The electric powertrain market was USD 95.9 billion in 2023, and it will propel at a rate of 13.1% by the end of this decade, to reach a total value of USD 226.3 billion by 2030. The growing requirement for e-vehicles and the numerous government initiatives taken at the global level for GHG emission reduction are a few key forces powering the expansion of the industry.
The battery category, under the component segment, is likely to dominate the market and grow at a CAGR of 13.0% during the projection period.
The battery is among the major components of e-vehicles and has a substantial weightage. Therefore, the increase in the requirement for EVs will power the generation of revenue from traction battery sales.
Moreover, there are different batteries for EVs, for instance, nickel–metal hydride batteries, lead–acid batteries, lithium-ion batteries, and ultracapacitors, amongst which lithium-ion batteries are increasingly common. Upon driving, this discharge, and then, the automobile is plugged into a charging station. Vehicle manufacturers offer a battery warranty, with regards to miles or years.
Moreover, North American companies are investing to introduce plants for cathode manufacturing, to guarantee a smooth supply chain for EV batteries.
Numerous legislations are there at a global level with regards to environmental safety. For example, in India, the norms of Corporate Average Fuel Efficiency mandate that for each auto manufacturer, carbon emissions should be lower than 130 g/km till 2022 and less than 113 g/km after 2022.
The BEV category led the electric powertrain market, and it will advance at a rate of 13.2% in the future. This has a lot to do with the fact that these variants bring about a considerable reduction in emissions of carbon and, hence, obtain the sturdiest policy and financial assistance from the governments.
There are no engines in BEVs and, the power on rechargeable batteries, thus producing negligible-to-no quantities of GHG and other air pollutants. Therefore, they are an efficient and clean means of transport with the added benefit of negligible-to-no noise pollution.
To ensure substantial infiltration of these environment-friendly automobiles, governments are taking more than a few initiatives, for example spreading consciousness, offering tax benefits, and advancing the charging infra. This is done so that users can avoid any sort of issue due to inaccessibility of charging stations, and depleted battery while traveling long distances.
It is because of the increasing requirement for EVs and associated infra of the world, that the demand for electric powertrains is on the rise. This trend will continue to grow in the years to come as well.
