Electric Vehicle Powertrain Market Size, Share, and Industry Analysis, By Component Type (Electric Motor, Inverter, Converter, Power Distribution Module, Transmission), By Vehicle Type (Passenger Cars, Buses & Coaches), and Geography Forecast 2019-2032

The global electric vehicle powertrain market size was valued at USD 7.99 billion in 2018 and is projected to reach USD 242.0 billion by 2032, exhibiting a CAGR of 30.0% during the forecast period. The Asia Pacific dominated the Electric Vehicle Powertrain Market with a share of 47.8% in 2018.

Oil prices have increased substantially, driven by the gradual depletion of global oil deposits coupled with global warming issues as a result of substantial CO2 emissions. Environmental protection and energy saving are problems of global concern. Hence, the green energy trend is prevailing in the industrial design and development of vehicles. Thus, e-powertrains focused on low energy consumption, and curbing carbon emissions have become the development direction for automotive companies. It powers the electric vehicle without the need for an internal combustion engine. The e-powertrain is a compact and lightweight system that produces instant torque and creates extremely low vibrations. The Electric Vehicle powertrain's key components include its power distribution module (PDM), transmission, inverter, converter, transmission, and electric motor, among others. These elements combine to provide high quality, smooth, and responsive drive.

MARKET TRENDS

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Design to Cost Approach and Building a Native Platform for EVs.

OEM’s are increasingly utilizing an electric vehicle powertrain design to cost (DTC) approach for the electric vehicle powertrain simulation. This trend has particularly emerged in second-generation EVs. The DTC approach is primarily focused on smarter use of lightweight materials in structural parts and component integration in the e-powertrain. Furthermore, OEM’s are focusing on building a native platform for EVs. Non-native electric vehicles force the battery into the compressed footprint of the IC engine platform which limits the energy capacity. Native EVs achieve optimized battery packaging and larger interior space compared to the non-native EVs. Hence, OEM’s are investing heavily in these areas which are likely to create a positive outlook for the electric vehicle powertrain market.

MARKET DRIVERS

Stringent Vehicular Emission Regulations Implemented by Government is Expected to Drive the Growth of this Market

Increasing carbon and particulate matter emissions levels from automobiles have led to severe depletion of the air quality, which in turn is severely affecting human health and the environment. Hence, government bodies across the globe have imposed stringent emission norms on automotive manufacturers. This factor, in turn, has compelled manufacturers to increase R&D for electric vehicles to provide customers with a cost-effective alternative which has fueled the growth of e-powertrains. For instance, the road transport sector has a big part in European energy consumption. Therefore, the EU continues to tighten CO2 emission limits for passenger cars and light commercial vehicles to meet its target of net-zero greenhouse gases. This factor drives the search for realistic solutions for Electric Vehicle Powertrain architecture.

Soaring Fuel Prices and Increasing Sales of Electric Vehicles

Continuous increase in fuel prices and existing environmental concerns have led to a higher shift of consumers towards electric mobility solutions, particularly in developed countries. Hence, auto manufacturers are focused on the development of lightweight and compact e-powertrain solutions that are suitable for everyday transportation. Furthermore, attractive government policies and support, via grants and subsidies, incentives for domestic production, and mass adoption of electric vehicles and other non-financial incentives, are expected to drive the electric vehicle powertrain market.

MARKET RESTRAINT

Lack of Standardized Charging Infrastructure and Higher Cost Associated with Electric Vehicles

Procurement of battery elements, infrastructure support, and making it commercially viable are factors that have led to the slow adoption of electric vehicles across the globe. Key elements of the battery, such as cobalt and lithium, are available only in certain regions. Lithium is found in Australia, China, and Latin America, while cobalt is majorly obtained from the Democratic Republic of Congo (DRC). Procuring these elements is difficult and expensive owing to the transportation costs and government norms that regulate the supply chain.

Furthermore, making battery management systems cost-effective yet high performing has proved challenging, resulting in EVs being more expensive and hence less attractive. Infrastructure is also a considerable roadblock. Access to public charging stations and fast recharging are essential factors. However, limited accessibility and poor range have remained issues for EVs. These factors have hampered the adoption of EVs, which is expected to restrain the market for electric vehicle powertrain.

SEGMENTATION

By Component Type Analysis

Transmission Segment is Expected to Hold the Largest Market Share over the Forecast Period

By electric vehicle powertrain component type, the e-Powertrain market is segmented into the electric motor, inverter, converter, power distribution module, and transmission. The transmission segment holds the largest market share for this technology. Electric vehicles are widely equipped with a single-speed transmission. However, there has been increased R&D to explore the commercial viability of multi-speed transmission, for instance, the Porsche Taycan. Leading manufacturers in the EV transmission market are developing load shifting capability and multispeed transmission sailing operation for the electric vehicle. These factors are expected to aid market growth in this segment.

The power distribution module (PDM) segment is projected to show the fastest growth over the forecast period. Greater adoption of electrical functions in EVs and cost benefits associated with PDM is boosting the market growth in this segment. The electric motor segment is expected to show steady growth in this market. Increasing thermal constraint demands necessitate improved motor design, which further minimizes the cost of extra materials for the electric motor. This factor, in turn, enhances the market growth of e-powertrain motors. The converter segment is anticipated to show steady growth in this market, with manufacturers creating new product offerings to accelerate integration in commercial vehicles. The inverter segment is projected to record slow growth in this market with manufacturers aiming to equip cars with an integrated unit, which includes converter and inverter functionalities.   

By Vehicle Type Analysis

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Passenger Car Segment is Likely to Dominate the Market During the Forecast Period

Based on the vehicle type, the market is segmented into passenger cars and buses & coaches. The passenger car segment is expected to dominate the market over the forecast period. Increasing demand for vehicles for everyday transportation, coupled with the rapid adoption of electric cars, particularly in developing countries, is fueling the ev powertrain market growth in this segment. The buses & coaches segment is anticipated to show steady growth in this market. Increased adoption of electric buses by transit agencies, particularly in China and India, improving grid solutions, and the development of vehicle-to-grid services is likely to propel the EV powertrain market growth in this segment. 

REGIONAL ANALYSIS

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By region, further, the market has been segmented into Europe, North America, Asia-Pacific, and the Rest of the World. Asia Pacific is expected to show considerable growth during the forecast period. The chief driver for the high market penetration in a variety of regulatory programs pushing EV sales such as EV sales quota, fuel economy targets, and advantages for EVs in license plate assignments in countries such as China. Implementation of strict emission regulations such as BS-VI in India and China VI in China is driving the e-powertrain market in this region.

Partnerships among leading players to build a charging infrastructure is fueling market growth in this region. For instance, China’s Didi Chuxing and British oil giant BP teamed up to create EV charging infrastructure in China. China has lithium reserves that are leading to increased investment in battery production. Tesla also launched the Model 3 in South Korea with considerable price reduction owing to favorable government incentives. These factors are likely to lead to the dominant share of APAC in this market.

Europe is expected to hold a dominant share over the forecast period. The key driver in this region is the regulation of carbon emissions for newly registered vehicles, which every auto manufacturer has to follow. Besides, aversion against combustion engine based transport and acceptance of e-mobility is increasing. The rollout of EV portfolios and expected investment in charging infrastructure is likely to facilitate the transition. These factors are fueling market growth in this region.

North America is expected to show steady growth in this market. Typical US customers are driving longer distances and prefer larger vehicles. However, in certain regions, especially coastal areas, a more significant market share of electric vehicle Powertrains is expected. This factor, in turn, is aiding market growth in this region.

KEY INDUSTRY PLAYERS

Robert Bosch GmbH is a leading player in the EV Powertrain market.

Continental, Bosch, Magna, Mitsubishi, Hitachi dominate the electric vehicle powertrain industry. Stable distribution and supply chain networks at a global level and portfolios offering an extensive product range are likely to lead to the dominant players retaining their positions. The adoption of new strategies such as joint ventures, collaborations, and technological advancements in new products is enhancing their market position.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH


• Continental AG


• Magna International Inc.


• Mitsubishi Electric Corporation


• ZF Friedrichshafen AG


• BorgWarner Inc.


• Valeo


• Hitachi Automotive Systems, Ltd.


• NXP Semiconductors

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, German automaker Mercedes-Benz has announced the acquisition of next-generation electric drive technology company Yasa. The company provides electric and hybrid powertrain solutions to the automotive industry. Yasa will continue to operate as a wholly-owned subsidiary of Mercedes-Benz.


• In July 2021, LG electronics and Magna International forms an electric powertrain joint venture to target the EV market. Both the companies have officially signed the transaction agreement. The new company is called LG Magna e-powertrain and will be based in Incheon, South Korea, with an initial workforce of 1000 employees. 


• In July 2021, FEV, a specialist in powertrain and automotive development for software and hardware, has entered long term agreement with electric powertrain provider, Hyliion. The partnership is expected to support the design, integration, development, and production validation of its Electric Range Extender (ERE) for class-8 tractor-trailer applications.


• In June 2021, Xos.Inc, an electric class 5 to class 8 commercial automobile manufacturer, has established a new powertrain division. The new division will provide Xos, powertrain technology, along with design and integration expertise with other OEMs in the off-highway, commercial, and industrial markets. The company said it would keep developing commercial electric automotive built on its proprietary X-Pack and X-platform through its growing OEM division, working closely with its new and long-lasting customers.

REPORT COVERAGE

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The ev powertrain market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, component Types, and leading applications of the product.

Besides this, the report offers insights into the ev powertrain market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation