Summary
Major players in the alternative powertrain market are Toyota Motor Corporation, Honda Motor Co. Ltd., Hyundai Motor Group, BYD Company Ltd., Daimler Truck AG., Nissan Motor Co. Ltd., Allison Transmission Inc., BMW AG, The General Motors Company, BAIC Group, Tesla Inc., Renault-Nissan-Mitsubishi, Yuchai International Imp & Exp (Beijing) Co. Ltd., Geely Auto, and Volvo Cars.
The global alternative powertrain market is expected to grow from $90.61 billion in 2022 to $109.50 billion in 2023 at a compound annual growth rate (CAGR) of 20.8%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The alternative powertrain market is expected to grow to $225.87 billion in 2027 at a CAGR of 19.8%.
The alternative powertrain market consists of sales of four-wheel drive, all-wheel drive, rear-wheel drive, and front-wheel drive.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.
Alternative powertrains refer to propulsion systems that are not solely built around the well-known internal combustion engine. Alternative powertrains are used to transfer engine power to the wheels on the ground.
Asia-Pacific was the largest region in the alternative powertrain market in 2022. The regions covered in the alternative powertrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The major types of alternative powertrains are battery-electric vehicle powertrains and hybrid powertrains.A battery electric vehicle refers to an electric vehicle that uses chemical energy that is kept in rechargeable battery packs.
Major components involved are the battery, motor or generator, battery management system (BMS), and on-board charger. These are used for several applications, such as commercial vehicles, passenger cars, and off-highway vehicles.
The rise in demand for fuel-efficient vehicles is expected to boost the growth of the alternative powertrain market going forward.Fuel-efficient vehicles refer to automobiles with a minimum green score of 40 on the American Council for an Energy-Efficient Economy’s (ACEEE) yearly vehicle rating guide.
Technologically sophisticated alternative powertrains aid in lowering fuel consumption, which increases the vehicle’s fuel efficiency.For instance, in 2021, according to a report published by the United States Environmental Protection Agency, a US-based federal government agency for the protection of human health and the environment, the average predicted real-world CO2 emission rate for all new vehicles in model year 2021 decreased by 2 g/mi to 347 g/mi, the lowest ever recorded.
Kia, a South Korea-based automobile manufacturer reduced CO2 emissions by 29 g/mi between model years 2016 and 2021, which was the biggest reduction. Therefore, the rise in demand for fuel-efficient vehicles is driving the growth of the alternative powertrain market.
Technological advancements are a key trend gaining popularity in the alternative powertrain market.Major companies operating in the alternative powertrain market are focusing on developing new technologies to strengthen their position in the market.
For instance, in May 2022, US Hybrid, a US-based designer and manufacturer of power conversion systems, launched near-zero-emission, natural gas-powered parallel hybrid powertrain technology to be used for drayage and long-haul trucks.This technology’s unique features include more power, range, and an efficient powertrain compared to diesel-powered engines or other CNG or renewable natural gas (RNG) alternatives.
With the help of this technology, conventional long-haul fleet operators should be able to provide near-zero-emission roadside charging assistance, giving fleet clients flexibility and convenience.
In July 2021, Comer Industries S.p.A., an Italy-based designer and producer of advanced engineering systems, acquired Walterscheid Powertrain Group for an undisclosed amount. This acquisition results in the creation of a distinctive worldwide business that is expected to compete on a global scale in the sector of agricultural equipment mechanics. Walterscheid Powertrain Group is a Germany-based provider of connected and smart powertrain solutions and complete in-service support for the off-highway and industrial equipment manufacturers.
The countries covered in the alternative powertrain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The alternative powertrain market research report is one of a series of new reports that provides alternative powertrain market statistics, including alternative powertrain industry global market size, regional shares, competitors with an alternative powertrain market share, detailed alternative powertrain market segments, market trends and opportunities, and any further data you may need to thrive in the alternative powertrain industry. This alternative powertrain market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
