An electric powertrain refers to a vehicle powertrain where the onboard engine or motor is powered by electricity. It consists of an electric motor, battery, and power electronic controller that manages the flow of energy between these components. Electric vehicles utilizing electric powertrains are considered more energy efficient than conventional vehicles powered by internal combustion engines. They offer lower operating costs as electricity is cheaper than gasoline in most places. Electric powertrains are also cleaner and help in reducing emissions and curbing air pollution.
The global electric powertrain market is estimated to be valued at US$ 94.12 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Government subsidies continue to drive the adoption of electric vehicles and positively impact the electric powertrain market. Many national and local governments around the world offer subsidies and tax incentives for electric vehicles purchases to promote their uptake. For instance, the United States government provides a federal tax credit of up to $7,500 for electric vehicle buyers. Similarly, China and several European countries offer direct purchase subsidies and exemption from vehicle tax. This helps in lowering the upfront cost of electric vehicles for customers and makes them more price competitive against gasoline counterparts. However, range anxiety and lack of infrastructure are some of the major restraining factors for the electric powertrain market. Limited driving range per charge and lack of widespread public charging stations deter many potential buyers. On the other hand, companies are focusing on improving battery technology and charging infrastructure to address these challenges.
SWOT Analysis
Strength: The electric powertrain market has high growth potential due to stringent emission norms. Demand for electrified vehicles is rising significantly due to their minimal environmental impact. Cost of vehicle operation is lower for electric powertrains as compared to fuel vehicles.
Weakness: High costs associated with manufacturing of electric powertrain components pose a challenge. Lack of standardization of charging infrastructure limits widespread adoption. Range anxiety due to limited driving range on single charge restricts consumer preference.
Opportunity: Rising demand for electric commercial vehicles offers new opportunities. Development of fast charging technologies will help address range issues. Government subsidies and incentives being provided for electric vehicles boost market growth.
Threats: Dominance of established fuel-based automakers poses threat from new entrants. Fluctuating metal prices increase component costs. Slow expansion of charging infrastructure in developing nations hinders market growth.
Key Takeaways
The Global Electric Powertrain Market Demand is expected to witness high growth. The global electric powertrain market is estimated to be valued at US$ 94.12 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031.
North America dominates currently with a market share of over 35% in 2023. Presence of major automakers focusing on electrification and supportive government policies drive market growth in the region. Asia Pacific is expected to witness fastest growth during the forecast period with a CAGR of around 6%. Increasing investments by China and India to reduce oil import dependence and promote clean mobility will boost regional market.
Key players operating in the Electric Powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V. Ferring B.V. specializes in development and commercialization of fertility treatment medications. Bayer AG offers wide product portfolio including contraceptives and fertility drugs. Braintree focuses on hormone replacement therapies and menopause treatment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it