Electric Powertrain Market: Business Opportunities and Industry Analysis by 2027

 Breaking News
  • No posts were found

Electric Powertrain Market: Business Opportunities and Industry Analysis by 2027

November 19
17:14 2020
Electric Powertrain Market: Business Opportunities and Industry Analysis by 2027

Electric Powertrain Market
The electric powertrain market is expected to witness rapid growth due to stringency in emission norms which is pushing automakers to come up with electrified powertrain technologies. Between 2025 and 2030, emission standards would require automakers to reduce CO2 emissions by 15% and 37%, respectively. Also, government incentives to buyers for mass adoption of electric vehicles have accelerated the market for electric vehicle powertrains.

The Global Electric Powertrain Market size is projected to reach $191.4 billion by 2027 from an estimated $62.9 billion in 2019, at a CAGR of 14.9%. Attractive incentives by governments for mass adoption and domestic production of electric vehicles, increasing demand for electric vehicles, and stringency in will drive the electric powertrain market.

The global electric powertrain market is dominated by major players such as Bosch (Germany), Mitsubishi Electric (Japan), Magna (Canada), Continental AG (Germany), and Hitachi (Japan). 

Market Dynamics:

Drivers

1 Stringent Emission Norms
2 Growing Vehicle Electrification Demand in Automotive Industry
3 Lack of Infrastructure for Electric Vehicle Charging
4 Emerging Computing Technologies in Conventional Engines

Opportunities

1 Development in Lithium-Ion Batteries

Challenges

1 High Cost of Electrical Components
2 Technological Challenges With Electric Powertrains

Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=97605711

The Asia Pacific and North America are the regions where the electric powertrain market is experiencing the highest growth rate due to increasing government regulations on emission norms, allocations of funds by the respective governments for incentivizing sales of electric vehicles, and developments in powertrain components such as lithium-ion batteries, battery management systems, and motors. Furthermore, continuous R&D and collaborations among automotive companies in these regions are expected to stimulate market growth.

The 48V MHEV is an attractive revenue pocket for automakers right now. It is capable of delivering 70% efficiency of a conventional ICE powertrain. Owing to slowdown in diesel-powered vehicles and stringency in CO2 targets, manufacturers are turning to this technology for the market. According to Emission Analytics, the mass adoption of mild hybrids over BEVs is an effective solution to cut down emissions. Also, owing to the dropping prices of lithium-ion batteries, various automakers are turning to optimize lithium-ion batteries in their 48V systems. To optimize costs and packaging, Hella developed a 48V power pack that combines a 48V battery, BMS, and DC/DC converter, making it easier to integrate into the existing vehicle architecture.

Motor/generator is the fastest-growing segment in the BEV powertrain component market. The primary reason for the growth is the increasing number of electric vehicles every year. According to the IEA, in 2018, China deployed 1.7 million BEVs, Europe deployed 0.6 million BEVs, the US deployed 0.6 million BEVs, and RoW deployed 0.3 million BEVs.  Another reason is the product developments by various major players. Cascadia Motion, a BorgWarner-owned company, developed a rear-wheel-drive system featuring two separate BorgWarner High-voltage Hairpin (HVH) 250 electric motors and eGearDrive gear sets, each one independently controlling a rear wheel. In high-performance vehicles, the use of two or more motors for improved performance is also driving the motor/generator segment. For instance, Tesla Model S has two motors, one on the front axle and the other on the rear axle. Therefore, using more number of motors for high-performance BEVs will drive the BEV powertrain component market for motors/generators.

Implementation of stringent emission norms such as China VI and BS-VI is driving the Asia Pacific electric powertrain market. Joint ventures between various organizations to build charging infrastructure have also been a major driving factor. For instance, China’s Didi Chuxing (Didi) and BP, the British gas, oil, and energy company, announced a joint venture to build the electric vehicle charging infrastructure in China. China has lithium reserves that are paving the way for increased investments in battery production. Initiatives by the Indian government such as ‘Make in India’ to encourage domestic production of electric vehicles is also driving the market. Investments by players to tap the market potential of the region are propelling the Asia Pacific electric powertrain market further. For instance, Nissan is investing USD 33 million in Tochigi Prefecture in Japan for manufacturing electric vehicle components. Tesla launched its Model 3 in the South Korean market with a significant decrease in the price range because of the respective government incentives.

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=97605711

The Asia Pacific is estimated to be the largest market for electric powertrains as China is at the forefront of this technology globally. With the intention of curbing pollution and making China a manufacturing superpower, the Chinese government has already spent heavily on incentivizing and subsidizing electric vehicle sales. Also, the allocation of funds for building the necessary electric vehicle infrastructure has also propelled the electric powertrain market in China with 466,100 public charging connectors—more than any other country in the world. India is also set to implement BS-VI emission norms by 2020, encouraging the mass adoption of electric vehicles in the future. Government-owned power companies such as Energy Efficiency Services is planning to install 10,000 charging stations in the next two years. The South Korean government is offering subsidies for domestic manufacturing of electric vehicles and R&D in chips and batteries to increase the production capacity of zero-emission cars from the current 1% to 10% by 2022. Additionally, the presence of major players in this region would drive the Asia Pacific electric powertrain market in the future.

Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Stringent Emission Norms
                    5.4.1.2 Growing Vehicle Electrification Demand in Automotive Industry
                    5.4.1.3 Lack of Infrastructure for Electric Vehicle Charging
                    5.4.1.4 Emerging Competing Technologies in Conventional Engines
           5.4.2 Opportunities
                    5.4.2.1 Developments in Lithium-Ion Batteries
           5.4.3 Challenges
                    5.4.3.1 High Cost of Electrical Components
                    5.4.3.2 Technological Challenges With Electric Powertrains

Media Contact
Company Name: MarketsandMarkets
Contact Person: Mr. Aashish Mehra
Email: Send Email
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/electric-powertrain-market-97605711.html

Related Articles

Categories