by The electric powertrain system is a propulsion system comprising an electric motor and power control systems that generate torque to propel an electric vehicle. Electric powertrains help reduce noise and vibration and provide more driving range compared to conventional vehicles. They offer torque and power instantly, accelerating quickly and seamlessly without any gear changes. Major advantages include lower operating costs, mitigation of climate change, and independence from fluctuating fuel prices. The growing demand for zero-emission vehicles to curb air pollution has boosted the development of more efficient electric powertrains.
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 2024 to 2030.
Key Takeaways
Key players operating in the Electric Powertrain are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V. With stringent emission norms, major automakers are investing heavily in developing electric vehicles and associated powertrain technologies. This has led to increased competition among key players to launch more efficient and affordable electric drivetrains.
Growing environmental concerns and supportive government policies are driving demand for electric vehicles worldwide. Many countries offer subsidies and tax exemptions for electric vehicles purchases as well as installation of charging stations. This has boosted sales of electric vehicles, fueling growth in the electric powertrain market.
The electric powertrain market is expanding globally led by China, US, Germany and France. Manufacturers are moving towards localization of production to cater to the surging local demand. Likewise, increasing exports of electric vehicles from China, Europe and US to other regions is expected to propel the electric powertrain market growth during the forecast period.
Market key trends
One of the major trends in the Electric Powertrain Market Demand is the development of scalable platforms. Modular designs allow automakers to use common electric components across different vehicle models easily, reducing costs substantially. This is helping smaller companies compete with large established automakers. Furthermore, replacement of rare-earth permanent magnets with less costly ferrites in electric motors without compromising performance is a key area of ongoing research and innovation.
Porter’s Analysis
Threat of new entrants: High capital requirements serve as a barrier to entry. Bargaining power of buyers: Buyers have moderate bargaining power due to presence of several establised manufacturers. Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are present alternatives. Threat of new substitutes: Threat of substitution remains low as electric vehicles offer better performance and are more environment friendly. Competitive rivalry: High as players compete on the basis of technology, pricing and service quality.
Geographical Regions
Asia Pacific accounts for the largest market share in terms of value due to presence of major automotive hubs and government initiatives to promote electric vehicles adoption.
Europe is anticipated to be the fastest growing regional market between 2024 to 2030 owing to stringent emission norms and increased focus on developing electric infrastructure to support adoption of electric vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
