Electric Vehicle Powertrain Market Analysis

Electric Vehicle Powertrain Market Overview:

Electric Vehicle Powertrain Market Size was valued at USD 88.25 billion in 2021. The Global Electric Vehicle Powertrain market industry is projected to grow from USD 118.87 Billion in 2022 to USD 956.44 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 34.70% during the forecast period (2024–2030). Key market drivers that fuel demand for the electric vehicle powertrain market include the expansion in trend of smaller engines, rising sales of electric vehicles, and stricter vehicle pollution norms & laws.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Vehicle Powertrain Market Trends

Government enforces strict vehicle emission regulations, which will boost market growth

The environment and human health are being negatively impacted by rising levels of carbon and particulate matter emissions from automobiles, which has resulted in a serious deterioration of the air quality. As a result, governments all over the world have mandated strict emission standards for car makers. As a result, manufacturers have been forced to invest more in R&D for electric vehicles in order to offer consumers a competitive alternative, which has accelerated the development of e-powertrains. For instance, the energy consumption in Europe is largely influenced by the road transportation industry. In order to achieve its goal of net-zero greenhouse gas emissions, the EU continues to tighten CO2 emission standards for passenger cars and light commercial vehicles. This aspect motivates the pursuit of practical solutions for the powertrain architecture of electric vehicles. Therefore, this factor has enhanced the electric vehicle powertrain market CAGR across the globe in the recent years.

Furthermore, electric vehicles are replacing conventional automobiles in a big way in the worldwide automotive sector. Various governments are launching measures to promote the use of electric vehicles. For instance, the Canadian government spent US$182.5 million to build a fast charging infrastructure for EVs. The Federal Government of Canada also unveiled its Greening Government Strategy in December 2017, which intends to cut greenhouse gas emissions by 80% by the year 2050. Additionally, according to Clean Energy Canada, the Canadian government spent $1 billion USD in 2017 to increase the supply of electric vehicles. Due to rising demand and manufacturing, there were more than 40 different electric car models available on the Canadian market in 2019. 2.5% of all automobiles sold in Canada are electric vehicles. Additionally, GOV.UK reports that in July 2019, UK authorities invested up to $100 million towards the creation of next-generation electric vehicles. As a result, the government is working with top business executives to hasten the development of electric and hybrid automobiles.

However, continuous fuel price increases and ongoing environmental concerns have increased consumers' preference for electric mobility alternatives, especially in industrialized nations. As a result, automakers are concentrating on creating e-powertrain solutions that are small, light, and appropriate for daily commuting. The market for electric vehicle powertrains is also anticipated to be driven by enticing government policies and assistance, including grants and subsidies, incentives for domestic production, widespread use of electric vehicles, and other non-financial incentives. Thus, driving the growth of the electric vehicle powertrain market revenue.

Electric Vehicle Powertrain Market Segment Insights:

Electric Vehicle Powertrain Component Insights

The Electric Vehicle Powertrain Market segmentation, based on component, includes Battery, E-Motor, Power Electronics, Thermal Management Modules and Others. The battery segment held the majority share in 2021 in respect to the Electric Vehicle Powertrain Market revenue. When it comes to the electrification of automobiles, the battery is the most noticeable component. In green vehicles, it is either combined with other power sources or used as the only power source in BEVs. The battery pack accounts for about 50% of the overall cost of BEVs.

Electric Vehicle Powertrain Propulsion Insights

The Electric Vehicle Powertrain Market segmentation, based on propulsion, includes Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV) and Plug-in Hybrid Electric Vehicles (PHEV). The battery electric vehicle (BEV) segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. A vehicle that is solely powered by electricity is referred to as a battery electric vehicle (BEV). A BEV's only power source is an electric drivetrain that is powered by rechargeable batteries rather than an internal combustion engine or petrol tank. To charge, a BEV must be plugged into an electrical outlet. Hence, it positively impacts the market growth.

Figure 2: Electric Vehicle Powertrain Market, by Propulsion, 2024 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Vehicle Powertrain Vehicle Type Insights

The Electric Vehicle Powertrain Market data, based on end-use, includes Passenger Car and Commercial Vehicle. The passenger car segment held the majority share in 2021 in respect to the Electric Vehicle Powertrain Market revenue. The fast adoption of electric cars, particularly in developing nations, along with rising demand for vehicles for daily transportation are driving this market's rise for EV powertrains.

Electric Vehicle Powertrain Regional Insights

By region, the study provides the market insights for electric vehicle powertrain into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific electric vehicle powertrain market accounted for USD 38.74 billion in 2021 and is expected to exhibit a significant CAGR growth. The main reason for the significant market penetration is a number of legislative initiatives promoting EV sales, including EV sales quotas, fuel economy targets, and benefits for EVs in the allocation of license plates in nations like China.

Further, the major countries studied in the market report for electric vehicle powertrain are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Electric Vehicle Powertrain Market Share By Region 2024 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe electric vehicle powertrain market accounts for the second-largest market share. The primary force in this area is the rule that every auto manufacturer must abide by regarding carbon emissions for newly registered automobiles. In addition, adoption of e-mobility and resistance to transportation powered by internal combustion engines are growing.  Further, the Germany electric vehicle powertrain market held the largest market share, and the UK electric vehicle powertrain market was the fastest growing market in the European region.

North America electric vehicle powertrain Market is expected to grow at the fastest CAGR from 2024 to 2030. The typical US consumer prefers larger automobiles and drives more distances. However, a larger market share for electric vehicle Powertrains is anticipated in some places, particularly coastal ones. In turn, this element is promoting market expansion in this area. Moreover, US electric vehicle powertrain market held the largest market share, and the Canada electric vehicle powertrain market was the fastest growing market in the North American region.

Electric Vehicle Powertrain Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the electric vehicle powertrain market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the electric vehicle powertrain industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global electric vehicle powertrain industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, electric vehicle powertrain industry has provided medicine with some of the most significant benefits. The electric vehicle powertrain market major player such as ZF Friedrichshafen AG (Germany), EPT Co. Inc. (South Korea), WEG (Brazil), Bonfiglioli Riduttori S.P.A (Italy), IET S.p.A. (Italy), Automation Tooling Systems Inc. (Canada), GKN PLC (UK), NXP Semiconductors (the Netherlands), Robert Bosch GmbH (Germany), BorgWarner Inc. (US), Continental AG (Germany), AVL List GmbH (Austria), Mitsubishi Electric Corp (Japan), Magna International Inc. (Canada) and Dana Incorporated (US).

Continental AG, also referred to as Continental or Conti informally[4], is a multinational German manufacturer of automotive parts with a focus on tyres, brake systems, powertrain and chassis components, interior electronics, automotive safety, tachographs, and other components for the automotive and transportation sectors. In October 2020, the launch of a new transmission control system was announced by Vitesco Technologies in the Powertrain division of Continental AG. The over-molding control electronics technology it uses makes it the first transmission control system of its kind in the entire globe.

Also, a Canadian company called Magna International Inc. produces vehicle parts. It was listed on the 2020 Forbes Global 2000 and is one of Canada's biggest corporations. [3] According to sales of original equipment components, the firm is North America's largest maker of automotive parts. In August 2020, in Slovakia, Europe, Magna International Inc. announced plans to grow its powertrain business. To create powertrain metal forming solutions, the company started building the Slovakian manufacturing facility.

List of the Key Companies in the electric vehicle powertrain market includes

• ZF Friedrichshafen AG (Germany)


• EPT Co. Inc. (South Korea)


• WEG (Brazil)


• Bonfiglioli Riduttori S.P.A (Italy)


• IET S.p.A. (Italy)


• Automation Tooling Systems Inc. (Canada)


• GKN PLC (UK)


• NXP Semiconductors (the Netherlands)


• Robert Bosch GmbH (Germany)


• BorgWarner Inc. (US)


• Continental AG (Germany)


• AVL List GmbH (Austria)


• Mitsubishi Electric Corp (Japan)


• Magna International Inc. (Canada)


• Dana Incorporated (US).

Electric Vehicle Powertrain Industry Developments

January 2024- VinFast, a Vietnamese electric vehicle manufacturer, has entered a memorandum of agreement with the state government of Tamil Nadu to develop electric vehicle manufacturing facilities in India as the automaker looks forward to breaking into the world's third-largest vehicle market. The collaboration has earmarked an investment of up to US$2bn with the primary commitment for the first phase of the project, spanning five years, set at US$500m. 

The partnership will witness VinFast creating an integrated electric vehicle facility in Thoothukudi, Tamil Nadu, with a yearly production capacity of up to 150,000 units. The project is anticipated to produce 3,000-3,500 job opportunities, contributing to economic development in the region and the country at large. Construction of the manufacturing facility is organized to commence this year. The project seeks to promote green transportation and capitalize on the expansion across the country, which is focusing on 30% of newly registered private cars to be electric by 2030. The Tamil Nadu state government has committed to offering the required support, including uninterrupted power supply, cleared land for manufacturing facilities, and other infrastructure support. Both parties will continue to partner on opportunities, such as the foundation of charging stations, to proceed with the vision of a cleaner, more sustainable mobility future.

September 2023- A joint venture between South Korea's LG Electronics Inc. and Canada's Magna International Inc., LG Magna e-Powertrain Co. has disclosed strategies to develop an electric vehicle parts factory in Hungary, following the home appliance giant's push to lead the world's future mobility sector. An EV powertrain maker, LG Magna, is ready to begin operations in 2026, producing driving motors at the facility in Miskolc with plans to produce other components based on the demand in the world's second-largest clean vehicle market as per the statement by the LG Electronics without offering financial details on the investment.

Electric Vehicle Powertrain Market segmentation:

Electric Vehicle Powertrain Component Outlook (USD Billion, 2018-2030)

• Battery


• E-Motor


• Power Electronics


• Thermal Management Modules


• Others

Electric Vehicle Powertrain Propulsion Outlook (USD Billion, 2018-2030)

• Battery Electric Vehicle (BEV)


• Hybrid Electric Vehicle (HEV)


• Plug-in Hybrid Electric Vehicles (PHEV)

Electric Vehicle Powertrain Vehicle Type Outlook (USD Billion, 2018-2030)

• Passenger Car


• Commercial Vehicle

Electric Vehicle Powertrain Regional Outlook (USD Billion, 2018-2030)

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America