels of carbon and particulate matter emissions from automobiles, which has resulted in a serious deterioration of the air quality. As a result, governments all over the world have mandated strict emission standards for car makers. As a result, manufacturers have been forced to invest more in R&D for electric vehicles in order to offer consumers a competitive alternative, which has accelerated the development of e-powertrains. For instance, the energy consumption in Europe is largely influenced by the road transportation industry. In order to achieve its goal of net-zero greenhouse gas emissions, the EU continues to tighten CO2 emission standards for passenger cars and light commercial vehicles. This aspect motivates the pursuit of practical solutions for the powertrain architecture of electric vehicles. Therefore, this factor has enhanced the electric vehicle powertrain market CAGR across the globe in the recent years.
Global Electric Vehicle Powertrain Market: Competitive Landscape
According to our calculations, in 2022, the global Electric Vehicle Powertrain market's market concentration indicators CR5 and HHI will be 56.50% and 8.63%, respectively. This means that the market concentration of Electric Vehicle Powertrain market is very low, and manufacturers are in very fierce competition. Currently, the key players in the market include ZF, Bosch, BorgWarner, Hitachi Automotive Systems, Dana Incorporated, Cummins, Valeo, Magna International, Mitsubishi Electric Corporation, Deere＆Company, GKN Automotive Limited, Eaton, Bonfiglioli, Fujian Wanrun New Energy Technology Co., Ltd.
Key players in the Electric Vehicle Powertrain Market include:
ZF
Bosch
BorgWarner
Hitachi Automotive Systems, Itd
Dana Incorporated
Cummins
Valeo
Magna International
Mitsubishi Electric Corporation
Deere＆Company
GKN Automotive Limited
Eaton
Bonfiglioli
Fujian Wanrun New Energy Technology Co., Ltd
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