Electric powertrain systems are integral components of modern vehicles. These systems combine a battery pack, electric motor, on-board charger and power electronics controller in order to generate motive power (moving electricity).
Electric vehicles (EV) offer numerous advantages over their internal combustion engine (ICE) counterparts, from instant torque delivery to lower noise and vibration levels and zero smog-forming or greenhouse gas emissions; leading to improved air quality overall.
The market is growing
The global electric powertrain market is projected to experience rapid expansion due to increasing consumer awareness and rising demand for e-vehicles. Growth will likely be propelled by regulatory initiatives, infrastructure upgrades, customer preferences and technological advancements.
Leading players in the electric powertrain market are developing innovative new products and introducing innovations that will fuel market expansion. Companies such as Continental, Bosch, Magna and Denso have focused on expanding their product lines while increasing global presence by creating products designed to do just this.
Additionally, these companies collaborate with other firms to develop and introduce products that will expand their business. Furthermore, they spend considerable sums on research and development to stay abreast with industry developments.
Reasons for the rise in e-powertrain market growth may also include rising fuel costs and consumers seeking more eco-friendly modes of travel, prompting automakers to produce electric vehicles.
These cars feature fewer moving parts and maintenance costs, making them cheaper to run. Furthermore, they may be more energy-efficient and have longer ranges than traditional vehicles.
Governments around the world are setting stringent emission regulations and offering incentives for production of electric vehicles, driving an upsurge in demand for these powertrains.
The global e-powertrain market can be divided into segments by component, vehicle type, drive type, application and region. Of these categories, battery electric vehicle (BEV) represented around 70% of market in 2022.
Though BEV sales have steadily increased over time, their market share remains limited by low range and high charging costs. To expand market share for this sector, manufacturers must find technological solutions that address these issues and address these limitations in a cost-efficient manner.
The global e-powertrain market is projected to experience compound annual compound annual compound growth of 27% during its projected 2022-2030 forecast period, driven by rising popularity of electric vehicles and lower costs associated with lithium-ion batteries. Furthermore, strict pollution regulations as well as consumer awareness will play a significant role in driving industry expansion.
The market is getting more popular
Electric powertrain vehicles are increasingly being adopted across several countries worldwide due to their increasing efficiency and environmental friendliness over traditional internal combustion engine cars.
Infrastructure, regulations, consumer preference and technology are the primary driving forces of the electric powertrain market; their global adoption may also increase in coming years as penetration of plug-in hybrid electric vehicles (PHEVs and BEVs).
Battery technology innovations have enabled electric vehicles (EVs) to become more competitive with conventional internal combustion engine (ICE) cars by increasing range per charge, which in turn makes them more affordable for consumers – something which has contributed immensely to their rise in popularity.
Government-imposed CO2 emission norms are another significant force behind the rapid expansion of e-powertrain market. These rules aim at improving air quality by decreasing emissions while simultaneously improving vehicle fuel economy.
As more companies make an effort to lower their carbon emissions and decrease energy consumption, demand for e-powertrains will likely continue to increase, which in turn will fuel market expansion for such solutions.
Even amid the recent COVID-19 crisis, which resulted in production slowdown at various electric vehicle (EV) manufacturing facilities, global EV sales have seen significant growth due to strong efforts at increasing global EV sales along with attractive government incentives being offered for these vehicles.
The e-powertrain market is highly fragmented with numerous players operating within it. Leading players are employing both inorganic and organic strategies in order to expand their market shares and stay ahead of their competition.
Electric powertrains consist of multiple components, including battery packs, DC-AC converters and electric motors. The electric motor converts electrical energy to mechanical energy that is delivered directly to wheels through single ratio transmission.
Manufacturers need to design each component carefully for maximum efficiency and longevity in an e-powertrain to achieve maximum efficiency and longevity, which requires thorough research and development and use of cost-effective technologies that are easy to manufacture. A successful design must deliver power, weight reduction and long range performance without needing additional maintenance costs – this requires both research and development as well as innovative technologies with cost-cutting potential.
The market is getting more expensive
The global electric powertrain market is experiencing rapid expansion, with passenger car segment leading the charge. This trend can be attributed to several factors including stringent government regulations and emission norms in countries like China; strong support for clean energy; and development of fast charging infrastructure.
AlixPartners research firm estimates that raw material costs have skyrocketed for electric vehicles (EVs), making it increasingly difficult for automakers to generate profits on them and even forcing some start-ups to increase vehicle prices in response to rising raw material costs.
Even with all their drawbacks, electric vehicles are still expected to experience price reduction over the coming years – leading more people to opt for them as vehicles of choice.
Future expectations show that electric vehicles (EVs) will soon reach price parity with gas-powered cars, representing a dramatic shift for the industry and offering businesses new opportunities to capitalize.
Although many of the world’s largest auto manufacturers already produce electric vehicles, other companies are actively looking into entering this lucrative market and building facilities to support production of such cars.
Some automakers are also making strides toward increasing their number of electric models offered, like Ford investing $180 million into an UK-based EV powertrain plant to speed development of new vehicles and meet consumers’ rising demand for sustainable transport options.
Other major automakers are also developing electric vehicles. Toyota stands out with an extensive line-up of EVs tailored specifically to drivers’ needs.
However, companies should carefully consider the rising costs of raw materials when investing in an electric vehicle model to make sure their investments are successful. This will help guarantee they remain profitable.
Another factor stymying the electric vehicle market is the high cost of charging stations. This is caused by utilities charging excessive rates for electricity; consequently, charging stations become increasingly more costly, making it hard for homeowners to recharge their EVs at home.
The market is getting more strict
Electric powertrain market growth has seen significant gains due to rising car demand and environmental concerns, coupled with stringent emissions regulations such as India BS-VI and China VI which drive its expansion.
This market has witnessed several new players entering it. These include BorgWarner, Bosch Limited, Continental AG, Dana Tm4 Inc., Hitachi, Magneti Marelli Ck Holdings Valeo Nidec Corporation ZF Friedrichshafen AG Schaeffler AG and Mitsubishi Electric Corp.
Comparative to internal combustion engines (ICE), electric vehicles (EVs) contain 90% fewer moving parts, making them both cheaper and faster to manufacture, with lower maintenance requirements than their counterparts. Furthermore, their design makes them safer while cutting manufacturing time by two thirds.
Manufacturers continue to face obstacles that impede the EV market from growing as quickly as it could, including technological issues, range anxiety issues and battery charging difficulties.
Manufacturers must create cars capable of traveling greater distances without needing frequent recharges, and must create faster-running models than traditional ones.
Electric vehicles tend to be priced higher than their gasoline-powered counterparts, which may deter consumers living in countries with lower income levels from investing.
Manufacturers must work to reduce battery cost and maintenance fees in order to make electric vehicles more cost-effective over time, increasing their popularity while making them cheaper to own and run.
Companies are taking steps to reduce production costs and enhance energy efficiency to remain competitive and expand the electric vehicle market.
Despite these challenges, electric powertrains continue to be developed and implemented in cars worldwide. While the market will take time to develop further, this trend should only become stronger over time.