Electric Vehicle Drivetrain Market Size, Share, Opportunities, And Trends By Component (Battery, Controller, Transmission, Electric Motor), By Type (Fron-Wheel Drive (FWD), Rear-Wheel Drive (RWD), All-Wheel Drive (AWD), Four-Wheel Drive (4WD)), By Vehicle (PHEV, BEV, FCEV, HEV), And By Geography - Forecasts From 2024 To 2029

The electric vehicle drivetrain market is expected to grow from US$54.941 billion in 2024 to US$120.330 billion in 2029 at 16.98% (CAGR). 

An electric vehicle (EV) drivetrain comprises components including electric motors, controllers, and batteries that transmit power to the driving wheels. The system varies depending on the type of electric vehicle and plays an integral role in establishing a link between the primary power source of the vehicle and the wheels. The ongoing transition towards electric mobility, followed by strategic investment to bolster it, is majorly driving the demand for drivetrain systems.

Furthermore, the ongoing technological innovations in electric vehicle driving backed by government support and subsidies to bolster EV adoption have furthered the market growth prospects. Major economies with high potential for EV adoption are expected to witness significant growth in such technology. However, the architecture of the drivetrain used in electric vehicles differs from the ones in traditional vehicles as it requires precise structuring to manage speed and torque. Hence, such customized build-up can act as a major obstacle to the market growth. 

Electric Vehicle Drivetrain Market Drivers:

• The growing electric vehicle transition has accelerated the market expansion.

Growing carbon emissions have become a major factor in increasing air pollution and global warming. To minimize such events, various efforts are being taken, including shifting from conventional internal combustion engines to sustainable fuel, which has bolstered the demand for electric vehicles. Hence, major economies, namely China, the United States, and the European Union, are experiencing significant growth in such transition. 

According to the International Energy Agency, in 2023, nearly 14 million electric vehicles were registered globally, bringing the total on-road volume to 40 million. Moreover, EV sales in the same year were 3.5 million higher than the preceding year, thereby showing 35% year-over-year growth. Additionally, the same source specified that the percentage share of electric cars in overall vehicle sales globally increased from 14% in 2022 to 18%, showcasing significant growth in EV adoption. 

• Technological innovations in driving technology have laid new scope for the market.

EVs are presenting the future approach for mobility with various technologies, including infotainment systems and sensors, that are finding high usage. Likewise, the drivetrain in electric vehicles plays a crucial role as it converts the energy from an electric motor used in vehicle mobility. Major EV manufacturers, namely Tesla, BYD Inc. General Motors, Volkswagen, BMW, and Volva are investing in new technologies and forming strategic collaborations with Tier 1 suppliers of electrification solutions to improve their EV performance. 

Such collaborations have established a new framework to optimize the usage of drivetrain components, which is anticipated to bolster their market demand. Moreover, technological breakthroughs such as ADAS (Advanced Driving Assistance System) and autonomous driving are also stimulating the requirement for an effective drivetrain. This is because managing speed and torque according to the surroundings significantly impacts the vehicle’s mobility. 

Electric Vehicle Drivetrain Market Segment Analysis

• BEV is estimated to account for a considerable market share. 

Based on vehicle type, the electric vehicle drivetrain market is analyzed into PHEV, BEV, FCEV, and HEV. BEV (Battery Electric Vehicle) is anticipated to constitute a remarkable market share and is poised for significant expansion since such zero-emission vehicles, unlike PHEV and HEV, use rechargeable batteries as the only power source. 

The current adoption of zero-emission policies backed by government subsidies has increased the demand for such zero-emission vehicles. For instance, according to the International Energy Agency, in 2023, BEVs accounted for 70% of the global EV registration, with sales volume reaching nearly 9.5 million units. 

Moreover, PHEVs are projected to show constant growth and will account for the second-best share. According to the same source, PHEV registration reached 4.3 million units for the same year, thereby accounting for 30% of the global EV sales. HEVs and FEVs will expand at a positive rate but will register for a minimal market share. 

Asia Pacific is expected to account for a significant market share during the given time frame. 

By geography, the electric drivetrain market is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The market in the APAC region is poised for a significant expansion and will account for a considerable market share. Major APAC economies, namely China, account for a major portion of the global adoption of electric vehicles. For instance, as per the “Global EV Outlook 2024”, China accounted for 60% of new electric vehicle registrations in 2023, reaching 8.1 million units. 

The same source also stated the booming automotive sector in the economy is mainly attributed to the growing electric vehicle sales in the country. Hence, favorable investment to bolster EV production & adoption, followed by the well-established presence of major EV companies, namely BYD INC. and Xpeng Inc., are acting as additional driving factors for the regional market growth. 

North America and Europe are anticipated to show remarkable growth fueled by the favorable efforts of the EV manufacturers to bolster their EV fleets and improve their driving technology. These major players are namely Tesla, Volvo, BMW, and Stellantis N.V. The South American and MEA regions will account for a minimal market share during the period. 

Electric Vehicle Drivetrain Key Developments:

• In May 2024, Vitesco Technologies announced the delivery of its EMR3 axle drive to Honda for the latter’s CR-V and e:FCEV, which will be marketed in Japan and the United States later in the year. The drive technology integrates power electronics, a reducer, and an electric motor, further improving long-distance mobility. 
• In April 2024, BMW Group formed a strategic partnership with Rimac Technology to develop innovative drive technology compatible with high-voltage EV batteries. This technology will power selected BEVs. The partnership will also make Rimac a high-volume Tier 1 electrification solutions supplier in the automotive sector. 
• In October 2023, Continental AG partnered with DeepDrive to develop an innovative driving system that would combine Continental’s brake system with DeepDrive’s electric motors. The collaboration will expand the range of EVs and advance the two companies' market penetration in EV mobility.  

The Electric Vehicle Drivetrain market is segmented and analyzed as given below:

• By Component
  • Battery
  • Controller
  • Transmission
  • Electric Motor 
• By Type
  • Fron-Wheel Drive (FWD)
  • Rear-Wheel Drive (RWD)
  • All-Wheel Drive (AWD)
  • Four-Wheel Drive (4WD)
• By Vehicle
  • PHEV
  • BEV
  • FCEV
  • HEV
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others