Global Electric Powertrain Market Research Report, 2029

In recent years, electric vehicles (EVs) have emerged as a transformative force in the automotive industry, largely due to their innovative electric powertrains. This technology represents a departure from traditional internal combustion engines (ICEs), offering numerous benefits that range from environmental sustainability to enhanced performance and efficiency. The electric powertrain, a significant innovation in the automotive industry, is revolutionizing the way vehicles are powered and controlled. This technology, which is the heart of electric vehicles (EVs), is not only transforming the driving experience but also playing a crucial role in reducing greenhouse gas emissions and our dependence on fossil fuels. An electric powertrain is a system of components that work together to propel an electric vehicle. It converts electrical energy stored in the battery into mechanical energy to drive the wheels. Unlike traditional internal combustion engine (ICE) vehicles, which have complex mechanical systems, electric powertrains are simpler, more efficient, and require less maintenance. The COVID-19 pandemic has affected the overall automotive industry, leading to a subsequent decline in the growth of the electric powertrain industry due to low automotive sales and new requirements. However, stringent emission norms by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), BS-VI norms in India, and China VI, are driving the market growth. The post-COVID-19 recovery in the sales of pure and hybrid electric vehicles is a prominent driving factor for the growth of the electric powertrain industry. Moreover, the mass adoption of electric cars and attractive incentives by governments for the domestic production of electric vehicles is also anticipated to boost the demand for electric powertrains globally. Electric vehicles are the future of the automotive market as traditional fuel vehicles are expected to phase out over the coming years. These vehicles are gaining traction as they provide improved environmental benefits and lower total cost of ownership compared to their internal combustion engine vehicle counterpart. Numerous countries have come up with stringent policies to encourage the adoption of alternative fuel vehicles, including electric vehicles. In the past decade, the automotive industry comprised of the same internal combustion engine powertrain. However, the industry now is a broad powertrain mix as it has been shifting toward more efficient and environmentally friendly transportation. According to the research report, “Global Electric Powertrain Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 400 Billion by 2029, increasing from USD 154.57 Billion in 2023. The market is expected to grow with 18.22% CAGR by 2024-29. The increasing electric car fleet has pushed automakers to introduce innovative technologies in electrified powertrains. Key innovations in battery chemistry to increase energy density and the expansion of production plants, along with cost optimization, have also been major enablers for the electric powertrain market. The growth of the BEV electric powertrain market is a major trend in the automotive industry. As BEVs are becoming more affordable and practical, they are being supported by government regulations. Stricter emissions standards worldwide are pushing automakers to invest heavily in electric vehicles to meet regulatory requirements and reduce their carbon footprint. Continuous advancements in battery technology, electric motor efficiency, and power electronics are making electric vehicles more practical, affordable, and appealing to consumers. Increasing awareness of environmental issues, coupled with improvements in electric vehicle range and charging infrastructure, is driving consumer demand for electric vehicles. Governments worldwide are offering incentives to encourage people to buy electric vehicles. These incentives can include tax breaks, rebates, and free parking. These incentives make electric cars more affordable for consumers, which can help to boost demand. Stricter emission norms imposed by the government for lower CO2 emissions force automakers to make their vehicles more efficient and environmentally friendly. Companies across the globe, including governments, are investing in infrastructure to support electric vehicles. This includes building charging stations and improving the electrical grid. This will make it easier for people to own and operate electric vehicles, which will also help to boost demand. The government policies are helping to create a more favorable environment for electric powertrain manufacturers and electric vehicle consumers. As a result, the market is expected to grow rapidly in the coming years. The automotive powertrain portfolio is diversified and includes many pure electric and hybrid powertrains. The growing adoption of electric powertrains can be determined by four factors: infrastructure, regulations, consumer preference, and technology. The penetration of PHEVs and BEVs would strongly determine the future adoption of electric powertrains globally. Regulations for monitoring CO2 emissions are becoming more demanding in the U.S. and Europe.

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Market Drivers • Government Incentives and Support: Governments around the world are playing a pivotal role in driving the adoption of electric vehicles (EVs) through various incentives and support measures. These include tax rebates, grants, and subsidies aimed at reducing the upfront costs of EVs for consumers. Additionally, policies mandating the phase-out of internal combustion engines (ICEs) in favor of electric vehicles, coupled with investments in charging infrastructure, further incentivize the shift towards electric powertrains. Such governmental initiatives not only stimulate consumer demand but also encourage automakers to accelerate their development and production of electric vehicles. • Corporate Commitments to Sustainability: Major automotive manufacturers are increasingly prioritizing sustainability as a core aspect of their business strategies. Many companies have set ambitious targets to reduce carbon emissions and are actively transitioning their vehicle lineups towards electric powertrains. These commitments are driven by both regulatory pressures and consumer demand for environmentally friendly transportation options. Moreover, partnerships between automakers and technology firms are fostering innovation in electric vehicle technology, from battery advancements to integrated smart features. This corporate shift towards sustainability is reshaping the automotive industry landscape and driving further investment in electric powertrain development. Market Challenges

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• Supply Chain Constraints: The electric powertrain industry faces significant challenges related to the supply chain, particularly concerning critical materials such as lithium, cobalt, and nickel used in battery production. These materials are essential for the performance and efficiency of electric vehicles, yet their supply is susceptible to geopolitical risks, price volatility, and environmental concerns. Ensuring a stable supply chain while addressing ethical and sustainability issues in material sourcing remains a complex challenge for industry stakeholders. Developing resilient supply chains and exploring alternative materials and recycling solutions are critical to mitigating these risks and ensuring sustainable growth of the electric powertrain sector. • Battery Recycling and Disposal: As the number of electric vehicles on the road increases, managing the lifecycle of batteries becomes increasingly important. Electric vehicle batteries contain valuable materials that can be reused, but they also pose environmental challenges if not properly handled at end-of-life. Establishing effective recycling technologies and infrastructure is essential to recover and reuse materials like lithium, cobalt, and nickel from spent batteries. Moreover, regulatory frameworks and standards for battery recycling and disposal are still evolving, posing additional challenges for industry stakeholders. Addressing these challenges is crucial to minimizing environmental impact and promoting the circular economy within the electric powertrain industry. Market Trends • Advancements in Charging Technology: Innovations in charging technology are revolutionizing the electric vehicle user experience. Fast-charging solutions are becoming more widespread, reducing charging times significantly and enhancing convenience for EV owners. Wireless charging technologies are also gaining traction, offering seamless integration into everyday routines. Moreover, advancements in ultra-fast charging stations and battery swapping technologies aim to address range anxiety and further improve the practicality of electric vehicles for long-distance travel. Smart charging solutions that optimize energy management and support grid integration are also emerging, facilitating the transition to renewable energy sources and enhancing the overall sustainability of electric powertrains. • Integration of Autonomous Driving and Electric Powertrains: The convergence of autonomous driving technology with electric powertrains represents a transformative trend in the automotive industry. Electric vehicles are increasingly designed to support advanced driver-assistance systems (ADAS) and full autonomous driving capabilities. This integration not only enhances vehicle safety and efficiency but also opens up new possibilities for mobility services and shared transportation models. Automakers are investing heavily in research and development to create synergies between electric propulsion and autonomous technologies, aiming to redefine the future of transportation. As these technologies mature, they are expected to further accelerate the adoption of electric powertrains and shape the next generation of vehicles. • Global Market Expansion: The electric powertrain market is experiencing rapid global expansion, driven by diverse factors such as environmental regulations, consumer preferences for sustainable transportation, and advancements in technology. Regions like Asia-Pacific, Europe, and North America are leading the adoption of electric vehicles, supported by robust infrastructure investments and supportive government policies. Emerging markets in Latin America, Africa, and Southeast Asia are also showing increasing interest in electric mobility solutions, driven by urbanization and the need for cleaner transportation options. International collaborations and standardization efforts are becoming crucial to ensuring interoperability and scalability of electric vehicle technologies across different markets, fostering a more integrated global electric powertrain ecosystem.

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Passenger cars are leading in the electric powertrain market primarily due to advancements in battery technology making electric vehicles increasingly practical for daily commuting and consumer adoption. Passenger cars have emerged as the frontrunners in the electric powertrain market due to several key factors, with advancements in battery technology standing out as the primary driver. Over recent years, significant strides in battery energy density, longevity, and cost reduction have made electric vehicles (EVs) more viable and appealing to consumers. These advancements have addressed critical concerns such as range anxiety and charging infrastructure limitations, making EVs increasingly practical for everyday use. Additionally, regulatory pressures and incentives aimed at reducing carbon emissions have accelerated the adoption of electric powertrains in passenger cars. Governments worldwide have implemented policies promoting electric vehicle adoption through subsidies, tax incentives, and mandates, further incentivizing automakers to invest in electric vehicle technology. This regulatory environment, combined with growing consumer awareness of environmental issues, has created a strong market pull towards electric passenger cars. Moreover, automakers' strategic focus on developing a wide range of electric passenger car models, from compact city cars to luxury sedans and SUVs, has diversified consumer choice and expanded the appeal of electric mobility across different segments of the market. The integration of advanced features such as autonomous driving capabilities, enhanced connectivity, and superior driving performance has also contributed to the attractiveness of electric passenger cars compared to traditional internal combustion engine vehicles. Batteries are leading the electric powertrain market primarily due to their superior energy efficiency, energy density, and established infrastructure compared to other alternatives like fuel cells or supercapacitors. Lithium-ion batteries, in particular, have emerged as the preferred choice for electric vehicles (EVs) owing to their high energy density. Energy density refers to the amount of energy stored in a given system or region of space per unit volume or mass. High energy density means that lithium-ion batteries can store a large amount of energy in a relatively small and lightweight package, which is crucial for electric vehicles. This high energy density directly translates to longer driving ranges on a single charge, addressing one of the primary concerns of potential EV buyers: range anxiety. The cost of battery technology has seen significant reductions over the past decade. Advances in manufacturing processes, economies of scale, and continuous research and development efforts have driven down the cost of lithium-ion batteries, making electric vehicles more affordable and accessible to a broader range of consumers. This cost reduction is a significant driver of the increasing adoption of electric vehicles. Infrastructure development has also played a pivotal role in cementing the position of batteries in the electric powertrain market. A robust infrastructure for the production, recycling, and charging of batteries is already in place and continues to expand. The proliferation of charging stations, both public and private, has alleviated concerns about the convenience of charging electric vehicles. Moreover, the ability to integrate batteries with renewable energy sources like solar and wind power has made them an attractive option for creating a more sustainable energy ecosystem. In contrast, alternative powertrain technologies such as hydrogen fuel cells and supercapacitors face several hurdles. Hydrogen fuel cells, while offering the potential for long driving ranges and quick refueling times, suffer from high production and distribution costs. The infrastructure for hydrogen refueling is still underdeveloped, limiting the convenience and practicality of hydrogen-powered vehicles. Supercapacitors, on the other hand, offer fast charging and long cycle life but have a lower energy density compared to batteries, making them less suitable for applications requiring significant energy storage, like electric vehicles. Battery Electric Vehicles (BEVs) are leading the electric powertrain market primarily due to their superior energy efficiency, lower operational costs, and the comprehensive and rapidly expanding charging infrastructure compared to other electric vehicle technologies. Battery Electric Vehicles (BEVs) have gained a significant foothold in the electric powertrain market due to their numerous advantages over other types of electric vehicles, such as plug-in hybrid electric vehicles (PHEVs) and hydrogen fuel cell vehicles (FCEVs). One of the main advantages of BEVs is their high energy efficiency. BEVs convert over 90% of the electrical energy from the grid into movement, a stark contrast to internal combustion engines (ICEs), which only convert about 20-30% of the energy stored in gasoline. This efficiency not only makes BEVs more environmentally friendly but also reduces operational costs significantly. Electricity is generally cheaper than gasoline or diesel, and the maintenance costs for BEVs are lower since they have fewer moving parts and do not require oil changes, fuel filters, spark plugs, or exhaust systems. Furthermore, the charging infrastructure for BEVs has been expanding rapidly, driven by both government policies and private sector investments. Public and private charging stations are becoming increasingly common, making it more convenient for BEV owners to recharge their vehicles. This growing network of charging stations, including fast-charging options, addresses one of the critical barriers to BEV adoption: range anxiety. BEV owners now have the confidence to travel longer distances without worrying about running out of power, knowing that charging facilities are widely available. Additionally, BEVs align well with the global push towards reducing carbon emissions and combating climate change. Many countries are implementing stricter emissions regulations and offering incentives for electric vehicle purchases. These incentives, such as tax breaks, rebates, and subsidies, make BEVs more attractive to consumers. Furthermore, advancements in battery technology have led to increased energy densities and reduced costs, making BEVs more affordable and practical for a wider audience. The Asia-Pacific region is leading the electric powertrain market primarily due to substantial government support, aggressive investments in electric vehicle (EV) infrastructure, and the presence of major EV manufacturers and battery producers. The Asia-Pacific region, particularly countries like China, Japan, and South Korea, has become the global leader in the electric powertrain market owing to a combination of strong governmental policies, significant investments in EV infrastructure, and a robust manufacturing base. Governments in this region have implemented a wide range of policies to promote electric vehicles, including subsidies, tax incentives, and stringent emissions regulations. China, for example, has set ambitious targets for electric vehicle adoption as part of its broader strategy to reduce air pollution and dependency on imported oil. These policies have encouraged both consumers and manufacturers to transition towards electric vehicles. In addition to government support, the Asia-Pacific region has seen massive investments in EV infrastructure. China, in particular, has built an extensive network of charging stations, making it convenient for EV owners to charge their vehicles. The availability of a robust charging infrastructure is crucial for the widespread adoption of electric vehicles, as it alleviates concerns about range anxiety and charging convenience. This proactive approach to building the necessary infrastructure has given the Asia-Pacific region a significant advantage over other parts of the world. The region is also home to some of the world's largest and most influential EV and battery manufacturers. Companies like BYD, CATL, and Panasonic are leading the charge in battery technology and electric vehicle production. The presence of these industry giants has fostered a competitive environment that drives innovation and efficiency, leading to continuous improvements in battery technology and cost reductions. This industrial strength, combined with a well-established supply chain, ensures that the Asia-Pacific region remains at the forefront of the electric powertrain market. Moreover, consumer demand for electric vehicles in the Asia-Pacific region is on the rise, driven by increasing environmental awareness and the availability of a wide range of EV models at different price points. The region's rapidly growing middle class is also contributing to the increased adoption of electric vehicles, as more consumers can afford to purchase EVs. • In January 2024, VinFast, a Vietnamese electric vehicle manufacturer, has entered a memorandum of agreement with the state government of Tamil Nadu to develop electric vehicle manufacturing facilities in India as the automaker looks forward to breaking into the world's third-largest vehicle market. The collaboration has earmarked an investment of up to US$2bn with the primary commitment for the first phase of the project, spanning five years, set at US$500m. • In September 2023, a joint venture between South Korea's LG Electronics Inc. and Canada's Magna International Inc., LG Magna e-Powertrain Co. has disclosed strategies to develop an electric vehicle parts factory in Hungary, following the home appliance giant's push to lead the world's future mobility sector. An EV powertrain maker, LG Magna, is ready to begin operations in 2026, producing driving motors at the facility in Miskolc with plans to produce other components based on the demand in the world's second-largest clean vehicle market as per the statement by the LG Electronics without offering financial details on the investment. • In April 2023, Denso Corporation (Denso) developed its first inverter with silicon carbide (SiC) power semiconductors. The inverter will be integrated into the BlueE Nexus Corporation's eAxle, installed in the Lexus RZ. • In February 2023, Continental AG launched a new electric motor rotor position sensor (eRPS) for electric vehicles. eRPS uses inductive technology to detect the precise position of the rotors of synchronous electric machines, resulting in increased efficiency and smoother operation. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Electric Powertrain market Research Report with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Vehicle Type • Passenger Car • Commercial Vehicle By Component • Battery • Power Electronic Controller • Motor/Generator • Converter • Transmission • On-Board Charger By Application • BEV • HEV/PHEV The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Powertrain industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.