The electric powertrain market size is expected to advance at a CAGR of 13.1% during 2024–2030, to reach USD 226.3 billion by 2030.
The increasing propensity for EVs due to the growing environmental concerns and changing lifestyles of the people is the strongest factor driving the market expansion.
An electric powertrain is a set of essential components and mechanisms that aid in providing the motive power to EVs. Battery packs, motors/generators, inverters/converters, and controllers are some of its major components.
Most of the developing economies, such as India and China, which are also highly populous, are vehemently promoting the use of electric vehicles. Additionally, China is already considering banning certain vehicles that operate solely on internal combustion engines. Thus, the demand for electric powertrains is likely to grow substantially in the coming years with the rising production of EVs.
Globally, there has been a significant rise in the pollution levels. According to the Environmental Protection Agency of the U.S., approximately 100 million people in the country live in areas that do not have an adequate air quality. Greenhouse gases are mainly emitted from the burning of fossil fuels for various purposes, such as transportation and the generation of heat and electricity. The rise in industrialization and urbanization levels is also one of the reasons for the increase in emissions and pollution levels.
As a result, most countries are aiming to attain carbon neutrality by 2050. Thus, the governments in various countries are providing certain incentives to encourage citizens to adopt EVs instead of vehicles that rely solely on ICEs. In Norway, exemptions from VAT and registration tax, along with a reduced road tax and parking fees, are available for vehicles with zero emission.
Similarly, in the U.S., there is a provision for a Clean Vehicle Credit, and in Australia, the government has set an objective to convert about 75% of its entire fleet to BEVs by 2025. Moreover, according to an article, some countries, such as Bhutan, Panama, and Suriname, have already reached net zero emission levels.
Electric powertrains are essential in these automobiles as they convert the chemical energy stored in the battery to rotational motion in the motor and transfer that energy to the wheels. Thus, the changing consumer preferences due to the rising awareness regarding the climate are likely to augment the electric powertrain market revenue in the coming years.
The motor/generator category holds a significant market share in 2023, and during the projection period, it is likely to grow at a CAGR of 12.8%. EVs rely on motors for propulsion, whereas HEVs use them in combination with the internal combustion engine. The motor, by driving the generator, creates electricity for the auxiliary functions of vehicles, such as lights, ADAS and infotainment systems, power steering and windows, and HVAC systems. The utility of motors/generators is quite high in EVs, and thus, a rise in the adoption of the latter would subsequently generate the demand for these powertrain components.
Some of the companies operating in the electric powertrain market are Robert Bosch GmbH, Mitsubishi Electric Corporation, BorgWarner Inc., ZF Friedrichshafen AG, Dana TM4 INC., Magna International Inc., Marelli Holdings Co. Ltd., Schaeffler AG, AISIN CORPORATION, and hofer powertrain.