Europe Electric Powertrain Market Report 2022: Rising Fuel Prices Continue to Drive Adoption

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Mar 20, 2023, 06:15 ET

DUBLIN, March 20, 2023 /PRNewswire/ -- The "Europe Electric Powertrain Market Size, Segments, Outlook, and Revenue Forecast 2022-2027 by Component, EV Type, Powertrain Type, Vehicle Type, and Major Countries" report has been added to ResearchAndMarkets.com's offering.

According to publisher estimates, the Europe Electric Powertrain Market - which grew from around US$ 14 Billion in 2017 to nearly US$95 Billion in 2021 - is expected to grow further into a more than US$ 160 Billion opportunity by 2027.

The Europe Electric Powertrain Market is expected to record a positive CAGR of nearly 11% during the forecast period (2022-2027), due to the globally rising demand for electric vehicles.

Rising petrol prices allowed the electric powertrain market to gain momentum as many car owners shifted towards EVs from ICEs. Electric Powertrain components' growth is directly proportionate to automobile companies' product demand in the market.

Lenient government policies along with incentivizing initiatives by several national governments across the EU have helped the electric vehicle market to grow translating into increased demand for electric powertrains. More than 20 countries have electrification targets or ICE bans for cars including the Netherlands by 2030, the UK by 2035, France by 2040, Germany by 2050, and 8 countries along with European Union have announced net Zero Emission Pledges by 2045 and 2050.

Germany is the fastest growing region in terms of Electric Powertrain adoption, with the highest CAGR intended during the forecast period. New BEV registrations increased by 83.3% from 2020 to 2021, and new PHEV registrations increased by 62.3% from 2020 to 2021. 356,425 BEVs and 325,449 PHEV units of new cars were registered in 2021.

Many global automobile leaders are forming alliances to better their offerings in the European EV market. For instance, Magna & Fisker Inc. has signed a long-term manufacturing agreement for the production of the all-electric Fisker Ocean SUV at Magna's facility in Graz, Austria. In May 2022, Magna, under its Electric Mobility Business, signed an agreement with the BMW Group to develop mild hybrid transmission at Magna's facilities in Germany, Slovakia, and other countries.

One of the most crucial segments of the electric powertrain is the battery along with battery packs and battery management systems. Global demand for batteries is expected to grow by 14 folds by 2030 and the EU holds 17% of that demand.

Market Segmentation

By Component

Motor/Generator
Battery
Battery Management System (BMS)
Thermal Management System
DC/AC Converter
DC/DC Converter
Body Control Module
On-Board Charger

By EV Type

HEV
PHEV
BEV

By Powertrain Type

BEV Powertrain
Series Hybrid Powertrain
Parallel Hybrid Powertrain
Series-Parallel Hybrid Powertrain

By Vehicle Type

Passenger Cars
Commercial Vehicles

By Geography

Germany
France
United Kingdom
Netherlands
Sweden
Rest of Europe (Belgium, Italy, Denmark, Norway, Finland, Portugal, Spain, Austria, Romania and Others)

Key Trends by Market Segment:
By Component:

Battery Component holds the largest share of Europe's Electric Powertrain market.

The battery pack is made up of multiple lithium-ion cells and stores the energy needed to run the vehicle.

Battery used in EVs are rechargeable batteries and consist of various components. It majorly requires a cathode, anode, electrolyte, and separator apart from materials that are used to build it, including aluminum, copper, cobalt, iron, etc.

As per the statistics available from EV industry, battery pack prices have declined by almost 90% from 2010 to 2021. The prices of raw materials used in the battery pack, such as cathode, cobalt, nickel, and lithium, were volatile during COVID-19. However, in the forecasted future, the price of battery packs is expected to follow a gradual downward trend.

By EV Type:

The HEV segment accounts for the majority share of the Europe Electric Powertrain Market.

Policies and regulations laid down by the European government in various regions to reduce the carbon emission on roads by net zero by 2035 are fueling the demand for fully and hybrid electric vehicles.

Several Chinese players have entered the European market to meet the growing demand for electric vehicles in the region. Units sold by Chinese players in Europe in 2021 were 80,000. In the first half of 2022, 75,000 units were sold and it was estimated to reach 150,000 by the year-end.

The Electric Powertrain market in the BEV segment is expected to grow at the fastest rate during the forecast period (2022-2030), as BEVs are fully electric vehicles that come with rechargeable batteries and no gasoline engine.

PHEVs are also expected to grow higher than regular hybrid vehicles because of the upgrading of charging infrastructure. PHEVs are regular hybrid models which carry an engine and electric motor to drive the vehicle.

PHEV new car registrations increased by 68.1% from 2020 to 2021 as per the European Automobile Manufacturers Association (ACEA).

HEV new car registrations also increased by 55.6% from 2020 to 2021 according to the ACEA.

By Powertrain:

The parallel hybrid powertrain segment holds the largest market share in the Europe Electric Powertrain Market as hybrid electric vehicles occupy the largest chunk.

EVs generally cost higher than a usual conventional vehicle, due to which players are trying to find alternative ways to reduce the cost with quality remaining intact.

Demand for fully electric vehicles is growing day by day which leads to an opportunity for component manufacturing players to enhance their production capabilities to meet the target customers

By Vehicle Type:

Passenger cars refer to vehicles designed and constructed for carrying individuals. It comprises not more than eight seats inclusive of the driver and has a maximum mass of 3.5 tonnes. Commercial vehicles are specially designed for transporting goods and materials rather than passengers. These vehicles can be used for personal and business purposes. There is a wide range of commercial vehicles, such as trucks, tractors, buses, panel vans, and chassis cabs.

The number of electric passenger cars on European roads increased by 18 million in three years, from 2017 to 2020.

The number of electric commercial vehicles increased by 3 million between 2017 and 2020. Among electric commercial vehicles, the category light commercial vehicles had the maximum share, followed by the category medium and heavy commercial vehicles and buses.

As governments across the union undertake initiatives to promote electric vehicles in the region by providing subsidies, relaxation on toll tax, free parking, etc., people are expected to feel more encouraged to purchase an electric vehicle.

By Geography:

Germany is the largest country within the total Europe Electric Powertrain market, accounting for more about a quarter of total market revenue.

UK is expected to have the highest CAGR during the forecast period, owing to the major presence of OEMs and component suppliers. Also, UK's various regions have started implementing ZEZ for their zero-emission target. For Instance, London has implemented small street-based near-zero-emission zones in three areas.

Germany is expected to witness a strong growth during the forecasted period, because of various factors such as the active participation of the government to promote electric vehicles and a high number of local automobile and component manufacturers. In April 2022, the Eaton e-Mobility segment expanded its footprints in the Europe region and started a new research center in Karlsruhe, Germany.

Competitive Landscape:

The Europe Electric Powertrain market is highly competitive with ~200 players which include globally diversified players, regional players as well as a large number of country-niche players having their own niche in electric powertrain for major OEMs and automobile companies. Most of the country-niche players are component suppliers and powertrain part manufacturers.

Large global players control about 50% of the market, while regional players hold the second largest share. Some of the major players in the market include Bosch, Magna, Denso, MAHLE, Cummins, AISIN, Eaton, Mitsubishi, Dana, ZF, BorgWarner, Continental, and others.

The leading global specialist companies such as Bosch, Denso, Eaton, and BorgWarner are highly focused on providing a fully electric and hybrid powertrain solution and their components can fit various cars and commercial vehicles.

Recent Developments Related to Major Players

Ford's Cologne site in Germany will see an investment of $2 billion, while the company is also planning to set up a new battery assembly facility by the start of 2024.

In 2022, Magna Automotive Europe GmbH, part of the Cosma Group of Magna International, announced the acquisition of the Czech company Klein automotive s.r.o
Honda unveiled its next electrified model for Europe, Civic e: HEV. The car will be made available to European customers in the latter half of 2022.

Major Competitors in Electric Powertrain Mentioned in the Report

Bosch
Magna
Denso
BorgWarner
AISIN
MAHLE
Continental AG
Dana
Cummins
ZF
Mitsubishi
Eaton
Tesla
Siemens
AVL
Hitachi Astemo, Ltd
Infineon Technologies AG
Hanon Systems

Notable Emerging Companies Mentioned in the Report

BWS e-Mobility
Vitesco Technology
Voltabox AG
EV Europe
Smesh-E-Axle
Energy Storage Solutions
Advanced Electric Machines
Faradion
Britishvolt
Northvolt AB
Einride
Voltatrucks
Raydiall Automotive
Verkor
Nawa Technologies

Frequently Asked Questions

What is the Future Growth Rate of Europe's Electric Powertrain Market?

The Europe Electric Powertrain Market is expected to witness a CAGR of about 11% over the next 5 years

What are the Key Factors Driving the Europe Electric Powertrain Market?

Rising fuel prices and escalating environmental issues arising from carbon emissions. are expected to be the primary drivers of this market

Which is the Largest Component Segment within the Europe Electric Powertrain Market?

Battery Component holds the largest share of Europe's Electric Powertrain Market

Who are the Key Players in Europe's Electric Powertrain Market?

Bosch, Magna, Denso, MAHLE, Cummins, AISIN, Eaton, Mitsubishi, Dana, ZF, BorgWarner, and Continental among others are the major companies operating in Europe Electric Powertrain Market. Other important value chain companies include Tesla, Siemens, AVL, Hitachi Astemo, Infineon, and Hanon Systems.

For more information about this report visit https://www.researchandmarkets.com/r/jtwa0a

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