Published Date : 21 Apr 2023
The global electric powertrain industry will increase to USD 390.31 billion by 2032 from valued at USD 95.23 billion in 2022, It is growing at a CAGR of 15.2% from 2023 to 2032.
The electric powertrain industry growth is driven by increasing government initiatives, growing R&D investments, increasing pollution levels and inflated rate of fuel prices.
A type of vehicle known as an electric vehicle (EV) runs on energy rather than fossil fuels like gasoline and diesel. The vehicle's electric engine, which consists of a battery and an electric motor, generates the energy needed to propel or operate it. The essential components that generate and transport energy to the road surface are part of electric powertrain systems for use in all-electric, hybrid-electric, and plug-in hybrid vehicles.
The Asia Pacific is expected to hold a significant revenue share over the forecast period. The significant revenue share of the electric powertrain industry is owing to the increasing demand for EVs in the countries like India, China and Japan. In the region, China holds a prominent share of EVs in terms of production and revenue owing to government initiatives. For instance, according to the secondary analysis, the global EV industry is by far dominated by China. China, the world's biggest EV producer, produced 3.5 million EVs in 2021, up 1.6 times from the previous year. The Asia-Pacific region saw the largest EV industry revenue totals for the year, at around 102.2 billion USD. By 2025, the Chinese government wants 20% of all newly industryed cars to be electric.
Major EV producers based in the nation include BYD Auto, BAIC Motor, and SAIC Motor, all of which are making significant investments in the development of electric powertrains. Moreover, China is anticipated to become a significant participant in the global electric drivetrain industry due to the accessibility of cheap raw materials and labor. As a result of government efforts encouraging the usage of EVs and the existence of a sizable customer base, India is also anticipated to experience significant revenue development in the electric powertrain industry.
North America is expected to grow at a fast rate during the forecast period. The growth in the region is attributable to the increasing GHG emissions in the states of the countries and increasing government initiatives to tackle the problem. Approximately 90% of the energy used in transportation in the United States originates from petroleum, according to the U.S. Energy Information Administration. With 29% of all GHG emissions in the US coming from the transportation industry, it is also the largest GHG producer in the country. Many states are trying to broaden the fuel blend used in the transportation sector and reduce pollution by promoting the use of alternative fuels like electricity, natural gas, hydrogen, and biofuels, though the reasons for this differ among state legislators. To achieve this, numerous states have put in place benefits to encourage the use of electric cars (EVs), including battery-electric and plug-in hybrid EVs. Thus, the growing concern about GHG and the rising government initiatives drives up the demand for these industrys in the region.
Europe is expected to grow at the highest CAGR over the forecast period owing to the increasing demand for EVs along with regulatory support. For instance, according to the European Environment Agency, in the EU-27, the adoption of electric cars and vans increased significantly in 2021. Nearly 1,729,000 electric vehicle entries were made for the year, up from 1,061,000 in 2020. In just a single year, this indicates a rise in the share of all new vehicle registrations from 10.7% to 17.8%. From 2.1% of all new registrations in 2020 to 3.1% in 2021, electric vehicle adoption also rose. In 2021, the number of battery electric and plug-in hybrid automobiles was similar, whereas the bulk of electric van registrations were made by battery electric vehicles. Thus, this is expected to drive industry growth in the region.
Electric Powertrain Industry Report Scope:
|Market Size in 2022
|USD 95.23 Billion
|Projected Forecast Value in 2032
|USD 390.31 Billion
|15.2% from 2023 to 2032
|Fastest Growing Market
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America and Middle East & Africa
Increasing government initiatives across the globe
Various governments are making efforts to encourage the growth of electric vehicles. (EVs). For instance, the US Department of Energy proposed a $400 billion public investment in renewable energy in 2020. By the end of 2030, the funding would have contributed to the development of 500,000 electric vehicle charging stations. Popular automotive component makers are aggressively concentrating on creating necessary EV components to obtain a competitive advantage as a result of the rising sales of electric vehicles.
The inconvenience of service station
Electric car use is still in its early stages. Because of this, the facilities that service it are also constructed in small numbers. There aren't many service stations where vehicles can refuel with energy even after driving long distances. Thus, acting as a major restraint on industry growth.
The growing investment by key players
Leading producers in the industry are mainly concentrating on improving their facilities in nations like Europe, China, and the United States. For instance, Nidec Corporation spent about USD 1.8 billion in February 2020 to grow its electric car powertrain company. Up to 8.4 million electric motors could be produced annually at the company's three new sites in Poland, China, and Mexico. Thus, the growing investment by key players is expected to provide an attractive opportunity for the growth of the industry during the forecast period.
Key Market Players:
By Electric Vehicle
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