Electric Powertrain Industry Overview

The global electric powertrain market size was valued at USD 83.30 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 15.3% from 2023 to 2030.

The COVID-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the electric powertrain industry due to low automotive sales and new requirements. However, stringent emission norms by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), BS-VI norms in India, and China VI, are driving the market growth. The post-COVID-19 recovery in the sales of pure and hybrid electric vehicles is a prominent driving factor for the growth of the electric powertrain industry. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production of electric vehicles is also anticipated to boost the demand for electric powertrains globally.

Gather more insights about the market drivers, restrains and growth of the Electric Powertrain Market

Electric vehicles are the future of the automotive market as traditional fuel vehicles are expected to phase out over the coming years. These vehicles are gaining traction as they provide improved environmental benefits and lower total cost of ownership compared to their internal combustion engine vehicle counterpart. Numerous countries have come up with stringent policies to encourage the adoption of alternative fuel vehicles, including electric vehicles.

In the past decade, the automotive industry comprised of the same internal combustion engine powertrain. However, the industry now is a broad powertrain mix as it has been shifting toward more efficient and environmentally friendly transportation. The automotive powertrain portfolio is diversified and includes many pure electric and hybrid powertrains. Additionally, the overall powertrain landscape is becoming more dynamic and complex with the emergence of electric powertrains.

The growing adoption of electric powertrains can be determined by four factors: infrastructure, regulations, consumer preference, and technology. The penetration of PHEVs and BEVs would strongly determine the future adoption of electric powertrains globally. Regulations for monitoring CO2 emissions are becoming more demanding in the U.S. and Europe.

Europe has set its emission limit to 95 g/km by 2020 and an additional reduction of 37.5% by 2030, resulting in a limit of 59 g/km. Meanwhile, North America has set the emission limit to 99 g/km following Corporate Average Fuel Economy (CAFE) standards for passenger-vehicle till 2025. To efficiently meet emission targets and avoid penalties, OEMs would have to increase the sales of electrified vehicles over the coming years.

Innovations in battery technologies have made electric vehicles more competitive than conventional ICE vehicles by providing an increased range on a single charge. Batteries are an integral part of the electric powertrain system. They constitute a significant portion of the total cost of electric cars, and their cost has reduced significantly due to technological advancements, production process optimization, and economies of scale. With the price expected to decline over the forecast period, EVs are expected to reach a Total Cost Ownership (TCO) parity, paving the way for the mass-market penetration of electric vehicles.

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• The global automotive powertrain market size was valued at USD 792.0 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.8% from 2023 to 2030.
• The global CNG powertrain market size was valued at USD 71.99 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.2% from 2022 to 2030.

Electric Powertrain Market Segmentation

Grand View Research has segmented the global electric powertrain market based on electric vehicles, components, and regions:

Electric Powertrain Electric Vehicle Outlook (Volume, Units; Revenue, USD Billion, 2018 - 2030)

• BEV
• HEV/PHEV

BEV Electric Powertrain Component Outlook (Revenue, USD Billion, 2018 - 2030)

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

HEV/PHEV Electric Powertrain Component Outlook (Revenue, USD Billion, 2018-2030)

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

Electric Powertrain Regional Outlook (Volume, Units; Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
• Middle East & Africa

Key Companies profiled:

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

Key Electric Powertrain Company Insights

Key players that dominated the global electric powertrain industry in 2022, include BorgWarner, ZF Friedrichshafen AG, Schaeffler AG, Mitsubishi Electric Corp., and Magna International Inc. These players are pursuing various organic and inorganic growth strategies, such as mergers & acquisitions, strategic partnerships, and new product launches, to strengthen their foothold in the market. For instance, In October 2020, Continental AG’s Powertrain segment Vitesco Technologies announced the launch of a new transmission control system. It is the world’s first transmission control system equipped with over molding control electronics technology.

Several international electric vehicle manufacturers are investing and expanding their production units in the country. For instance, in August 2020, Magna International Inc. announced the expansion of its powertrain business in Slovakia, Europe. The company initiated the construction of the manufacturing facility in Slovakia to develop powertrain metal forming solutions.

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