Smart Electric Drive Global Market Report 2024

Smart electric drive refers to electric propulsion systems used in compact smart electric vehicles (EVs), which replace traditional internal combustion engines with electric motors. These vehicles are designed for urban mobility, offering zero-emission driving, low operating costs, and minimal environmental impact.

The primary types of smart electric drive include all-wheel drive (AWD), front-wheel drive (FWD), and rear-wheel drive (RWD). AWD systems distribute power to all four wheels, enhancing traction and stability, particularly on slippery surfaces. These systems incorporate vehicle-based communication controllers and supply equipment communication controllers (SEC) that support various charging methods such as wired and wireless charging. They utilize different battery technologies including lithium-ion, nickel-based, lead acid, and solid-state batteries. These applications span across passenger vehicles, commercial vehicles.

The smart electric drive market research report is one of a series of new reports that provides smart electric drive market statistics, including smart electric drive industry global market size, regional shares, competitors with a smart electric drive market share, detailed smart electric drive market segments, market trends and opportunities, and any further data you may need to thrive in the smart electric drive industry. This smart electric drive research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The smart electric drive market size has grown exponentially in recent years. It will grow from $0.83 billion in 2023 to $1.09 billion in 2024 at a compound annual growth rate (CAGR) of 31.4%. The growth observed in the historic period can be attributed to several factors, increased investments in electric vehicles (EVs), expanded consumer choices, heightened concerns about emissions, growing demand for road safety and comfort, and improvements in infrastructure.

The smart electric drive market size is expected to see exponential growth in the next few years. It will grow to $3.27 billion in 2028 at a compound annual growth rate (CAGR) of 31.6%. In the forecast period, growth can be attributed to several factors, the increasing prioritization of eco-friendly transportation options, the integration of smart electric drive technologies, rising fossil fuel prices favoring smart electric drives, growing demand for intelligent systems, and increasing adoption of electric vehicles. Major trends expected during this period include the escalation of fossil fuel prices, advancements in technology across various fronts including infrastructure development, battery technology, and autonomous driving technologies.

The smart electric drive market is poised for growth driven by increasing demand for electric vehicles (EVs). Electric vehicles are powered by electricity stored in rechargeable batteries or other energy storage devices. This demand surge is fueled by advancements in battery technology, government incentives, expanding model availability, stricter emissions regulations, and a growing secondary market for EVs. Smart electric drives, pivotal to EV technology, offer substantial benefits in efficiency, performance, and environmental impact compared to traditional internal combustion engines. For example, in January 2024, the Energy Information Administration (EIA) reported a global production of approximately 12.9 million electric vehicles in 2023, marking a 6.7% increase from the previous year, underscoring the market's momentum.

Key players in the smart electric drive market are innovating with solutions such as battery management systems (BMS) to optimize battery efficiency, lifespan, and safety in electric vehicles. BMS ensures the safe and reliable operation of battery packs, critical for EV performance and longevity. For instance, Sensata Technologies, a US-based electrical products manufacturer, introduced the Lithium Balance n3-BMS in October 2022. This advanced system is tailored for high-voltage applications in electric buses, trucks, and heavy commercial vehicles. Featuring a layered software structure, the n3-BMS allows customization with proprietary code and algorithms while maintaining ASIL C certification. It employs a distributed system architecture with a master control unit (MCU) and supports up to 32 cell monitoring units (CMUs) for precise monitoring of individual cell conditions and temperatures.

In October 2023, Wallbox, a Spain-based electric vehicle charging company, acquired ABL GmBH to bolster its commercial strategy. This acquisition enhances Wallbox's product portfolio and certification capabilities, expanding its offerings in residential, commercial, and public EV charging hardware and energy management software. ABL GmBH, based in Germany, specializes in smart electric drive technologies.

Major companies operating in the smart elecrtic drive market are SAIC Motor Corp. Ltd., Tesla Inc., China FAW Group Corp. Ltd., Siemens AG, BAIC Motor Corporation Limited, BYD Auto Co. Ltd., Zhejiang Geely Holding Group Co. Ltd., Hyundai Mobis Co. Ltd., Magna International Inc., ZF Friedrichshafen AG, Continental AG, Aisin Corporation, Great Wall Motor Company Limited, Schaeffler Group, Nidec Corporation, Changan Automobile Co. Ltd., Chery Automobile Co Ltd., BorgWarner Inc., Dongfeng Motor Corporation Ltd., Danfoss, Brilliance Auto Group, JAC Group, UQM Technologies Inc.

Europe was the largest region in the smart electric drive market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart elecrtic drive market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the smart elecrtic drive market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart electric drive market consists of sales of advanced power electronics, regenerative braking systems, and battery management systems. 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.

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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