North America Electric Powertrain Market Outlook, 2029

North America is mired in a sea change regarding its automotive sector, featuring rapid adoption and growth of electric powertrains. It is the role that technological innovation will play in North America's electric powertrain sector where major automakers and tech companies bank on through investing heavily in research and development. California companies like Tesla have been at the very pinnacle of developing battery technology that has yielded increased ranges and quicker charging times, and as a result, diminished range anxiety, making an EV more useful for daily applications.

The integration of autonomous driving capabilities and smart connectivity features in electric vehicles will be further supported by collaborations between traditional automakers and technology companies. Government support is an intrinsic element driving the electric powertrain market in North America. Federal tax credits and state rebates, among other incentives on EV purchases, bring down upfront costs by a substantial extent for the consumer, making EVs highly competitive vis-à-vis traditional gasoline-run cars.

Other incentives for electric vehicles, in places like British Columbia - which gives provincial rebates, - and federal incentives like the US administrations' Federal EV Tax Credit, have driven the adoption rates. Broadening the charging infrastructure is one large highlight area, probably underscoring EV diffusion within the North American region. Public and private investments in charging networks include fast chargers along highways and in urban areas, thereby addressing range anxiety and enhancing the overall convenience of EV ownership.

According to the report, the North America Electric Powertrain market is anticipated to grow at more than 19.8% CAGR from 2024 to 2029. Key drivers of the electric powertrain market are strict environmental regulations, changes in technology, and consumer demand for green transportation, and government policies. The concerns over air quality and greenhouse gas emissions have set federal, state, and provincial governments on a course to formulate policies for incentivizing electric vehicle adoption.

For example, California's Zero Emission Vehicle mandate forces carmakers to sell a certain percentage of zero-emission vehicles, guaranteeing that the state will be at the forefront of innovation and adoption - the ripple effect carrying into neighboring states. Programs like Electrify America's stretches of high-speed chargers across the United States and, part of Canada's Electric Highway Network are important for long-distance traveling and the general creation of a better experience when owning an EV.

Consumer acceptance is building toward electric vehicles in North America, propelled by heightened consciousness around environmental awareness, reduced operating expenses, and technological improvement in EVs themselves. Electric vehicles have come to be envisioned as realistic substitutes for conventional cars, notably in city environments with better charging infrastructure. A factor that helps to fuel market growth is the fact that there are a variety of EV models available - from compact cars through SUVs to trucks - thus suiting different tastes.

Market Drivers

• Government Incentives and Regulations: In North America, government incentives and stringent regulations are primary drivers of the electric powertrain market. Policies such as tax rebates, grants, and credits for electric vehicle (EV) purchases, coupled with stricter emission standards, push automakers to innovate and consumers to adopt EVs. For instance, the U.S. federal government offers a tax credit of up to $7,500 for new electric vehicles. The states like California implement zero-emission vehicle (ZEV) programs, mandating that a certain percentage of manufacturers' sales be zero-emission vehicles, significantly boosting the demand for electric powertrains.
• Technological Innovation and Investment: North America is home to some of the world's leading automotive and technology companies, such as Tesla, General Motors, and Ford, which are heavily investing in electric powertrain research and development. These investments have led to significant advancements in battery technology, autonomous driving features, and vehicle connectivity. The region’s strong venture capital ecosystem also supports startups in the EV space, fostering a culture of innovation that continuously pushes the boundaries of electric vehicle capabilities and market potential.

Market Challenges

• Infrastructure Development: The lack of comprehensive charging infrastructure is a significant challenge in North America. Despite substantial progress, many regions still face inadequate charging stations, particularly in rural areas. This infrastructural gap creates range anxiety among potential EV buyers, hindering market growth. The development of a widespread, reliable charging network is essential to overcome this hurdle and ensure the smooth adoption of electric powertrains across the continent.
• High Initial Costs:The high upfront cost of electric vehicles compared to traditional internal combustion engine vehicles is a significant barrier to widespread adoption in North America. Although EVs generally have lower operating costs over their lifetimes, the initial purchase price can be prohibitive for many consumers. Overcoming this challenge requires continued advances in battery technology to reduce costs, increased production scales to achieve economies of scale, and sustained government incentives to make EVs more affordable for a broader range of consumers.

Market Trends

• Technological Advancements in Battery Technology: North America is witnessing rapid advancements in battery technology, which is a significant trend in the electric powertrain market. Innovations such as solid-state batteries, fast-charging technologies, and higher energy density batteries are enhancing the efficiency and appeal of electric vehicles. Companies like Tesla and General Motors are at the forefront, investing heavily in R&D to improve battery performance, reduce costs, and extend driving ranges, thereby making EVs more competitive with traditional internal combustion engine vehicles.
• Electrification of Commercial Fleets: There is a growing trend towards the electrification of commercial vehicle fleets in North America. Companies like Amazon, UPS, and FedEx are investing in electric delivery vans and trucks to reduce their carbon footprints and operational costs. This shift is driven by both environmental goals and the long-term cost savings associated with electric vehicles, highlighting the broader acceptance and practicality of EVs in various commercial applications.

North America's leadership in the electric passenger car powertrain market is multidimensional and driven by environmental consciousness, supportive government policies, and technological innovation.

The region is witnessing quite a considerable move towards green solutions in transportation as consumers increasingly become sensitive to the environmental impact of traditional ICE vehicles. EVs are especially very alluring options in light of these facts as they produce zero tailpipe emissions, engender less air pollution, and mitigate climate change in populous metropolitan cities like Los Angeles and New York City. Advances in battery technology have hence been instrumental in making electric passenger cars more feasible.

AB Dynamics, Tesla, and others have pioneered the art of development in high-performance batteries where the energy density and endurance are profoundly higher, hence circumventing problems associated with range and time to recharge. These developments have significantly influenced consumer confidence in EVs, thereby opening up their use both for everyday commuting and long-distance traveling. Government policies at the federal and state levels also support increased adoption rates of electric powertrains in passenger cars. Federal tax credits, state rebates, and other incentives bring down the comparatively high upfront cost of an EV, helping to drive affordability and competitiveness with conventional internal combustion engine gasoline vehicles. States such as California have enacted strict tailpipe emissions limits and zero-emission vehicle mandates that require carmakers to broaden their EV product lines and increase spending on clean energy technologies.

The North American market was leading in battery electric powertrains, due to their blend of environmental awareness, technology innovation, and policy.

There is an increasing consumer awareness in both the United States and Canada about the environmentally related advantages associated with EVs regarding GHG reduction and improvement of air quality in urban areas. This awareness is further driven by strict federal and state level emissions regulations, which work to pressure OEMs into investing in and focusing product development resources on electric powertrain technologies. The reason behind the relative positiveness towards the adoption of battery powertrains technology in North America is deeply rooted in technological innovations in battery technology.

Companies like Tesla have pushed the boundaries of innovation to high-performance lithium-ion batteries that have resulted in EVs with ever-competitive ranges, soon matching legacy internal combustion engine vehicles' performance. These developments significantly decrease range anxiety concerns and at the same time increase consumer confidence in adopting EVs as adequate substitutes in everyday commuting and other long distance driving duties. Government policies, too, at the federal and state levels, make battery electric powertrains very attractive in North America. Federal tax credits, rebates by states, and incentives on the purchase of EVs compensatory to their higher upfront Costs make electric vehicles more affordable and desirable for consumers. States like California - with its ZEV mandate and investments in infrastructure - are leading the nation in terms of EV penetration by providing a conducive environment for electric mobility

BEV is leading in the North American Electric Powertrain market due to their growing awareness of climate change and desire to reduce carbon emissions.

in North America - more precisely, the United States and Canada - BEV diffusion is setting up to become hard to stop soon, as federal and state/provincial incentives come in conjunction with growing environmental awareness and the entrance of major domestic players in the electric vehicle market. The large geographical area of the region has generally been a problem with BEV adoption due to range anxiety, but huge investments in charging infrastructure are relieved by such anxieties. Many have credited Tesla's early success and far-flung Supercharger network with helping owners overcome such anxieties and proving that BEVs can be viable for those who drive long distances.

The Biden administration has heaped further electrification with ambitious EV sales targets and deployments of charging stations. In the case of Canada, strong incentives and zero-emissions mandates take the front seat, being led by provinces such as Quebec and British Columbia. Meanwhile, regional flavor for bigger vehicle types is making a fast track for electric pickup trucks or SUVs in the North American market. It is reflected in vehicles like the Ford F-150 Lightning, Rivian R1T, and GMC Hummer EV, which moved electrification into vehicle segments where internal combustion engines were normally housed. After all, there are some challenges, such as more affordable BEV options for the wider consumers, and upgrading the electrical grid that supports the widespread charging infrastructure. Besides, most parts of the region have cold climates that pose challenges to BEV performance and range, therefore pushing innovation in battery thermal management systems.

The US leads the market in electric powertrains, which is basically due to the presence of Tesla as a pioneer and market leader in electric vehicles, supported by government policies and investments in research and development.

The US has been a leader in the automotive sector throughout the last century, and in recent years, it has started appearing as a leader in electric powertrains. Much of this is due to the overpowering success of Tesla, a company founded in 2003, which spent many years redoing the electric vehicle market. Tesla's advanced battery technology, slick design, and superior-performance EV powertrains set new standards in the industry while rattling the cages of traditional carmakers. The market capitalization of Tesla now overstretches that of many so-called automakers; a reflection of this dominance in the EV market. The US government has also supported the growth in the electric powertrains market to a great extent.

The Obama administration had undertaken various initiatives in popularizing electric vehicles; this involved tax credits for consumers purchasing electric vehicles and investing in charging infrastructure. The Biden administration has also set clean energy high on its agenda, with a target of a carbon-free power sector by 2035 and electrification of the federal government's fleet of vehicles. These policies created conditions that were most likely to benefit the development and adoption of electric powertrains in the US. Other companies, such as Rivian, Lucid Motors, and Nikola, are also finding their way to make a difference in the innovation of the electric powertrains market across the US.

These companies have been making new models of electric vehicles and investing in research and development to build better battery technology and infrastructure to support charging. Therefore, huge investments are being made in electric powertrains by traditional car manufacturers such as General Motors and Ford, and it would seem that a huge number of EV models will be released in the near future. US is an entire ecosystem of suppliers and partners in support of the electric powertrains market is developed by manufacturers of batteries, charging station companies, software developers, and other service providers. This value chain helped more innovation while reducing costs for electric powertrains and helped open it up further to the consumer market.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Electric Powertrain market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type:

• Passenger Car
• Commercial Vehicle

By Component:

• Battery
• Power Electronic Controller
• Motor/Generator
• Converter
• Transmission
• On-Board Charger

By Application:

• BEV
• HEV/PHEV

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Powertrain industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.