Electric Powertrain Market Size, Share & Trends Analysis Report By Electric Vehicle (BEV, HEV/PHEV), By Component (Motor/Generator, Battery, Power Electronics Controller), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global electric powertrain market size was valued at USD 83.30 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 15.3% from 2023 to 2030. The COVID-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the electric powertrain industry due to low automotive sales and new requirements. However, stringent emission norms by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), BS-VI norms in India, and China VI, are driving the market growth. The post-COVID-19 recovery in the sales of pure and hybrid electric vehicles is a prominent driving factor for the growth of the electric powertrain industry. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production of electric vehicles is also anticipated to boost the demand for electric powertrains globally.

Electric vehicles are the future of the automotive market as traditional fuel vehicles are expected to phase out over the coming years. These vehicles are gaining traction as they provide improved environmental benefits and lower total cost of ownership compared to their internal combustion engine vehicle counterpart. Numerous countries have come up with stringent policies to encourage the adoption of alternative fuel vehicles, including electric vehicles.

In the past decade, the automotive industry comprised of the same internal combustion engine powertrain. However, the industry now is a broad powertrain mix as it has been shifting toward more efficient and environmentally friendly transportation. The automotive powertrain portfolio is diversified and includes many pure electric and hybrid powertrains. Additionally, the overall powertrain landscape is becoming more dynamic and complex with the emergence of electric powertrains.

The growing adoption of electric powertrains can be determined by four factors: infrastructure, regulations, consumer preference, and technology. The penetration of PHEVs and BEVs would strongly determine the future adoption of electric powertrains globally. Regulations for monitoring CO2 emissions are becoming more demanding in the U.S. and Europe.

Europe has set its emission limit to 95 g/km by 2020 and an additional reduction of 37.5% by 2030, resulting in a limit of 59 g/km. Meanwhile, North America has set the emission limit to 99 g/km following Corporate Average Fuel Economy (CAFE) standards for passenger-vehicle till 2025. To efficiently meet emission targets and avoid penalties, OEMs would have to increase the sales of electrified vehicles over the coming years.

Innovations in battery technologies have made electric vehicles more competitive than conventional ICE vehicles by providing an increased range on a single charge. Batteries are an integral part of the electric powertrain system. They constitute a significant portion of the total cost of electric cars, and their cost has reduced significantly due to technological advancements, production process optimization, and economies of scale. With the price expected to decline over the forecast period, EVs are expected to reach a Total Cost Ownership (TCO) parity, paving the way for the mass-market penetration of electric vehicles.

The COVID-19 crisis has resulted in a global economic slowdown. Lockdowns implemented in various parts of the world to curb the spread of the virus led to disruptions in the supply chains and a temporary ceasing of production at several production facilities. The electric powertrain market is particularly vulnerable due to its dependency on global sourcing for its batteries' core technology.

The initial purchase cost of electric vehicles is more significant than their gas-powered and hybrid counterparts. The market growth is also being impacted by the growing price sensitivity of customers during the current crisis. Moreover, Europe, which is one of the most prominent regions for the adoption of electric vehicles, is also witnessing a sharp decline in the sales of electric cars. Countries such as Italy, Spain, and Germany are among the worst-hit nations.

Electric Vehicle Insights

The BEV segment accounted for the largest share of around 70% of the overall market in 2022. A battery electric vehicle (BEV) is a vehicle that is powered entirely by electric energy. BEV has no internal combustion engine or fuel tank and runs on an electric drivetrain powered via rechargeable batteries. BEV needs to be plugged into a power source to charge. The high share can be attributed to a decline in the sales of ICE vehicles and the restriction on CO2 targets. Moreover, advancements in battery technology and reduction in Lithium-ion battery prices are also expected to boost the demand for BEVs over the forecast period.

The HEV/PHEVs segment is projected to register a CAGR of over 35.9% over the forecast period. Customers are aggressively adopting PHEVs to exploit various benefits, such as a more powerful electric motor and a larger battery that are quickly recharged with the help of an external source of power associated with PHEV. They serve as a flexible and convenient option for consumers. These vehicles are designed to enhance the use of the internal combustion engine in interaction with a low-range, High Voltage (HV) electric powertrain. All these factors bode well for the growth of the segment over the forecast period.

Component Insights

The battery segment accounted for the largest share of 63.6% in 2022. The battery is the most prominent component when it comes to the electrification of vehicles. It is either used as the sole power source in BEVs or is combined with other power sources in green vehicles. In BEVs, the battery pack constitutes around 50% of the total cost. Increasing demand for electric vehicles, improvement in battery technology, and supporting government policies are major factors responsible for market growth in this segment.

The motor/generator segment is projected to register a CAGR exceeding 30% over the forecast period. The demand for e-motors is driven by the increased penetration of BEVs and PHEVs globally. These vehicles can be equipped with similar e-motor configurations. Moreover, suppliers and OEMs are likely to leverage the growing demand for electric powertrains by forming joint ventures for the development of e-motors. For instance, in 2019, Nidec Corp., an e-motor manufacturer with GAC Components Co., Ltd., formed a joint venture to manufacture automotive traction motors.

Regional Insights

Asia Pacific captured the largest revenue share of over 57.0% in 2022. Countries such as China, Japan, South Korea, and India are among the prominent automobile manufacturers in this region. Stringent government regulations and emission norms to solve the global warming issues resulting from substantial Co2 emissions are expected to contribute to the growth of the Asia Pacific market.

Furthermore, the growing adoption of electric vehicles in countries such as India and China is expected to boost the demand. Countries such as China are increasingly focusing their efforts on developing their electric infrastructure. For instance, China's Didi Chuxing (DiDi) and BP, a British gas, energy, and oil company, entered into a joint venture to develop electric vehicle charging infrastructure in China. Such strategic collaborations are expected to encourage the adoption of electric cars.

Europe is anticipated to emerge as a significant market for electric powertrains over the forecast period, owing to the presence of numerous OEMs in the region. Countries such as the Netherlands, Norway, France, and Sweden have witnessed high adoption of EVs, which is likely to contribute to the growth of the electric powertrain industry in the region.

Countries such as France, Norway, Sweden, and the Netherlands have witnessed high adoption of electric vehicles, which is likely to contribute to the market's growth in this region. Germany is one of the largest automotive hubs globally, most automobile manufacturers such as Audi AG, Volkswagen AG, and BMW AG, among others, are focusing on the production and sales of electric vehicles, leading to an increase in demand for electric vehicles powertrains.

North America also witnesses high adoption of electric vehicles. The region is characterized by the presence of major players such as Tesla, Chevrolet, and Ford. Moreover, the U.S. and other countries have developed infrastructure for electric vehicles, such as charging stations, also known as Electric Vehicle Supply Equipment (EVSE). These factors are expected to boost the demand in the market.

Key Companies & Market Share Insights

Key players that dominated the global electric powertrain industry in 2022, include BorgWarner, ZF Friedrichshafen AG, Schaeffler AG, Mitsubishi Electric Corp., and Magna International Inc. These players are pursuing various organic and inorganic growth strategies, such as mergers & acquisitions, strategic partnerships, and new product launches, to strengthen their foothold in the market. For instance, In October 2020, Continental AG’s Powertrain segment Vitesco Technologies announced the launch of a new transmission control system. It is the world’s first transmission control system equipped with over molding control electronics technology.

Several international electric vehicle manufacturers are investing and expanding their production units in the country. For instance, in August 2020, Magna International Inc. announced the expansion of its powertrain business in Slovakia, Europe. The company initiated the construction of the manufacturing facility in Slovakia to develop powertrain metal forming solutions. Some prominent players in the global electric powertrain market include:

• BorgWarner

• Bosch Limited

• Mitsubishi Electric Corp

• Magna International Inc.

• Schaeffler AG

• ZF Friedrichshafen AG

• Valeo

• Nidec Corporation

• Continental AG

• Magneti Marelli Ck Holdings

Electric Powertrain Market Report Scope

Global Electric Powertrain Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electric powertrain market report based on an electric vehicle, component, and region:

• Electric Vehicle Outlook (Volume, Units; Revenue, USD Billion, 2018 - 2030)

  • BEV

  • HEV/PHEV

• BEV Electric Powertrain Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Motor/Generator

  • Battery

  • Power Electronics Controller

  • Converter

  • Transmission

  • On-Board Charger

• HEV/PHEV Electric Powertrain Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Motor/Generator

  • Battery

  • Power Electronics Controller

  • Converter

  • Transmission

  • On-Board Charger

• Regional Outlook (Volume, Units; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

  • Middle East and Africa