Smart Electric Drive Market Size, Share, and Industry Analysis, By Component (Battery, E-Break Booster, Power Electronics, and Motor), By Application (Wheel Drive and E-Axle), By Drive (FWD, RWD, and AWD), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2024-2032

Global automotive electrification is driving the growth of the smart electric drive market. Smart electric drives are advanced or updated versions of normal electric drives, which utilize a battery as a power source and ensure efficient transmission in the vehicle. Smart electric drives provide a smoother and enhanced driving experience than conventional electric drives. Therefore, increasing demand for comfort and road safety is fueling the need for smart electric drives worldwide. Moreover, by utilizing advanced components such as power electronics, e-break booster, and others, these drives ensure efficient energy utilization, resulting in low operating costs compared to conventional e-drives.

Furthermore, increasing adoption of electric vehicles due to stringent emission norms coupled with a government push to adopt EVs by providing grants and incentives on EV purchase is likely to boost the demand for smart e-drives in upcoming years. Smart e-drives are compact and lightweight compared to conventional drives resulting in improved vehicle performance.

• Rapid automotive electrification and increasing EV sales are driving the market growth.


• Automakers’ plan to adopt smart e-drives in their upcoming advanced EVs is also expected to fuel market growth.


• Government bans on conventional vehicles coupled with subsidies and tax benefits on new electric vehicle purchases are likely to propel the market growth in upcoming years.

However, the slow adoption of electromobility in some emerging and underdeveloped countries are likely to hamper the market growth. Moreover, a shortage of raw materials such as the recent global semiconductor chip shortage may lead to a halt in EV production, resulting in low demand for smart e-drives.

• The Global Semiconductor chip shortage may restrain the market growth in the near future.

IMPACT OF COVID-19 ON THE SMART ELECTRIC DRIVE MARKET

The Covid-19 pandemic severely impacted the automotive market. The downturn in the automotive industry due to low demand and declining production volume amid the Covid-19 pandemic resulted in a significant decline in automotive production and sales. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, global automotive production volume witnessed a drop of 16% compared to 2019.

However, despite the downturn in the global automotive industry, EV sales witnessed a significant boost during the pandemic. In 2020, new EV registrations witnessed a 41% increase globally compared to the previous year making it a record-breaking year for electromobility. Government policies and subsidies for EV purchase, particularly in Europe, and shifting consumer preference to electric mobility fueled the growth of the smart electric drive market during the pandemic.

• According to the International Energy Agency, in 2020, new electric cars registrations reached 3 million units globally, with a 41% increase from 2019.


• Further continued growth in electric vehicles sales in 2021 is likely to influence the market growth during the forecast period.

KEY INSIGHTS

The report will cover the following key insights:

• New Advancements in Smart Electric Drive Market


• Overview of Smart Electric Drives, Key Countries, 2020


• New Product and Launches, Key Players

ANALYSIS BY COMPONENT

The battery segment accounted for the largest market share in 2020. EV battery is the most essential and expensive component of an electric vehicle. It is utilized as a source of energy for driving EV; therefore, increasing demand for Li-ion batteries with sufficient capacity in advanced electric vehicles for improved travel range is likely to drive the segment growth during the forecast period. Additionally, automaker’s partnerships with EV battery manufacturers to ensure the development and sufficient supply of EV batteries is anticipated to fuel the EV battery production and adoption, further driving the segment growth in the near future.

REGIONAL ANALYSIS

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Europe accounted for the largest market share in 2020. Government support through incentives and grants for purchasing electric vehicles accelerated the demand for EVs,  resulting in a surge in the adoption of smart electric drives. Additionally, stringent emission norms enforced by European Union further shifted buyers’ preference from conventional vehicles to new advanced EVs. Therefore, increasing demand for smart e-drives in Europe due to shifting consumer preference towards advanced EVs coupled with technological advancement in the region is expected to boost the market growth in upcoming years.

• According to International Energy Agency (IEA), Europe witnessed the largest EV sales growth in 2020


• In Europe, new electric vehicle registrations more than doubled in 2020, reaching 1.4 million.

The Asia Pacific is likely to witness the fastest growth rate over the forecast period. High EV sales in China are primarily driving the market growth in the region. In addition, growing EV penetration in emerging economies of APAC such as India, Japan, South Korea, and others is also expected to fuel the market growth in upcoming years. Moreover, manufacturers’ effort to set up EV manufacturing units in these emerging economies to grab early revenue growth opportunities is anticipated to propel the demand for smart e-drives in APAC during the forecast period.

For instance, in February 2021, Tesla Inc. selected Karnataka, a southern Indian state, to open its first manufacturing unit in India. Furthermore, emission norms, rising fuel prices, and the expected introduction of scrapping policies for conventional vehicles across developing countries in the Asia Pacific are anticipated to fuel the market growth in upcoming years.

North America is also likely to register a considerable growth rate over the forecast period. Increasing EV sales and the presence of leading EV manufacturers such as General Motors, Tesla, and others are expected to boost the demand for smart e-drives during the forecast period. Moreover, the presence of technological development in the American automotive industry will further influence market growth in the near future.

KEY PLAYERS COVERED

The report includes profiles of the key players such as Robert Bosch GmbH, ZF Friedrichshafen AG, AISIN CORPORATION,  NIDEC CORPORATION, Magna International, Continental AG, Denso Corporation, Hexagon AB, and Hitachi, among others.

SEGMENTATION

KEY INDUSTRY DEVELOPMENT

• In November 2021, Ford Motor Company announced its plan to increase its EV production to 600,000 units worldwide by 2023.


• In September 2020, General Motors unveiled its All-New EV Motors, which will power its Ultium-based EVs.


• In August 2021, ZF Friedrichshafen AG announced that it would launch new generation e-mobility products such as ZF AxTrax electric axle in the North American commercial vehicle market by 2023.


• In February 2021, Tesla Inc. selected Karnataka, a southern Indian state, to open its first manufacturing unit in India. The company is expanding its geographical presence in emerging economies.