Electric Powertrain Market Size, Share & Trends Report

Electric Powertrain Market Size, Share & Trends Analysis Report By Component (Motor/Generator, Battery), By Electric Vehicle (BEV, HEV/PHEV), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-764-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 130

Report Overview

The global electric powertrain market size was valued at USD 71.86 billion in 2020 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 33.5% from 2021 to 2028. The COVID-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the global market due to low automotive sales and new requirements. However, stringent emission norms by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), BS-VI norms in India, and China VI, are driving the market growth. The post-COVID-19 recovery in the sales of pure and hybrid Electric Vehicles (EVs) is a prominent driving factor for the market. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production of EVs are anticipated to boost the product demand.

U.S. electric powertrain market size, by electric vehicle, 2018 - 2028 (USD Billion)

Electric vehicles are the future of the automotive market as traditional fuel vehicles are expected to phase out over the coming years. These vehicles are gaining traction as they provide improved environmental benefits and lower total cost of ownership compared to their Internal Combustion Engine (ICE) vehicle counterparts. Numerous countries have come up with stringent policies to encourage the adoption of alternative fuel vehicles, including EVs.

In the past decade, the automotive industry primarily comprised of the same internal combustion engine powertrain. However, the industry now is a broad powertrain mix as it has been shifting toward more efficient and environmentally friendly transportation. The automotive powertrain portfolio is diversified and includes many pure electric and hybrid powertrains. In addition, the overall powertrain landscape is becoming more dynamic and complex with the emergence of electric powertrains.

The growing adoption of electric powertrain can be determined by four factors including infrastructure, regulations, consumer preference, and technology. The penetration of PHEVs and BEVs would strongly determine the future adoption of electric powertrains globally. Regulations for monitoring CO2 emissions are becoming more demanding in the U.S. and Europe. Europe has set its emission limit to 95 g/km by 2020 and an additional reduction of 37.5% by 2030, resulting in a limit of 59 g/km. Meanwhile, North American has set the emission limit to 99 g/km following Corporate Average Fuel Economy (CAFE) standards for passenger-vehicle till 2025. To efficiently meet emission targets and avoid penalties, OEMs would have to increase the sales of electrified vehicles over the coming years.

Innovations in battery technologies have made EVs more competitive than conventional ICE vehicles by providing increased range in a single charge. Batteries are an integral part of the electric powertrain system. They constitute a significant portion of the total cost of electric cars, and their cost has reduced significantly due to technological advancements, production process optimization, and economies of scale. With the price expected to decline over the forecast period, EVs are expected to reach a Total Cost Ownership (TCO) parity, paving the way for the mass-market penetration of EVs.

The COVID-19 crisis has resulted in a global economic slowdown. Lockdowns implemented in various parts of the world to curb the spread of the virus led to disruptions in the supply chains and a temporary ceasing of production at several production facilities. The electric powertrain market is particularly vulnerable due to its dependency on global sourcing for its batteries' core technology. The initial purchase cost of EVs is more significant than their gas-powered and hybrid counterparts. The market growth is also being impacted by the growing price sensitivity of customers during the current crisis. Moreover, Europe, which is one of the most prominent regions for the adoption of EVs, is also witnessing a sharp decline in the sales of electric cars. Italy, Spain, and Germany are among the worst-hit nations in Europe.

Electric Vehicle Insights

The BEV segment accounted for the largest revenue share of around 71% in 2020. This high share is attributed to a decline in the sales of ICE vehicles and restrictions on CO2 targets. The mass adoption of BEVs is a more effective solution to cutting down the emission and reducing the total cost of ownership in the long run. Moreover, advancements in battery technology and reduction in Lithium-ion battery prices are also expected to boost the demand for BEVs over the forecast period.

The HEV/PHEVs segment is projected to register the fastest CAGR of over 36% from 2021 to 2028. These vehicles are designed to enhance the use of the internal combustion engine in interaction with a low-range, High Voltage (HV) electric powertrain. PHEVs have a more powerful electric motor and a significantly larger battery that can be recharged with the help of an external source of power. Hence, they serve as a flexible and convenient option for consumers.

Component Insights

The battery segment accounted for the largest revenue share of around 64% in 2020. Battery is the most prominent component when it comes to the electrification of vehicles. It is either used as the sole power source in BEVs or is combined with other power sources in green vehicles. In BEVs, the battery pack constitutes around 50% of the total cost. Technological advancements in battery technology are expected the result in the reduction of battery pack prices over the forecast period.

Global electric powertrain market share, by component, 2020 (%)

The motor/generator segment is projected to register a CAGR exceeding 30% over the forecast period. The demand for e-motors is driven by the increased penetration of BEVs and PHEVs globally. These vehicles can be equipped with similar e-motor configurations. Moreover, suppliers and OEMs are likely to leverage the growing demand for electric powertrains by forming joint ventures for the development of e-motors. For instance, in August 2019, Nidec Corp., an e-motor manufacturer, formed a joint venture with GAC Components Co., Ltd., a member of Guangzhou Automobile Group Co., Ltd., for the manufacturing of automotive traction motors.

Regional Insights

Asia Pacific captured the largest revenue share of more than 43% in 2020. The high market share is attributed to the growing adoption of EVs in India and China. The increasing per capita income of individuals in these countries has significantly increased the penetration of EVs. Implementation of strict environmental regulations and emission norms, such as BS VI and China VI, is also expected to drive the growth of the regional market. Countries, such as China, are increasingly focusing their efforts on developing electric infrastructure. For instance, China's Didi Chuxing (DiDi) and BP, a British gas, energy, and oil company, entered into a joint venture to develop EV charging infrastructure in China. Such strategic collaborations are expected to encourage the adoption of electric cars, thereby supporting regional market growth.

Europe is anticipated to emerge as a significant market for electric powertrains owing to the presence of numerous OEMs in the region. Countries, such as the Netherlands, Norway, France, and Sweden, have witnessed high adoption of EVs, which is likely to contribute to the growth of the market in the region. North America also witnesses high adoption of EVs. The region is characterized by the presence of major players, such as Tesla, Chevrolet, Ford, BMW, Nissan, and Volkswagen. Moreover, the U.S. and other countries have developed infrastructure for EVs, such as charging stations, also known as Electric Vehicle Supply Equipment (EVSE). These factors are expected to propel the demand for electric powertrains.

Key Companies & Market Share Insights

Key players are continuously working toward new product developments and upgrades of their existing product portfolio. In addition, they collaborate with other players or EV manufacturers for strategic growth. For instance, in December 2020, Magna International, Inc. announced a joint venture with LG Electronics. Under the joint venture, the companies planned to co-develop inverters, e-motors, onboard chargers, and e-drive systems to support the growing global shift toward vehicle electrification.

Moreover, key players are focused on consolidating their market shares by undertaking M&A activities. In December 2019, Weichai Power Co., Ltd., a traditional powertrain manufacturer for heavy-duty commercial vehicles, acquired Aradex AG, a Germany-based electric powertrain component manufacturer. In 2019, Dana Inc. acquired Nordresa Motors Inc., an electric powertrain manufacturer and supplier. Some of the prominent players in the global electric powertrain market include:

  • BorgWarner

  • Bosch Ltd.

  • Mitsubishi Electric Corp.

  • Magna International Inc.

  • Schaeffler AG

  • ZF Friedrichshafen AG

  • Valeo

  • Nidec Corp.

  • Continental AG

  • Magneti Marelli CK Holdings

Electric Powertrain Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 86.71 billion

Revenue forecast in 2028

USD 654.95 billion

Growth rate

CAGR of 33.5% from 2021 to 2028

Base year for estimation

2020

Historical data

2016-2019

Forecast period

2021-2028

Quantitative units

Revenue in USD billion, volume in units, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Electric vehicle, component, region

Regional scope

North America; Europe; Asia Pacific; Rest of the World

Country scope

U.S.; Canada; Germany; U.K.; France; Norway; Sweden; China; Japan; South Korea

Key companies profiled

BorgWarner; Bosch Ltd.; Mitsubishi Electric Corp.; Magna International Inc.; Schaeffler AG; ZF Friedrichshafen AG; Valeo; Nidec Corp.; Continental AG; Magneti Marelli CK Holdings

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global electric powertrain market report on the basis of electric vehicle, component, and region:

  • Electric Vehicle Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

    • BEV

    • HEV/PHEV

  • BEV Electric Powertrain, By Component Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

    • Motor/Generator

    • Battery

    • Power Electronics Controller

    • Converter

    • Transmission

    • On-Board Charger

  • HEV/PHEV Electric Powertrain, By Component Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

    • Motor/Generator

    • Battery

    • Power Electronics Controller

    • Converter

    • Transmission

    • On-Board Charger

  • Regional Outlook (Volume, Units; Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Norway

      • Sweden

    • Asia Pacific

      • China

      • Japan

      • South Korea

    • Rest of the World

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