Automotive Electric Drivetrain Components Market - By Components (Electric Drive Module, DC/DC Converter, Battery Packs, Thermal System, DC/AC Inverter, Power Distribution Module), By Vehicle, By Sales Channel & Forecast, 2021-2027

Industry Trends

Automotive Electric Drivetrain Components Market size exceeded USD 39.05 billion in 2020 and is estimated to exhibit 26% CAGR from 2021 to 2027.
 

Asia Pacific dominates the market owing to the ever-expanding electric vehicle production across the region. APAC contributed to over half of the demand in 2020 and will grow at a significant rate over the coming years due to the increasing electric vehicle production in various emerging economies such as China.
 

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Many car manufacturers are dropping CO2 emissions led by strict new requirements taking effect in 2020 and 2025. For instance, in 2020, the European Union announced that from 2021 the average vehicle fleet carbon emissions will be limited to 95 g of carbon dioxide per kilometer, significantly driving the demand for automotive electric drivetrain components.
 

The automotive electric drivetrain components market growth is primarily driven by government incentives for alternative powered vehicles. Financial incentives, such as tax exemptions and tax credits, are encouraging the use of electric vehicles by lowering their costs. For instance, in Shenzhen (China), local authorities are offering supports up to USD 4,000 for every new alternative powered vehicle to inspire automotive sales, which was weakened by the COVID-19 epidemic.
 

Increasing adoption of BEV to propel the industry growth

The battery electric vehicle (BEV) segment is expected to generate a demand for over 70 million component units by 2027 owing to rising production and sales of battery electric vehicle production in the last few years. In emerging countries including China, Germany, and Japan, the potential of automotive electric drivetrain components sales is huge. In 2020, battery electric vehicle production in China was nearly 1.10 million units. Furthermore, industry participants are undertaking strategic agreements for innovative charging technology.
 

Reduction in battery cost to decrease vehicle ownership cost

The battery pack segment is poised to account for around USD 130 billion by 2027 in automotive electric drivetrain components market. The dominance is mainly attributed to higher cost of the battery packs. Moreover, the innovations in the hybrid vehicle battery performance, such as introduction of new nickel-metal hydride batteries, which has longer lifespan compared to lead-acid batteries and it is safer. A decrease in battery costs is achievable with the improvement in chemistry and increase in production scale.
 

The OEM segment to dominate the market demand

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In terms of value, the OEM segment is predicted to hold about 95% of the revenue share by 2027. The increasing sales and production of electric cars globally to reduce CO2 emissions are enhancing the segment growth. The COVID-19 pandemic has significantly restricted the electric vehicle production.
 

Despite lockdown and halt in the production of electric vehicles globally, the New Energy Vehicles (NEVs) market has observed significant demand. For instance, according to the U.S. Department of Energy, in 2020, the number of all-electric car registrations in the U.S. increased by 11.1% compared to 2019 and the BEV market share increased to 1.8% from 1.4% of the overall total U.S. automotive sector.
 

Europe to witness significant growth

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Europe automotive electric drivetrain components market size is set to register growth rate of above 26% through 2027. Increasing government initiatives and policies for zero-emission and low-emission vehicles is likely to boost the regional demand. The expansion of charging infrastructure, improvements in electric vehicles, and enhancements in driving range will further support the industry expansion. Covid-19 considerably impacted the electric vehicle production and sales in 2020. However, despite the electric vehicle production pause and strict lock down globally, the electric vehicles market has observed substantial growth.
 

The industry to be highly competitive

Some of the key manufacturers in the industry are Hexagon AB, VALEO, BorgWarner, ZF, Schaeffler AG, UNIVANCE CORPORATION, GKN Automotive, Denso, Continental AG, Delphi Automotive, Hofer Powertrain, JATCO Ltd., Magna International, and Robert Bosch GmbH. Expansion of production facilities and investments in R&D and new product development are some of the strategies adopted by manufacturers.
 

The automotive electric drivetrain components market is highly competitive with the top ten players holding a significant share. Major companies are engaged in partnerships with alternative powered vehicle manufacturers to gain a competitive advantage over other manufacturers. With the increasing demand for automotive electric drivetrain components, many manufacturers are investing in these technologies to gain an upper hand in the market.
 

This market research report on automotive electric drivetrain components includes in-depth coverage of the industry with estimates & forecast in terms of volume in Units and revenue in USD million from 2017 to 2027 for the following segments

Market, by Components

• Electric drive module
• DC/DC Converter
• Battery Packs
• Thermal System
• DC/AC Inverter
• Power Distribution Module (PDM) 
• Others

Market, by Vehicle

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Market, by Sales Channel

• OEM
• Aftermarket

The above information is provided on a regional and country basis for the following:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Sweden
  • Norway
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa