Throughout the projection period, it's expected that the demand for EV powertrains is likely to rise at a rate of over 24%. The net worth of the market is projected to reach USD 112,036 million in 2033 from USD 13,035.9 million in 2023.
The conventional ICE powertrain dominated the automotive powertrain industry for the last ten years. Nonetheless, as public mobility has shifted to become eco-friendlier and efficient, the sector today offers a wide variety of powertrains. So there are now various pure EV powertrains available in the diverse automobile powertrain spectrum that are gaining traction in recent years.
Nevertheless, a larger market share for EV powertrains is anticipated in some places, particularly in western countries promoting e-mobility in their cities. The EV components market across these countries is being also driven by alliances between top firms to construct charging stations and networks. As an illustration, Didi Chuxing from China and BP, the world's leading oil company, collaborated to develop many EV charging stations.
Witnessing the growing popularity of electric vehicles during the earlier decade many automotive powertrain suppliers also entered this sector. For instance, Robert Bosch GmbH introduced its e-axle powertrain for EVs in August 2017. By forming joint ventures and collaborations with regional EV manufacturers, prominent players from all over the world are expanding into the Chinese market recently.
Additionally, it is projected that the widespread e-mobility and alluring government subsidies for the local industry of EVs would diversify EV powertrains internationally. Further, with the development of electric powertrains, the landscape of EV powertrains as a whole is also becoming more flexible and dynamic.
| Attributes | Details |
|---|---|
| EV Powertrain Market Share (2022) | USD 10,470.6 million |
| EV Powertrain Market Size Value (2023) | USD 13,035.9 million |
| EV Powertrain Market Size Value (2033) | USD 112,036 million |
| EV Powertrain Market Growth Rate (2023 to 2033) | 24% |
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The overall valuation of the total sales of EV powertrains achieved in 2022 was USD 10,470.6 million from USD 5,945.1 million in 2018. Though the market witnessed a promising growth trend immediately after 2018, it slowed down after two years impacting the average CAGR.
Owing to a downturn in sales and the prohibition of transportation, the pandemic had an impact on the whole automotive industry including EVs. As a result, the electric powertrains market experienced slower growth and the average CAGR came down between 2018 and 2022.
A flourishing market of BEVs and HEVs is very necessary for higher EV powertrain market opportunities and trends. Moreover, deliveries of plug-in vehicles increased by 46% to 11, 34, 000 units globally in the first half of 2019 compared to 2018. This rising trend augmented the demand for EV powertrains during the period from 2018 to 2022 which grew by 15.2% on average per year.
The rare earth metals used in permanent magnets for synchronous motors in EV powertrains are susceptible to export limitations and supply issues. So the extension of production facilities to countries with higher reserves for such raw materials is an observable trend in this market sector.
A practical barrier that may prevent the expansion of the EV powertrain industry is the absence of definite development standards for EV components, including powertrains. Although affluent nations have standardized fabrication procedures for EV powertrains, such procedures do not exist in developing nations. However, with the constant effort of international organizations the protocol for EV components is evolving positively over these years for market players.
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In 2022 and the preceding years, the BEV sector held the leading market share of more than 70% of the total demand for EV powertrains. Hybrid cars are becoming more popular because they provide better environmental advantages and a cheaper total cost of ownership than cars powered by ICE. In addition, it is anticipated that improvements in lithium-ion batteries and reductions in cost would increase demand for BEVs in the future.
Even during the projection period, the HEV/PHEVs sector is anticipated to record a higher CAGR than the BEV market segment. People are embracing PHEVs actively to take advantage of several advantages, including a bigger battery that can be swiftly recharged.
As per the analysis of global demand for EV powertrains, the electric motor segment held the biggest market share, accounting for 45.8% of the total. The main drivers for further expansion in this sector are rising demand for electric cars and advancements in powertrain technology.
Other components of electric vehicle powertrains play an equal role in the advancement of this market sector and are anticipated to witness similar trends. In the coming days, the sales of the power distribution model are also anticipated to go through a significant overhaul in terms of market demand.
With nearly 10.8% of EV powertrains sold there, the United States continues to hold the top position in the business on a worldwide scale. The United States electric vehicle manufacturers are releasing more EVs with cutting-edge features and sales of such high-performance EVs are also rising promisingly.
As per the global EV train market analysis report released by FMI, the United States is anticipated to have a consistent growth trend for the next ten years. As consumers prefer high-end EVs and drive more distances, the development of advanced powertrains would be the key focus.
Many European nations, including Germany, France, and the United Kingdom exhibited a strong demand for EV powertrains in the years preceding 2022. But the overall market is presently constrained by low stocks, wait-for lists for popular BEVs, and the exhaustion of high-demand PHEVs.
In the European region, Germany is the leading supplier of powertrains for electric vehicles to EV manufacturers operating in other European nations. Moreover, the presence of many leading automakers in the country generated a revenue of around USD 1,005 million in 2022. German carmaker Mercedes-Benz said in July 2021 to purchase Yasa, which is a provider of advanced electric propulsion technologies that now offers solutions for hybrid powertrains.
On the other hand, EV component manufacturers in the United Kingdom have gained sufficient traction in the last few years. FMI predicts the overall demand for EV powertrains in particular may experience a higher growth rate of 19.6% during the projected period.
China remains the main driver of the EV powertrain market trends and opportunities in the Asia Pacific region having many leading players. Though regulatory policies have slowed down the Chinese market it is still poised to grow at a rate of 21.3% through 2033.
Many global players in the e-mobility sector have also recognized the importance of China's electric vehicle components business including EV powertrains. For instance, Magna International and Huayu Automotive Systems reached a deal to increase their market presence in the Asia Pacific.
In the Asia Pacific region, Japan, with a developed market, is also a significant country for supplying EV powertrains around the world. It holds a share of 1.8% of the global market and is projected to reach a valuation of USD 2,016 million by the end of 2033.
Australia is another remarkable market that is improving significantly, as evident from the FMI survey report. The contribution of the Australian EV powertrain share in the global market is nearly 1%, and the overall valuation would reach USD 1,120 million by 2033.
Throughout the projection period, India is anticipated to increase significantly for several legislative initiatives that encourage EV sales. The country's e-electric vehicle powertrain industry is further being driven by the adoption of stringent emission rules like BS-VI.
Based on the figures obtained by FMI, this country is projected to register an above-average growth rate of 25.4% over the forecast years. As per this survey report for overall demand for EV powertrains in India, an emerging EV industry would support its further growth.
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Only a few companies, like Robert Bosch GmbH, ZF Friedrichshafen AG, Cummins Inc., and Dana Incorporated control a large portion of the market for EV powertrains. The companies are forming alliances, undertaking research and development, and introducing new goods to keep up with their rivals.
For illustration, Efficient Drivetrains, Inc., which is based in the United States, was acquired by Cummins Inc. in July 2018. The firm acquired this developer and manufacturer of powertrains to become the leading brand for electric vehicle powertrains on a worldwide scale.
Bosch and Nikola formed a cooperation in September 2017 to create an electric-powered drivetrain utilizing Bosch's e-Axle advanced technologies. It transfers power from the engine and is currently being developed for long-haul trucks.
Prominent automakers including Toyota, Honda, Tesla, General Motors, and Ford, among others, are projected to make significant investments propelling the competition in the market. Additionally, it is anticipated that the emerging trends in EV powertrains would grow as a result of the developing collaborations between automakers and powertrain motor companies.
Additionally, suppliers and OEMs may be expected to create business partnerships for the advancement of e-motors to take advantage of the rising requirement for EV powertrains. For example, a joint project to produce automobile electrical components was established in 2019 by the e-motor maker Nidec Corp. and GAC Components Co., Ltd.
The EV powertrain market holds a valuation of USD 13,035.9 million in 2023.
The projected value of the EV powertrain market is anticipated to attain USD 112,036 million by 2033.
The EV powertrain market is anticipated to register a CAGR of 24% through 2033.
The United States emerges as a hotspot of high lucrativeness for EV powertrains.
Transformative evolution of battery technology is the key trend.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 5.1. Passenger Cars 5.2. Buses & Coaches 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component Type 6.1. Electric Motor 6.2. Inverter 6.3. Converter 6.4. Power Distribution Module 6.5. Transmission 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. Middle East & Africa (MEA) 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Robert Bosch GmbH 15.2. Continental AG 15.3. Magna International Inc. 15.4. Mitsubishi Electric Corporation 15.5. ZF Friedrichshafen AG 15.6. BorgWarner Inc. 15.7. Valeo 15.8. Hitachi Automotive Systems 15.9. NXP Semiconductors 15.10. Dana Incorporated 16. Assumptions & Acronyms Used 17. Research Methodology
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