Electric Powertrain Market Supply Chain Dynamics

The global electric powertrain market was valued at USD 83.30 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 15.3% from 2023 to 2030. The COVID-19 pandemic had a significant impact on the automotive industry, resulting in a downturn in the electric powertrain sector due to reduced vehicle sales and evolving regulatory requirements. Despite this, stringent emissions regulations from authorities such as the U.S. Environmental Protection Agency (EPA), India's BS-VI standards, and China VI norms are fueling the market's expansion. A resurgence in the sales of pure and hybrid electric vehicles following the pandemic is a key driver of market growth. Furthermore, widespread adoption of electric vehicles, along with favorable government incentives for domestic EV production, is expected to further propel demand for electric powertrains globally.

Electric vehicles are anticipated to lead the future of the automotive sector, with traditional internal combustion engine vehicles gradually being phased out. EVs are increasingly favored due to their environmental advantages and reduced lifetime costs compared to conventional vehicles. Numerous governments worldwide are enacting strict policies to promote the use of alternative fuel vehicles, including EVs.

Historically, the automotive industry was dominated by internal combustion engine (ICE) powertrains. However, it has evolved into a diverse mix of powertrain types, reflecting a shift towards more efficient and sustainable transportation solutions. The powertrain landscape now features a variety of pure electric and hybrid systems, contributing to a more dynamic and complex market.

Electric Vehicle Insights
In 2022, the Battery Electric Vehicle (BEV) segment held the largest share of the market at approximately 70%. BEVs are entirely powered by electricity, utilizing rechargeable batteries instead of internal combustion engines or fuel tanks. These vehicles require connection to an external power source for charging. The dominance of BEVs is attributed to declining ICE vehicle sales, enforcement of stricter CO2 emission targets, progress in battery technology, and falling lithium-ion battery prices—all factors expected to enhance BEV demand during the forecast period.

Component Insights
The battery segment represented the largest share of 63.6% in 2022. As a core component of vehicle electrification, the battery serves as the primary energy source in BEVs or is combined with other technologies in hybrid systems. In BEVs, batteries account for nearly 50% of the total vehicle cost. The segment's growth is being driven by rising EV demand, advancements in battery technology, and government support for electrification initiatives.

Get a preview of the latest developments in the Global Electric Powertrain Market! Download your FREE sample PDF today and explore key data and trends

Regional Insights
Asia Pacific dominated the global market in 2022, accounting for over 57.0% of total revenue. Countries like China, Japan, South Korea, and India play key roles as major automobile producers. The region's growth is supported by strict environmental regulations aimed at reducing CO2 emissions and addressing climate change concerns.

Key Companies & Market Share Insights
Leading players in the global electric powertrain market in 2022 included BorgWarner, ZF Friedrichshafen AG, Schaeffler AG, Mitsubishi Electric Corp., and Magna International Inc. These companies are actively pursuing strategies such as mergers and acquisitions, strategic alliances, and new product developments to strengthen their market presence. For instance, in October 2020, Continental AG’s powertrain division, Vitesco Technologies, introduced the world’s first transmission control system featuring overmolding control electronics.

Global EV manufacturers are also expanding operations in various countries. For example, Magna International Inc. announced in August 2020 the expansion of its powertrain division in Slovakia, where it began construction of a facility to produce metal forming solutions for powertrains.

Prominent Companies in the Global Electric Powertrain Market: