by Electric powertrain refers to the integrated system comprising electric motor, power control unit, transmission system and a rechargeable battery for providing power to electric vehicles. Increasing concerns regarding environmental pollution from vehicle emissions has propelled the demand for electric vehicles globally. Electric powertrains are advantageous as they help reduce tailpipe emissions and offer lower cost of operations compared to conventional ICE vehicles. In addition, various governments across different regions have imposed strict emission regulations favoring adoption of zero-emission vehicles.
The global Electric Powertrain Market is estimated to be valued at US$ 94.12 Mn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The stringent emission regulations imposed by various regulatory bodies across the globe present a major market opportunity for electric powertrain manufacturers. For instance, the European Union has mandated that average CO2 emissions from new cars and vans must be reduced to 95g/km by 2021. Such favorable regulations for electric vehicles adoption are aimed at reducing vehicular pollution and curbing greenhouse gas emissions. Electric powertrain manufacturers can capitalize on these emission regulations by developing efficient and affordable electric powertrains that meet the desired performance targets within the regulatory framework. This will help drive the replacement of conventional vehicles with electric vehicles, thereby accelerating the electric powertrain market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The electric powertrain market has high capital requirements for production and distribution which acts as a barrier for new companies. The established players already have deep relationships with automakers which is difficult for new entrants to penetrate.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many companies offering electric powertrains. However, buyers prefer to deal with established brands for quality and reliability.
Bargaining power of suppliers: Battery suppliers constitute a major cost for electric powertrain manufacturers. A few large suppliers exist globally increasing their bargaining power over manufacturers.
Threat of new substitutes: Technology advancement in battery chemistries like solid-state batteries can emerge as substitutes in future. However, the high investment required keeps threats from substitutes low currently.
Competitive rivalry: Major global players compete intensely on technology, innovation, pricing and brand value.
SWOT Analysis
Strength: Electric powertrains provide greener transportation solutions helping automakers meet stringent emission norms. Leading manufacturers have technological expertise and scale of operations.
Weakness: High costs of electric powertrains remain a challenge limiting mass adoption. Dependence on battery suppliers can impact profits.
Opportunity: Growing demand for electric vehicles driven by regulations and charging infrastructure investments present a large market. Emerging markets are opening up for green vehicles.
Threats: Declining subsidies and tax benefits can slow EV sales in some countries. Raw material price volatility poses risks.
Key Takeaways
The Global Electric Powertrain Market Demand is expected to witness high growth over the forecast period of 2024 to 2031 supported by stringent emission norms and government incentives for EVs. The global Electric Powertrain Market is estimated to be valued at US$ 94.12 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031.
Regional analysis: The Asia Pacific region is estimated to be the fastest growing as well as the largest market for electric powertrains globally led by China. China has been the largest EV market in the world with strong government backing to develop domestic supply chains for electric vehicles and batteries. Countries like Japan, South Korea are also actively promoting EVs.
Key players: Key players operating in the electric powertrain market are Ferring B.V., Bayer AG, Braintree, Bausch Health Companies Inc., and Norgine B.V. Ferring B.V. is a leading provider of reproductive medicine and women’s health products. Bayer AG is a diversified healthcare company involved in pharmaceuticals and medical devices.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
