The electric powertrain market is driven by the growing demand for efficient and eco-friendly mobility solutions. Electric powertrains provide a substantial improvement in fuel efficiency with zero direct emissions. Modern electric powertrains comprise of traction electric motors, power converters, and a (lithium-ion) battery pack used to power an electric vehicle. Electric powertrains enable automakers to develop electric and hybrid electric vehicles that comply with stringent emission regulations. The global electric powertrain market is estimated to be valued at US$ 94.12 million in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the electric powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V. These players are focusing on developing innovative powertrain solutions to improve vehicle performance and expand their product portfolios.
In terms of opportunities, the growing demand for green vehicles presents a massive opportunity for electric powertrain manufacturers and suppliers. Governments across regions are providing various subsidies and tax incentives for electric vehicles to encourage uptake. This is positively impacting the sales of electric powertrains.
Globally, Asia Pacific and Europe are anticipated to witness higher adoption of electric powertrains driven by regulatory mandates. China has emerged as a prominent hub for electric vehicle manufacturing. Meanwhile, European countries are heavily investing in electric vehicle charging infrastructure to drive electric powertrain sales.
Market Drivers
Growing environmental awareness about vehicular emissions is a key driver for the Electric Powertrain Market Demand . More consumers are inclining towards electric vehicles to lower their carbon footprint. Government initiatives in the form of subsidies and tax rebates on electric vehicles are incentivizing this shift towards green vehicles. Furthermore, OEMs are introducing several new electric vehicle models that have expanded the range of electric powertrain applications.
Market Restraints
High production costs of electric powertrains continue to be a major restraint for widespread adoption. Mass-market electric vehicles need to achieve cost parity with conventional vehicles to attract average consumers. Battery costs, which account for a significant portion of the total electric vehicle costs, need to witness a substantial decline. Limited charging infrastructure also discourages customers from opting for electric vehicles in some regions. Range anxiety related to issues needs to be addressed through continuous technological advancements.
Segment Analysis
The electric powertrain market is segmented based on vehicle type into battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV). The BEV segment dominates the market as it reduces dependence on petrol or diesel, thereby lowering fuel costs with zero tailpipe emissions. BEV vehicles offer better driving range and performance compared to PHEV and HEV with technological advancements in batteries. OEMs are focusing on increasing the driving range of BEV vehicles through continuous battery innovation, which fuels the growth of this segment.
Global Analysis
Regionally, Asia Pacific holds the largest share in the electric powertrain market and is expected to grow at the highest CAGR during the forecast period. The growing focus of governments in countries such as China, Japan, and South Korea towards electric vehicle adoption through incentives and regulations has led OEMs to increase local production of electric vehicles. Europe holds the second position in terms of market share. Stringent emission norms by the European Commission have encouraged major automakers like BMW, Volkswagen, and Daimler to invest heavily in electric powertrains development. Advancements in charging infrastructure in Europe further accelerates the market growth.
Get more insights on Electric Powertrain Market
Also read related article on India Power Tool Market
Comments
0 comment