Smart E-Drive Market: Current Analysis and Forecast (2023-2030)

A smart e-drive is a type of electric drive system that uses advanced technologies to optimize the performance and efficiency of electric vehicles (EVs). The term "smart" implies that the e-drive system is designed to be intelligent, adaptive, and responsive to the driving conditions and the needs of the vehicle and its occupants. The market for smart e-drives is expected to grow significantly in the coming years, as more and more people around the world transition to electric vehicles.

The Smart E-Drive Market is expected to grow at a strong CAGR of 22.6% during the forecast period owing to the rising cost of gasoline and diesel is driving demand for electric vehicles, which in turn is driving demand for smart e-drives. As more people switch to electric vehicles, the demand for smart e-drives is expected to continue to grow. Moreover, Automakers are increasingly competing to develop and market electric vehicles and smart e-drives are seen as a key differentiator. As a result, companies are investing in the development of advanced smart e-drive systems to improve the performance and efficiency of their EVs. For instance, in 2023, ZF Aftermarket is rapidly expanding its range of spare parts for electric cars. The latest product for the independent aftermarket is the Electronic Brake Booster from its TRW brand. This system is an integral part of the braking system in vehicles that don't have an internal combustion engine or which use it only intermittently (plug-in hybrids). The first applications are suitable for the Volkswagen ID.3 and ID.4 electric cars.

Based on vehicle type, the market is segmented into electric two-wheeler, electric three-wheeler, electric four-wheelers and others. Amongst these, the electric four-wheeler segment dominated the market in 2022. This is because electric vehicles (EVs) are a popular choice for consumers who are looking for more environmentally friendly transportation options. EVs are seen as a key solution to reducing carbon emissions and addressing climate change, which has led to an increase in demand for EVs, and in turn, smart e-drives. Moreover, the cost of electric vehicles has been decreasing in recent years, making them more affordable for consumers. This has led to an increase in the adoption of EVs, and in turn, the demand for smart e-drives.

On the basis of power train, the market is segmented battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid vehicle (PHEV), and fuel cell electric vehicle (FCEV). The battery electric vehicle (BEV) held a major share of SS in China and Europe which are the major contributors to the electric vehicles market.

On the basis of components, electric motor, inverter system, e-brake boosters, and power electronics. The electric motor segment has a significant share of the smart e-drive market because electric motor technology has seen significant advancements in recent years. These improvements include higher power density, lighter materials, and more efficient control systems. These advancements have made electric motors more appealing to automakers and consumers. Moreover, electric motors produce very little noise compared to internal combustion engines, providing a quieter and more comfortable driving experience. This is particularly important for smart e-drives, where noise reduction is a priority for urban environments.

On the basis of drive type, the market is front-wheel drive, rear-wheel drive, and all-wheel drive. The highest growth of the all-wheel drive (AWD) segment of the smart E-Drive market is because AWD provides improved traction and stability, which is especially important in harsh weather conditions and slippery roads. This can make the smart E-Drive a more attractive option for consumers who live in areas with a lot of rain or snow, or who regularly drive in challenging road conditions. Additionally, AWD is becoming more common in the electric vehicle market, as manufacturers seek to differentiate their offerings and appeal to a wider range of consumers. By offering AWD as an option, Smart can position its E-Drive as a more versatile and capable vehicle. This, combined with the growing popularity of electric vehicles, is likely contributing to the growth of the AWD segment of the smart E-Drive market.

For a better understanding of the market adoption of the smart E-drive industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Norway, Switzerland, Denmark, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. Asia Pacific dominated the smart E-drive market in 2022 due to countries like China, Japan and South Korea being amongst the biggest consumers of electric vehicles with China being the biggest frontrunner accounting for 60% of global electric cars sales. More than half of electric car running are in China and the country has already exceeded its target of 2025. These countries have established automotive manufacturing industries like BYD Company Ltd., SAIC Motor Corporation Limited etc which include advanced technological capabilities and production capabilities allowing them to produce the most competitive electric vehicles. Asia Pacific has many countries which have invested substantially in charging infrastructure making them attractive options.

Some of the major players operating in the market include: Siemens, Hitachi, Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, GKN PLC, Magna International Inc., AISIN SEIKI Co. Ltd., Schaeffler AG., and HYUNDAI MOBIS.