May 18, 2024
Electric Powertrain Market

Electric Powertrain Market Primed to Grow at a Robust Pace Due to Rising EV Sales

Electric powertrains play an important role in enabling electric mobility by providing efficient electric propulsion for electric vehicles (EVs). They consist of electric motors, power electronics, and transmission gear that are engineered to deliver power from the battery to the wheels. Electric powertrains help EVs achieve longer driving range and better torque performance compared to combustion engine vehicles. The growing demand for eco-friendly mobility solutions along with stringent emission norms worldwide have boosted the sales of EVs in recent years. The proliferation of EV models coupled with the development of robust public charging infrastructure are driving the need for innovative and sustainable electric powertrain technologies.

The Global Electric Powertrain Market is estimated to be valued at US$ 94.12 Mn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the Electric Powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V.

The market provides opportunities for players to develop affordable and longer-range EVs through technological advances in battery chemistry, motor design, and power electronics.

Leading automakers are expanding their EV portfolios and production capacities globally to capitalize on the growing EV adoption in major markets such as China, Europe, and North America. Strategic partnerships and collaboration with battery suppliers and parts manufacturers are helping them establish local supply chains and manufacturing facilities.

Market Drivers

Rising sales of electric vehicles are expected to be a major growth driver for the Electric Powertrain Market Growth . Stringent emission norms and fuel efficiency standards along with falling battery prices are fueling consumer demand for green vehicles globally. Government subsidies and tax incentives on EVs in many countries aim to boost mass adoption. This in turn is increasing the need for sustainable and efficient electric drivetrains.

PEST Analysis

Political: Government focus on emission norms, regulations supporting adoption of electric vehicles. Regulations have led to investments in electric vehicle infrastructure by auto makers.

Economic: Fall in battery prices increases affordability of electric vehicles. Growing demand for emission-free transport drives replacement of internal combustion engine vehicles. Lower operational costs of electric vehicles attract consumers.

Social: Rising environmental concerns and awareness increases consumer acceptance of electric vehicles. Social media increases outreach of electric mobility. Growing consumer preference for technologically advanced vehicles.

Technological: Rapid improvements in battery technology increase vehicle range. Innovation in electric powertrains improves performance. Connected vehicles and autonomous driving raise technology barriers.

The electric powertrain market in terms of value is concentrated primarily in Asia Pacific and Europe. Countries like China, Japan and South Korea dominate the Asia Pacific market led by strong government support for electric vehicles and growing consumer acceptability. In Europe as well, countries like Germany, UK, France are early adopters driven by stringent emission norms and investment in charging infrastructure development by automakers.

North America region is witnessing the fastest growth in the electric powertrain market led by the US market. Factors like campaigns by Tesla, initiatives by Uber and Lyft to electrify their fleets along with regulations in states like California supporting zero emission vehicles are fueling market growth in the region. Standardization of charging solutions and falling battery prices is also attracting consumers in Canada and Mexico

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it