Electric Vehicle Powertrain Vehicle Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Electric Vehicle Powertrain Vehicle Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The electric vehicle powertrain market is anticipated to register a CAGR of over 15.6% during the forecast period (2020 – 2025).

• The market for electric vehicles has been expanding at a high rate, creating high demand for automotive electric powertrains. There has been a tremendous growth in the electric vehicles all over the world. Major automotive component manufacturers have been investing in electric axle drives to capitalize on the increasing sales of electric and hybrid vehicles to increase their market share. Companies have been increasing production capacity, particularly in large electric vehicle markets, such as China, United States, and the European region.
• Massive investments in electric vehicles by major automotive companies, such as Toyota, Honda, Tesla, General Motors, and Ford, among others, are expected to drive the electric motor market in the near future. Additionally, the evolving partnerships between motor manufacturers and automotive companies are expected to expand the electric vehicle powertrain market, globally.
• The electric motor market is expected to face challenges in the form of procurement of rare earth metals used in permanent magnets for synchronous motors, as the metals used in these motors are subject to export restrictions and supply risks. Apart from the growing activities in the development of electric vehicles in the global market, depleting oil and gas reserves is also one of the major factors driving the automakers to shift from IC powertrain to electric powertrain.

The expanding market for electric and hybrid vehicles is a major driver for the automotive powertrain market. There has been a tremendous growth in the electric vehicle market all over the world. China remains the dominant player, globally, in the pure electric vehicle market, with more than 47% of the global market share followed by United States in 2018.

The sales of electric vehicles are expected to rise, owing to fall in costs of batteries and improvements in technologies, like increased storage capacity which has led to the increased adoption by consumers. As the global temperatures are increasing at an alarming rate, governments and industry around the world have pledged to reduce greenhouse gas emissions.

The transportation sector has been one of the major focus areas, as transportation and mobility account for second largest share in terms of emissions after electricity generation. The production and sales of electric vehicles globally have been growing at a high rate, owing to positive regulatory environment, such as subsidies and tax exemptions for both the industry and consumers in the European and Asia-Pacific region.

Governments of major automotive markets, such as China and India, have pledged to allow only electric vehicles on their roads by 2030. Major automakers have also increased their investments in the development of electric vehicles to cater to the anticipated growth in demand for such vehicles in the coming decade. Volvo Motors announced that starting from 2020, the company will develop and manufacture only hybrid and electric cars.

The market for electric drive axles is dependent on the sales of electric and hybrid vehicles. Global plug-in vehicle deliveries reached 11,34,000 units in the 1st half of 2019, 46 % higher than for 2018. In terms of volumes, the increase was 3,58,000 units, equal to the entire US plug-in vehicle market in 2018.

China is still the largest growth contributor, with 2,57,000 units (+66 %) added to a total of 6,45,000 units during the first half of 2019. Europe’s growth for H1 was 34 %, +67 000 units, still held back by tight inventories, waiting lists for popular BEVs and the run-out of high-selling PHEVs.

With the increasing sales of the electric vehicles, automakers are introducing a greater number of such vehicles with advanced functionalities. Although the growth of the Chinese market in 2018 had been sluggish, owing to changes in regulatory policy, the production is expected to bounce back as automakers absorb these changes with price adjustments. In the commercial vehicle segment, China remained the leader globally, with over 90% of electric busses being sold in China.

Electric powertrain manufacturers across the world are entering the Chinese market to capitalize on the increasing demand for electric vehicles by establishing joint ventures and partnerships with local electric vehicle manufacturers. For example, Magna International entered an agreement with Huayu Automotive Systems to expand its electric drive footprint in China.

The electric vehicle powertrain vehicle market is majorly dominated few players, such as Robert Bosch GmbH, ZF Friedrichshafen AG, Cummins Inc., Dana Incorporated, GKN PLC, and Magna International. For being ahead in the competition, the players are making partnerships, acquisitions, and launching new products. For instance:

• Jul 2018: Cummins Inc. announced its acquisition of the US-based Efficient Drivetrains, Inc., a designer and producer of hybrid and battery electric power solutions for commercial vehicles. The company aims to emerge as the leader in the global electric powertrain market.
• Sep 2017: Bosch and Nikola established partnership to develop an electric powertrain, using Bosch’s e-Axle technology, which transmits drive from the engine. These electric powertrains are being developed for long-haul trucks.
• Aug 2017: Bosch launched e-axle powertrain for electric cars. The motor, power electronics, and transmission from unit that drives the car’s axle enhance the efficiency of the electric drive.

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