Electric Vehicle Drivetrain Market - Forecasts from 2024 to 2029

Electric Vehicle Drivetrain Market - Forecasts from 2024 to 2029

The electric vehicle drivetrain market is expected to grow from US$54.941 billion in 2024 to US$120.330 billion in 2029 at 16.98% (CAGR).

An electric vehicle (EV) drivetrain comprises components including electric motors, controllers, and batteries that transmit power to the driving wheels. The system varies depending on the type of electric vehicle and plays an integral role in establishing a link between the primary power source of the vehicle and the wheels. The ongoing transition towards electric mobility, followed by strategic investment to bolster it, is majorly driving the demand for drivetrain systems.

Furthermore, the ongoing technological innovations in electric vehicle driving backed by government support and subsidies to bolster EV adoption have furthered the market growth prospects. Major economies with high potential for EV adoption are expected to witness significant growth in such technology. However, the architecture of the drivetrain used in electric vehicles differs from the ones in traditional vehicles as it requires precise structuring to manage speed and torque. Hence, such customized build-up can act as a major obstacle to the market growth.

Electric Vehicle Drivetrain Market Drivers:

The growing electric vehicle transition has accelerated the market expansion.

Growing carbon emissions have become a major factor in increasing air pollution and global warming. To minimize such events, various efforts are being taken, including shifting from conventional internal combustion engines to sustainable fuel, which has bolstered the demand for electric vehicles. Hence, major economies, namely China, the United States, and the European Union, are experiencing significant growth in such transition.

According to the International Energy Agency, in 2023, nearly 14 million electric vehicles were registered globally, bringing the total on-road volume to 40 million. Moreover, EV sales in the same year were 3.5 million higher than the preceding year, thereby showing 35% year-over-year growth. Additionally, the same source specified that the percentage share of electric cars in overall vehicle sales globally increased from 14% in 2022 to 18%, showcasing significant growth in EV adoption.

Electric Vehicle Drivetrain Market Geographical Outlook:

Asia Pacific is expected to account for a significant market share during the given time frame.

By geography, the electric drivetrain market is divided into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The market in the APAC region is poised for a significant expansion and will account for a considerable market share. Major APAC economies, namely China, account for a major portion of the global adoption of electric vehicles. For instance, as per the “Global EV Outlook 2024”, China accounted for 60% of new electric vehicle registrations in 2023, reaching 8.1 million units.

The same source also stated the booming automotive sector in the economy is mainly attributed to the growing electric vehicle sales in the country. Hence, favorable investment to bolster EV production & adoption, followed by the well-established presence of major EV companies, namely BYD INC. and Xpeng Inc., are acting as additional driving factors for the regional market growth.

North America and Europe are anticipated to show remarkable growth fueled by the favorable efforts of the EV manufacturers to bolster their EV fleets and improve their driving technology. These major players are namely Tesla, Volvo, BMW, and Stellantis N.V. The South American and MEA regions will account for a minimal market share during the period.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Electric Vehicle Drivetrain market is segmented and analyzed as given below:

By Component

Battery
Controller
Transmission
Electric Motor

By Type

Fron-Wheel Drive (FWD)
Rear-Wheel Drive (RWD)
All-Wheel Drive (AWD)
Four-Wheel Drive (4WD)

By Vehicle

PHEV
BEV
FCEV
HEV

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Italy
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
Japan
China
India
South Korea
Indonesia
Thailand
Others