ELECTRIC POWERTRAIN MARKET ANALYSIS

Market Challenges And Opportunities

Global Electric Powertrain Market - Drivers

Growing vehicle electrification demand in automotive industry

Global Electric Powertrain Market - Restraints

High cost of electrical components

Although an electric vehicle's total overall ownership cost is lower than conventional vehicles, an electric vehicle's initial purchase price is considerably higher than combustion vehicles. According to an article published by Natural Resources Defense Council, the average purchase price of a passenger electric vehicle in the U.S. was USD 19,000, more than a gasoline vehicle. Due to this high disparity in vehicles' initial purchase prices, price-sensitive customers find it challenging to choose an electric vehicle while making a purchase decision. Customers are unwilling to pay the premium for electric vehicles, although the total cost of ownership could be low for the vehicles' high annual usage.

OEMs globally find it challenging to replace an ICE powertrain with an electric powertrain in passenger vehicles as it costs USD 5,000 to 13,000, higher than ICE powertrains depending on the aspired range and battery size. With increasing awareness and understanding of the overall benefits and low ownership cost of an EV, this scenario is expected to change over the coming years. However, as the battery technology matures and production volume increases, the difference in purchase prices of these vehicles is likely to nullify in the next few years.

Global Electric Powertrain Market - Opportunities

Increasing Demand for Electric Vehicles

The rising demand for Electric Vehicles (EVs) creates a significant opportunity for the global electric powertrain market. As more consumers and governments prioritize sustainability and emissions reduction, the demand for EVs is expected to continue growing. This increased demand directly translates into opportunities for electric powertrain manufacturers.

Technological Advancements

The global electric powertrain market is witnessing continuous technological advancements. These advancements include improvements in battery technology, power electronics, electric motors, and energy management systems. Companies that can develop innovative and efficient electric powertrain components have the opportunity to gain a competitive edge and capture a larger market share.

Expansion of Charging Infrastructure

The establishment of a robust charging infrastructure is crucial for the widespread adoption of electric vehicles. As the global electric powertrain market grows, there is a need for an extensive network of charging stations, including fast-charging options. This presents opportunities for companies involved in charging infrastructure development, such as charging station manufacturers, operators, and energy service providers.