The global electric powertrain market was valued at USD 83.30 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.3% from 2023 to 2030. While the electric powertrain industry experienced a slowdown due to the COVID-19 pandemic, which negatively impacted the overall automotive sector, the market is poised for significant recovery and expansion in the coming years. The pandemic resulted in a decrease in automotive sales, including electric vehicles (EVs), and delayed the implementation of new industry requirements. However, as the world recovers from the pandemic, several factors are driving the resurgence of the electric powertrain market.

One of the key drivers of this growth is the increasing adoption of stringent emission norms set by government bodies globally. For example, in the United States, the U.S. Environmental Protection Agency (EPA) has imposed rigorous Greenhouse Gas (GHG) emission standards, which push automakers to shift to more sustainable vehicle technologies, including electric powertrains. Similarly, BS-VI norms in India and China VI standards are forcing manufacturers to innovate and align with stricter emission regulations. These policies are incentivizing the production and sale of electric vehicles, which in turn drives the demand for electric powertrains.

The post-pandemic recovery in the sales of both pure electric vehicles (EVs) and hybrid electric vehicles (HEVs) is another prominent factor propelling the growth of the electric powertrain market. As consumer preferences shift toward more environmentally friendly transportation options, the demand for vehicles powered by electric powertrains has surged. This is further supported by governments around the world offering attractive incentives and subsidies for the adoption of electric vehicles and the domestic production of EVs. These incentives are not only stimulating consumer demand but also encouraging automakers to ramp up their production of electric vehicles, thereby driving the growth of the electric powertrain market globally.

Electric vehicles are rapidly becoming the future of the automotive industry as traditional internal combustion engine (ICE) vehicles are expected to phase out over the next few decades. One of the major advantages of electric vehicles is their environmental benefits—they produce fewer emissions and have a lower carbon footprint compared to ICE vehicles. Additionally, electric vehicles typically offer a lower total cost of ownership when compared to traditional fuel-powered cars. This is due to factors such as reduced fuel costs, lower maintenance expenses, and government incentives.

Gather more insights about the market drivers, restrains and growth of the Electric Powertrain Market

Regional Insights

Asia Pacific

Asia Pacific captured the largest revenue share of over 57.0% in 2022, making it the dominant region in the global electric powertrain market. This growth is largely driven by the presence of major automobile manufacturing countries like China, Japan, South Korea, and India, which are leading the transition toward electric mobility. Stringent government regulations aimed at tackling global warming, particularly through reducing CO2 emissions, are also significant factors contributing to the region’s market growth. Governments in the region are enforcing stricter emission norms to mitigate the effects of climate change, which is driving automakers to adopt electric powertrain technologies in their vehicle production.

In particular, China and India are witnessing rapid adoption of electric vehicles (EVs). China, being the world's largest EV market, is taking significant steps to expand its electric infrastructure. For example, China's leading ride-sharing company, Didi Chuxing (DiDi), has partnered with BP, a British energy and oil company, to develop extensive electric vehicle charging infrastructure. Such strategic collaborations are designed to improve the accessibility and convenience of EVs, encouraging more consumers to switch to electric vehicles. This push for EV infrastructure, combined with government incentives and subsidies, is expected to significantly boost the demand for electric powertrains in the region.

Europe

Europe is poised to become another major market for electric powertrains over the forecast period, driven by the presence of numerous original equipment manufacturers (OEMs) and the high rate of EV adoption in several countries. Notably, countries like the Netherlands, Norway, France, and Sweden have seen substantial growth in electric vehicle adoption, further bolstering the demand for electric powertrains in the region. Governments in these countries are implementing favorable policies, such as tax incentives and subsidies, to encourage consumers and businesses to transition to electric vehicles.

Germany, being one of the largest automotive hubs globally, plays a pivotal role in Europe’s electric vehicle market. Major automotive manufacturers such as Audi AG, Volkswagen AG, and BMW AG are heavily investing in the development and production of electric vehicles. As a result, the demand for electric powertrains is increasing in Germany, where automakers are shifting towards sustainable vehicle production to meet environmental regulations. This shift towards electric mobility is expected to drive continued market growth for electric powertrains across the European region.

North America

North America is also witnessing a notable increase in the adoption of electric vehicles, contributing to the growing demand for electric powertrains. The U.S., in particular, has a well-established market with major electric vehicle manufacturers such as Tesla, Chevrolet, and Ford, all of which are expanding their electric vehicle offerings. Additionally, the region has developed a growing infrastructure for electric vehicles, including charging stations (also known as Electric Vehicle Supply Equipment - EVSE), which is a crucial factor for promoting EV adoption. This infrastructure development, along with strong government incentives for consumers and manufacturers, is expected to further drive demand for electric powertrains in North America.

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Key Companies & Market Share Insights

Several key players dominate the global electric powertrain market, including BorgWarner, ZF Friedrichshafen AG, Schaeffler AG, Mitsubishi Electric Corp., and Magna International Inc. These companies are actively pursuing organic and inorganic growth strategies to strengthen their position in the market. Common strategies include mergers and acquisitions, strategic partnerships, and new product launches.

For example, in October 2020, Continental AG’s Powertrain segment, Vitesco Technologies, introduced a groundbreaking transmission control system, which is the world’s first to feature overmolding control electronics technology. This innovative product aims to enhance the efficiency and performance of electric powertrains, reflecting the industry’s focus on technological advancements.

In line with this trend, several international electric vehicle manufacturers are also expanding their production capacities. For instance, Magna International Inc. announced an expansion of its powertrain business in Slovakia, Europe, in August 2020. This move aligns with the growing demand for electric vehicles in Europe and strengthens Magna's presence in the region, enabling the company to better serve the evolving market for electric powertrains.

 Key Electric Powertrain Companies

Some prominent players in the global electric powertrain market include:

• BorgWarner

• Bosch Limited

• Mitsubishi Electric Corp

• Magna International Inc.

• Schaeffler AG

• ZF Friedrichshafen AG

• Valeo

• Nidec Corporation

• Continental AG

• Magneti Marelli Ck Holdings

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