The global electric powertrain market is projected to reach USD 191.4 billion by 2027 from an estimated USD 62.9 billion in 2019, at a CAGR of 14.9%. A decrease in emissions limits and attractive government incentives for EV buyers are significant factors for the growth of the electric powertrain market globally.
The global electric powertrain market is projected to reach USD 191.4 billion by 2027 from an estimated USD 62.9 billion in 2019, at a CAGR of 14.9%.
A decrease in emissions limits and attractive government incentives for EV buyers are significant factors for the growth of the electric powertrain market globally.
All major players such as Bosch (Germany), Mitsubishi Electric (Japan), Magna (Canada), Continental AG (Germany), and Hitachi (Japan) are moving toward electromobility by showcasing their developments and business strategies in the electric powertrain market.
There are various factors propelling the electric powertrain market. The major factor being the emission norms across regions. For instance, the introduction of Euro VI, China VI, and PROCONVE P8 have driven the electric powertrain market by pushing automakers to come up with advanced electrified powertrain technologies. Also, attractive government incentives such as tax rebates and subsidies for buyers have also propelled the market growth.
On-board charger segment is witnessing the highest CAGR in the HEV/PHEV powertrain market.
PHEVs use an on-board charger to recharge their battery. The increase in PHEV sales will drive the on-board charger market. In the US, various government incentives such as exemptions from sales taxes, tax credits, and rebates are driving the PHEV market. The presence of various PHEV models offered by BMW, Mercedes-Benz, Volvo, Porsche, Kia, and Hyundai is also driving the HEV/PHEV electric powertrain market. In China, the PHEV market is dominated by SAIC and BYD. Various developments such as Dana TM4’s bidirectional charger inverter that can function both as a charger as well as an inverter will drive the on-board charger market.
BEV is expected to remain the segment in the electric powertrain market, by vehicle type
BEV sales are increasing at a rapid rate because of various government measures. The incentives on the purchase of BEVs are higher than any other type of electric vehicle. Growing charging infrastructure and better performance of BEVs over PHEVs are driving the BEV powertrain market. Stringent emission standards for vehicles and developments in electric powertrain products such as in Lithium-ion batteries, battery management systems, and power distribution modules are also driving the BEV powertrain market.
Asia Pacific is expected to register the fastest growth during the forecast period
The Asia Pacific electric powertrain market is estimated to be the fastest market. In Asia Pacific, China and India are estimated to be experiencing the highest CAGRs. In China, the government is providing subsidies to promote electric vehicles and cut down on pollution levels. The rise of electric vehicles for ride-sharing has increased their adoption in China. In India, BS VI is set to be rolled out by 2020, pushing the automakers to come up with new electrified powertrain technologies. Various ride-sharing companies such as Uber and Ola have been directed by the Indian government to have a 40% electric vehicle fleet by 2026.