Driveline market for electric and hybrid vehicles worth $63.32 billion by 2025
The market for electric and hybrid vehicles is projected to grow from $18.14 billion in 2017 to $63.32 billion by 2025, at a CAGR of 16.92%. This projection is according to the new market research report, "Driveline Market for Electric & Hybrid Vehicle by Architecture (Series, Parallel, Power split), Transmission (AT, DCT, E-CVT), Motor Output (45-100, 101-250, >250kW), Final Drive, Drive Type, Power Electronics, Vehicle Type, Region - Global Forecast to 2025," published by MarketsandMarkets.
The projected growth of the driveline market for electric and hybrid vehicles will be driven by factors including increasing demand for electric and hybrid vehicles and advancement in driveline technologies such as regenerative braking, automatic start-stop, E-CVT, and E-axle. The increased demand for hybrid and electric vehicle technology will be brought about by the increasing demand for higher fuel efficiency and stringent emission regulations by governments across the world.
The choice of technology varies for a hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), or battery electric vehicle (BEV). The increasing sales of electric and hybrid vehicles are driving the market for the electric and hybrid driveline.
The study segments the driveline market for the electric and hybrid vehicle by architecture type. The HEV market is projected to have the largest market share owing to its huge acceptance from customers across the globe. The parallel architecture for hybrid vehicles is estimated to grow at the fastest rate during the forecast period owing to its benefits such as better efficiency and less complexity.
In another segment of the study, the E-CVT (electronically controlled continuously variable transmission) market is estimated to showcase the largest market volume, which is anticipated to rise due to rapid adoption in the Asian market. In terms of value, DCT (dual-clutch transmission) is expected to be the fastest growing segment during the forecast period because of its rapid adoption in luxury and sports cars. Europe is the largest market for DCT. Over the forecast period, the market for final drive is dominated by differential; while in the near future, E-axle is expected to gain market share at the fastest rate due to its benefit in weight reduction and efficiency improvement of the driveline.
The performance of a motor is measured by its output, which is known as the traction output. The motor output varies from 12 kW to >250 kW and depends on the vehicle specification. The 45 to 100 kW market is estimated to showcase the largest market volume over the forecast period due to high adoption in the Asian region. In terms of value, the >250 kW segment is expected to be the fastest growing segment during the forecast period.
With the increase in demand for electrical and electronic devices in a vehicle, the automobile industry is continuously shifting toward a higher voltage power supply. Such a power supply would require more efficient power electronics. Globally, various OEMs and Tier 1 players are contributing to the advancement of power electronics technology. One example is Toyota, which has developed a combined unit of converter and inverter called the power control unit. This unit converts AC/DC power and regulates the voltage. In the present scenario, the Toyota Prius is installed with a power control unit which is compact, making it possible to install the unit directly above the transaxle and place the auxiliary battery in the engine room, which increases the interior space. Toyota is planning to equip more compact power control units in the Avalon hybrid by 2019. Because of the rapid adoption of electronics components in automobiles, which supports the growth of power control units in the near term, the PCU is expected to show the fastest growth for electric and hybrid drivelines.
Regarding transmissions, the E-CVT is expected to have the largest market over the forecast period. The E-CVT is an advanced technology which offers fuel savings compared to a traditional four-speed automatic transmission (AT). Regionally, the market for drivelines by transmission type will vary according to the transmission preferences of consumers and the increasing sales of premium vehicles. The E-CVT offers fuel savings over other transmission types, which makes it the most suitable for the Asian region. Models with E-CVT include the Toyota Camry Hybrid, Lexus CT200h, Lexus NX 300h, and GS 300h.
Government subsidies, large production, and technological advancement in the field of electric and hybrid drivelines are expected to propel the driveline market for electric and hybrid vehicles in Asia Oceania. Many governments around the world are challenged with declining air quality, and they set their own emission goals. They have been working to increase the market for electric and hybrid vehicles. To spur the sale of electric and hybrid vehicles, governments have used emission regulations, public-private partnerships, and incentives, and they have supplied improved charging facilities. The Chinese government is providing acquisition tax and excise tax exemption (depending on engine displacement and price) ($5,100 to $8,700). China has the largest market for electric and hybrid drivelines due to its large production and sales quantities.
Asia Oceania is expected to be the largest and the fastest growing market. The major reason for the fastest growth is heavy production and sales of hybrid and electric vehicles in the region. Also, the rising per capita income of the region’s widespread consumer base has created a favorable environment for the growth of the electric and hybrid vehicle market in Asia Oceania. China is one of the leaders in auto component exports.
The major factors hindering the growth of the driveline market for electric and hybrid vehicles are the high cost of technology as compared to conventional IC engine-powered driveline and the lack of infrastructure development for charging in developing countries.
Driveline manufacturers have adopted the strategies of new product development and geographical expansion to gain traction in the driveline market for electric and hybrid vehicle. Key market players include ZF (Germany), Schaeffler (Germany), GKN (UK), BorgWarner (U.S.), and Robert Bosch (Germany). Other players covered in the report are Hitachi (Japan), Continental (Germany), Delphi (UK), Denso (Japan), and Valeo (France).
View more information at: https://www.marketsandmarkets.com/Market-Reports/electric-hybrid-vehicle-driveline-market-235631222.html.