Electric Powertrain Market Size, Share & Trends Analysis Report By Electric Vehicle (BEV, HEV/PHEV), By Component (Motor/Generator, Battery, Power Electronics Controller), By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global electric powertrain market size was exhibited at USD 83.31 billion in 2023 and is projected to hit around USD 348.94 billion by 2033, growing at a CAGR of 15.4% during the forecast period of 2024 to 2033.

Electric Powertrain Market Size 2024 To 2033

Key Takeaways:

  • Asia Pacific captured the largest revenue share of over 58.0% in 2023.
  • The BEV segment accounted for the largest share of around 71% of the overall market in 2023.
  • The battery segment accounted for the largest share of 63.6% in 2023.

Electric Powertrain Market: Overview 

The global electric powertrain market has witnessed significant growth in recent years, driven by a surge in demand for electric vehicles (EVs) and a growing emphasis on sustainable transportation solutions. This comprehensive overview delves into the key factors shaping the electric powertrain market, providing insights into its current landscape and future trajectories.

Electric Powertrain Market Growth

The electric powertrain market is experiencing robust growth, underpinned by several key factors propelling its expansion. A primary driver is the accelerating adoption of electric vehicles (EVs) worldwide, as consumers increasingly seek environmentally friendly transportation solutions. Stringent emission regulations imposed by governments globally contribute significantly, urging automakers to prioritize electric powertrains to meet regulatory standards. Technological advancements in battery technology, marked by enhanced energy density and cost reductions, play a pivotal role in boosting the efficiency and affordability of electric powertrains. Growing consumer awareness regarding environmental concerns and the benefits of EVs further fuels demand. As these factors converge, the electric powertrain market is positioned for sustained growth, aligning with the broader industry shift towards sustainable and eco-conscious mobility solutions.

Electric Powertrain Market Report Scope

 Report Coverage  Details
Market Size in 2024 USD 83.31 Billion
Market Size by 2033 USD 348.94 Billion
Growth Rate From 2024 to 2033 CAGR of 15.4%
Base Year 2023
Forecast Period 2024-2033
Segments Covered Electric Vehicle, Component, Region
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled BorgWarner Inc.; Continental AG; Cummins Inc.; Hitachi Ltd; Magna International Inc.; Marelli Holdings Co., Ltd.

 

Electric Powertrain Market Dynamics

  • Increasing Adoption of Electric Vehicles (EVs):

The electric powertrain market is dynamically shaped by the surging adoption of electric vehicles (EVs) worldwide. With a growing emphasis on sustainable and eco-friendly transportation solutions, consumers are increasingly embracing EVs. This shift is propelled by heightened environmental consciousness and a desire for reduced carbon footprints. As a result, automakers are prioritizing the development and integration of electric powertrains to meet the rising demand for cleaner and more efficient mobility options.

  • Stringent Emission Regulations:

A significant driving force behind the electric powertrain market dynamics is the imposition of stringent emission regulations by governments globally. As environmental concerns escalate, regulatory bodies are enacting stricter norms to curb vehicular emissions. To comply with these regulations, automotive manufacturers are increasingly turning to electric powertrains, which offer a cleaner and more sustainable alternative to traditional internal combustion engines. This regulatory push not only shapes the current landscape of the electric powertrain market but also sets the stage for continued growth as emissions standards continue to evolve.

Electric Powertrain Market Restraint

  • Infrastructure Challenges:

A significant restraint in the electric powertrain market stems from the challenges associated with the development of charging infrastructure. While the demand for electric vehicles is on the rise, the lack of a widespread and efficient charging network can impede market growth. Consumers' concerns about the availability of charging stations and the time required for charging may act as deterrents to the widespread adoption of electric vehicles. Overcoming these infrastructure challenges is crucial for fostering consumer confidence and accelerating the market penetration of electric powertrains.

Cost Barriers:

Cost considerations remain a notable restraint in the electric powertrain market. Despite advancements in battery technology, electric vehicles often come with a higher upfront cost compared to their traditional counterparts. The cost of manufacturing high-capacity and durable batteries contributes significantly to the overall price of electric vehicles, limiting their affordability for a broader consumer base. Overcoming cost barriers through ongoing research and development, economies of scale, and government incentives will be essential for fostering wider acceptance of electric powertrains in the automotive market.

Electric Powertrain Market Opportunity

  • Government Incentives and Policies:

A substantial opportunity in the electric powertrain market lies in the increasing support from governments worldwide through incentives and policies. Many countries are offering financial incentives, tax credits, and subsidies to promote the adoption of electric vehicles, thereby creating a favorable environment for the electric powertrain market. Governments are also investing in charging infrastructure development, further bolstering the prospects of widespread electric vehicle adoption. Capitalizing on these supportive policies presents a significant opportunity for stakeholders in the electric powertrain sector to expand their market share and accelerate the transition to sustainable transportation.

  • Technological Advancements and Innovation:

The ongoing technological advancements in electric powertrain components, particularly in battery technology and electric motors, present a compelling opportunity for market growth. Continuous research and development efforts are focused on enhancing the efficiency, energy density, and lifespan of batteries, making electric vehicles more appealing to consumers. Innovations in power electronics and regenerative braking systems contribute to the overall performance and sustainability of electric powertrains. Companies investing in cutting-edge technologies and embracing innovation have the potential to gain a competitive edge in the market and capitalize on the evolving landscape of electric mobility.

Electric Powertrain Market Challenges

  • Limited Range and Charging Infrastructure:

One of the primary challenges faced by the electric powertrain market revolves around the limited driving range of electric vehicles (EVs) and the associated infrastructure for charging. Range anxiety, or the fear of running out of battery power before reaching a charging station, remains a concern for potential EV buyers. Despite advancements in battery technology, achieving longer ranges on a single charge is an ongoing challenge. Additionally, the need for an extensive and efficient charging infrastructure to support long-distance travel and accommodate the increasing number of electric vehicles on the road is crucial. Overcoming these limitations is essential to addressing consumer concerns and promoting wider EV adoption.

  • High Initial Costs and Affordability:

The high initial costs of electric vehicles pose a significant challenge for the widespread adoption of electric powertrains. While advancements have been made in reducing the cost of electric vehicle components, such as batteries, EVs still tend to have a higher upfront price compared to traditional internal combustion engine vehicles. Affordability remains a critical factor influencing consumer decisions, and until electric vehicles achieve price parity with their conventional counterparts, market penetration may be hindered. Overcoming cost barriers through economies of scale, technological advancements, and supportive government policies will be essential to make electric powertrains more accessible to a broader consumer base.

Segments Insights:

Electric Vehicle Insights

The BEV segment accounted for the largest share of around 71.0% of the overall market in 2023. A battery electric vehicle (BEV) is a vehicle that is powered entirely by electric energy. BEV has no internal combustion engine or fuel tank and runs on an electric drivetrain powered via rechargeable batteries. BEV needs to be plugged into a power source to charge. The high share can be attributed to a decline in the sales of ICE vehicles and the restriction on CO2 targets. Moreover, advancements in battery technology and reduction in Lithium-ion battery prices are also expected to boost the demand for BEVs over the forecast period.

Electric Powertrain Market Share, By End-use, 2023 (%)

The HEV/PHEVs segment is projected to register a CAGR of over 35.9% over the forecast period. Customers are aggressively adopting PHEVs to exploit various benefits, such as a more powerful electric motor and a larger battery that are quickly recharged with the help of an external source of power associated with PHEV. They serve as a flexible and convenient option for consumers. These vehicles are designed to enhance the use of the internal combustion engine in interaction with a low-range, High Voltage (HV) electric powertrain. All these factors bode well for the growth of the segment over the forecast period.

Component Insights

The battery segment accounted for the largest share of 63.6% in 2023. The battery is the most prominent component when it comes to the electrification of vehicles. It is either used as the sole power source in BEVs or is combined with other power sources in green vehicles. In BEVs, the battery pack constitutes around 50% of the total cost. Increasing demand for electric vehicles, improvement in battery technology, and supporting government policies are major factors responsible for market growth in this segment.

The motor/generator segment is projected to register a CAGR exceeding 30% over the forecast period. The demand for e-motors is driven by the increased penetration of BEVs and PHEVs globally. These vehicles can be equipped with similar e-motor configurations. Moreover, suppliers and OEMs are likely to leverage the growing demand for electric powertrains by forming joint ventures for the development of e-motors. For instance, in 2019, Nidec Corp., an e-motor manufacturer with GAC Components Co., Ltd., formed a joint venture to manufacture automotive traction motors.

Regional Insights

Asia Pacific captured the largest revenue share of over 58.0% in 2023. Countries such as China, Japan, South Korea, and India are among the prominent automobile manufacturers in this region. Stringent government regulations and emission norms to solve the global warming issues resulting from substantial Co2 emissions are expected to contribute to the growth of the Asia-PacificElectric Powertrain Market Share, By Region 2023 (%) market.

 

Furthermore, the growing adoption of electric vehicles in countries such as India and China is expected to boost the demand. Countries such as China are increasingly focusing their efforts on developing their electric infrastructure. For instance, China's Didi Chuxing (DiDi) and BP, a British gas, energy, and oil company, entered into a joint venture to develop electric vehicle charging infrastructure in China. Such strategic collaborations are expected to encourage the adoption of electric cars.

Europe is anticipated to emerge as a significant market for electric powertrains over the forecast period, owing to the presence of numerous OEMs in the region. Countries such as the Netherlands, Norway, France, and Sweden have witnessed high adoption of EVs, which is likely to contribute to the growth of the electric powertrain industry in the region.

Countries such as France, Norway, Sweden, and the Netherlands have witnessed high adoption of electric vehicles, which is likely to contribute to the market's growth in this region. Germany is one of the largest automotive hubs globally, most automobile manufacturers such as Audi AG, Volkswagen AG, and BMW AG, among others, are focusing on the production and sales of electric vehicles, leading to an increase in demand for electric vehicles powertrains.

North America also witnesses high adoption of electric vehicles. The region is characterized by the presence of major players such as Tesla, Chevrolet, and Ford. Moreover, the U.S. and other countries have developed infrastructure for electric vehicles, such as charging stations, also known as Electric Vehicle Supply Equipment (EVSE). These factors are expected to boost the demand in the market.

Some of the prominent players in the electric powertrain market include:

  • BorgWarner
  • Bosch Limited
  • Mitsubishi Electric Corp
  • Magna International Inc.
  • Schaeffler AG
  • ZF Friedrichshafen AG
  • Valeo
  • Nidec Corporation
  • Continental AG
  • Magneti Marelli Ck Holdings

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global electric powertrain market.

Electric Vehicle

  • BEV
  • HEV/PHEV

BEV Electric Powertrain Component

  • Motor/Generator
  • Battery
  • Power Electronics Controller
  • Converter
  • Transmission
  • On-Board Charger

HEV/PHEV Electric Powertrain Component

  • Motor/Generator
  • Battery
  • Power Electronics Controller
  • Converter
  • Transmission
  • On-Board Charger

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The global electric powertrain market size was exhibited at USD 83.31 billion in 2023 and is projected to hit around USD 348.94 billion by 2033,

The global electric powertrain market is expected to grow at a compound annual growth rate of 15.4% from 2024 to 2033 to reach USD 348.94 billion by 2033.

BorgWarner Inc.; Continental AG; Cummins Inc.; Hitachi Ltd; Magna International Inc.; Marelli Holdings Co., Ltd.

Chapter 1. Methodology and Scope

1.1. Research Methodology

1.2. Information Procurement

1.2.1. Purchased Database

1.2.2. Internal Database

1.2.3. List of Primary Sources

1.2.4. List of Secondary Sources

1.3. Information Analysis

1.3.1. Data Analysis Model

1.4. Market Formulation & Data Visualization

1.5. Data Validation & Publishing

Chapter 2. Executive Summary

2.1. Market Summary

Chapter 3. Electric Vehicle Powertrain Market Variables, Trends & Scope

3.1. Market Segmentation

3.2. Market Size And Growth Prospects

3.3. Global Electric Vehicle Powertrain Market Dynamics

3.3.1. Market Driver Analysis

3.3.2. Market Restraints Analysis

3.3.3. Market Opportunity Analysis

3.4. Industry Value Chain Analysis

3.5. Penetration And Growth Prospect Mapping

3.6. Electric Vehicle Powertrain Market Key Company Ranking Analysis, 2022

3.7. Market Analysis Tools

3.7.1. Electric Vehicle Powertrain Industry Analysis - Porter’s

3.7.2. Electric Vehicle Powertrain Industry Analysis - PEST Analysis

3.8. Impact Of COVID-19 On the Electric Vehicle Powertrain Market

Chapter 4. Electric Vehicle Powertrain Market: Component Outlook

4.1. Market Size Estimates & Forecasts And Trend Analysis, 2021 - 2033

4.2. Motor/Generator

4.2.1. Market Estimates And Forecasts By Region, 2021 - 2033

4.3. Battery

4.3.1. Market Estimates And Forecasts By Region, 2021 - 2033

4.4. Power Electronic Controller

4.4.1. Market Estimates And Forecasts By Region, 2021 - 2033

4.5. Converter

4.5.1. Market Estimates And Forecasts By Region, 2021 - 2033

4.6. Transmission

4.6.1. Market Estimates And Forecasts By Region, 2021 - 2033

4.7. On-Board Charger

4.7.1. Market Estimates And Forecasts By Region, 2021 - 2033

Chapter 5. Electric Vehicle Powertrain Market: Vehicle Outlook

5.1. Market Size Estimates & Forecasts And Trend Analysis, 2021 - 2033

5.2. BEV

5.2.1. Market Estimates And Forecasts By Region, 2021 - 2033

5.3. HEV/PHEV

Chapter 6. Electric Vehicle Powertrain Market: Regional Outlook

6.1. Electric Vehicle Powertrain Market, By Region, 2024 & 2033

6.2. North America

6.2.1. Market Estimates And Forecasts By Country, 2021 - 2033

6.2.2. Market Estimates And Forecasts By Component, 2021 - 2033

6.2.3. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.2.4. U.S.

6.2.4.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.2.4.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.2.5. Canada

6.2.5.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.2.5.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.3. Europe

6.3.1. Market Estimates And Forecasts By Country, 2021 - 2033

6.3.2. Market Estimates And Forecasts By Component, 2021 - 2033

6.3.3. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.3.4. U.K.

6.3.4.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.3.4.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.3.5. Germany

6.3.5.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.3.5.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.4. Asia Pacific

6.4.1. Market Estimates And Forecasts By Country, 2021 - 2033

6.4.2. Market Estimates And Forecasts By Component, 2021 - 2033

6.4.3. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.4.4. China

6.4.4.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.4.4.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.4.5. India

6.4.5.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.4.5.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.4.6. Japan

6.4.6.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.4.6.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.4.7. South Korea

6.4.7.1. Market Estimates And Forecasts By Component, 2021 - 2033

6.4.7.2. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.5. Latin America

6.5.1. Market Estimates And Forecasts By Country, 2021 - 2033

6.5.2. Market Estimates And Forecasts By Component, 2021 - 2033

6.5.3. Market Estimates And Forecasts By Vehicle, 2021 - 2033

6.6. Middle East And Africa

6.6.1. Market Estimates And Forecasts By Country, 2021 - 2033

6.6.2. Market Estimates And Forecasts By Component, 2021 - 2033

6.6.3. Market Estimates And Forecasts By Vehicle, 2021 - 2033

Chapter 7. Competitive Landscape

7.1. BorgWarner Inc.

7.1.1. Company Overview

7.1.2. Financial Performance

7.1.3. Product Benchmarking

7.1.4. Recent Developments

7.2. Gentex Corporation Continental AG

7.2.1. Company Overview

7.2.2. Financial Performance

7.2.3. Product Benchmarking

7.2.4. Recent Developments

7.3. Cummins Inc.

7.3.1. Company Overview

7.3.2. Financial Performance

7.3.3. Product Benchmarking

7.3.4. Recent Developments

7.4. Dana Incorporated

7.4.1. Company Overview

7.4.2. Financial Performance

7.4.3. Product Benchmarking

7.4.4. Recent Developments

7.5. Hitachi Ltd

7.5.1. Company Overview

7.5.2. Financial Performance

7.5.3. Product Benchmarking

7.5.4. Recent Developments

7.6. Magna International Inc.

7.6.1. Company Overview

7.6.2. Financial Performance

7.6.3. Product Benchmarking

7.6.4. Recent Developments

7.7. Marelli Holdings Co., Ltd.

7.7.1. Company Overview

7.7.2. Financial Performance

7.7.3. Product Benchmarking

7.7.4. Recent Developments

7.8. Mitsubishi Electric Corporation

7.8.1. Company Overview

7.8.2. Financial Performance

7.8.3. Product Benchmarking

7.8.4. Recent Developments

7.9. Robert Bosch GmbH

7.9.1. Company Overview

7.9.2. Financial Performance

7.9.3. Product Benchmarking

7.9.4. Recent Developments

7.10. Valeo SA

7.10.1. Company Overview

7.10.2. Financial Performance

7.10.3. Product Benchmarking

7.10.4. Recent Developments

7.11. ZF Friedrichshafen AG

7.11.1. Company Overview

7.11.2. Financial Performance

7.11.3. Product Benchmarking

 

7.11.4. Recent Developments

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