The electric powertrain market represents a critical component in the growing popularity of electric vehicles globally. Electric powertrains provide electric automobiles with power through electric motors and transmission components rather than internal combustion engines and transmissions. Electric powertrains allow electric vehicles to accelerate using electric motors powered by rechargeable battery packs. This enables zero direct tailpipe emissions and fossil fuel independence, providing environmental benefits compared to gasoline-powered vehicles. Features such as regenerative braking also allow electric powertrains to recapture braking energy and store it in batteries to extend vehicle range. As more consumers and governments seek low-emission alternatives to gasoline vehicles, electric powertrain adoption is expected to steadily rise.
The global Electric Powertrain Market is estimated to be valued at US$ 81.7 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Solid-state batteries emerging as the future of electric vehicles is one of the key trends driving innovation in electric powertrains. Current lithium-ion batteries often pose fire hazards, are large and heavy, and have limited driving ranges before recharging is needed. Solid-state batteries are seen as a safer alternative that could enable faster recharging, higher energy densities, and extended vehicle ranges. Major automakers are investing heavily in R&D to develop solid-state battery technologies for commercialization early in the next decade. Widespread adoption of solid-state batteries would significantly improve the performance and appeal of electric vehicles, spurring higher electric powertrain demand.
Threat of new entrants: The threat of new entrants in the electric powertrain market size is moderate. Significant capital investments would be required for R&D and production infrastructure. The industry players hold large market share and economies of scale.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have various alternatives from electric vehicle manufacturers. However, switching costs exist for buyers in terms of technology preferences and brand loyalty.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. Suppliers of critical raw materials such as lithium-ion batteries operate at global scale. However, industry players have opportunities to forward integrate in the value chain.
Threat of new substitutes: The threat of new substitutes is low. No alternatives currently offer the performance and cost benefits of electric powertrains for commercial vehicles. Hydrogen fuel cells remain at a nascent stage of development.
Competitive rivalry: The competitive rivalry is high owing to presence of global automotive giants. Players compete based on technology, product features, marketing investments and pricing.
The global Electric Powertrain Market is expected to witness high growth.
North America is expected to dominate the Electric Powertrain market owing to stringent emission norms and presence of major OEMs. Europe and China are also emerging as high potential markets.
Key players operating in the Electric Powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V. Ferring B.V. leads the global human menopausal gonadotropin market and offers the most commonly prescribed brands, including Bemfola and Fostimon. The other players focus on expanding in emerging markets through partnerships and acquisitions.