Alternative Powertrain Global Market Report 2024

The alternative powertrain market size has grown exponentially in recent years. It will grow from $108 billion in 2023 to $130.48 billion in 2024 at a compound annual growth rate (CAGR) of 20.8%. The growth observed during the historical period can be attributed to several factors, including global electrification initiatives aimed at reducing reliance on traditional fuels, fluctuations in fuel prices prompting interest in alternative powertrains, increasing consumer awareness about environmental impact, government incentives supporting the adoption of alternative powertrains, ongoing infrastructure development to facilitate their use, and commitments from automakers to incorporate such technologies into their product offerings.

The alternative powertrain market size is expected to see rapid growth in the next few years. It will grow to $269.46 billion in 2028 at a compound annual growth rate (CAGR) of 19.1%. The anticipated growth in the forecast period can be attributed to various factors, including the evolving regulatory landscape encouraging the adoption of alternative powertrains, continuous advancements in energy storage technologies, a growing acceptance of these technologies among consumers, global initiatives promoting electrification, ongoing efforts to reduce costs associated with alternative powertrains, the impact of global urbanization on the demand for e-mobility solutions. Key trends expected in the forecast period encompass advancements in battery technology, the increasing trend of hybridization and electrification across various vehicle types, government regulations playing a crucial role in driving adoption, ongoing advancements in fuel cell technology, the expansion of charging infrastructure, and a heightened focus on lightweight materials and efficiency in alternative powertrain development.

The escalating demand for fuel-efficient vehicles stands as a driving force behind the anticipated growth of the alternative powertrain market. Fuel-efficient vehicles are characterized by a minimum green score of 40 on the ACEEE's annual vehicle rating guide, and advancements in alternative powertrain technologies significantly contribute to enhancing fuel economy. Notably, in 2021, as reported by the United States Environmental Protection Agency (EPA), the average real-world CO2 emission rate for new vehicles in model year 2021 marked a historic low at 347 g/mi, reflecting a 2 g/mi decrease. Kia, a South Korea-based automobile manufacturer, achieved the most substantial reduction of 29 g/mi in CO2 emissions between model years 2016 and 2021. This surge in demand for fuel-efficient vehicles underscores the pivotal role driving the growth of the alternative powertrain market.

The progressive strides in battery technology are poised to be a catalyst in propelling the expansion of the alternative powertrain market. Ongoing advancements and innovations in battery design, composition, and performance play a pivotal role in addressing challenges associated with alternative powertrains, augmenting consumer appeal, and fostering broader adoption of electric and hybrid vehicles. According to the International Energy Agency's data in February 2023, the automotive lithium-ion (Li-ion) battery demand surged by nearly 65% to 550 GWh in 2022 from approximately 330 GWh in 2021. This spike was primarily driven by increased sales of electric passenger cars, with new registrations soaring by 55% in 2022 compared to the previous year. The upsurge in battery technology developments is a key factor fueling growth within the alternative powertrain market.

Technological advancements represent a prominent trend gaining traction within the alternative powertrain market. Leading companies operating in this sector are dedicatedly working on pioneering technologies to bolster their market positioning. For instance, in May 2022, US Hybrid, a US-based designer and manufacturer specializing in power conversion systems, introduced near-zero-emission natural gas-powered parallel hybrid powertrain technology designed for drayage and long-haul trucks. This innovative technology offers enhanced power, range, and an efficient powertrain compared to traditional diesel-powered engines or other alternatives such as CNG or renewable natural gas (RNG). The technology's introduction enables conventional long-haul fleet operators to deliver near-zero-emission roadside charging assistance, providing fleet clients with increased flexibility and convenience, thereby shaping the growth trajectory of the alternative powertrain market.

Prominent entities within the alternative powertrain market are actively engaging in strategic partnerships to expand their capabilities and reach new heights. These collaborative ventures involve leveraging complementary strengths and resources to achieve mutual benefits and drive collective success. For instance, in June 2023, Aston Martin, a UK-based car manufacturer, formed a partnership with Lucid, a California-based producer of electric luxury sports cars and grand tourers. This strategic alliance will grant Aston Martin access to Lucid's state-of-the-art electric vehicle powertrain and battery technologies. Aston Martin intends to utilize these advancements to power their forthcoming Battery Electric Vehicles (BEVs), enhancing their competitive edge in the market through cutting-edge innovations.

In July 2021, Comer Industries S.p.A., an Italy-based designer and manufacturer of advanced engineering systems, completed the acquisition of Walterscheid Powertrain Group for an undisclosed sum. This acquisition marks the formation of a distinctive global entity poised to compete on a global scale within the realm of agricultural equipment mechanics. Walterscheid Powertrain Group, headquartered in Germany, specializes in offering connected and intelligent powertrain solutions, coupled with comprehensive in-service support for manufacturers operating in off-highway and industrial equipment sectors. This strategic acquisition amplifies Comer Industries' market presence and positions them as a competitive force in the global landscape of agricultural equipment mechanics, demonstrating a strategic move towards expansion and market dominance.

Major companies operating in the alternative powertrain market report are 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, Gulf Agency Company Ltd., 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.

Asia-Pacific was the largest region in the alternative powertrain market in 2023. The regions covered in the alternative powertrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alternative powertrain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key types of alternative powertrains include battery-electric vehicle powertrains and hybrid powertrains. A battery-electric vehicle relies on rechargeable battery packs to store chemical energy, powering the vehicle through an electric motor or generator. The major components involved in this type of powertrain include the battery, motor or generator, battery management system (BMS), and on-board charger. These alternative powertrains find applications in various domains, including commercial vehicles, passenger cars, and off-highway vehicles.

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.

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.


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