Rising production capacity for smart drivetrains and technology adoption by OEMs support the market for smart electric drives to grow at a CAGR of 35.9% during the next five years.
According to the new market research report -Smart Electric Drive Marketby vehicle type, component, application, drive and region - Global Forecast to 2026,published by MarketsandMarkets, the global Smart Electric Drive Market size is projected to grow from $ 915 million in 2021 to $ 4.25 billion by 2026
The Asia Pacific smart electric drive market will be led by countries like China, Japan and South Korea. The governments of these countries have supported the growth of EV demand through subsidies, favourable policies for EV's and discouraging the use of petrol. This will lead to a fast-growing demand for the smart electric drive market in the region with their increased adoption in EV's and rising EV demand. The adoption of smart electric drives have been in use in China, and Japan followed by South Korea, India and the rest of Asia Pacific.
China is expected to be the largest and fastest-growing market with high EV demand, and companies like Geely, GAC and others using e-axles to develop their EV's. On the other hand, Japan will be one of the fast-growing markets in the region due to top component manufacturers like Nidec, Aisin, Denso manufacturing smart electric drive modules and components.
EV Battery
EV battery is expected to be the largest market by value as it accounts for a significant part of EV drivetrain cost. Companies like Samsung SDI, LG Chem, CATL, SK Innovation, BYD, and Panasonic have been providing batteries for use in EVs over the years and account for a major part of the EV battery demand in the market. In addition, some manufacturers like Tesla and BYD use in-house build EV batteries for their electric vehicles. The demand for EV batteries will be the highest in the Asia Pacific due to China being the world's largest EV market and Japan, South Korea, and India steadily growing their EV demand. Thus, with the rise in the adoption of advanced integrated technologies for smart electric drives, the demand for EV batteries would also rise.
E-axles
According to MarketsandMarkets, the demand for E-axle will grow rapidly with the increase in demand for EVs. This is due to the fast-growing demand for mass-produced EVs and the growing demand for zero-emission vehicles. Asia Pacific is expected to be the largest market with many large EV manufacturers using e-axles from Aisin and Nidec in the region. For instance, in February 2020, Nidec announced the launch of its two-new e-axles developed for 200 kW and 50 kW drivetrains. Their e-axle system comprises a fully integrated traction motor system with an electric motor, reduction gearbox, and inverter. The Ni200Ex is developed for D and E segment cars and offers a higher output than its earlier available Ni150Ex model.
Europe is also expected to be a large market, with GKN producing e-axles for Volvo, BMW, and Porsche. Most manufacturers in the North American region use in-house manufacturing for passenger cars, and companies like Dana, Meritor, etc., manufacture e-axles for electric trucks. For instance, in January 2019, BorgWarner launched its new range of electric drivetrains through its new iDM e-axle. It is developed for use in all kinds of EVs. Thus, with component manufacturers and OEMs adopting advanced integrated technologies to provide smart electric drive, the market would grow in the near future, the research and consultancy firm added.
The smart electric drive market is dominated by global players such as Nidec Corporation, Aisin Corporation, BorgWarner, Bosch and ZF.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: REE.