EV Powertrain Market Size
| Study Period | 2018-2027 |
| Market Size (2023) | USD 159.89 Billion |
| Market Size (2028) | USD 361.17 Billion |
| CAGR (2023 - 2028) | 17.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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EV Powertrain Market Analysis
The Electric Vehicle Powertrain Market size is expected to grow from USD 159.89 billion in 2023 to USD 361.17 billion by 2028, at a CAGR of 17.70% during the forecast period (2023-2028).
- The COVID-19 pandemic had a negative impact on the market due to the global lockdown and social distancing norms, which halted the research and production from the assembly lines of many OEMs. This led to the downfall of automobile sales as a whole and, consequently, the electric vehicle powertrain market. However, with the rising inclination towards electric vehicles worldwide, the market is expected to revive economically and grow significantly during the forecast period.
- For instance, in July 2023, IC Bus introduced the next-generation CE Series school bus, a redesigned and updated version of its flagship CE Series. The all-new CE Series' electric powertrain provides a quieter ride for drivers and passengers, as well as three levels of selectable regenerative braking for a smoother ride, battery efficiency, and operating experience. The electric powertrain option has a peak power of 255 kW (342 hp) and is ready for alternating current (AC) and direct current fast charging (DCFC).
- Over the long term, the market for electric vehicles is expected to expand at a high rate, creating a high demand for automotive electric powertrains. There has been tremendous growth in electric vehicles all over the world. Major automotive component manufacturers have been investing in electric axle drives to capitalize on the increasing sales of electric and hybrid vehicles to increase their market share. Companies have been increasing production capacity, particularly in large electric vehicle markets, such as China, the United States, and the European region.
- Massive investments in electric vehicles by major automotive companies, such as Toyota, Honda, Tesla, General Motors, and Ford, are expected to drive the electric motor market in the near future. Additionally, the evolving partnerships between motor manufacturers and automotive companies are expected to expand the electric vehicle powertrain market globally.
- For instance, in July 2023, McLaren Applied Ltd. and BOLD announced a collaboration to create high-performance electric powertrains. McLaren Applied has joined forces with BOLD to capitalize on the latter's expertise in designing and manufacturing high-performance, lightweight battery pack systems.
- The electric motor market is expected to face challenges in procuring rare earth metals used in permanent magnets for synchronous motors, as the metals used in these motors are subject to export restrictions and supply risks. Apart from the growing activities in developing electric vehicles in the global market, depleting oil and gas reserves is also one of the major factors driving the automakers to shift from IC powertrain to electric powertrain.
EV Powertrain Market Trends
Increasing Sales of Electric Vehicles are Expected to Drive the Market
- The expanding market for electric and hybrid vehicles is a major driver for the automotive powertrain market. There has been tremendous growth in the electric vehicle market all over the world.
- The sales of electric vehicles are expected to rise, owing to a fall in the costs of batteries and technological improvements, like increased storage capacity, which has led to consumer adoption. As global temperatures are rising at an alarming rate, governments and industries worldwide have pledged to reduce greenhouse gas emissions.
- Global plug-in vehicle sales reached 2,986,659 units in 2020, as opposed to a lower 2,123,872 units of total electric vehicles sold worldwide. This clearly shows the rising trend of electric vehicle growth in the market and the projected increase in market opportunities for the electric powertrain market.
- The transportation sector has been one of the major focus areas, as transportation and mobility account for the second-largest share in emissions after electricity generation. The production and sales of electric vehicles globally have been growing rapidly, owing to a favorable regulatory environment, such as subsidies and tax exemptions for the industry and consumers in the European and Asia-Pacific regions.
- Governments of major automotive markets, such as China and India, have pledged to allow only electric vehicles on their roads by 2030. Major automakers have also increased their investments in the development of electric vehicles to cater to the anticipated growth in demand for such cars in the coming decade. Volvo Motors announced that starting in 2020, the company will develop and manufacture only hybrid and electric vehicles.
China is Expected to Become the Largest Market for Electric Vehicles
- The market for electric drive axles is dependent on the sales of electric and hybrid vehicles. China remains the dominant player globally, in the pure electric vehicle market, with Europe closely following in the pure electric vehicles segment in 2020.
- China is still the largest growth contributor, with 931,291 units of battery-electric cars added to the total number of electric battery vehicles present in the country, while 228,291 units of new PHEVs were sold in 2020. The steep increase in sales is directly attributed to the stringent emission laws, rising pollution levels, and increased awareness of the benefits of electric vehicles.
- With the increasing sales of electric vehicles, automakers are introducing a greater number of such vehicles with advanced functionalities. Although the growth of the Chinese market in 2018 had been sluggish owing to changes in regulatory policy, production is expected to bounce back as automakers absorb these changes with price adjustments. China remained the leader globally in the commercial vehicle segment, with over 90% of electric buses being sold in China.
- Electric powertrain manufacturers worldwide are entering the Chinese market to capitalize on the increasing demand for electric vehicles by establishing joint ventures and partnerships with local electric vehicle manufacturers. For example, Magna International entered into an agreement with Huayu Automotive Systems to expand its electric drive footprint in China.
EV Powertrain Industry Overview
Few players, such as Robert Bosch GmbH, ZF Friedrichshafen AG, Cummins Inc., Dana Incorporated, GKN PLC, and Magna International, dominate the electric vehicle powertrain market. The players are making partnerships, acquisitions, and launching new products to be ahead of the competition.
For instance, in August 2021, Bosch announced its plans to improve battery equipment production to enable the output from a single source to generate annual revenue of EUR 250 Million.
EV Powertrain Market Leaders
Hitachi Automotive Systems Ltd
Robert Bosch
Magna International
Cummins Inc.
GKN PLC
*Disclaimer: Major Players sorted in no particular order
EV Powertrain Market News
April 2023: Modern Automotives, an Indian motor vehicle parts manufacturing company, has become the first Indian firm to achieve approval for deliveries of Differential Pinion Shafts to BMW AG Munich for the electric powetrain. The order plans to deliver 2.5 million units by 2034.
July 2021: GKN Automotive (GKN PLC) announced the development of modular 800V e-drivetrains in July 2021. The company claims to provide faster charging times, increased driving range, and better car performance with these drivetrains.
EV Powertrain Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Component
5.1.1 Transmission
5.1.2 Motors
5.1.3 Battery
5.2 Propoulsion Type
5.2.1 Battery Electric Vehicle
5.2.2 Plug-In Hybrid Electric Vehicle
5.3 Vehicle
5.3.1 Passenger Car
5.3.2 Commercial Vehicle
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Norway
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Hitachi Automotive Systems Ltd
6.2.2 BorgWarner Inc.
6.2.3 Bosch Limited
6.2.4 AVL List GmbH
6.2.5 Mitsubishi Electric Corp
6.2.6 Magna International Inc.
6.2.7 Cummins Inc.
6.2.8 GKN PLC (Melrose Industries PLC)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
EV Powertrain Industry Segmentation
A powertrain is a set of components that generate power to move the vehicle. The electric powertrain encompasses the battery & electric motor and offers transmission of power, which is used to produce the power that is further utilized to drive or move the vehicle. The electric powertrain of a vehicle is defined by its performance, comfort, and safety.
The electric vehicle powertrain market is segmented by component type (transmission, motors, and battery), by propulsion type (battery electric vehicle and plug-in hybrid electric vehicle), by vehicle type (passenger car and commercial vehicle), and geography.
The report offers market size and forecasts for electric vehicle powertrain in terms of value (USD billion) for all the above segments.
| Component | |
| Transmission | |
| Motors | |
| Battery |
| Propoulsion Type | |
| Battery Electric Vehicle | |
| Plug-In Hybrid Electric Vehicle |
| Vehicle | |
| Passenger Car | |
| Commercial Vehicle |
| Geography | |||||||
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EV Powertrain Market Research FAQs
How big is the Electric Vehicle Powertrain Market?
The Electric Vehicle Powertrain Market size is expected to reach USD 159.89 billion in 2023 and grow at a CAGR of 17.70% to reach USD 361.17 billion by 2028.
What is the current Electric Vehicle Powertrain Market size?
In 2023, the Electric Vehicle Powertrain Market size is expected to reach USD 159.89 billion.
Who are the key players in Electric Vehicle Powertrain Market?
Hitachi Automotive Systems Ltd, Robert Bosch, Magna International, Cummins Inc. and GKN PLC are the major companies operating in the Electric Vehicle Powertrain Market.
Which is the fastest growing region in Electric Vehicle Powertrain Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (20211-2027).
Which region has the biggest share in Electric Vehicle Powertrain Market?
In 20211, the Asia Pacific accounts for the largest market share in Electric Vehicle Powertrain Market.
EV Powertrain Industry Report
Statistics for the 2023 EV Powertrain market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. EV Powertrain analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
