Electric Vehicle (EV) Powertrain Market Size, Share, Growth Analysis, By component(Electric Motor, Inverter, Converter, Power Distribution Module and Transmission), By Propulsion type(Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV)), By Vehicle type(Passenger Car and Commercial Vehicle), By Region - Industry Forecast 2024-2031

Electric Vehicle (EV) Powertrain Market size was valued at USD 88.25 billion in 2021 and is poised to grow from USD 118.87 billion in 2022 to USD 956.44 billion by 2030, growing at a CAGR of 5% in the forecast period (2023-2030).

Global electric vehicle powertrain market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. Continental, Bosch, Magna, Mitsubishi, Hitachi dominate the electric vehicle powertrain market growth. Stable distribution and supply chain networks at a global level and portfolios gives an extensive product range are likely to lead to the dominant key players retaining their positions. 'Tesla, Inc.', 'BYD Company Ltd.', 'Continental AG', 'BorgWarner Inc.', 'Magna International Inc.', 'GKN PLC', 'Aisin Seiki Co., Ltd.', 'Denso Corporation', 'Robert Bosch GmbH', 'Hitachi Automotive Systems Ltd.', 'ZF Friedrichshafen AG', 'AVL List GmbH', 'Ricardo plc', 'Valeo SA', 'Siemens AG', 'Infineon Technologies AG', 'Toshiba Corporation', 'Mitsubishi Electric Corporation', 'LG Chem Ltd.', 'Panasonic Corporation'

Stringent regulations by the Governments for vehicle emission is expected to drive the market growth. Increase in carbon and particulate matter emissions from automobiles have resulted in severe depletion of air quality, which has a negative impact on human health and the environment. As a result, governments all over the world have imposed stringent emission standards on automobile manufacturers. As a result, manufacturers have increased R&D for electric vehicles to provide customers with a cost-effective alternative, which has fuelled the growth of e-powertrains.

Increase in demand from OEMs: Electric vehicle powertrain design to cost (DTC) approaches are increasingly being used by OEMs for electric vehicle powertrain simulation. This trend has been especially noticeable in second-generation EVs. The DTC approach is primarily concerned with making better use of lightweight materials in structural parts and integrating components in the e-powertrain.

Asia Pacific is expected to grow significantly during the forecast period. The primary driver of the high market penetration includes regulatory programmes encouraging EV sales, such as EV sales quotas, fuel economy targets, and EV advantages in licence plate assignments in countries such as China. Strict emission regulations, such as BS-VI in India and China VI in China, are propelling the e-powertrain market in this region. Partnerships between leading players to build charging infrastructure are driving market growth in this region. For example, China's Didi Chuxing and British oil giant BP collaborated to build EV charging infrastructure in China. China has lithium reserves, which is driving up investment in battery production. Tesla also launched the Model 3 in South Korea at a significantly reduced price due to favourable government incentives. These factors are likely to lead to APAC's dominance in this market.