Global Smart Electric Drive market is anticipated to reach USD 14.5 billion by 2030, at a CAGR of 36% from 2022 to 2030. The market is likely to be driven by ever rising fossil fuel prices in the international market, concerns around climate change which is a result of over-exploitation of fossil fuels leading to increased emissions. The combination of the stated reasons has driven governments across the world towards a more efficient alternative like electric drive. Governments everywhere are encouraging the use of smart electric drive to reduce emissions, increase efficiency in travel, save money and earth by reducing dependency on fossil fuels.

Market Overview:

An advanced version of an electric drive system which was traditionally used and has been modified to make driving a smooth and safer experience is known as smart electric drive. The source of power here is a battery which could be solid state battery, lithium-ion based or lead based battery, this battery provides direct transmission of energy to the vehicle. The direct transmission saves considerable amount of energy, thereby delivering efficiency. Smart Electric drive being more efficient fulfils the present demands of customers who make conscious choices about buying sustainable products. This change in preferences of the consumers will drive the demand for smart electric drive in the forecast period. The demand will boost further with the increase in fossil fuel prices and smart electric drive friendly policies of the governments. Smart Electric drive is the ideal solution for urban mobility because it combines the emission free drive with the ease and convenience delivered by the smart features of the new fourth generation models. With advancement in technologies, better components and assembly process are being developed which has led to launch of the fourth-generation smart electric drive. The market players continue to contribute new advancements with their extensive R&D. The smart Electric drive with its new power efficient components has sufficient power that can cover approximately 160 kms with one full charge, this makes it ideal for urban mobility. The advancement in the components to make them more compatible has delivered features like new fast charge which charges the smart electric drive with twice the speed than before. The smart electric drive comes with an extensive list of features brought in by competing players to capture the market, ranging from ECO mode which is energy efficient drive program, smart control which connects it to the choice of device which facilitates remote control of features like intelligent charging. With the eye for capturing the market share the major players of the industry are coming with variations in designs, different models, increased comfort, appealing aesthetic, all of which will provide increased choices for consumers.

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Market Dynamics:

Drivers:

• Government regulations, subsidies and support schemes to encourage the use of smart electric drive

With the rising fuel costs, the fiscal standing of the governments is falling and hence majority of the countries, their governments are looking to scale up alternative energy sources so that they can reduce import costs and stabilize their fiscal standing. One of the best alternative options being explored are use of electric energy in automotive industry. While encouraging alternative fuel options to reduce fossil fuel dependency governments are aiming to fulfill their global pledges of reducing emissions by 2050-70. Automotive industry is considered to be among the major contributors of emissions and a leading cause of pollution which impacts the health of citizens as well as the earth. Considering the present situation, encouraging the use of smart electric drive by making them affordable, accessible and efficient to produce as well as buy seems to be an effective way to handle the fiscal distress as well as environmental goals.

• Consumer inclination towards smart electric drive as they are eco-friendly and efficient

the present generation is feeling the impact of climate change and is worried about the future, like the government they are making sustainable choices in life to arrest the temperature rise. This awareness along with the rising fuel prices which has reduced their disposable income, increase in longer commute for better opportunities, high maintenance of fuel driven vehicles, traffic congestion and resulting pollution has led to electric bikes being the ideal substitute.

Restraints:

• High cost of production and assembly

Affordability drives demand for any product, as the smart electric drive industry is at a nascent stage and the new technologies are just being tested and improved, the costs of components involved are high as compared to conventional bikes, scooter, motorcycles, cars. High price is a factor which is restraining the uptick in sales of smart electric drive.

• Lack of infrastructure

Smart electric drives need electric charging stations, the infrastructure for which is currently not developed, hence leading to inconvenience while considering long commute. The time utilized for charging is comparatively more and hence time consuming when compared to traditional fueling, which is another restrain of the industry.

Opportunities:

• Lower operating costs of new smart drives using smart electric drive technology combined with increased investments in the EV

Fossil fuels being non- renewable along with their prices rising across the globe has led to well established concern across all stakeholders that they are not sustainable and soon will be exhausted. This supply crunch with environmental concerns has led to the research and development to find alternate fuels. Smart electric drives are promising venture and new innovations have led to reduced input costs. Smart electric drives are also a cheaper option when compared for long term use with conventional petroleum vehicles which are high maintenance. Countries like China, US and Germany are making significant investments in charging stations and methods, long range EVs, better batteries etc.

Challenges:

• Higher cost of smart electric drives, significant capital is needed to start the manufacturing and investment in infrastructure is still lacking in potential markets like the South-East Asia

Except a few European countries the charging stations are at a negligible count in other countries with potential market. The up-front high cost makes it difficult to develop such infrastructure if not for the government. Private players avoid indulging in such ventures as the market is still at a nascent stage and the capital would be tied up with no significant returns for a few years.

Segmentation Analysis:

The global smart electric drive market has been segmented based on battery type, drive type, application and regions.

• The battery type segment is divided into lithium-ion, nickel based, lead acid and solid-state battery. The lithium-ion segment dominated the market with a market share of around 32% in 2021. The high energy density of lithium-ion battery which provides more efficiency will be a significant factor contributing to the growth of this segment.
• The drive type method segment is divided into all-wheel drive, front wheel drive and rear wheel drive. Over the forecast period, the all-wheel drive segment is expected to grow at the fastest CAGR of 41%. The all-wheel drive is the most versatile option making if most preferred as it can cater to different needs.
• The application segment is divided into E-axle, wheel drive. In 2021, the E-axle segment dominated the market, accounting for around 58% of global revenue. E-axle is the preferred by manufacturer because of it is faster and can be integrated into various systems with less effort.

Regional Segmentation Analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. Asia Pacific region emerged as the largest market for the global smart electric drive market with a 34% share of the market revenue in 2021.

• Asia Pacific currently dominates the smart electric drive market due to an increase in demand for hybrid and electric vehicles to replace traditional fossil fuel dependent vehicles. Asia-Pacific is expected to rise in the forecast period due to the adoption of new schemes and subsidies by the government to encourage adoption of smart electric drive.

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Competitive Analysis:

The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global smart electric drive industry.

In the month of September of 2021 during an event in Germany the company ZF announced the launch of its e-drive kit, which will help in easy setup of the vehicles. Other major developments happened in the year 2018 and 2019, with major players like Nidec and Continental Ag announcing their improvised versions of e-axels and fully integrated electric drivetrain.

List of key Market Players:

• Siemens
• Robert Bosch
• Continental
• UQM technologies
• SINOEC
• Nidec corporation
• Aisin corporation
• BorgWarner
• ZF group
• Hyundai Mobis
• Schaeffler group
• Magna international

Key Target Audience

• Automobile Manufacturers
• Battery and other components of SED suppliers
• End-users
• Investors
• Government Authorities and R&D Institutions
• Organizations, associations and alliances related to automobile and environmental industry

Report Description:

• Global Smart Electric Drive Market, Industry Analysis, Trends, Analysis and Forecast, 2022 to 2030 is a forthcoming/imminent research report which is to be published by The Brainy Insights.
• 2021 is considered as the base year of the report. 2019 and 2020 are considered as the historic years and 2022 to 2030 are the forecast years. The global smart electric drive market is based on revenue (USD Million/Billion). The report incorporates the market study based on revenue. The study covers the market share revenue/market share for each of the segments, regions and countries catering to global smart electric drive market. The regions analyzed for the market are Europe, Asia Pacific, North America, South America and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
• The report encompasses with the relative data & information, which have been validated by the leading industry professionals and experts all across the globe. The research report also delivers an outline of the attractiveness of smart electric drive based on battery type, drive type, application and regions which are deduced and formulated based on their growth rate (CAGR), market size, and attractiveness by analyzing the present and prospects to fathom market growth and development in future.
• The report illustrates the detailed (both quantitative and qualitative) analysis of historical data, revenues, key developments, along with the crucial strategies adopted by key organizations catering to global smart electric drive market. This offers vital and in-depth insights in order to depict the overall market scenario.
• The report offers the detailed study for the company profiles of key organizations operating in the smart electric drive market and a comparative assessment based on their product offering, business overviews, geographic presence, business strategies, segment market share, product development & innovations, recent developments, joint venture, partnerships, mergers & amp; acquisitions, strategic alliances, SWOT analysis, and key financial information. This helps in evaluating the overall competition present in the market scenario.
• The report provides an elaborative assessment of the porter’s five forces analysis coupled with SWOT analysis so as to provide business related data and information’s. Porter’s five forces model is analyzed to understand the overall competitive scenario that is prevailing in the market. Additionally, the SWOT analysis identifies both the positive and negative attributes of the market development which influences the company growth and development in order to sustain and survive in the long run.
• Along with that, the report also focuses on the market related driving factors, growth limitations (restraints), potential industry opportunities, significant trends and development which act as a key potential for the investors.
• Potential growth prospects along with the penetration rate analysis of the products (market related i.e., smart electric drive market) is covered in order to comprehend the adoption rate and evaluate the market size.