Future Of E-Powertrain Market Size, Share & Analysis

Report Code AT 9241
Published in Oct, 2024, By MarketsandMarkets™
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Future of E-Powertrain Market by integration type (Integrated & Non-integrated), Component (Motor, Battery, BMS, Controller, PDM, Inverter/Converter, On-Board Charger), Propulsion (BEV, PHEV), Vehicle Type (PC & LCV) and Region - Global Forecast to 2032

 

Overview

The e-powertrain market will likely grow from 18,181 thousand units in 2024 to 51,288 thousand in 2032, at a CAGR of 13.8%. Schemes by governments, stringent emission norms, and investments in electric vehicle infrastructure are creating an environmentally friendly atmosphere for electric vehicles, making them inexpensive and accessible. Such policies are fueling the demand for EVs and driving car manufacturers to fabricate more efficient, eco-friendly vehicles. This will trigger a consistent year-on-year increase in demand for e-powerspace, as predicted by forecasts.

Modern automobile makers, through efficiency and environmental concerns, are racing to create more efficient and environmentally friendly vehicles. New technologies, in the form of 800 V architecture, high-efficiency permanent magnet motors, axial-flux motors, and integrated drive systems, are changing the industry's landscape with higher power density, improved efficiencies, and more compact designs. Companies are embracing these technologies in response to regulatory requirements and consumer demand for better performance and further range.

Future of E-Powertrain Market

Global Future of E-Powertrain Market Dynamics

Driver: Growing vehicle electrification in the automobile industry

Governments have offered incentives, tax breaks, rebates, and free parking to encourage the adoption of electric vehicles. Also, promising investments in EV infrastructure, such as charging stations and the electrical grid upgrade, will support ownership and usage of electric vehicles. The growing electrification trend is set to significantly impact the electric powertrain market, driving increased demand for high-efficiency motors, power electronics, and integrated systems. As more automakers shift towards electric vehicles (EVs), advancements in powertrain technology, such as 800V architectures and dual-motor setups, will become more common, enabling faster charging and improved performance. Additionally, Permanent Magnet Synchronous Motors (PMSMs) and axial flux motors are gaining traction due to their compact design, higher torque, and energy efficiency. Technological trends will also focus on new battery technologies like solid-state, lithium-air, etc. for better energy density and safety, as well as modular platforms and modular ePowertrains that combine motors, inverters, and transmission systems to optimize space and reduce costs. As these innovations evolve, the electric powertrain market will play a pivotal role in achieving the industry's goals of sustainability, performance, and widespread EV adoption by 2030.

Restraint: Lack of infrastructure for charging EVs

Chargers are a major obstacle to the widespread adoption of electric vehicles (EVs). Since EVs need to be charged frequently, potential buyers may hesitate to purchase one if they are unsure about the availability of convenient charging stations. This concern significantly slows down adoption rates, especially in areas with limited charging options.

The current charging infrastructure provided by governments and companies is inadequate, particularly in rural areas where such networks are often nonexistent. Most charging stations are concentrated in urban areas, leaving many potential EV owners without easy access to charging facilities. As a result, many consumers rely on personal chargers, which can be costly and impractical for some users.

To address these challenges, there are plans to significantly increase the number of public charging stations, and companies are working to expand charging infrastructure to promote the adoption of electric vehicles. However, without a fully developed infrastructure, the electric powertrain market will struggle to grow, as convenient and accessible charging options remain limited.

 

Opportunity: Development of lithium-ion battery technologies

Currently, lithium-ion batteries, particularly lithium iron phosphate (LFP) is leading in the electric vehicle market due to their balance of safety, cost, and energy density. Lithium-ion batteries weigh relatively light but have high energy density and can be recharged quickly Future developments are focused on lithium metal and silicon anode technologies, which promise higher energy density and faster charging times. These advancements are driven by the growing demand for electric vehicles and the need for more sustainable materials. Innovations like lithium-rich cathodes and lithium-sulfur batteries aim to optimize performance while reducing reliance on scarce resources. Industry leaders such as Samsung SDI, CATL, LG Energy Solution, and Panasonic in the battery manufacturing space are investing in R&D to build a better battery, not only in performance but also in bringing down the cost, of electric vehicles.

Upcoming battery chemistries such as solid-state and sodium-ion (Na-ion) are poised to revolutionize EV batteries by offering superior benefits over traditional lithium-ion (Li-ion) batteries. Solid-state batteries, expected to be commercially available by 2028, promise higher energy density, faster charging, and enhanced safety due to their non-flammable solid electrolytes. Sodium-ion batteries offer cost advantages and resource abundance, providing a more sustainable alternative, with potential market entry around 2026. New technologies like cell-to-pack and cell-to-chassis architectures are improving energy efficiency, simplifying designs, and enhancing range. OEMs are increasingly investing in battery technologies or forming partnerships with manufacturers. For instance, BYD's collaboration with BorgWarner on LFP batteries and LG Energy Solution's agreement with Changzhou Liyuan for LFP materials reflect this trend. The overall industry is moving towards collaborative development to accelerate the adoption of next-gen battery technologies.

Challenge: High cost of electric components

Many electronic components are used in various power electronics, sensors, and actuators in electric vehicles. As a result, the high production cost of EVs seems to be a significant issue for automakers. A battery pack is one of the most expensive components of an electric vehicle. While costs have decreased over time due to improvements in technology, they remain prohibitively high. Remarkably, the battery pack accounts for nearly 40% of the vehicle's overall cost. Additionally, other significant components such as the electric motor and the DC-DC converter, along with power electronics must be considered. This means that the remaining 22% of costs is attributed to other parts, primarily the chassis, body, interior, and exterior.

The price of electronic components is influenced by several factors, including production complexity, the cost of raw materials such as silicon, gold, and copper, tariffs imposed by governments, and the volume of orders. For rare components with high demand and limited supply, prices can become exceptionally high. Additionally, safety testing in laboratories adds extra costs, particularly for critical applications. Some manufacturers also impose minimum order quantities, which can be a significant challenge for smaller companies. These factors contribute to the rising costs of electronic parts and affect the growth and affordability of the electric powertrain market.

Global Future of E-Powertrain Market Ecosystem Analysis

Top Companies in Future of E-Powertrain Market
 

BEVs hold the largest market share during the forecast period

Battery electric vehicles have dominated the market share, with the largest share being for electric powertrains. China and India are more economy-mid-range-oriented markets and seeing a significant shift towards premium cars. On the contrary, premium cars have greater demand in European and North American markets. As EVs shift to autonomy, the electrical components advance correspondingly. For instance, the electric vehicles that employ 3-phase motors now shall soon be oriented towards 6-phase motors to support applications such as autonomous driving. Products 3-in-1 and multi- in-1 electric drive system even combine powertrain integration with greater efficiency and performance. In integrated design, Tesla is at the top at advanced electric chassis and forward research; its motors are delivered with a specified power over 4-4.6 kW/kg.

Additionally, the rising adoption of SiC MOSFET inverters has significantly improved driving efficiency, with SiC-based systems achieving around 94% efficiency, outperforming traditional Si- based motor drives. This allowed BEVs to achieve higher peak and operational efficiencies during driving cycles. In fact, the companies are working on the power density of electric motors, weight reduction, and an increase in the range of driving. OEMs are aligning with tier-1 suppliers for these advanced technologies. Ongoing technological evolution, strategic partnerships, and developments will lead to the launch of new generation powertrain components, thereby simultaneously growing with upcoming long-range and performance- driven electric passenger cars globally.

Light Commercial Vehicles is estimated to be the fastest growing segment in electric powertrain market during the forecast period 2024-2032

Electric powertrain market for LCVs, which includes pickup trucks, vans, and small trucks. eLCVs has been growing gradually, but the demand is particularly seen in last-mile delivery and e-grocery/ e-commerce sectors. The technology of the powertrain of the electric LCV is improving with companies focusing on improved motor efficiency along with cost reduction for batteries and other electronic components. Motors such as PMSMs, asynchronous motors, and switched reluctance motors, can be used in eLCVs to provide high power and torque of good quality for heavy loads. Material handling for any and all the different applications-from parcel & courier, express service, groceries, logistics, etc. would need varied specifications, generally with motors and battery power. Companies like Magna, ZF, and Stellantis have already begun developments to move forward with continuous innovations for eLCVs. For instance, Magna's eBeam offers a flexible, lightweight solution for pickups and LCVs that will only increase towing and payload without any loss in performance.Though North America holds the largest share in LCV sales with conventional IC engines, the electrification rate in Europe for LCVs is higher in the current scenario. Hence, the demand for electric LCVs is gradually increasing to decarbonize vehicle fleets, leading to the market for several powertrain components.

Asia-Pacific holds the major share in the market

The Asia Pacific region, incorporating markets such as China, India, Japan, and South Korea, will be the biggest market for e-powertrains during the forecast period. Any advancement in electric vehicle adoption is leading to further adoption, and any policies supporting it-including zero-emission vehicle strategies and growing infrastructure-support the adoption of electric cars. In the developing economies of this region, governments have different methods to attract leading OEMs to produce locally. The domestic players in China hold the regional market, as local companies such as BAIC, Geely, and BYD manufacture parts sourced from domestic and international suppliers. Nidec Corporation and DENSO are two significant Japanese manufacturers offering e- powertrains worldwide. Hyundai Mobis is the South Korean key supplier of Kia and Hyundai's electric vehicles. The need also backs the implementation of EVs in India to reduce emissions and improve air quality, and with the government providing incentives, it is gaining momentum. This region combines economic growth and technological advancement favorable enough for a massive surge in the electric powertrain market.

FACTORS DRIVING GROWTH IN ASIA PACIFIC
Future of E-Powertrain Market Size and Share

Recent Developments of Future of E-Powertrain Market

  • In June 2024, Valeo partnered with Dassault Systèmes to accelerate its R&D digitalization by deploying the 3DEXPERIENCE platform to over 15,000 users. This platform will optimize the development of electrified, autonomous, and software-driven mobility solutions, enhancing innovation and reducing R&D expenses.
  • In May 2024, Mitsubishi Electric, Mitsubishi Electric Mobility, and AISIN agreed to form a joint venture to develop and sell traction motors, inverters, and control software for next-generation electric vehicles (EVs). Mitsubishi Electric Group will hold a 66% stake, while AISIN will have 34%. The venture aims to support global carbon neutrality and meet the growing demand for EV electrification systems.
  • In October 2023, Vitesco Technologies and Infineon Technologies expanded their partnership with a new agreement starting in 2027 worth over one billion euros. In future electric vehicle systems, Vitesco will use Infineon's AURIX™ TC4x microcontrollers to enhance efficiency and system costs while ensuring long-term component supply for the shift to electromobility.
  • In April 2023, DENSO Corporation developed its first inverter with silicon carbide (SiC) power semiconductors. These inverters were integrated into the BluE Nexus Corporation's eAxle and installed in the Lexus RZ, the brand's first electric vehicle (EV) model.
  • In March 2023, Dana Incorporated (Dana) developed a new drivetrain offering for electrified vehicles in Lafayette, Indiana. Dana is debuting the Spicer Electrified eSP502 e-Transmission for the North American market. Its dual-motor, two-speed design is built on a flexible, modular platform.
  • In July 2023, Hitachi Astemo Americas invested USD 153 million to expand its Berea, Kentucky, facility, creating 167 full-time jobs. This project will boost production to meet growing demand in the electric vehicle market and enhance the local economy.

Key Market Players

List of Top Future of E-Powertrain Market Companies

The Future of E-Powertrain Market is dominated by a few major players that have a wide regional presence. The major players in the Future of E-Powertrain Market are

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Scope of the Report

Report Attribute Details
Market size available for years 2020–2032
Forecast units Volume (Thousand Units)
Segments Covered Vehicle Type, Propulsion, Integration Type, and Region.
Regions covered North America, Europe, and Asia-Pacific

 

Key Questions Addressed by the Report

What is the size of the electric powertrain market?
The e-powertrain market is projected to reach 51,288 thousand units by 2032 from 18,181 thousand units in 2024, at a CAGR of 13.8%.
What are the driving factors impacting the growth of the electric powertrain market?
The increasing demand for cleaner drives the electric powertrain market and more efficient transportation solutions fueled by stringent emission regulations and government incentives promoting zero-emission vehicles. Rising fuel costs and advancements in battery technology also contribute to adopting electric powertrains. Additionally, the growing focus on sustainability and electrification across various industries, including automotive and logistics, supports market growth.
Which region is projected to be the fastest-growing during the forecast period in the plastic hot and cold pipes market?
The 3-in-1 integrated drive system is currently leading the market. This system combines the motor, inverter, and transmission into a single compact unit, providing several advantages, such as reduced weight, enhanced energy efficiency, and lower manufacturing costs.
What are the new market trends in the power electronics of electric powertrain?
Use of advanced materials in power electronics such as SiC and GaN, integrated inverters, bidirectional charging technology are some of the technological advancements in power electronics.
Which region will have the fastest-growing electric powertrain Market?
Europe is estimated to be the fastest-growing market during the forecast period.

 

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Table of Contents

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TITLE
PAGE NO
TABLE OF CONTENT
 
1 EXECUTIVE SUMMARY 
 
2 MARKET DEFINITION/SCOPE/RESEARCH METHODOLOGY 
    2.1 DEFINITION- E-POWERTRAIN  
    2.2 SCOPE OF STUDY (INCLUSION/EXCLUSION) 
    2.3 RESEARCH METHODOLOGY 
 
3 E-POWERTRAIN MARKET LANDSCAPE 
    3.1 E-POWERTRAIN MARKET, BY VEHICLE TYPE 
           3.1.1 PASSENGER CARS
           3.1.2 LIGHT COMMERCIAL VEHICLES
    3.2 E-POWERTRAIN MARKET, BY REGION 
           3.2.1 ASIA PACIFIC
           3.2.2 NORTH AMERICA
           3.2.3 EUROPE
 
4 E-POWERTRAIN REGULATORY FRAMEWORK 
    4.1 SUSTAINABILITY AND NET-CARBON NEUTRALITY TARGETS 
    4.2 ENERGY PORTFOLIO MIX (RENEWABLES, ETC.) 
    4.3 EMISSIONS NORMS & FUEL ECONOMY NORMS 
    4.4 MODULARISATION AND PLATFORM STRATEGIES 
 
5 E-POWERTRAIN TECHNOLOGY ANALYSIS 
    5.1 E-MOTORS 
           5.1.1 TECHNOLOGY ROADMAP
           5.1.2 FUTURE INVESTMENTS 
           5.1.3 KEY OEMS & SUPPLIERS STRATEGY
    5.2 BATTERY 
           5.2.1 TECHNOLOGY ROADMAP
           5.2.2 FUTURE INVESTMENTS 
           5.2.3 KEY OEMS & SUPPLIERS STRATEGY
    5.3 THERMAL MANAGEMENT FOR MOTORS 
           5.3.1 TECHNOLOGY ROADMAP
           5.3.2 FUTURE INVESTMENTS 
           5.3.3 KEY OEMS & SUPPLIERS STRATEGY
           5.3.4 CASE STUDY (5-1, 3-1)
    5.4 POWER ELECTRONICS 
           5.4.1 TECHNOLOGY ROADMAP
           5.4.2 FUTURE INVESTMENTS 
           5.4.3 KEY OEMS & SUPPLIERS STRATEGY
 
6 E-POWERTRAIN AGGREGATE SUPPLIERS ANALYSIS 
    6.1 ROBERT BOSCH GMBH 
    6.2 MITSUBISHI ELECTRIC CORPORATION 
    6.3 MAGNA INTERNATIONAL INC. 
    6.4 CONTINENTAL AG 
    6.5 DANA  
    6.6 BORGWARNER INC. 
    6.7 ZF 
    6.8 DENSO 
    6.9 HITACHI 
    6.1 VALEO 
    6.11 BATTERY SUPPLIERS 
           6.11.1 CATL
           6.11.2 BYD
           6.11.3 LG
           6.11.4 PANASONIC
           6.11.5 SAMSUNG
 
7 FINAL TAKEAWAYS AND RECOMMENDATIONS 
    7.1 FINAL TAKEAWAYS 
    7.2 STRATEGIC RECOMMENDATIONS 
 
8 APPENDIX 

The study involved analyzing the recent developments, trends, and performance of the players and the electric powertrain market in 2024, along with the projections for 2032. The analysis was based on the sales volume of the EVs around the world. The study also analyzes the primary targets for EVs, market adoption, advancement in powertrain technologies, and government electrification goals—exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with the industry experts. The bottom-up and top-down approaches were employed to estimate the market size in EV sales for the segments considered.

Secondary Research

In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications such as National Highway Traffic Safety Administration (NHTSA), European Automobile Manufacturers’ Association (ACEA), California Department of Motor Vehicles, White papers published by various industry experts, Corporate filings (such as annual reports, investor presentations, and financial statements), Trade, business, and related associations, International Organization for Standardization (ISO), articles, directories, technical handbooks, World Economic Outlook, trade websites, and technical articles are used to identify and collect information useful for an extensive commercial study of the global electric powertrain market.

Market Size Estimation

The bottom-up and top-down approaches were used to estimate and validate the size of the electric powertrain market. Country-wise BEV and PHEV sales were derived from various secondary sources, such as country-wise manufacturing associations and paid databases.

The market for BEVs and PHEVs was forecasted based on factors such as government and OEM targets, emission regulations, investments by OEMs & Tier-1 companies is taken into consideration which is further validated through primary research.

Once the base numbers were projected, the powertrain components were estimated by identifying the number of each element used in EVs and PHEVs. This gives the volume of the electric powertrain market by component.

The integrated vs. non-integrated system market was forecasted based on secondary sources like country-wise manufacturing associations, paid databases, etc., further validated through primary research. Factors considered for the forecast of this market include companies’ investment in weight and cost reduction, increasing investments towards electric powertrain, the adoption rate of integrated systems, overall supply chain readiness for integrated components, government’s support for e-powertrain (Subsidies and incentives for electric powertrain), future integrated powertrain launch announcements, etc.

Future of E-Powertrain Market Size, and Share

Note 1: Others include sales managers, marketing managers, and product managers.
Note 2: Tier 1 companies’ revenues are more than USD 10 billion; tier 2 companies’ revenues range between USD 1 and 10 billion; and tier 3 companies’ revenues range between USD 500 million and USD 1 billion.
Source: Industry Experts

To know about the assumptions considered for the study, download the pdf brochure

Future of E-Powertrain Market : Top-Down and Bottom-Up Approach

Future of E-Powertrain Market Top Down and Bottom Up Approach

Market Definition

BEV Powertrain: A battery electric vehicle (BEV) powertrain is used in EVs that rely solely on electricity for propulsion. Unlike hybrid cars, BEVs do not have an internal combustion engine and operate entirely on electric power stored in a high-voltage battery pack. The components of a BEV powertrain include electric motors/generators, batteries, battery management systems, on-board chargers, inverters, and power distribution modules.

PHEV Powertrain: A plug-in hybrid electric vehicle (PHEV) powertrain combines an internal combustion engine (ICE) with an electric motor and a battery pack. PHEVs are designed to operate in electric and hybrid models, offering the flexibility of driving on electric power alone or using the internal combustion engine for an extended range. The main components of a PHEV powertrain include motors/generators, batteries, battery management systems, control units, inverters, power distribution modules, and onboard chargers. While PHEV powertrain components share similarities with HEV powertrain components, the larger battery pack, charging capabilities, and extended electric-only range are the key differentiating factors that enable PHEVs to offer a more excellent electric driving experience.

Stakeholders

  • Automobile Organizations/Associations
  • Electric powertrain manufacturers and suppliers
  • Regional manufacturing associations and automobile associations
  • Automotive OEMs and electric vehicle manufacturers
  • Component suppliers for electric powertrains
  • Regional emission standard regulatory authorities
  • Research Professionals

Report Objectives

  • To analyze the electric powertrain market performance till 2032
  • To provide critical developments expected to take place till 2030 and beyond.
  • Identify the technological trends likely to impact the market during the forecast period.
  • To identify significant growth segments and growth opportunities till 2032.
  • To project the electric powertrain sales from 2024 to 2032
  • To track and analyze competitive developments such as deals (joint ventures, mergers & acquisitions, partnerships, collaborations), product developments, and other activities carried out by key industry participants.

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