EV Powertrain Market Size, Share, Opportunities, And Trends By Component (Transmission, Motors, Battery), By Propulsion Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle), By Vehicle (Passenger Car, Commercial Vehicle), And By Geography - Forecasts From 2024 To 2029

  • Published : Jun 2024
  • Report Code : KSI061616951
  • Pages : 148

The EV powertrain market is expected to register a compound annual growth rate (CAGR) of 18.42% during the forecast period (2024-2029).

The Global Electric Vehicle (EV) Powertrain Market is currently on an upward growth trajectory due to the rising use of electrical automobiles or EVs. The EV powertrain is the central propulsion system of an electric vehicle, which includes major components like the motor, battery pack, inverter, converter, power management system (PMS), and transmission, mostly in the form of reduction gears. The Asia Pacific region is the largest and fastest growing market for EV powertrains because many countries in the region, such as China, Japan, and India, have shown a remarkable shift towards electric vehicles. These factors are as follows: Increasing stringencies of government emissions standards, consumer demand for environmentally sensitive vehicles, and technological developments in battery and electric motor systems bolster the EV powertrain market. Original equipment manufacturers are shifting their attention towards the creation of bespoke EV platforms from the ground up that allow for optimum packaging of battery as well as intelligent internal packaging, besides pursuing an approach of a design-to-cost involving lithium-ion EV powertrains.

  • Amongst the primary factors is a global rise in the sales of electric cars that puts pressure on automakers to rapidly accelerate EV technology. Evidently, due to policies implemented by various governments in a bid to encourage the use of electric vehicles, which include the provision of incentives and the setting of CO2 emissions standards, the call for EVs has gradually been on the rise. This has consequently boosted the market for EV powertrains as vehicle makers continue to expand their capabilities and research in identifying new frontiers to meet the increasing market demands.
  • One of the most critical elements that determine the market is the cost of electric power trains, which is decreasing. Over time, battery technology improved further, and manufacturing technology was adopted on a mass level; the price of electric power trains decreased, making electric vehicles comparatively cheaper and more in demand. The constantly improving usage of lithium-ion batteries, which play a crucial role in electric vehicle power train systems, is a huge prospect for the market. Researchers and development are channeled into enhancing batteries in terms of performance and cost by manufacturing industries, thus boosting the EV powertrain market.
  • Another factor fueling the EV Powertrain Market is the rising sales of hybrid electric vehicles (HEVs) in developed countries. HEVs incorporate an internal combustion engine and one or more electric motors, which allows them to have better fuel economy and reduced emissions compared to standard gasoline automobiles. As awareness about global warming and climate change has increased, and governments continue to set higher emission standards, the demand for HEVs has also increased, thus expanding the EV powertrain market.

EV POWERTRAIN MARKET DRIVERS:

  • The transmission segment by component is likely to be the fastest-growing segment during the forecast period.

The power transmission component market is expected to grow significantly over the next few years, driven by various factors such as the increasing rate of industrialization and urbanization, growing demand for renewable energy, and improving the transmission technology is expected to help the power transmission component market to grow in the coming years. The market is classified into components, and transformers are part of the components singled out to contribute to the market growth. The transformer component segment will experience an increase in growth due to the technological adaptations of new developments and capital-intensive specifications. This segment has grown owing to the emphasis and improvement of grid stability and key aspects of development, such as the reliability and expansion of the micro-grid arrangement with conductor technologies for optimizing performances and parity.

In the global power transmission component market, the transformer component segment is expected to boost the power transmission component segment’s growth. This is because transformers are some of the most important equipment used in power transmission systems. As such, their performance over time, including their efficiency, determines the efficient functioning of the entire system. The growing need for dependable electric supply items as part of the increasing dependency on electrical supply will, in turn, enable the needed product demand to increase and, therefore, contribute to the market growth. Moreover, the growing energy requirements and the deployment of capital in connection with the modernization of electric power grid networks will help further market growth. Altogether, the expansion of the transformer component segment is thought to have a significant influence concerning the progression of the advertisement segment power transmission component market due to the fact that the transformer component is a key segment of power transmission systems.

The battery-electric vehicle segment is likely to be the fastest-growing segment during the forecast period.

Out of all these electric vehicle types, battery electric vehicles (BEVs) are some of the main contributors to the electric vehicle powertrain market growth. The global adoption of BEVs was primarily driven by factors such as zero emissions through the tailpipe, lower operating cost, and increased electric range compared to PHEVs. This concern is because there are future projections of increased demand due to policies that place restrictions on emissions and the increased concern from the public on the environmental impacts of their purchases. The electric vehicle fluids market is being propelled by the BEV segment for cars because these vehicles come with various demanding specifications. BEVs need particular fluid as it is utilized for thermal management, lubrication, and control of electric compatibility concerning state-of-the-art parts. These are meant to reduce corrosion and the formation of deposits on the walls of the cooling system to enable it to work the best it can.

The rising popularity of BEVs also contributes to electric vehicle use. Due to the growth in the manufacture and use of BEVs, it became crucial to have fluids that would solely ensure the efficacy of these automobiles. Companies are making research and development efforts to improve the foundational fluid compositions, optimizing their potential for BEV applications, range, efficiency, and battery lifespan.

In terms of segments, forecasts assume that the BEV segment’s growth will remain sustainable due to battery technology development and charging station availability. This shows that as new BEV technology grows, so will the market for electric vehicle fluids in automotive applications.

EV POWERTRAIN MARKET GEOGRAPHICAL OUTLOOK

  • The Asia Pacific region to dominate the EV powertrain market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. India and China have about 35.5% of the world's population. The Asia-Pacific region is expected to dominate the thermoplastic polyurethane (TPU) film market during the forecast period, owing to the countries mentioned above constituting significant production capacities, which are driving the demand for eco-friendly materials. 

The growth in demand for electric vehicle (EV) powertrains is also forecasted to be the highest among the Asia Pacific (APAC) region. Some of these factors include EV sales quotas and compulsory fuel economy standards that governments continue to impose on automakers in their respective countries. These also include favorable EV incentives on license plate administrations, especially in countries like China and India. In addition, it has lithium resources, which is why investment in battery manufacturing is also being invested now. Tesla also initiated the Model 3 in South Korea at a far more affordable cost because of the encouraging government initiatives, and the market demand increased even more for EV powertrains.

Thus, China is raising its profile as a key player when it comes to the development of the EV powertrain market in the APAC region. The country has put in place high emission standards for vehicles, including the BS-VI in India and China VI in China, which is an aspect that is boosting the market for EV powertrains. Promising collaborations with key players are also contributing to steadfast increases in charging infrastructure across the region and driving the market. For example, Chinese Uber, like rival Didi Chuxing, teamed up with the British oil giant BP to establish charging stations for electric cars in China. It is crucial to highlight that battery makers, including CATL and BYD, used in the making of electric cars in China, are also manufacturing batteries at a cheaper cost than battery manufacturers in other nations, thus propping up the electrification process in the area. India is also likely to see significant growth in the electric vehicle powertrain market.

The EV powertrain market key developments:

  • In April 2023: Incorporated independently in 1989, Modern Automotives set a historic milestone as the first company from India to get approval for the Delivery of Differential Pinion Shafts to BMW AG Munich for Electric Powertrain. The order expects to deliver two. To expand their market share, regional carmakers are expected to grow their production to 5 million units by 2034.
  • In September 2022: Mercedes expanded its performance AMG lineup with the all-new GLC component of its SUV range. The car’s powertrain can be described as being produced using the Mercedes-Benz’s state-of-the-art design in Affalterbach, Germany.
  • In June 2023: Renewable Energy, Lucid Group signed a technology partnership deal with car manufacturer Aston Martin to deliver electric powertrain technology to the latter’s future battery electric vehicles (BEV).

The EV powertrain market is segmented and analyzed as follows:

  • By Component
    • Transmission
    • Motors
    • Battery
  • By Propulsion Type
    • Battery Electric Vehicle
    • Plug-In Hybrid Electric Vehicle
  • By Vehicle
    • Passenger Car
    • Commercial Vehicle
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • United Kingdom
      • Germany
      • France
      • Italy
      • Spain
      • Rest of Europe
    • Middle East and Africa
      • Saudi Arabia
      • Saudi Arabia
      • United Arab Emirates
      • Rest of the Middle East and Africa
    • Asia-Pacific
      • China
      • India
      • Japan
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Rest of Asia-Pacific

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. Increasing Sales of Electric Vehicles are Expected to Drive the market

4.2. Market Restraints

4.2.1. Lack of Infrastructure May Hamper the Growth of the Market 

4.2.2. Threats from Substitutes

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. EV POWERTRAIN MARKET BY COMPONENT

5.1. Introduction

5.2. Transmission

5.3. Motors

5.4. Battery 

6. EV POWERTRAIN MARKET BY PROPULSION TYPE

6.1. Introduction

6.2. Battery Electric Vehicle

6.3. Plug-In Hybrid Electric Vehicle 

7. EV POWERTRAIN MARKET BY VEHICLE

7.1. Introduction

7.2. Passenger Car

7.3. Commercial Vehicle

8. EV POWERTRAIN MARKET BY GEOGRAPHY

8.1. Global Overview

8.2. North America

8.2.1. United States

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Rest of South America

8.4. Europe

8.4.1. United Kingdom

8.4.2. Germany

8.4.3. France

8.4.4. Italy

8.4.5. Spain

8.4.6. Rest of Europe

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. United Arab Emirates

8.5.3. Rest of Middle East and Africa

8.6. Asia-Pacific

8.6.1. China

8.6.2. India

8.6.3. Japan

8.6.4. South Korea

8.6.5. Taiwan

8.6.6. Thailand

8.6.7. Indonesia

8.6.8. Rest of Asia-Pacific

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. GKN PLC (Melrose Industries PLC)

10.2. NVIDIA

10.3.  Magna International Inc.

10.4.  Hitachi Astemo, Ltd. 

10.5.  Bosch Limited 

10.6. Cummins Inc

10.7. AVL List GmbH 

10.8. Mitsubishi Electric Corp 

10.9. BorgWarner Inc. 


GKN PLC (Melrose Industries PLC)

NVIDIA

 Magna International Inc.

 Hitachi Astemo, Ltd. 

 Bosch Limited 

Cummins Inc

AVL List GmbH 

Mitsubishi Electric Corp 

BorgWarner Inc.