Electric Vehicle Drivetrain Market Size, Share, Opportunities, And Trends By Component (Battery, Controller, Transmission, Electric Motor), By Type (Fron-Wheel Drive (FWD), Rear-Wheel Drive (RWD), All-Wheel Drive (AWD), Four-Wheel Drive (4WD)), By Vehicle (PHEV, BEV, FCEV, HEV), And By Geography - Forecasts From 2024 To 2029

The electric vehicle drivetrain market is projected to expand from US$54.941 billion in 2024 to US$120.330 billion in 2029 at a CAGR of 16.98%.

The electric vehicle (EV) drivetrain is the system that includes all the parts of an EV that transmit the power from the batteries to the driving wheels, including the electric motors, controllers, batteries, etc. It varies according to the EV system and is essential in connecting the wheels of the vehicle to its primary power source. The growing trend towards electric mobility, accompanied by strategic funding aimed at nurturing it, is the primary factor responsible for the upsurge in demand for drivetrain systems.

Moreover, the increasing technological innovations in EV driving, in addition to government support and incentives for rising EV uptake, have improved the market's growth prospects. This technological penetration is also forecasted due to the anticipated growing economies with high possibilities of EV penetration. Additionally, the design of the EV drivetrain is different from that of the conventional vehicle’s drivetrains in that it is well-balanced to control speed and torque. Therefore, the extensive defaulting technology may be a persistent hindrance to the market.

What are the electric vehicle drivetrain market drivers?

• The accelerated market expansion can be attributed to the growing EV transition.

Carbon emissions have been rising over the years, increasing air pollution and global warming. In a bid to control such occurrences, many strategies are being employed, one of them being a change from traditional internal combustion engines to cleaner fuels, which has seen a rise in the uptake of EVs. As such, some leading economies, including China, the US, and the EU, are witnessing a booming upsurge in this shift.

As per statistics obtained from the International Energy Agency, it was estimated that by 2023, about 14 million EVs registered worldwide, which compounded the total on-the-road volume to 40 million. Moreover, EV sales in the same year were 3.5 million more than in 2022, thus displaying a 35% growth yearly. In addition to this, the same source also indicated that the proportion of electric cars to total global vehicle sales surged from 14% in 2022 to 18% in the current year, marking a rise in the use of EVs.

Further, the EV drivetrain market is analyzed based on vehicle type into PHEV, BEV, FCEV, and HEV. Battery Electric Vehicle (BEV) is expected to occupy a considerable market share. It is ready for healthy growth because this type of vehicle, in contrast with PHEV and HEV, uses only electric batteries, which are replaceable and recharged by power from the mains.

The current adoption of zero-emission policies and initiatives supplemented with government support has increased the acceptance of such zero-emission vehicles. For example, the IEA 2023 report indicates that 70% of registered EVs were BEVs in 2023, and the sales volume reached nearly 9.5 million BEV units.

Furthermore, the projection for PHEV forecasts is favorable, constant growth is expected, and it will be the second-best account. Additionally, PHEV registration in the same year totaled 4.3 million units, which is 30 percent of global electric vehicle sales, according to the same source. HEVs and FEVs will register positive growth but command a small market share.

• Technological innovations in driving technology have opened a new market segment for its growth.

With advanced and emerging technologies, especially infotainment systems and sensors used more frequently, EVs are a great way to achieve future mobility. Correspondingly, the EV powertrain components and technologies have immense importance because they are converting the energy from an electric motor used for vehicle propulsion. Tesla, BYD Inc., General Motors, Volkswagen, BMW, and Volva are the primary EV manufacturers working to expand their EVs' performance by pouring in new technologies while signing up contracts with electric solutions tier 1 suppliers.

These joint ventures caused the development of a new scheme that facilitates the efficient use of drivetrain components, enhancing demand in the market. Besides, other technologies like the Advanced Driving Assistance System (ADAS) and self-driving car technology are also causing an increase in the need for an efficient drivetrain system. This is because speed and torque management are relevant to the external environment and determine the mobility efficiency of the vehicle.

Geographical outlook of the electric vehicle drivetrain market:

• Asia Pacific is anticipated to have a significant share of the electric vehicle drivetrain market.

The electric vehicle drivetrains market is segmented by geography into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The APAC market is expected to witness high growth prospects and the highest market share. Some of the major economies in this region, such as China, lead to a greater share of EV growth globally. As reported in the ‘Global EV Outlook 2024’, China registered the highest number of new EVs with about 60% share, an equivalent of 8.1 million units in 2023.

Further, the same source also indicated that the rapid growth of the country’s automotive industry has been mainly because of the increasing consumer demand for EVs. Thus, the positive investment environment enhances EV manufacturing and usage, in addition to the existing presence of the major EV players such as BYD INC. And Xpeng Inc. is also propelling the regional market growth.

Other countries like India and Japan are expected to witness a significant rise in growth due to the aggressive strategies employed by EV manufacturers in enhancing their EV fleet and driving systems. In the forecast period, APAC is expected to have a considerable share owing to the mentioned factors as well as government-supportive policies and initiatives resulting in regional market expansion.

Key developments in the electric vehicle drivetrain market:

• In May 2024, Vitesco Technologies announced its plan to supply its EMR3 axle drive to Honda for its CR-V and e-FCEV vehicles that will launch in Japan and USA markets later in 2024. This drive technology comprises power electronics, a reducer, and an electric motor, broadening mobility operations.
• In April 2024, BMW Group entered into an agreement with Rimac Technology for the joint creation of high-voltage batteries and innovative drive technology for electric vehicles. This technology is expected to be used for some selected BEVs. Moreover, Rimac will become a Tier 1 automotive supplier of electrification solutions at scale.
• In October 2023, Continental AG partnered with DeepDrive to construct a novel driving system that combines Continental’s brake system with DeepDrive’s electric motors. The cooperation is set to extend the portfolio of EVs and help both companies deepen their reach in the EV mobility market.

Electric Vehicle Drivetrain Market Scope:

Report Metric	Details
Electric Vehicle Drivetrain Market Size in 2024	US$54.941 billion
Electric Vehicle Drivetrain Market Size in 2029	US$120.330 billion
Growth Rate	CAGR of 16.98%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Application End User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Electric Vehicle Drivetrain Market	AISIN CORPORATION DENSO CORPORATION Hexagon AB ZF Friedrichshafen AG Magna International Inc.
Customization Scope	Free report customization with purchase

 

The Electric Vehicle Drivetrain Market is analyzed into the following segments:

• By Component
  • Battery
  • Controller
  • Transmission
  • Electric Motor
• By Type
  • Front-wheel drive (FWD)
  • Rear-Wheel Drive (RWD)
  • All-Wheel Drive (AWD)
  • Four-Wheel Drive (4WD)
• By Vehicle
  • PHEV
  • BEV
  • FCEV
  • HEV
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. ELECTRIC VEHICLE DRIVETRAIN MARKET BY COMPONENT

5.1. Introduction

5.2. Battery

5.3. Controller

5.4. Transmission

5.5. Electric Motor 

6. ELECTRIC VEHICLE DRIVETRAIN MARKET BY TYPE

6.1. Introduction

6.2. Front-Wheel Drive (FWD)

6.3. Rear-Wheel Drive (RWD)

6.4. All-Wheel Drive (AWD)

6.5. Four-Wheel Drive (4WD)

7. ELECTRIC VEHICLE DRIVETRAIN MARKET BY VEHICLE

7.1. Introduction

7.2. PHEV

7.3. BEV

7.4. FCEV

7.5. HEV

8. ELECTRIC VEHICLE DRIVETRAIN MARKET BY GEOGRAPHY

8.1. Introduction

8.1. North America

8.1.1. By Component

8.1.2. By Type

8.1.3. By Vehicle

8.1.4. By Country

8.1.4.1. USA

8.1.4.2. Canada

8.1.4.3. Mexico

8.2. South America

8.2.1. By Component

8.2.2. By Type

8.2.3. By Vehicle

8.2.4. By Country

8.2.4.1. Brazil

8.2.4.2. Argentina

8.2.4.3. Others

8.3. Europe

8.3.1. By Component

8.3.2. By Type

8.3.3. By Vehicle

8.3.4. By Country

8.3.4.1. UK

8.3.4.2. Germany

8.3.4.3. France

8.3.4.4. Italy

8.3.4.5. Others

8.4. Middle East and Africa

8.4.1. By Component

8.4.2. By Type

8.4.3. By Vehicle

8.4.4. By Country

8.4.4.1. Saudi Arabia

8.4.4.2. Israel

8.4.4.3. Others

8.5. Asia Pacific

8.5.1. By Component

8.5.2. By Type

8.5.3. By Vehicle

8.5.4. By Country

8.5.4.1. Japan

8.5.4.2. China

8.5.4.3. India

8.5.4.4. South Korea

8.5.4.5. Indonesia

8.5.4.6. Thailand

8.5.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. AISIN CORPORATION

10.2. DENSO CORPORATION

10.3. Hexagon AB

10.4. ZF Friedrichshafen AG

10.5. Magna International Inc.

10.6. Valeo

10.7. BorgWarner Inc.

10.8. MITSUBISHI MOTORS CORPORATION

10.9. Hitachi Astemo, Ltd.

10.10. Schaeffler AG

AISIN CORPORATION

DENSO CORPORATION

Hexagon AB

ZF Friedrichshafen AG

Magna International Inc.

Valeo

BorgWarner Inc.

MITSUBISHI MOTORS CORPORATION

Hitachi Astemo, Ltd.

Schaeffler AG