by An electric powertrain comprises of electric motor, power electronics, and a battery that works together to provide power to a vehicle. Electric powertrains are increasingly being adopted in various automobiles owing to stringent emission norms and focus on lowering carbon footprint. Electric powertrains provide smooth acceleration and power delivery with zero emissions. Advancements in battery technologies have increased the driving range of electric vehicles.
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 2031.
Key Takeaways
Key players: Key players operating in the Electric Powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V.
Key opportunities: Rapid shift towards electrification of transportation and rise of electric vehicles present significant growth opportunities. Growing investments by OEMs to develop advanced electric powertrains will drive the market.
Global expansion: Increasing stringent emission norms worldwide are encouraging global automakers to introduce more electric vehicles, impacting the Electric Powertrain Market size Asia Pacific region, especially China, will dominate the electric powertrain market due to large EV production and sales. Europe and North America will also witness strong growth.
Market drivers: Stringent emission regulations to curb air pollution are the major driver propelling the electric powertrain market. Growing consumer awareness about environmental protection and rising fuel prices are encouraging rapid adoption of electric vehicles worldwide. Governments across nations are offering various subsidies and tax benefits for electric vehicles to boost electrification of transportation.
PEST Analysis
Political: Government regulations and policies supporting electric vehicle adoption could positively impact demand. Regulations around reduced vehicle emissions may accelerate usage of electric powertrains.
Economic: Lower operating costs of electric vehicles compared to diesel or petrol vehicles could drive higher adoption rates if upfront purchase costs reduce due to economies of scale. Fluctuations in fuel prices may also impact consumer decisions.
Social: Increasing environmental awareness and concerns around climate change are shifting consumer preferences towards electric vehicles. Social media campaigns are creating more awareness about environmental benefits.
Technological: Advancements in battery technologies, which address Electric Powertrain Market challenges and opportunities by allowing for higher range per charge and reduced charging times, are expanding use cases and addressing driver concerns. Connectivity and digitalization of components enable new features and data-driven after sales services.
Regional Analysis
Europe currently leads the electric powertrain market in terms of value, accounting for over 35% share. Major automotive manufacturing countries including Germany, France, and UK are driving the region’s large market size through stringent emission norms and EV incentives for buyers. With notable investments by automakers like Volkswagen, Daimler, BMW and transport policies by governments, Europe is expected to retain its leading position.
The Asia Pacific region is expected to be the fastest growing market during the forecast period. This can be attributed to presence of China and Japan – two of the largest automotive manufacturing hubs globally. China, in particular, offers huge growth opportunities with EV subsidies and domestic battery production playing catalysts to increased EV production and sales volumes. Other developing Asian countries like India are also taking initiatives to boost electric mobility within their borders.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
