Electric Powertrain Market Size, Share To 2030

(MENAFN- Straits Research) Introduction

In the electric powertrain markets value chain, there are tier 2 & tier 1 suppliers, integrated electric chassis solution providers, Original Equipment Manufacturers (OEMs), and new electric vehicle startups. Electric powertrain parts are made from raw materials like steel, plastic, aluminum, rubber, aluminum alloys, nickel, lithium, and cobalt. Since the 1980s, the standard in the automotive industry has been for the value chain to go from tier 2 to tier 1 suppliers to original equipment manufacturers (OEMs).

As electric vehicle technology has gotten better, the supply chain has changed into an ecosystem in which the lines between industries are not fixed. The tier 1 suppliers are changing their product lines and moving down to tier 0.5 by offering integrated electric chassis solutions. Companies are changing how they do business, which is putting more pressure on the tier 1 supplier market. Also, the market would be harder because OEM margins on EVs are low, there is a lot of competition, and the market is small.

Market Dynamics Growing Demand for Vehicle Electrification in the Automotive Industry Driving the Market

Tesla, Honda, Ford, Toyota, and General Motors have spent a lot of money making cars more electric, which has led to a big rise in demand for electric cars. Also, more partnerships between car companies and companies that make electric motors should make more people want to buy electric cars. For example, General Motors Co. and Honda Motors Co. said they would work together to make a North American automotive alliance. General Motors wants to sell 20 models of electric cars by 2023, and Honda wants to make two models of plug-in electric cars using GM's battery pack.

In 2019, the traditional car market leader Maruti Suzuki said it would start selling electric cars for personal use in the Indian market in the years to come. Because the market for electric cars is so profitable, more and more traditional car companies are likely to switch to making them. The electric powertrain market will grow because of this. Traditional fuel prices going up and the sales of electric cars going up are likely to speed up the growth of electric cars. Because of strict emission rules and more people caring about the environment, the number of people buying electric cars is likely to rise.

Also, car companies like Bosch and Renault Group have taken the initiative to implement vehicle electrification and focus on adding electrified vehicles to their product lines. This is expected to increase the demand for vehicle electrification. All of these things are expected to make the powertrain market grow over the next few years.

Electric cars are becoming more popular, so the biggest automakers are making them. Since the market is so profitable, more and more traditional car companies are likely to switch to making electric cars. This will make the market for electric powertrains grow. Increasing sales of electric cars and higher prices for traditional fuels are likely to speed up the growth of electric vehicles. Electric vehicles are likely to become more popular as pollution rules get stricter and more people to care about the environment.

Also, car companies like Bosch and the Renault Group have taken the initiative to implement vehicle electrification and focus on adding electrified vehicles to their product lines. This is likely to increase the demand for electric vehicles and open up a lot of opportunities for manufacturers and new companies trying to get into the field.

Regional Analysis

The global electric powertrain market is primarily segmented into three regions, namely- North America, Europe, and Asia-Pacific, where the Asia-Pacific region dominates the market.

The North American region has a significant market value that stood at USD 11 billion in 2021 and is expected to grow to USD 191 billion by 2030 at a CAGR of 37%. North America is the most developed region, and the presence of major economies like the US and Canada contributes a major share to the growth of the market.

Europe is the industrial hub of the world, where most of the industries are operating in every industrial sector. Europe accounts for a market share of USD 39 billion in 2021 and is expected to grow to USD 477 billion by 2030 at a CAGR of 32%

Asia-Pacific is the most dominant region with a market share of USD 36 billion in 2021 and is expected to reach USD 538 billion by 2030 at a CAGR of 35%. The reason behind the region being the most dominant is the presence of emerging economies like India and China that are growing at a rapid pace.

Key Highlights

• The global electric powertrain market is to grow by USD 760 billion by 2030 at a CAGR of 32% from the early figures of USD 61 billion in 2021.
• The BEV type leads the by-vehicle segmentation with a market figure of USD 61 billion in 2021 and growing to USD 782 billion at a CAGR of 33%.
• The battery is the most dominant segment of all the types in the component segmentation, which accumulates a market share of USD 39 billion in 2021 and is growing at USD 502 billion at a CAGR of 33%.
• Asia-Pacific is the most dominant region with a market share of USD 36 billion in 2021 and is expected to reach USD 538 billion by 2030 at a CAGR of 35%.