The Electric Powertrain Market Size is valued at USD 86.9 Bn in 2023 and is predicted to reach USD 301.6 Bn by the year 2031 at an 17.1% CAGR during the forecast period for 2024-2031.
The E-powertrain refers to the system of components that generate and deliver power in electric vehicles (EVs) and hybrid electric vehicles (HEVs), replacing the traditional internal combustion engine (ICE) used in gasoline or diesel vehicles. It is responsible for converting electrical energy, typically stored in a battery, into mechanical energy to drive the vehicle's wheels. The e-powertrain market is experiencing rapid growth as electric mobility continues to rise. Future developments will focus on enhancing efficiency, reducing costs, and improving energy storage through innovations in battery technology, lightweight materials, and advanced power electronics. Additionally, the integration of e-powertrains with autonomous driving and connected vehicle technologies will further revolutionize the automotive industry.
The deterioration of air quality, caused by rising carbon and particulate matter emissions from cars, has severely impacted both the environment and human health. In response, governments worldwide have implemented stringent pollution regulations for automakers, prompting a surge in research and development for electric vehicles (EVs) and accelerating the development of e-powertrains. For instance, the road transportation sector significantly influences energy consumption in Europe. To achieve its net-zero greenhouse gas emissions target, the European Union continues to tighten CO2 emission limits for passenger cars and light commercial vehicles, driving the search for viable electric vehicle powertrain solutions. As a result, this has contributed to the global growth of the electric vehicle powertrain market.
Advancements in technology are addressing consumer demands for a longer range and improved performance while meeting regulatory requirements. Axial-flux motors and permanent magnet synchronous motors (PMSMs) are becoming increasingly popular due to their energy efficiency, higher torque, and compact size. Further innovations will focus on modular platforms and modular e-powertrains that combine motors, inverters, and transmission systems to optimize space and reduce costs. New battery technologies, such as solid-state and lithium-air, offer improved energy density and safety. These innovations will play a crucial role in advancing the electric powertrain market and helping the automotive industry achieve its goals of performance, sustainability, and widespread EV adoption.
Competitive Landscape
Some of the Major Key Players in the Electric Powertrain market are
- Robert Bosch Gmbh
- Mitsubishi Electric Corporation
- Magna International Inc.
- Marelli Holdings Co., Ltd.
- Nissan Motor Co., Ltd.
- Sigma Powertrain, Inc.
- Continental Ag
- Dana Incorporated
- BORGWARNER INC.
- Continental AG
- ZF Friedrichshafen
- Denso
- Hitachi Astemo Americas, Inc.
- Valeo
- Contemporary Amperex Technology Co., Limited (CATL)
- BYD Auto Co., Ltd.
- LG Corporation
- Panasonic
- Samsung
- Cummins Inc.
- Delta Electronics, Inc.
- Hyundai Motor Company
- Volkswagen
- Other Prominent Players
Market Segmentation
The Future of the E-Powertrain market is segmented based on integration type, component, and propulsion, vehicle type. Based on the integration type, the market is divided into integrated & non-integrated. Based on the components, the market is divided into motor, battery, BMS, controller, PDM, inverter/converter, and onboard charger. Based on the propulsion, the market is divided into BEV and PHEV. Based on the vehicle type, the market is divided into PC & LCV.
The Integrated Segment is Expected to Have the Highest Growth Rate During the Forecast Period
Based on the integration type, the market is divided into integrated & non-integrated. Among these, the integrated segment is expected to have the highest growth rate during the forecast period. The integrated e-powertrain segment is expected to grow rapidly, supported by advancements in technology, the push for cost-efficient EV production, and the need for improved vehicle performance. The integration of key components enhances energy efficiency, as the systems are optimized to work together, reducing energy losses. Integrated systems free up space in EVs, which is essential for design flexibility, allowing for larger batteries or other innovative vehicle features. Integrated systems reduce the number of parts and complexity, leading to lower production costs. As the EV market matures, cost reductions are critical to achieving mass adoption.
The Battery Based Segment Dominates the Market
Based on the components, the market is divided into motor, battery, BMS, controller, PDM, inverter/converter, and onboard charger. Among these, the battery-based segment dominates the market. the battery is the most critical component of an electric vehicle (EV) e-powertrain, as it directly determines the vehicle’s range, performance, and energy efficiency. It stores the electrical energy that powers the electric motor and other systems within the EV. Batteries account for the largest portion of the total cost of an EV, typically around 30-40%. As such, the battery segment has the largest financial impact on the e-powertrain market. Significant investments are being made in improving battery technology, driving both market share and growth. Increasing consumer demand for longer-range EVs, faster charging times, and lower costs are propelling advances in battery technology. Additionally, governmental regulations on emissions and fuel efficiency are accelerating the shift toward electrification, further expanding the battery market.
Asia-Pacific Has the Largest Market Share During the Forecast Period.
The Asia-Pacific region is expected to have the largest share and experience the most significant growth in the future of the e-powertrain market. Several factors contribute to this, making Asia-Pacific a dominant player in the global market. Governments in the Asia-Pacific region are implementing favorable policies, including subsidies, tax incentives, and emissions regulations, to encourage EV adoption. For example, China has strict New Energy Vehicle (NEV) mandates, which require automakers to produce a certain percentage of electric vehicles. China is the world’s largest electric vehicle (EV) market, both in terms of production and sales. The Chinese government has made substantial investments in EV infrastructure, battery production, and electric vehicle development, driving the rapid expansion of the e-powertrain market.
Recent Developments:
- In June 2024, Valeo collaborated with Dassault Systèmes to roll out the 3DEXPERIENCE platform to more than 15,000 people to speed up its R&D digitization. By optimizing the development of software-driven, electrified, and autonomous mobility solutions, this platform will boost innovation and lower R&D costs.
- In September 2023, LG Magna e-Powertrain Co., a joint venture between Magna International Inc. of Canada and LG Electronics Inc. of South Korea, has revealed plans to build an electric vehicle parts factory in Hungary in response to the home appliance behemoth's efforts to spearhead the global mobility industry of the future. According to LG Electronics, an EV powertrain manufacturer, LG Magna, is prepared to start operations in 2026, producing driving motors at the Miskolc facility with plans to produce other components based on demand in the second-largest clean vehicle market in the world. The company did not provide financial details regarding the investment.
Electric Powertrain Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 86.9 Bn |
|
Revenue Forecast In 2031 |
USD 301.6 Bn |
|
Growth Rate CAGR |
CAGR of 17.1% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Integration Type, Component, and Propulsion, Vehicle Type. |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South Korea; South East Asia |
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Competitive Landscape |
Robert Bosch Gmbh, Mitsubishi Electric Corporation, Magna International Inc., Marelli Holdings Co., Ltd., Nissan Motor Co., Ltd., Sigma Powertrain, Inc., Continental Ag, Dana, BORGWARNER INC., Continental AG, ZF, Denso, Hitachi Astemo Americas, Inc., Valeo, CATL, BYD, LG, Panasonic, Samsung, Cummins Inc., Delta, Electronics, Inc., Hyundai Motor Company, Volkswagen |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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