Acumen research and consulting estimates that the global smart electric drive market is anticipated to reach market size of around US$ 5,000 Mn by 2027 and is anticipated to grow at a CAGR of around 22% in terms of revenue during the forecast period 2020 – 2027.
The improved digital version of the standard electric drive configuration is an intelligent electric drive. The smart electric drive uses the battery as an energy source and communicates the vehicle directly to make driving on the road clean and convenient. The smart electric drive includes a battery, motor generator, power booster and electric brake. It offers energy savings efficient driving. The smart electric drive vehicle with smart electrical drive technology was launched by Daimler AG.
Smart electric drivetrain components are driven largely by high demand for hybrid and electric vehicles and the introduction by various governments of stringent rules and regulations. They plan to reduce carbon emissions by encouraging electric vehicles to be used. The government of various countries around the world offers tax benefits and incentives to the original electric vehicle equipment manufacturers, thereby supporting the smart electric drive market growth. Over the past two years, several governments have implemented a number of vehicle pollution control regulations and policies due to various increasing concerns regarding the environment. The risks to the environment and human life also involved global warming. In addition, the development of environmentally sound vehicles has also played a significant role in the growing sales of smart electric driving. However, factors like the lack of recharge infrastructure and the high cost of technologies and components used on the smart electric drive market will prevent the growth of this market.
The smart electric drive market is expected to grow due to main factors, including the growing need for more miles in one charge or a variety of cars, which are an improved, optimized variant of traditional electric drive systems. This can be done by increasing battery capacity and reducing vehicle weight. The rise for the smart electricity drive network is also expected to support the increase in demand for electronic and hybrid vehicles due to the adoption of emission standards at a level of the fleet, policy funding for grants and tax incentives, as well as greater market awareness. The development also intends to fuel demand for the smart electric power system for integrated mobility and truck automated driving solutions estimated in order to use electric and hybrid vehicles for optimal sizing.
By application, E-axle is estimated to have the largest share in smart e-drive market
The market for e-axles is anticipated to be by application the largest segment of the e-drive market. The growth in the e-axle can be attributed to an increasing focus in North America and Europe on vehicle electrification, fuel consumption and total vehicle efficiency. The use of electrical transmission axles would reduce interfaces and layers, resulting in better efficiency, reduced energy consumption and less noise. The growth of the electric axle market in the near future will also be driven by hybrid and electric vehicles.
Europe and North America to dominate the market growth
The smart electric drive markets for automobiles during the forecast period are expected to dominate Europe and North America. Although Europe is estimated to be the fastest growing market, it is estimated that during the forecast period North America is the largest market. The growth of intelligent e-drive has been respected in Europe due to various stringent emission standards by the government, the fact there are Tier-1 and OEMs and the rapid development of charging facilities, boosting the application of the intelligent electric drive market. On the other hand, North America market growth can be attributed to cutting-edge technology, vehicle weight reductions, and increased demand for green vehicles, which ultimately increases the use of the smart e-drive.
Major players included in this report are Robert Bosch GmbH, GKN plc, Magna International Inc., Hitachi Ltd., Continental AG, Siemens AG, Hyundai Mobis Co. Ltd., ZF Friedrichshafen AG, Schaeffler AG, MAHLE GmbH, Infineon Technologies AG, AISIN SEIKI Co. Ltd., BorgWarner Inc., and others. There are few established players operating in the smart e-drive market. For a new entrant, it is difficult to make its place in the industry, owing to the domination of the established players and high research and development cost.
The global smart electric drive market is segmented as below:
Smart Electric Drive Market By Component
Motor generator market
Power electronics market
e-Brake booster market
Smart Electric Drive Market By Drive Type
Front wheel smart electric drive market
Rear wheel smart electric drive market
All wheel smart electric drive market
Smart Electric Drive Market By Commercial Vehicle
Smart Electric Drive Market By Two Wheelers
Smart Electric Drive Market By Application
Wheel drive market
Smart Electric Drive Market By Geography
Middle East & Africa
The market value of smart electric drive is anticipated to be around US$ 5,000 Mn in 2027.
Commencement of advanced technologies in electric vehicles is expected to drive the growth of the smart electric drive market.
It is anticipated to grow around 22% CAGR amid the forecast period.2020-2027
High cost of smart electric drive systems is a major factor expected to restraint the growth of the market.
Robert Bosch GmbH, GKN plc, Magna International Inc., Hitachi Ltd., Continental AG, Siemens AG, Hyundai Mobis Co. Ltd., ZF Friedrichshafen AG, Schaeffler AG, MAHLE GmbH, Infineon Technologies AG, AISIN SEIKI Co. Ltd., BorgWarner Inc. and others are the prominent players in the market.
Europe is projected to grow at a fast pace during forecast period from 2020-2027
North America held maximum share in 2019.