Analysis of Smart Electric Drive Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global smart electric drive market is valued at US$ 900 million in 2023. The market is forecasted to reach a valuation of US$ 12 billion by 2033, surging ahead at a CAGR of 29.5% over the next ten years.
A smart e-drive is a specialized version of a standard electric drive system. Smart e-drive is powered by the vehicle's battery and has a direct transmission for smoother and safer driving dynamics. The smart electric drive has a battery, electric brake booster, motor generating system, and power booster. It enhances driving by saving energy.
The COVID-19 outbreak had a massive impact on the global electric vehicle market. The market came to a halt due to the suspension of car production and supply chain interruptions. Moreover, reduced vehicle sales during the first and second half of 2020 had an impact on the worldwide electric vehicle market, thereby affecting the growth of the global smart electric drive market. Nevertheless, the global market for electric vehicles bounced back in 2021.
Fact.MR, a market research and competitive intelligence provider, expects the global electric vehicle market will continue to grow at a rapid pace over the next ten years, promoting the expansion of the smart e-drive industry.
The increasing cost of gasoline is a major factor in accelerating global market growth. The worldwide demand for diesel and petrol is strong since they are non-renewable resources that may be depleted in the coming decades.
Despite the fact that numerous accords have been established to restrict the price of gasoline on the worldwide market, costs have risen throughout the years. Since the majority of countries buy gasoline, its use adds to the economy's trade balance. Due to finite petroleum resources and growing gasoline prices, automakers are considering alternative sources of fuel for their automobiles.
Electric vehicle drivetrains have lower running costs than gasoline and certain other fuel choices. Along with environmental protection, this is a crucial reason for expanding need for electric vehicles. This is expected to fuel demand for smart e-drive vehicles in the future.
This is substantially less than the standard cost of petrol for traveling the same distance. This saves EV users a lot of money on their daily transportation costs. Such factors are projected to increase the global demand for smart e-drive vehicles during the forecast period.
Smart e-Drive Market Size (2023)
US$ 900 Million
Projected Market Value (2033)
US$ 12000 Million
Global Market Growth Rate (2023 to 2033)
The United States Market Value (2022)
US$ 300 Million
Leading Drive Segment
Front Wheel Drive
Key Companies Profiled
“Increasing Demand for Electric Vehicles and Favorable Government initiatives”
Major electric vehicle markets, such as Germany, China, the United Kingdom, and the United States, are investing extensively in EVs and EV charging facilities, as well as R&D for quicker and more effective charging processes, inexpensive batteries, and longer-ranged EVs. They've also invested in the creation of electric powertrains. Auto manufacturers are projected to invest more to meet the increasing demand for electric vehicles.
Moreover, governments around the world have taken initiatives to decrease emissions in the following decades and to substitute their vehicle fleets in their respective countries with eco-friendly vehicles by 2029. This will increase the demand for EVs and support related businesses such as the smart e-drive business.
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“Lack of Charging Infrastructure in Emerging Nations”
A well-developed charging infrastructure is essential to support the general acceptance of EVs (all-electric vehicles) and PHEVs (plug-in hybrid electric vehicles). Except for a few nations such as the United States, the United Kingdom, Germany, Japan, and France, the construction of this infrastructure is in its early stages worldwide. Due to the exorbitant cost of construction, the availability of charging outlets and charging stations is low.
This has significantly impeded the potential expansion of EVs and their essential systems and components in developing nations. This will result in sluggish growth in the global sales of smart e-drive vehicles. Several new EV manufacturers and some prominent companies will gradually raise their demand for e-drivetrain components until they begin making them domestically, and this demand will develop rapidly once the charging infrastructure is in place.
“Flourishing EV Market and Presence of Top EV Makers”
North America is ruling the global market for smart e-drive solutions. The United States is a market leader in the worldwide market. The United States market garnered US$ 300 million in 2022.
The rapidly growing EV market and the existence of top EV makers such as Tesla, General Motors, and others are boosting the market expansion in the United States. Furthermore, technological advancements in the American automobile industry are expected to have a positive impact on market growth in the near future.
“Booming Automotive Industry in the Country”
Government support for the purchase of electric vehicles in the form of incentives and grants stimulated EV demand, resulting in a rise in the use of smart electric drives. Furthermore, the European Union's tighter emissions laws diverted consumer attention away from older automobiles and toward newer EVs. As a result of shifting customer preferences in high-end EVs and technological improvements in this region, the demand for smart e-drive vehicles is rising significantly.
Germany is dominating the regional market due to the country's thriving automotive industry, which greatly supports global market growth.
“Strong Government Support and Increasing Demand for EVs”
The Asia Pacific market is expanding at a significant pace. Japan and South Korea are important markets in Asia Pacific. Governments in these nations have assisted the growth of EV demand by offering subsidies, establishing favorable EV rules, and discouraging the usage of fuel. With increased EV acceptability and demand, the market in Japan and South Korea is rapidly expanding.
Smart electric drives were first used in Japan, followed by South Korea. Higher production capacity/mass manufacturing for smart drivetrains and OEM adoption of the technology in these countries are anticipated to bolster market growth.
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“Several Benefits of FWD Automobiles”
In front-wheel drive (FWD) automobiles, the engine, differential, transmission, and final drive gears are all housed in one unit. FWD automobiles are often lighter than their competitors.
Many modern sedans, especially ones in the mid-and low-price categories, are FWD because they are lighter and distribute the bulk of weight onto the front wheels. This strikes a decent balance for consistent performance. It also aids in braking. Furthermore, FWD automobiles have larger passenger and luggage rooms.
“Declining Costs of Batteries Worldwide”
A battery is the source of power for any smart electric drive system. Currently, the battery costs nearly one-third of the overall cost of a battery electric vehicle (BEV). From 2011 to 2017, the battery price fell by 20%. As a result, given the rapid advancements in battery technology, the cost of the battery is expected to fall dramatically over the next ten years. Battery manufacturers and OEMs are collaborating to develop high-energy-density batteries that can cover a longer distance on a single charge.
In comparison to other battery technologies such as nickel-metal hybrid and lead acid, lithium-ion batteries are the most extensively utilized battery technology in electric, plug-in hybrid, and hybrid electric vehicles due to features such as excellent high-temperature efficiency, low self-discharge, high power-to-weight ratio, and high energy performance. The battery market is rapidly growing as the automotive industry shifts toward electric and hybrid vehicles.
“Enhanced Vehicle Space – Major Plus Factor”
E-wheel drive is a completely integrated electric drive system positioned on the rear wheels of a vehicle. It includes every component essential for safe acceleration and braking. The drive includes a brake, cooling system, controller, power electronics, and electric motor.
Due to the e-wheel drive, a vehicle meant for two people can now accommodate four passengers. Furthermore, since the e-wheel drive is built into the wheel, direct transmission is provided, allowing for speedy and safe driving. Prominent suppliers of e-wheel drives include Protean, Nidec Corporation, Schaeffer, and Elaphe.
There are only a few established players in the worldwide market. Due to the dominance of established firms and the expensive R&D costs, it is difficult for start-ups to establish themselves in the industry. Moreover, to expand their global presence, key players in the smart e-drive market are actively focusing on collaborations, investments, new developments, and R&D activities.
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The global smart e-drive market stands at US$ 900 million in 2023.
The market for smart e-drive vehicles is anticipated to reach US$ 12 billion by 2033.
Worldwide smart e-drive demand is projected to surge at a CAGR of 29.5% from 2023 to 2033.
The United States market was valued at US$ 300 million in 2022.
Robert Bosch GmbH, BorgWarner, Inc, Schaeffler AG, Siemens A, Aisin Seiki Co., Ltd, Continental AG, and Hyundai Mobis Co., Ltd are leading players operating in the global market.
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