Electromobility, also known as e-mobility, refers to the use of electric vehicles (EVs) powered by an electric powertrain. The electric powertrain market is rapidly expanding, driven by various factors, such as consumer demand for sustainable transportation, government regulations and incentives, and technological advancements.
The global electric powertrain market was valued at $37.98 billion in 2020 and is predicted to grow at a compound annual growth rate (CAGR) of 18.6% from 2021 to 2028, to reach a value of $135.23 billion. This growth is attributed to the increasing consumer demand for EVs, which are seen as more environmentally friendly than traditional gasoline-powered vehicles.
One of the main drivers of the electric powertrain market is the increasing demand for EVs. Global sales of EVs reached 3 million units in 2020, and this number is predicted to grow significantly in the coming years. Consumers are becoming more aware of the environmental impact of their transportation choices, and many are looking to switch to more sustainable alternatives.
Government regulations and incentives are also playing a significant role in the growth of the electric powertrain market. Many governments around the world are implementing policies that aim to reduce carbon emissions and promote sustainable transportation. These policies include tax incentives for EV buyers, subsidies for EV manufacturers, and regulations that require automakers to produce a certain percentage of zero-emissions vehicles. For instance, California, the world’s fifth-largest economy, plans to ban the sale of new gasoline-powered passenger cars and trucks by 2035.
Technological advancements have also contributed to the growth of the electric powertrain market. Battery technology, in particular, has improved significantly in recent years, with higher energy density and longer range. This has addressed one of the main concerns of consumers when it comes to EVs, which is range anxiety. The development of fast-charging technology has also helped to address this concern.
The electric powertrain market is comprised of various components that make up an EV’s powertrain, such as electric motors, battery packs, and power electronics. Electric motors are responsible for converting electrical energy into mechanical energy to power the vehicle’s wheels. Battery packs store the electrical energy that powers the motor, and power electronics control the flow of electrical energy between the battery pack and the motor.
The market is dominated by a few key players, such as Tesla, General Motors, Volkswagen, and Ford. These companies have invested heavily in research and development to improve electric motors, battery cells, and power electronics. Tesla, in particular, has been a pioneer in the electric powertrain market, developing its own electric motors, battery cells, and power electronics.
Despite the tremendous growth potential in the electric powertrain market, there are also several challenges that must be addressed. One of the significant challenges is the high cost of EVs compared to traditional gasoline-powered vehicles. Although the cost of EVs has come down significantly in recent years, they are still more expensive than their gasoline-powered counterparts. This can make it difficult for some consumers to justify the switch to EVs.
Another challenge is the lack of charging infrastructure for EVs. Although this is improving, with many governments and private companies investing in charging stations, there is still a long way to go before charging infrastructure is as ubiquitous as gas stations. This can make it difficult for EV owners to travel long distances and can contribute to range anxiety.
In conclusion, the electric powertrain market is rapidly expanding, driven by various factors, such as consumer demand for sustainable transportation, government regulations and incentives, and technological advancements. The market is expected to see significant growth in the coming years, driven by the increasing demand for EVs.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Everest Market Insights journalist was involved in the writing and production of this article.
