Electric Powertrain Market Size

Electric Powertrain Market Size

Electric Powertrain Market size exceeded USD 20 billion in 2021 and is estimated to grow at 27% CAGR during 2022 to 2030. Rising awareness about the high efficiency of electric cars will bolster the industry growth.

As compared to internal combustion engines, electric powertrains demonstrate several benefits, including less susceptibility to wear and tear, lower maintenance costs, and higher efficiency. E-powertrain also involves its own sets of auxiliary systems to meet the power and cooling requirements of the equipment, while using fewer components. These attributes have led to a surge in the usage of electric drivetrains and engines, due to their smaller carbon footprint.

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The introduction of stringent emission norms and the strong focus on accelerating electric vehicle sales will proliferate the development of e-powertrains, especially in developed nations. A notable example is a new executive order signed by the U.S. in December 2021, outlining plans for the federal government to achieve a net-zero carbon footprint by 2030. Under this plan, the government is expected to make significant investments to stimulate EV penetration, stimulating the demand for e-powertrains.

Despite the rapid penetration of electric vehicles, the lack of charging stations is posing concerns among consumers. Low access to lithium and other rare earth metals, which are critical to the development of EVs, is also being observed owing to major supply bottlenecks. Apart from resource and supply chain constraints, there has also been a spike in battery costs worldwide. The limited access to critical minerals and the high battery prices may hinder EV powertrain industry advancement to a certain extent.