Global Electric Powertrain Market By Electric Vehicle Type (BEV Component, HEV/PHEV Component, and 48V MHEV Component), By Powertrain Type (MHEV Powertrain, BEV Powertrain, Parallel Hybrid Powertrain, Series Hybrid Powertrain, and Series-Parallel Hybrid Powertrain), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Electric Powertrain market size is expected to be worth around USD 1,015 billion by 2032 from USD 103 billion in 2022, growing at a CAGR of 26% during the forecast period from 2023 to 2032.

The electric powertrain systems comprise the major components that deliver and generate power to the road surface for plug-in electric, fully electric, and hybrid electric vehicle applications. All electric cars use electric motors, which possess massive traction batteries, instead of an internal combustion engine. The increasing CO2 emissions result in global warming, which further leads to the gradual depletion of global oil deposits, thus increasing oil prices substantially. Thus, the green energy trend is increasing globally for environmental protection and energy saving.

The e-powertrain concentrates on decreasing carbon emissions and low energy consumption. Thus, the increasing awareness about global warming will likely propel the growth of the market. The factors such as the adoption of light-weighted driving shafts, technological advancements in battery production technology, and a rise in demand for enhanced driving experiences will boost the growth of the global electric powertrain market.

Note: Actual Numbers Might Vary in the final report

Key Takeaways

• Staggering Growth: The global electric powertrain market is expected to experience rapid expansion with compound annual growth rates from 2023-2032, reaching an estimated value of USD 1,015.87 billion from USD 103 billion in 2022.
• Increased Environmental Concerns: Increases in CO2 emissions and global warming have, along with depletion of oil reserves and skyrocketing oil prices, resulted in greater demand for electric powertrains as an environmentally friendly solution.
• Market Segmentation: The market can be divided into electric vehicle type and powertrain type segments. Battery Electric Vehicles (BEVs) held 72% of revenue share, while Mild Hybrid Electric Vehicles (MHEVs) made up the greatest share in terms of powertrain types – accounting for 39% in this regard.
• Driving Factors: Strict regulations pertaining to vehicular emissions by governments, combined with rising sales of electric vehicles and fuel costs are driving growth in the electric powertrain market.
• Challenges Faced: Procurement of battery elements such as cobalt and lithium remains a significant challenge for the widespread adoption of electric vehicles, leading to higher costs in the production of electric vehicles.
• Market Opportunities: The increasing demand for electric vehicles, supported by strict emission rules, environmental awareness, and escalating fuel prices, provides ample opportunities for market growth.
• Technological Trends: Manufacturers are focusing on a design-to-cost approach for electric vehicle powertrain simulation and are developing native platforms for electric vehicles to optimize battery packaging and interior space.
• Regional Insights: Asia Pacific holds a revenue share of around 57%, followed by Europe and North America. China and India’s increased focus on electric infrastructure investments combined with key players present in North America is propelling market expansion within these regions.
• Biggest Top Market Players: Leading players in the electric powertrain market include BorgWarner Inc., Schaeffler AG, Magna International Inc., Continental AG, Marelli Holdings Co., Ltd., ZF Friedrichshafen AG, Nidec Corporation, and Mitsubishi Electric Corporation, among others.
• Recent Developments: Industry developments include partnerships for the development of electric powertrain solutions, expansion plans by major market players, and acquisitions aimed at enhancing electric drive technology.

Electric Vehicle Type Analysis

The BEV Segment Dominated the Market with the Highest Revenue Share

The BEV segment held the highest revenue share of around 72%, owing to the restriction on CO2 targets and the sales of ICE vehicles. BEV stands for battery electric vehicle. It is a vehicle that is charged completely by electric energy, and it needs to be plugged into a power source to charge. Furthermore, the reduction in prices of Lithium-ion batteries and innovations in battery technology was estimated to propel the demand for BEVs during the forecast period.

The HEV/PHEV segment is estimated to have a CAGR of 37.8% over the forecast period 2023-2032. Customers are significantly adopting HEV to get numerous benefits, like a larger battery and powerful electric motor. They serve as a convenient and flexible option for consumers. It was designed to increase the use of the internal combustion engine in interaction with high voltage and low range electric powertrains. Due to these factors, the growth of the segment was estimated to grow over the forecast period.

Powertrain Type Analysis

MHEV Segment Accounted for The Largest Share of the Market

During the forecast period, 48V MHEV was expected to have the largest share of 39% of the market. MHEV stands for a mild hybrid electric vehicle. Due to the restrictions on CO2 targets and the reduction in diesel-powered vehicles, the growth of the segment was driven. As per the emission analytics, the high adoption of mild hybrids in place of BEVs is an effective solution to decrease emissions. Also, the easy addition of a 48V MHEV powertrain into a current ICE vehicle architecture has expanded the market in mild hybrid vehicles. Additionally, the development of Lithium-ion batteries, along with cost reduction, has boosted the MHEV powertrain segment market.

Note: Actual Numbers Might Vary in the final report

Key Market Segments

Based on Electric Vehicle Type

• BEV Component
  • Motor/Generator
  • Power Electronics Controller
  • Battery
  • Converter
  • Other BEV Component
• HEV/PHEV Component
  • Motor/Generator
  • Power Electronics Controller
  • Battery
  • Converter
  • Other HEV/PHEV Components
• 48V MHEV Component
  • 12V Battery
  • 48V Battery
  • Battery Management System
  • Other 48V MHEV components

Based on Powertrain Type

• MHEV Powertrain
• BEV Powertrain
• Parallel Hybrid Powertrain
• Series Hybrid Powertrain
• Series-Parallel Hybrid Powertrain

Drivers

Stringent Regulations for Vehicular Emissions by Government

Increasing carbon emissions levels from various automobiles leads to severe depletion of the quality of air, which severely affects human health as well as the environment. Thus, globally several government bodies have implemented several stringent regulations on automotive manufacturers. These factors have influenced manufacturers to provide cost-effective alternatives to customers by increasing R&D for electric vehicles. This has propelled the growth of the market.

Increasing Sales of Electric Vehicles and Rising Prices of Fuel

The environmental concerns and continuous increases in fuel prices result in a huge shift of customers towards electric mobility solutions, especially in emerging countries. Thus, auto manufacturers have focused on the development of compact and lightweight e-powertrain solutions, which are beneficial for everyday transportation. Moreover, the mass adoption of electric vehicles, several government policies, and incentives for government support are estimated to boost market growth.

Restraints

Procurement of Battery Elements

Procurement of battery elements is one of the factors which slows down the adoption of electric vehicles around the globe. Cobalt and lithium are the key elements of the Battery and are available in limited regions. Lithium was obtained in China, Latin America, and Australia, whereas cobalt is mostly found in DRC. It is difficult to procure these elements. Also, several government norms that control the supply chain and transportation costs made it difficult to procure the elements. Moreover, it is challenging to make a battery cost-effective and high performing. This results in less attractive and more expensive electric vehicle production.

Opportunities

Increasing Demand for Electric Vehicles

The prominent players in the market are developing electric care as it is getting more and more popular. Due to the increased profit in the market, numerous traditional car companies are investing in the production of electric cars. It will result in the growth of the global electric powertrain market. Also, the strict emission rules, awareness regarding the environment, increasing prices of fuel, and increasing sales of electric cars will boost market expansion. For instance, Renault group and Bosch car companies have taken the initiative to focus on adding electrified vehicles in their product lines and implement vehicle electrification. This is expected to boost the demand for vehicle electrification.

Trends

Design to Cost Approach

For the electric vehicle powertrain simulation, original equipment manufacturers are widely developing an electric vehicle design-to-cost approach. This trend was primarily developed in second-generation electronic vehicles. The DTC approach majorly concentrates on the factors such as component integration in the e-powertrain and smarter use of light weighted materials in the structural parts.

Building Native Platforms for Electronic Vehicles

The manufacturers are focusing on developing native platforms for electric vehicles. Non-native electric vehicles limit in energy capacity, while native electric vehicles have larger interior space and optimized battery packaging. Thus, manufacturers are making huge investments in these areas. This will have a positive impact on the growth of the market.

Regional Analysis

Asia Pacific Held the Largest Revenue Share of the Market

Asia Pacific is accounted for the largest revenue share of 57% of the overall market. The prominent automobile manufacturers in these regions are the countries such as India, China, South Korea, and Japan. Emissions norms and stringent government regulations are the major factors that will likely solve the global warming issue. This is estimated to increase in growth of the market in APAC.

Moreover, the increasing implementation of electric vehicles in countries like China and India is estimated to propel the demand of the market in this region. Numerous countries like China are extensively concentrating on improving their electric infrastructure. For example, China’s DiDi Chuxing and BP, a British energy, oil, and gas company, have entered into a joint scheme to enhance electric vehicle charging platforms in China. Strategic collaborations like this were estimated to increase the implementation of electric cars.

Europe is estimated to develop at a significant CAGR during the forecast period. This is due to the presence of original equipment manufacturers in the market. Numerous countries like Norway, Sweden, Netherlands, and France have observed the huge implementation of electronic vehicles, and it will likely boost the growth of the market in this region.

North America was highly adopting electronic vehicles. This region is characterized by the presence of prominent players such as Ford, Tesla, and Chevrolet. Furthermore, the US and other countries have advanced infrastructure for EVs, like charging stations, it is as called Electric Vehicle Supply Equipment. All these factors are estimated to drive the growth of the market in this region.

Note: Actual Numbers Might Vary in the final report

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Magna International Inc. Declared Its Expansion in Slovakia

Numerous international electric vehicle manufacturers are investing and increasing their production units in the region. In August 2020, Magna International Inc. declared its expansion in Slovakia, Europe. To develop powertrain metal forming solutions, the company introduced the construction of a manufacturing facility in Slovakia. A few market players in the market are Robert Bosch GmbH, Dana Incorporated, Bosch Limited, Mitsubishi Electric Corp, Cummins Inc., AVL LIST GmbH, and others. Listed below are some of the most prominent electric powertrain market players.

Market Key Players

• BorgWarner Inc.
• Schaeffler AG
• Magna International Inc.
• Continental AG
• Marelli Holdings Co., Ltd.
• ZF Friedrichshafen AG
• Nidec Corporation
• Mitsubishi Electric Corporation
• Other Key players

Recent Developments

• In July 2021- A expert in powertrain as well as automotive development for hardware and software, FEV, entered into a long-term agreement with Hyliion, which is an electronic powertrain provider. This partnership is estimated to support the integration, development, design, and production validation of its ERE for class-8 tractor-trailer applications.
• In July 2021- Mercedes-Benz, which is a German automaker, declared its acquisition of Yasa, it is a next-generation electric drive technology. The company offers the automotive industry, hybrid and electric powertrain solutions. Yasa will be operating as a subsidiary of Mercedes-Benz.

Report Scope