The global electric powertrain market was valued at USD 83.30 billion in 2022 and is projected to grow significantly to reach USD 260.91 billion by 2030, expanding at a Compound Annual Growth Rate (CAGR) of 15.3% from 2023 to 2030. The growth of this market has been influenced by several key factors, including both challenges and opportunities that have emerged over recent years.
During the COVID-19 pandemic, the automotive industry faced widespread disruptions, including factory shutdowns, supply chain interruptions, and reduced consumer demand. These disruptions led to a noticeable decline in the electric powertrain sector, as new vehicle sales dropped and automakers faced uncertainty. The low automotive sales during this period hindered the expansion of electric powertrain adoption, delaying investment in electric vehicle (EV) infrastructure and innovation.
Despite this setback, the market has rebounded due to the post-pandemic recovery in electric vehicle sales, especially for battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs/PHEVs). This recovery, along with increasing government regulations on vehicle emissions, has become a major catalyst for market growth. Several government agencies have implemented stringent emission standards to curb greenhouse gas emissions and promote cleaner transportation alternatives. For example, the U.S. Environmental Protection Agency (EPA) enforces strict emission limits, India’s BS-VI norms aim to reduce pollution from internal combustion engines, and China VI standards are being implemented to control emissions in one of the world’s largest automotive markets.
Key Market Trends & Insights:
- The Asia Pacific region dominated the global electric powertrain market in 2022, accounting for over 57.0% of the total revenue share. This dominance is largely due to the presence of major automobile manufacturing hubs such as China, Japan, South Korea, and India.
- Europe is anticipated to emerge as a key growth region during the forecast period. The region's commitment to achieving carbon neutrality, along with strong consumer demand for eco-friendly vehicles and widespread charging infrastructure, positions it as a major market for electric powertrains in the coming years.
- Among powertrain types, the Battery Electric Vehicle (BEV) segment accounted for the largest share of approximately 70% of the overall market in 2022. BEVs operate entirely on electric power and have gained popularity due to their zero-emission benefits and advancing battery technologies. On the other hand, the Hybrid Electric Vehicles (HEV) and Plug-in Hybrid Electric Vehicles (PHEV) segment is projected to grow at a CAGR exceeding 35.9% over the forecast period.
- In terms of components, the battery segment led the market with a 63.6% share in 2022, reflecting the critical role of energy storage in electric vehicles. Advances in battery chemistry, energy density, and cost reduction are enhancing the overall performance and appeal of electric vehicles. Meanwhile, the motor/generator segment is expected to witness significant growth, with a CAGR of more than 30% throughout the forecast period.
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Market Size & Forecast:
- 2022 Market Size: USD 83.30 Billion
- 2030 Projected Market Size: USD 260.91 Billion
- CAGR (2023-2030): 15.3%
- Asia Pacific: Largest market in 2022
- Europe: Fastest growing market
Key Companies & Market Share Insights:
The electric powertrain market is highly competitive, with several leading companies focusing on expanding their global presence and technological capabilities. In 2022, some of the dominant players included:
- BorgWarner
- ZF Friedrichshafen AG
- Schaeffler AG
- Mitsubishi Electric Corporation
- Magna International Inc.
These companies are adopting a mix of organic and inorganic growth strategies, such as mergers and acquisitions, strategic partnerships, technological innovation, and new product launches, to reinforce their market positions.
- In October 2020, Vitesco Technologies, a powertrain division of Continental AG, introduced a new transmission control system. It became the first system worldwide to utilize over-molding control electronics technology, which enhances integration and reliability in electric drivetrains.
- In another notable move, Magna International Inc. announced in August 2020 its plans to expand its powertrain business in Slovakia. The company began constructing a new manufacturing facility aimed at producing powertrain metal forming solutions, supporting the increasing demand for EV components across Europe.
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Conclusion:
The global electric powertrain market is undergoing rapid transformation, driven by rising environmental concerns, strict emission regulations, and growing consumer preference for cleaner mobility solutions. While the industry faced setbacks during the COVID-19 pandemic, the recovery in electric vehicle sales, coupled with government incentives and the push for domestic EV production, has reignited growth. The dominance of Asia Pacific and the emerging significance of Europe reflect strong regional commitments toward electrification. With continuous innovation in battery and motor technologies and strategic initiatives by leading market players, the electric powertrain market is well-positioned for sustained expansion in the years ahead.
