Electric Powertrain Systems Market Size - By Component (Electric Vehicle Drive Module, EV DC/DC Converter, EV Battery Packs, EV Thermal System, EV DC/AC Inverter, EV Power Distribution Module (PDM)), By Vehicle Type, By Sales Channel & Forecast, 2024 -2032

Electric Powertrain Systems Market Size

Electric Powertrain Systems Market size was valued at USD 34.5 billion in 2023 and is anticipated to register a CAGR of over 28.4% between 2024 and 2032. Urbanization and changing mobility is driving the market growth. As more people move to cities, there is a greater need for sustainable transportation to reduce traffic, pollution, and fossil fuel use. Electric vehicles (EVs) are becoming important in smart city plans to improve urban mobility and lower environmental impact.
 

This combination of urban growth and new mobility factor is creating opportunities for the electric powertrain market, speeding up the adoption of electric vehicles in busy urban areas. Additionally electric powertrain systems are growing fast, mainly because more people are using electric vehicles (EVs). This change is due to rising environmental concerns and a global effort to reduce carbon emissions.
 

Governments around the world are making emission rules stricter and offering financial incentives like tax credits, rebates, and subsidies to encourage people to buy EVs. For example, the U.S. government provides a federal tax credit of up to USD 7,500 million for EV buyers, and the European Union aims to cut CO2 emissions from new cars by 37.5% by year 2030. These actions, along with zero-emission vehicle mandates, are pushing automakers to invest heavily in EV technologies driving the industry growth.
 

A major challenge slowing the growth of electric vehicles (EVs), and the electric powertrain systems industry is the lack of enough charging stations. Even though more people are buying EVs, the number of public and private charging stations hasn't grown as quickly. This causes range anxiety, where potential buyers worry about finding convenient and reliable charging options, especially during long trips or in remote areas.
 

Moreover, uneven distribution of charging stations across regions, especially in rural and developing areas, further exacerbates this challenge. The high cost of installing charging stations, along with the time required for grid upgrades and permitting processes, slows down the expansion of charging networks.
 

Electric Powertrain Systems Market Trends

A key trend in the electric powertrain systems industry is combining advanced driver assistance systems (ADAS) with powertrain technology. This combination improves vehicle safety and performance through automation and smart control. ADAS features like adaptive cruise control, lane-keeping assist, and automated emergency braking are increasingly being integrated with electric powertrains to create better driving experiences.
 

By merging powertrain systems with ADAS, vehicles can achieve smoother and more precise control of acceleration, braking, and steering, enhancing overall driving safety and efficiency. This integration not only boosts the functionality of electric vehicles but also supports progress towards fully autonomous driving. As ADAS technologies advance, their integration with electric powertrains will be crucial in developing next-generation vehicles that offer better safety, performance, and user experience.
 

Electric Powertrain Systems Market Analysis

Based on component, the industry is segmented into Electric Vehicle Drive Module, EV DC/DC Converter, EV Battery Packs, EV Thermal System, EV DC/AC Inverter, EV Power Distribution Module (PDM) and Others. The electric vehicle drive module component has emerged as a dominant segment in 2023 generating a revenue of USD 3.39 billion and is expected to reach USD 29.36 billion by 2032. The electric vehicle drive module (EVDM) is leading the electric powertrain systems industry because it plays a key role in making electric vehicles (EVs) work efficiently.
 

The drive module combines important parts like the electric motor, power electronics, and transmission into one unit. This setup makes power delivery better and improves how the vehicle performs. It also reduces the complexity, weight, and space needed for the powertrain system, which helps the vehicle use energy more efficiently and increases its range. These factors are crucial for more people to start using EVs.
 

Based on vehicle type, the electric powertrain systems market is divided into battery electric vehicle (BEV) and fuel cell electric vehicle (FCEV). In 2023 battery electric vehicles (BEV)hold a leading market share of 99.6% and are anticipated to grow at a CAGR of 28.4% during the forecasted period. Battery electric vehicles (BEVs) lead the electric powertrain systems industry because they produce no emissions. This supports global efforts to reduce carbon footprints and meet strict environmental regulations. BEVs are fully electric and do not emit any pollutants, making them popular among eco-friendly consumers.
 

Advances in battery technology have increased driving ranges, and the falling cost of lithium-ion batteries has made BEVs more affordable and competitive with traditional internal combustion engine (ICE) vehicles. Governments worldwide are offering financial incentives, like tax credits and subsidies, to encourage BEV adoption. BEVs also have lower maintenance and operating costs due to their simpler mechanical parts, and the ability to charge at home reduces fuel expenses. The growing charging infrastructure is making BEVs more practical, securing their position as the top vehicle type in the electric powertrain systems industry.
 

Asia-Pacific electric powertrain systems market is expected to reach USD 204.83 billion by 2032. The Asia-Pacific region's electric powertrain systems industry is thriving due to China, Japan, and South Korea are seeing a big increase in demand for electric vehicles (EVs). This rise is due to strong government support, growing environmental awareness, and efforts to cut emissions in crowded cities.
 

Rapid urban growth in these countries has made pollution and traffic worse, so their governments are pushing for electric vehicles as a key solution. This focus on EVs is boosting the electric powertrain systems industry, helping these nations aim for better sustainability and cleaner urban air.
 

Electric Powertrain Systems Market Share

In 2023, dominant market players, including Tesla Inc, Robert Bosch Gmbh, Continental Ag, Zf Friedrichshafen AG, Borg Warner Inc And Others. The top companies collectively hold a substantial 45-50% market share. These industry leaders are actively engaged in strategic initiatives such as mergers & acquisitions, facility expansions, and partnerships to broaden their product portfolios, reach a wider customer base, and strengthen their market presence. These companies continuously invest in research and development to improve their electric powertrain systems, allowing them to stay ahead of the competition.
 

Electric Powertrain Systems Market Companies

Major players operating in the electric powertrain systems industry include:

• BorgWarner Inc.
• Continental AG
• Cummins Inc.
• Delta Electronics, Inc.
• Eaton
• GKN PLC
• Hitachi Astemo Americas, Inc. 
• Hyundai Motor Company
• Magna International Inc.
• Marelli Holdings Co., Ltd.
• Mitsubishi Electric Corporation
• Nissan Motor Co., Ltd.
• Robert Bosch GmbH
• Sigma Powertrain, Inc.
• Volkswagen
   

Electric Powertrain Systems Industry News

• In July 2024, Volkswagen won the Automotive INNOVATIONS Award 2024 for being the most innovative volume brand in electric drives. The Center of Automotive Management (CAM) gives this award every year. CAM praised Volkswagen for its wide-ranging innovations in electric mobility technology. Key improvements include better range, optimized power consumption, and enhanced charging capacity.
   
• In June 2024, Marelli secured a pivotal contract from a leading global automaker to provide the Battery Thermal Plate (BTP) for upcoming Battery Electric Vehicles (BEVs). This solution, crucial for managing thermal energy in electric vehicles, has both been developed and will be manufactured in-house by Marelli. Starting in 2024, Marelli will supply around 5 million units throughout the contract duration.
   
• In March 2024, Nissan Motor Co Ltd, a leading Japanese automaker, announced its intention to introduce three entirely new models in India by fiscal year 2026. As part of its revamped global business strategy, the company aims to position India as a key export hub, enhancing its overall value and bolstering competitiveness.
   

The electric powertrain systems market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Tons) from 2021 to 2032, for the following segments:

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Market, By Component

• Electric Vehicle Drive Module
• EV DC/DC Converter
• EV Battery Packs
• EV Thermal System
• EV DC/AC Inverter
• EV Power Distribution Module (PDM) 
• Others

Market, By Vehicle type

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa