The Smart electric drive market has been gaining major traction over the recent years, due to the growing demand for efficient and eco-friendly electric mobility solutions. Smart electric drive systems utilizepower electronics to convert mechanical power from an internal combustion engine or electric motor into wheel-hub traction power. They offer benefits such as higher fuel efficiency, reduced emissions, improved torque delivery and regenerative braking. The increasing adoption of hybrid, plug-in hybrid and electric vehicles worldwide is a major factor driving the demand for smart electric drive systems.
The Global Smart Electric Drive Market is estimated to be valued at US$ 22.03 Bn in 2024 and is expected to exhibit a CAGR of 31% over the forecast period from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the Smart Electric Drive market include ABB, Aisin Corporation, Allison Transmission, Borgwarner, Bosch, Continental Ag, Dana, Denso, GKN (Melrose), Hexagon AB, Hitachi, Huayu Automotive Electric System, Hyundai Mobis, Infineon Technologies, Jatco, Jing-Jin Electric Technologies, LG Electronics, Magna International, Mahle, Meidensha Corporation, Meritor, Nidec Corporation, Shanghai Automotive Smart Electric Drive, Siemens AG, Smesh E-Axle, and ZF Group.
Key opportunities:
Advancements in battery and motor technologies are opening up new opportunities for smarter and more efficient electric drive systems. Growing investments in developing efficient charging infrastructure will also support the adoption of electric vehicles.
Global expansion:
Leading automotive suppliers are expanding their Smart Electric Drive Market Size production capacities globally to cater to the fast growing electric mobility markets in Asia, Europe and North America. Partnerships with automakers will help accelerate this global expansion.
Market drivers:
The key drivers contributing to the growth of the smart electric drive market include stringent emission norms prompting a shift towards electrification of vehicles, rising demand for fuel-efficient vehicles due to increasing fuel costs, growing investments by governments to promote electric mobility, and advancements in battery technologies enhancing the performance of EVs.
PEST Analysis
Political: Governments across major regions have introduced regulations promoting adoption of electric vehicles to reduce emissions. This is expected to drive Smart Electric Drive Market Analysis.
Economic: Fluctuating fuel prices and growing consumer preference for low maintenance vehicles are encouraging people to opt for electric drive systems. Lower operating costs boost adoption.
Social: Increasing environmental concerns and awareness about climate change have made people more inclined towards electric vehicles. This is a major factor driving the smart electric drive market.
Technological: Advancements in battery technology coupled with introduction of fast charging infrastructure have enhanced electric drive range and performance. Development of smarter connectivity solutions is also gaining traction.The smart electric drive market in terms of value is concentrated mainly in Asia Pacific and Europe. Asia Pacific dominates due to strong government support and presence of major automotive hubs in China and Japan. The market is also gaining high traction in Europe due to stringent emission norms and availability of charging infrastructure in major countries. On the other hand, North America is considered as the fastest growing regional market for smart electric drive owing to rising investments by key players and subsidies on electric vehicles by governments to promote green mobility.The countries in Asia Pacific such as China, Japan and South Korea contribute majorly to global market revenue. This is attributed to growing demand for electric vehicles and presence of leading automakers in the region. Apart from this, some of the emerging economies in Southeast Asia are also witnessing rapid adoption of electric vehicles, thereby augmenting regional market growth. On the basis of value, Europe holds the second spot globally and Germany leads the European market in this domain. Going forward, the markets in Latin America and Middle East & Africa are expected to register healthy growth rates during the forecast period.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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