The Rise of Electric Powertrain

Stringent emission regulation targets, CO₂ reduction, and OEM focus on vehicle electrification have shifted to pure and hybrid electric vehicles. This has increased the sales of pure electric & plug-in hybrid light-duty vehicles worldwide. According to MarketsandMarkets analysis, the electric vehicle market is projected to grow at a CAGR of 14% from 2024 to 2030 and reach ~34 million units by 2030.

The rising production and sales of EVs have increased the demand for electric powertrains, which are rapidly moving towards integrated configurations. Leading Tier-1 suppliers now offer 3-in-1 solutions integrating motors, inverters, and reducers. Several players are progressing towards more advanced systems such as 6-in-1, 8-in-1, or even 11-in-1 setups. Companies like BYD, Huawei, Nissan, and others are investing in developing these highly integrated powertrain systems.

FIGURE 1

Key manufacturers and their integrated e-powertrain systems

INTEGRATED E-POWERTRAIN SYSTEM

INTEGRATION WITH INVERTER, MOTOR, GEARBOX, etc.

Source: Company Websites, Secondary Research

These typical advantages of integrated powertrain systems include weight reduction, space optimization, enhanced performance, and simplified thermal management. However, the most significant benefit lies in cost savings. A higher level of integration offers the most compact and efficient system, reducing the number of external cEomponents, simplifying assembly, and improving thermal efficiency. Integrated systems can reduce up to 20-40% of cost depending upon the application, vehicle type, and vehicle class.

FIGURE 2

Price comparisons: integrated vs. non-integrated system

Note: Dana, Nissan, Valeo, BYD are the suppliers for above-mentioned integrated systems. The combination of components used in integrated drive systems may vary depending on application type, vehicle class and demand from OEMs. For the comparison, cost of each component is considered individually which might change based on combination of components used.  

Source: Secondary Research and MarketsandMarkets Analysis

Motors such as permanent magnet synchronous and induction motors dominate in markets like China and India. In contrast, more advanced options like axial flux and synchronous reluctance motors are being developed for high-performance and small EVs. OEMs like Toyota, BMW, and Tesla plan to implement these motors to offer enhanced torque and speed within compact designs.

The dual-motor configuration is expected to rise, particularly in North America and Europe's performance, SUV, and premium vehicle segments. However, cost pressures in Asia-Pacific markets may slow this trend in mass-market vehicles. Meanwhile, lithium-iron-phosphate (LFP) batteries dominate Asia-Pacific due to lower costs, while NMC batteries are more prevalent in Europe and North America for their higher efficiency. Additionally, developments in blade, solid-state, and sodium-ion batteries are set to revolutionize EV range and performance by 2028, with companies like BYD and Toyota at the forefront of these innovations.

Thermal management has become increasingly critical, not just for batteries but also for other powertrain components. As EVs shift from 400V to 800V systems, more sophisticated cooling solutions, including oil spray and hybrid cooling technologies, are being developed by key players like BorgWarner and Idemitsu. Power electronics, particularly with the integration of wide-bandgap semiconductors such as SiC and GaN, enable more efficient power conversion, bidirectional charging, and space-saving designs for the next generation of electric vehicles.

Conclusion: As e-powertrain integration approaches 90-100% by 2035, OEMs and suppliers will need to prioritize modular, scalable solutions like 8-in-1 systems to cater to diverse regional demands. The focus will also shift to improving efficiency through advanced materials, thermal management, and software integration.

Related & Adjacent Reports:

• Electric Powertrain Market - https://www.marketsandmarkets.com/Market-Reports/electric-powertrain-market-97605711.html
• Vehicle Electrification Market - https://www.marketsandmarkets.com/Market-Reports/vehicle-electrification-market-224946587.html
• Electric Vehicle Market - https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html
• Electric Truck Market - https://www.marketsandmarkets.com/Market-Reports/electric-truck-market-221011937.html
• Electric Bus Market - https://www.marketsandmarkets.com/Market-Reports/electric-bus-market-38730372.html

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