Smart Electric Drive Market to Exceed USD 27.82 Bn By 2032

Published Date : 29 Apr 2024

The global smart electric drive market size was evaluated at USD 1.69 billion in 2023 and is expected to attain around USD 27.82 billion by 2032, growing at a CAGR of 36.5% from 2023 to 2032. Smart electric drives are lightweight and compact as compared to conventional drives causing improved vehicle performance.

Smart Electric Drive Market Size and Growth Rate From 2023 to 2032

Market Overview

A smart electric drive market deals with a combined system that merges electric force with connectivity and advanced control features. Smart electric drives are an enhanced and updated version of the traditional electric drive. The smart electric drives are powered by a battery, which offers more sufficient and smoother vehicle transmission. The rising demand for road safety and comfort is driving the demand for the market.

The increasing adoption of electric vehicles due to strict discharge norms coupled with government force to adopt electric vehicles by offering incentives and grants on electric vehicle purchases is likely to enhance the demand for smart electric drives. The increasing electric vehicle sales, rapid automotive electrification, government initiatives for electric vehicle production, and tax and subsidy benefits are expected to drive the market growth.

Environmental sustainability, cost efficiency, and urban mobility solutions are multiple factors that fuel market growth

Electric vehicles play an important role in reducing air pollution in urban areas since they do not generate any exhaust emissions. These electric vehicles offer an eco-friendly option that aligns with global initiatives to deal with climate change and makes them a suitable alternative as urban work towards sustainability. In addition, while the primary investment for electric vehicles is higher, the total ownership costs for smart electric drives normally prove to be lower. 

Factors such as the low price of electricity in contrast to gasoline, government incentives, and reduced maintenance needs play crucial roles in creating long-term savings for individuals who adopt these electric vehicles. Moreover, these electric vehicles have been developed to particularly serve the demands of urban residents, helping to face the difficulties related to city commuting.

These utilizing electric propulsion and compact electric vehicles provide perfect solutions for less-distance traveling, thereby solving parking issues and mitigating traffic congestion. These are the major factors that are expected to drive the growth and demand for the smart electric drive market.

However, limited driving range and infrastructure can restrain market growth. The lack of adequate charging infrastructure and a limited driving range of electric vehicles can create challenges to the adoption of smart electric drives. The demand for infrastructure development and range anxiety are major challenges. Hence, these are the major factors responsible for restraining the growth and demand for the smart electric drive market.

Smart Electric Drive Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 1.69 Billion
Projected Forecast Revenue by 2032 USD 27.82 Billion
Growth Rate from 2023 to 2032 CAGR of 36.5%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

The Smart Electric Drive Market Top Companies

  • ZF Group
  • TATA Punch
  • Morris Garages
  • Smesh E-Axle
  • Siemens AG
  • Shanghai Automotive Smart Electric Drive
  • Nidec Corporation
  • Meritor
  • Meidensha Corporation
  • Mahle
  • Magna International
  • LG Electronics
  • Jing-Jin Electric Technologies
  • Jatco
  • Infineon Technologies
  • Hyundai Mobis
  • Huayu Automotive Electric System
  • Hitachi
  • Hexagon AB
  • GKN (Melrose)
  • Denso
  • Dana
  • Continental Ag
  • Bosch
  • BorgWarner
  • Allision Transmission
  • Aisin Corporation
  • ABB

Recent Development by Morris Garages

  • In April 2024, in India, Jamshedpur, Morris Garages launched a smart ZS EV and MG Comet EV drive. The aim behind this launch was to spread awareness about electric vehicles as a cost-effective, eco-friendly, and viable transportation solution for urban areas. The Morris Garages is a renowned British automobile company.

Recent Development by BYD

  • In January 2024, newly developed smart driving ADAS technology will be launched by the Chinese electric vehicle leader BYD very soon, by the end of March. The automaker is moving into smart driving technology, with BYD entering the electric vehicle segment with brands like Fang Cheng Bao and Yanwang.

Regional Insights

Asia Pacific dominated the smart electric drive market in 2023. The Asia Pacific smart electric drive market is growing rapidly. Due to the increasing risk, weather change generated by the pollution produced is responsible for driving the market growth. China and India are emerging countries in the Asia Pacific region.

Over the past few years, China has successfully become the world’s largest electric vehicle market. Half of the sales are for electric cars, and over 90% of the sales are for electric trucks and buses. Due to the government providing purchase subsidies and their initiatives to adopt a maximum number of electric vehicles, China is the biggest country in terms of electric vehicles.

The BYD is the largest Chinese electric vehicle manufacturer and also developed Tesla to become the biggest EV company in the world. Chinese automakers have a higher percentage of rapid development than other manufacturers. Chinese automakers are launching new models continuously. Tesla launches a new model every year. Compared to Tesla’s five models, BYD has launched 19 models in the last six years. The BYD, SAIV-GM-Wuling, Tesla, Geely, GAC Anion, Chery, Changan, Hozon Auto, and Li Auto are major leading electric vehicle companies in China. These are the major and advanced factors in China that are responsible for the growth and demand for the smart electric drive market.

  • For instance, in 2022, 64% equivalent to 6.7 million units of global new energy vehicle manufacturing such as non-gasoline, cars running on hydrogen, hybrid vehicles, and electric vehicles occurred in China, which is expected for 7.65 million global EV sales and 59% of the 10.52 million global new energy vehicle sales. China is also considered to have over 5 million electric vehicles, which means almost two out of three electric vehicles are sold in China.

Market Potential and Growth Opportunity

Lower operating costs of new smart drives utilizing smart drive technology united with rising investment in the EV

Fossil fuels are non-sustainable, and their prices are growing across the world. It is expected that well-developed concerns across all collaborators will be that they are not sustainable. Smart electric drives are new innovations, and promising ventures have been shown to minimize input costs. Smart electric drives are also a less expensive alternative when compared to long-term petroleum vehicles.

Owners of electric vehicles can expect to get advantages from fewer maintenance obligations and less expensive fuel. Electric vehicles using electricity as a fuel source need less costs to operate. Electric vehicles need less maintenance than other vehicles, including the motor and battery, and require no regular maintenance and no regular oil changes. These are the major opportunities that are expected to drive the growth and demand for the smart electric drive market in the coming years.

The Smart Electric Drive Market News

  • In April 2024, in China, Huawei launched new intelligent driving to dominate the electric vehicle industry. The aim behind this launch was that 500,000 cars with Huawei will be self-driving in 2024. Huawei wants to be a major player in the intelligent EV industry.
  • In December 2023, to explore and drive vehicle-to-home energy management and support optimal home energy management, Resideo and Ford Technologies launched a joint stimulation project. The project explored, quantified, and tested the consumer advantages of pairing bi-directional electric vehicle charging with a Resideo smart to help consumers reduce strain on the U.S. electric grid, enable the use of clean energy, and save money on monthly electric bills.

Market Segmentation

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • 2-Wheelers

By EV Type

  • BEV
  • HEV
  • PHEV

By Application

  • E-Axle
  • E-Wheel Drive

By Component

  • EV Battery
  • Electric Motor
  • Inverter System
  • E-Brake Booster
  • Power Electronics

By Drive Type

  • Front Wheel Drive
  • Rear Wheel Drive
  • All-Wheel Drive

By Commercial Vehicle Type

  • Electric Buses
  • Electric Trucks

By 2-Wheeler Type

  • Electric Cycles
  • Electric Motorcycles
  • Electric Scooters

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