Electric Powertrain Market worth $230.5 billion by 2030

Electric Powertrain Market is projected to reach USD 230.5 billion by 2030 from USD 96.7 billion in 2023, at a CAGR of 13.2% from 2023 to 2030, according to a new report by MarketsandMarkets™. The electric powertrain market is driven by growing demand for electric vehicles which in turn is influenced by factors such as growing stringency in emission norms and government support in terms of tax exemptions & subsidies to promote electric vehicle sales. The need for higher range, & fast charging is leading to technological advancements in the electric powertrain industry.

Electric Powertrain Market Scope:

Inverter is estimated to be the largest market in the MHEV powertrain market.

Inverters convert the DC power from the battery to the AC power used by the electric motor. The inverters also control the speed and torque of the motor by adjusting the frequency and amplitude of the AC power. This allows the driver to control the vehicle’s speed and acceleration. Inverters help to improve the efficiency of the electric motor by optimizing the power transfer from the battery to the motor, which in turn can help to increase the EV range. All these factors depict inverters as a key component in EV powertrains. The inverters contributed XX% of total EV components by value in 2022. Considering the complexity and sophistication required the manufacturing, the inverter market is concentrated by a few major players such as Bosch, Mitsubishi Electric, and Magna. In the coming years, the inverter market is expected to continue to grow with the growing demand for electric vehicles.

MHEV powertrain is estimated to be the fastest-growing market.

MHEV is an attractive revenue pocket for automakers right now. It is a good compromise for consumers who are looking for a fuel-efficient vehicle that does not require the same level of infrastructure as a BEV. It is also cost-effective for automakers to introduce hybrid technology into their lineup and meet emissions regulations. Also, owing to the dropping prices of lithium-ion batteries, various automakers are turning to optimize lithium-ion batteries in their 48V systems. The sale of MHEVs will be growing as they offer significant improvements in fuel economy over traditional gasoline vehicles, which saves drivers money on fuel costs, which is appealing to consumers. MHEVs offer affordable technology with similar fuel efficiency as conventional engines. It is also easy to upgrade and integrate with the existing conventional engines making it more cost-effective for automakers which makes the vehicles more affordable to consumers as compared to the other EVs. MHEVs are not required to plug in to charge the battery; this makes them a more practical option for consumers who do not have access to charging stations. Nissan Qashqai, Fiat Panda, Fiat 500, Renault Captur, Audi A4, Mercedes C-Class, Audi Q5, BMW X3, and Audi A6 are some of the top-selling MHEVs in the market where Toyota’s Next-gen Fortuner and Hilux MHEVs will be launched in 2024.

Asia Pacific is estimated to be the largest market for electric powertrain market.

Asia Pacific is the largest market for automotive production and sales. Contributing a major share to global vehicle production, the demand for electric vehicles is increasing in the Asia Pacific region. In 2021, EVs count was around 6.6 million units which was double as compared to the previous year. China is leading the EV market, and it is the largest market for electric powertrains as well. According to projections by the Society of Automotive Engineering of China, the country’s EV sales may increase by up to 15 million units. In 2021, China made more than half of the growth of global EV sales. This is because China is one of the leading players in the automotive industry and dominates the battery and EV market. It is home to some leading battery and EV manufacturers, such as CATL and BYD. The Chinese government has already spent heavily on incentivizing and subsidizing electric vehicle sales and providing a 10% purchase tax exemption to EV buyers until the end of 2023. They will be extending and optimizing the purchase tax exemptions to promote EV sales in the future. Similarly, countries like India and Japan are also estimated to observe significant growth in the electric powertrain industry due to government support for electrification, consumers demand, and the presence of some prominent automakers like Tata Motors, Nissan, Toyota, etc. These factors altogether drive the electric powertrain market in Asia Pacific with the growing electrification trend.

Electric Powertrain Market Dynamics:

Drivers:

1. Stringent emission norms
2. Growing vehicle electrification demand in automobile industry

Restraints:

1. Lack of infrastructure for electric vehicle charging
2. Emerging competing technologies in conventional engines

Opportunities:

1. Developments in lithium-ion batteries
2. Extended range offered by FCEVs

Challenges:

1. High cost of electrical components
2. Technological challenges with electric powertrains