Global Smart Electric Drive Market is Segmented By Component Type (EV Battery, Electric Motor, Inverter System, E-Brake Booster, Power Electronics), By Application (E-Axle, E-Wheel Drive), By Drive Type (Front-Wheel Drive, Rear Wheel Drive, All Wheel Drive), By End-User (Passenger Vehicles, Commercial Vehicles), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2021-2028
Market Overview
The global smart electric drive market size was worth US$ XX Million in 2021 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
The smart electric drive is an advanced version of a conventional battery-powered electric drive system. It is an integrated system with an electric drivetrain utilizing brushless DC motor technology and power and control electronics in a compact assembly.
The adoption of a smart electric drive system will lead to better efficiency, decreased vehicle weight and the advantage of new integrated technologies. The growing demand for premium segment electric vehicles and upcoming advances in semi-autonomous and autonomous vehicles will increase the demand for smart electric drive systems.
Source: DataM Intelligence Analysis (2022)
Market Dynamics
The demand for smart electric drive systems is driven by the more extensive and ever-growing adoption of electric vehicles as consumers become ever more climate-conscious and the drive to decarbonize transportation gathers pace. The high cost of the electric vehicle drive is a challenge to its wider adoption.
Adoption of advanced technologies in Electric Vehicles
Consumers and governments globally are becoming more climate-conscious. A major push is underway to decarbonize transportation to avoid the most severe effects of global warming and man-made climate change. A general push towards more significant and widespread adoption of Electric Vehicles (EV) is seen.
Automotive companies are adopting new technologies to drive down prices, reduce charging time, increase driving range and incorporate new materials to reduce vehicle weight. The adoption of smart electric drive systems is a part of this trend. The design features an electric drivetrain with integrated sensors in a compact assembly. The system can integrate many new and upcoming technologies.
High cost of smart electric drive system
The smart electric drive system is a new and advanced technology and hence, it is still quite expensive, primarily due to components within the system, such as e-axel and e-wheel drive. The high cost of the smart electric drive system and its components currently restricts it to premium segment electric vehicles and prevents its large-scale adoption by EV manufacturers. The cost of adjusting the system for a specific EV and integrating the various sensors further increases the cost of the smart electric drive system.
COVID-19 Impact Analysis
The EV industry experienced sharp declines in production and sales in 2020 due to the COVID-19 pandemic. Various governments-imposed lockdowns globally to curb the pandemic’s spread and many manufacturers had to suspend operations temporarily. Industrial manufacturing is a highly capital-intensive business and thus, many component manufacturers were facing bankruptcy. Vehicle production resumed in a limited capacity after lifting the lockdowns.
The COVID-19 pandemics’ knock-on effects on the global supply chains have caused shortages of essential components for the EV industry. It has led to long lead times and reduced production rates, even after the complete lifting of pandemic-related restrictions. The pandemic will have a negligible impact on the long-term growth of the smart electric drive market since the demand for EVs remains strong and will continue to grow significantly in the coming years. The smart electric drive system is expected to benefit from this growing demand due to scale economics, considerably bringing down prices in the coming years and leading to widespread adoption.
Segment Analysis
The smart electric drive market is segmented on component type, application, drive type, end-user and region. The global smart electric drive segment is split into battery, motor, inverter and power electronics based on components. Battery dominates this segment since battery technology is the crucial EV component. The primary focus regarding battery technology is to increase the energy density and efficiency of the battery to increase the driving range and longevity of the battery.
Source: DataM Intelligence Analysis (2022)
Geographical Analysis
Asia-Pacific is leading in the global smart electric drive market. The region accounts for the largest market share, primarily due to the presence of China, as it is the biggest EV producer globally. China produced about 4.6 million vehicles from 2010-2020 and accounted for 44% of the EVs sold during the same period.
Source: DataM Intelligence Analysis (2022)
Competitive Landscape
The global Smart Electric Drive market is highly competitive, with global companies active in the sector. Some of the major players contributing to the growth in the segment are Nidec Corporation, ZF Friedrichshafen AG, Robert Bosch GmbH, BorgWarner Inc., Aisin Corporation, Magna Global, Continental AG, Siemens AG, Meritor Inc. and Hexagon AB. The significant players adopt several growth strategies such as new product launches, acquisitions, joint ventures and collaborations, contributing to global growth in the industry.
ZF Friedrichshafen AG
Overview: The ZF Group is a major systems and solutions supplier for passenger and commercial vehicles. The company was founded in 1915 and is headquartered in Friedrichshafen, Germany. The company has over 150,000 employees and 271 locations in 42 countries. Its current research focuses on digital connectivity and automation in the automotive sector.
Product Portfolio
- AxTrax AVE is an electric portal axle with an integrated wheel hub drive mainly for electric buses. It comes with an integrated inverter and EST 54 electronic control unit with proprietary software for increased cost-efficiency and effectiveness.
Key Developments: In 2021, the company launched eConnect, a decouplable, purely electric all-wheel-drive system at the Global Motor Show IAA. The system has improved energy efficiency and compact dimensions than previous systems.
Why Purchase the Report?
- Visualize the composition of the smart electric drive market segmentation by component type, application, component level, end-user and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the smart electric drive market by analyzing trends and co-development deals.
- Excel data sheet with thousands of smart electric drive market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the critical product of all major market players
The global Component market report would provide access to an approx.: 70 market data tables, 63 figures and 180 pages.
Target Audience
- EV and EV component manufacturers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Utility Companies
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