What Has Been the Progress and Growth of the Alternative Powertrain Market in Recent Years?
The alternative powertrain market has seen considerable growth due to a variety of factors.
• The size of the alternative powertrain market has seen an explosive expansion in the last few years. It is projected to elevate from a worth of $128.85 billion in 2024 to reach $154.88 billion in 2025, with a 20.2% compound annual growth rate (CAGR). The growth reported during the historic period is a direct result of global electrification drives, fluctuating fuel prices, increasing public awareness, government subsidies, infrastructural enhancement, and pledges made by auto manufacturers.
What Is The Expected Growth In The Alternative Powertrain Market By 2029?
The Alternative Powertrain market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations have been set for the alternative powertrain market size to experience rapid growth in the upcoming years. The projections indicate an expansion to $319.65 billion by 2029, boasting a compound annual growth rate (CAGR) of 19.9%.
Several factors are anticipated to contribute to this growth during the forecast period, including the ongoing changes in regulatory frameworks, advancements in energy storage technologies, greater consumer acceptance, worldwide initiatives promoting electrification, decreasing costs, global urbanization, and the evolution of e-mobility solutions. Key trends projected for this period include progress in battery technology, the expansion of hybridization and electrification across different vehicle types, governmental regulations encouraging market adoption, advancements in fuel cell technology, the growth of charging infrastructure, and increased focus on lightweight materials and efficiency.
What Main Forces Are Fueling Expansion In The Alternative Powertrain Market?
The escalating costs of fuel are expected to bolster the expansion of the alternative powertrain market in the future. The increase in fuel prices, linked to a rise in transportation expenses, increased prices of consumer goods and services and a growing interest in alternative power sources all come into play. Fuel prices are associated primarily with the expenses consumers incur when refueling their vehicles or machinery with a variety of fuels, particularly gasoline and diesel. Given the rise in these costs, alternative powertrains have become a preferred option, thanks to their capacity to minimize fuel reliance, cut down on emissions, and supply more sustainable and economical travel options. For example, the Bureau of Labor Statistics, a US government agency, reports a spike in fuel costs by 19.4 percent in December 2022 in comparison to the previous year. Furthermore, in September 2022, the Office for National Statistics, a UK government branch, indicated that car fuel prices in 2022 had seen a 48% escalation since 2021. As a result, the expanding cost of fuel is instrumental in facilitating the growth of the alternative powertrain market.
What Are The Primary Segments In The Global Alternative Powertrain Market?
The alternative powertrain market covered in this report is segmented –
1) By Powertrain: Battery Electric Vehicle Powertrain, Hybrid Powertrain
2) By Component: Battery, Motor Or Generator, Battery Management System (BMS), On-Board Charger
3) By Application: Commercial Vehicle, Passenger Cars, Off Highway
Subsegments:
1) By Battery Electric Vehicle (BEV) Powertrain: Electric Motors, Battery Systems, Power Electronics, Regenerative Braking Systems
2) By Hybrid Powertrain: Mild Hybrid Powertrain, Full Hybrid Powertrain, Plug-In Hybrid Electric Vehicle (PHEV) Powertrain, Series Hybrid Powertrain, Parallel Hybrid Powertrain
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Which Key Trends Are Driving Changes In The Alternative Powertrain Market?
Emerging technologies are an essential trend gaining traction in the alternative powertrain market. Large enterprises active in this market are channeling their expertise into technology development to fortify their market presence. For example, US Hybrid, a prominent American power conversion systems manufacturer, unveiled its near-zero-emission, natural gas-enabled parallel hybrid powertrain technology in May 2022. The technology is designated for drayage and long-haul trucks and outshines diesel-powered engines or other Compressed Natural Gas (CNG) or Renewable Natural Gas (RNG) options with its enhanced power, range and efficient powertrain. Utilizing this technology, traditional long-haul fleet operators are expected to deliver near-zero-emission roadside charging support, serving fleet customers with flexibility and convenience.
Who Are the Key Players In The Alternative Powertrain Market?
Major companies operating in the alternative powertrain market include:
• Toyota Motor Corporation
• Honda Motor Co. Ltd.
• Hyundai Motor Group
• BYD Company Ltd.
• Daimler Truck AG.
• Nissan Motor Co. Ltd.
• Allison Transmission Inc.
• Bayerische Motoren Werke AG
• The General Motors Company
• Beijing Automotive Group Co. Ltd.
• Tesla Inc.
• Renault–Nissan Alliance
• Yuchai International Imp & Exp (Beijing) Co. Ltd.
• Zhejiang Geely Holding Group Co. Ltd.
• Volvo Car Corporation
• Volkswagen
• Ford Motor Company
• Kia and Kia Motors Corporation
• IAV Automotive Engineering
• Rotork Plc
• Eaton Corporation
• Parker Hannifin Corporation
• Moog Inc.
• Altra Industrial Motion India Pvt. Ltd.
• Honeywell Corporation
• Rockwell Automation Inc.
• Proterra Inc.
• Cummins Inc.
• Ballard Power Systems Inc.
• Plug Power Inc.
• Hydrogenics Corporation
What Is The Most Dominant Region In The Alternative Powertrain Market?
Asia-Pacific was the largest region in the alternative powertrain market in 2024. The regions covered in the alternative powertrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
