E-Drive for Automotive Market

The global e-drive for automotive market was valued at $9.6 billion in 2021, and is projected to reach $21.5 billion by 2031, growing at a CAGR of 8.8% from 2022 to 2031.

E-drive, also referred as electric-drive, utilizes battery as a power source to provide efficient transmission in the vehicle. It converts electrical energy to mechanical energy to ensure efficient movement of the wheels in the vehicle. In addition, E-drive comprises electric brake booster, motor generator, power booster, and a battery. Moreover, e-drive ensures improved energy utilization in the vehicle and has several advantages such as low operating costs, higher efficiency, lower noise, and clean operation.

The growth of the global e-drive for automotive market is propelling, due to stringent government rules and regulations toward vehicle emission and rise in demand for electric vehicles. However, high cost of e-drive systems is the factor hampering the growth of the market. Furthermore, technological advancements is the factor expected to offer growth opportunities during the forecast period.

The e-drive for automotive market is segmented on the basis of electric vehicle type, vehicle drive type, application, and region. By electric vehicle type, it is divided into battery electric, plug-in hybrid, and hybrid. By vehicle drive type, it is classified into front wheel drive, rear wheel drive, and all-wheel drive. By application, it is fragmented into passenger cars and commercial vehicles. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Some leading companies profiled in the e-drive for automotive market report comprise Aisin Corporation, BorgWarner Inc., Continental AG, Hitachi Ltd., Magna International Inc., Melrose Industries PLC, Nissan Motor Co., Ltd., Robert Bosch GmbH, Schaeffler AG, Siemens AG, Toyota Motor Corporation, and ZF Friedrichshafen AG.

Stringent government rules and regulations towards vehicle emission

With the growing environmental concerns, governments and environmental agencies across the globe are enacting stringent emission norms and laws to reduce vehicle emission. Major regulatory measures are stringent emission targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in air. High amounts of greenhouse gases being emitted from vehicles and federal and state governments in the U.S. are increasing efforts to make transportation cleaner. For instance, the U.S. Environmental Protection Agency (EPA) announced that they are working on new rules to decrease emissions of nitrogen oxide (NOx) and other pollutants from heavy-duty trucks.

In addition, the California Air Resources Board (CARB) is adopting heavy-duty Low NOx Omnibus Regulation, aims to achieve a 90% reduction from current NOx emissions limits by 2027. Moreover, in Europe, European Union (EU) committed within the Paris agreement (COP21) to achieve its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol. The EU has also set the target to achieve 40% greenhouse gas reduction by 2040 and net-zero by 2050.

Therefore, the burden on vehicle manufacturers, especially on commercial vehicle manufacturers, has further increased, with enactment of the emission regulations for fossil fuel-powered vehicle. This, in turn, is expected to drive the demand for electric vehicles. Electric vehicles comprise e-drive which control the motion of electric vehicle. Therefore, increase in demand for electric vehicle is projected to result in increase in demand for e-drive. Thus, stringent emission norms imposed on fossil-fuel powered vehicles significantly drive the growth of the e-drive for automotive market.

Rise in demand for electric vehicles

Increase in global concerns regarding the negative effect of climate change and alarming pollution levels recorded in major cities have created a significant demand for electric vehicles. The demand for fuel-efficient vehicles has increased recently, owing to rise in price of petrol and diesel. Depletion of fossil fuel reserves and growth in tendency of companies to gain maximum profit from these oil reserves also contribute to the increase in demand. Therefore, these factors give rise to the need for advanced fuel-efficient technologies, leading to surge in demand for electrically-powered vehicles for travel, which generates the demand for e-drive and motors. E-drive is most common in electric vehicles. Therefore, increase in sale of electric vehicle boosts the growth of e-drive. Further, increase in popularity of electric vehicles gives rise to many innovations in e-drive, which drive the growth of the e-drive for automotive market.

High cost of e-drive systems

Electric vehicles are advantageous over conventional vehicles, but the cost of the former is higher than gasoline powered vehicles. In addition, the unavailability of infrastructure related to electric vehicle growth has proved to be a negative factor, which affects the growth of the electric vehicle industry. Demand for components installed in an electric vehicle decreases due to this unavailability of proper infrastructure, thus affecting the growth of the automotive e-drive industry. In addition, advanced technologies for e-drive which includes e-axel, and e-wheel drive are still expensive, which in turn is forcing vehicle manufacturers to offer e-drive systems in moderate-high ranged electric cars, thereby restraining the growth of the market. Thus, high cost of e-drive systems is expected to hamper the growth of the market during the forecast timeframe.

The impact of the COVID-19 pandemic has resulted in supply-chain disruptions causing low sales of passenger cars and temporary suspension of production of vehicles across the globe. The global automotive production has witnessed decline by 16% in 2020 as compared to automotive production in 2019. Moreover, the global sales of automotive has witnessed drop by around 14% (Y-o-Y) from 90.42 million units in 2019 to 77.97 million units in 2020. However, there was a surge in sale of electric vehicles in Europe in 2020. As per the data released by Society of Electric Vehicle Manufacturers (SMEV), new EV registration of all types of electric vehicles during FY21 dropped by 20 percent compared with the number of new EV registrations in FY20. Several automobile manufacturers faced shortage of components such as semiconductor chips, and others, which resulted in delay in production of automobiles, thereby resulted in decreased demand for e-drive systems. However, it’s been predicted that though the sales of electric vehicles were hampered due to the pandemic for a short term, the industry is set to bounce back with the higher growth than that of the previous year’s owing to the consistently rise in fuel prices and rising concerns towards environmental pollutions coupled with provision of the subsidies by various governments.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the e-drive for automotive market analysis from 2021 to 2031 to identify the prevailing e-drive for automotive market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the e-drive for automotive market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global e-drive for automotive market trends, key players, market segments, application areas, and market growth strategies.

 E-Drive for Automotive Market Report Highlights