The global electric powertrain market is estimated to be valued at US$ 75.3 billion in 2022 and is expected to exhibit a CAGR of 16.4% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
The electric powertrain market refers to the components and systems used to propel electric vehicles. Electric powertrains consist of an electric motor, power electronics, and a battery pack. The growing concern for environmental sustainability, coupled with government initiatives to reduce carbon emissions, has led to a significant increase in the demand for electric vehicles. Electric powertrains offer numerous advantages over traditional combustion engines, including lower emissions, higher efficiency, and reduced operating costs. The need for clean and sustainable transportation solutions has boosted the demand for electric powertrains in the market.
Market Key Trends:
One key trend in the electric powertrain market is the increasing adoption of electric vehicles in emerging economies. Rising urbanization, improving infrastructure, and growing disposable incomes have led to a surge in the demand for electric vehicles in countries like China and India. Government incentives and subsidies for electric vehicle adoption have further accelerated this trend. As a result, major automotive players are expanding their production capacity and investing in electric powertrain technologies to cater to the growing market demand in these regions.
Overall, the electric powertrain market is poised for significant growth in the coming years, driven by the increasing demand for electric vehicles and the shift towards sustainable transportation solutions.
The threat of new entrants: The electric powertrain market faces a moderate threat of new entrants. While the market is witnessing significant growth, the presence of established players and high entry barriers such as high capital investment and technological expertise make it challenging for new entrants to penetrate the market.
Bargaining power of buyers: The bargaining power of buyers in the electric powertrain market is relatively high. This is due to the availability of multiple suppliers offering similar products and services. Buyers have the ability to negotiate for better prices and quality, which could impact the profitability of suppliers in the market.
Bargaining power of suppliers: The bargaining power of suppliers in the electric powertrain market is moderate. While suppliers provide critical components and technology for powertrain systems, there are multiple suppliers available in the market, giving buyers the option to switch suppliers if necessary. However, suppliers with unique and patented technologies may have more bargaining power.
Threat of new substitutes: The threat of new substitutes in the electric powertrain market is relatively low. While there may be alternative technologies, such as hydrogen fuel cells or hybrid systems, these substitutes are still at a nascent stage and lack widespread adoption and infrastructure support. As a result, electric powertrains remain the dominant choice for the transportation sector.
Competitive rivalry: The electric powertrain market is highly competitive, with several key players vying for market share. The presence of established players, such as Borgwarner Inc., Continental Ag, and Robert Bosch Gmbh, creates intense competition. Innovation, product differentiation, and cost-effectiveness are key strategies adopted by players to gain a competitive edge.
The global electric powertrain market is expected to witness high growth, exhibiting a CAGR of 16.4% over the forecast period from 2022 to 2030. This growth can be attributed to various factors, including increasing government initiatives and regulations promoting the adoption of electric vehicles (EVs) and the rising demand for fuel-efficient and sustainable transportation solutions. For example, countries like China and India have implemented stringent emission regulations, driving the demand for electric powertrains.
In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the electric powertrain market. This can be attributed to the presence of major EV manufacturers in countries like China, Japan, and South Korea, along with supportive government policies and investments in charging infrastructure.
Key players operating in the electric powertrain market include Borgwarner Inc., Continental Ag, Magna International Inc., Marelli Holdings Co Ltd., Mitsubishi Electric Corporation, Nidec Corporation, Robert Bosch Gmbh, Schaeffler Group Usa Inc., and Valeo Sa. These players are focusing on product development, strategic partnerships, and mergers and acquisitions to expand their market presence and gain a competitive advantage. For instance, Borgwarner Inc. recently announced a collaboration with electric vehicle startup Romeo Power to develop battery packs and battery management systems for commercial vehicles.
In conclusion, the electric powertrain market is poised for substantial growth in the coming years, driven by increasing government regulations, the demand for sustainable transportation solutions, and technological advancements. Asia Pacific is expected to lead the market, with key players striving to innovate and establish themselves as market leaders. The future of the electric powertrain market looks promising, with opportunities for both existing and new players to capitalize on the growing demand for electric vehicles.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it