Electric Powertrain Market Size, Share, And Trend Analysis Report By Component, By Electric Vehicle, By Region, And Segment Forecasts, 2022 - 2030

Electric Powertrain Market Growth & Trends

The global electric powertrain market size is expected to reach USD 1,322.99 billion by 2030, registering a CAGR of 36.7% from 2022 to 2030, according to a new report by Grand View Research, Inc. The market for pure electric and plug-in hybrid vehicles has been growing significantly, in turn creating an increasing demand for automotive electric powertrains.

Governments in various countries are taking initiatives to promote the development of Electric Vehicles (EVs). For instance, in 2020, the U.S. Department of Energy announced a public investment of USD 400 billion in clean energy. The investment would help develop 500,000 charging outlets for electric vehicles by the end of 2030. The rising sales of electric vehicles have propelled prominent automotive component manufacturers to aggressively focus on developing essential EV components to gain a competitive edge.

Prominent manufacturers in the market are primarily focusing on enhancing their facilities in countries such as Europe, China, and the U.S. For instance, in February 2020, Nidec Corporation invested around USD 1.8 billion to expand its electric vehicle powertrain business. The company’s three new facilities, located in Poland, China, and Mexico, would deliver up to 8.4 million electric motors every year.

Asia Pacific is projected to grow at a substantial rate over the forecast period owing to the increase in demand for electric vehicles and the rise in the per capita income of people. Countries such as China, South Korea, and India are among the prominent manufacturers of automobiles. Stringent government regulations and emission norms, including BS-VI in India and China VI, are also expected to contribute to the growth of the Asia Pacific market.

Stringent rules for monitoring CO2 emissions are becoming more demanding in the United States and Europe. North America has set the emission limit to 99g/km following corporate average fuel economy standards; similarly, Europe has set the emission limit to 95g/km by 2020 and a further reduction of 37.5% by 2030. To efficiently meet the emission target, OEMs are promoting and increasing sales of electric vehicles, which in turn will lead to an increase in demand for the electric vehicle powertrain market.

Electric Powertrain Market Report Highlights

• The motor/generator component segment in BEV is anticipated to witness a high CAGR of over 35.0% from 2022 to 2030
• The HEV/PHEV electric vehicle segment is anticipated to witness the highest CAGR of 39.2% during the forecast period. This can be attributed to the charging flexibility benefit that these vehicles offer
• Asia Pacific is expected to expand at a substantial CAGR during the forecast period. The regional market is driven by the increasing adoption of EVs in countries, such as China and India