Report

Global smart e-drive market is projected to observe a CAGR of 25.21% during the forecast period 2024-2031, growing from USD 1298.72 million in 2023 to USD 7845.66 million in 2031. The market has witnessed significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years due to rising levels of air pollution, government rules, and regulations for promoting the usage of electric vehicles, increasing prices of fossil fuels, and adoption of advanced technologies such as electric cars. The global smart e-drive market demand is driven by specialized version of a standard electric drive system that offers smoother and safer driving dynamics. The smart electric drive has an electric brake booster, power booster, battery, and electric brake booster, which makes it effective for saving energy, surging the global smart e-drive market growth in the forecast period.
Governments across the globe are framing different policies and offering rebates coupled with subsidies to promote EV sales. In addition, in emerging markets, the government is planning campaigns to discourage the utilization of fuel and encourage the adoption of smart e-drives. Furthermore, governments are taking initiative to decrease carbon emission rates and replace their vehicles across respective countries with sustainable vehicles in the coming years. Manufacturers are planning to launch new and advanced e-vehicles in the market to address the rising demand for such vehicles.
For instance, in February 2022, smart Europe GmbH announced the launch of its new generation of electric vehicles to expand its product portfolio and offer driving safety and pleasure. The new launch combines outstanding driving comfort, handling acceleration, stability, and braking performance.
Rapid Production and Electric Vehicles Demand to Drive the Global Smart E-Drive Market Growth
The production and demand for electric vehicles are positively impacting the market growth due to significant technological advancements in electric vehicles, a rise in favorable policies by the government to encourage the buying and selling of EVs and rapid advancement in electric motors. The global smart e-drive market is rapidly evolving owing to different driving factors including rising environmental concerns, considerable innovations in energy security, and advancement in electric motors. In addition, manufacturers in the market are rapidly developing the charging infrastructure and establishing manufacturing facilities in emerging countries to offer the convenience of EVs to consumers, propelling the global smart e-drive market demand. In addition, companies are investing significantly to address the growing demand for electric vehicles and smart e-drives to improve the effectiveness of smart e-drives.
For instance, in June 2024, Tata Motors Ltd announced an investment of USD 1.91 billion and USD 2.15 billion in its electric vehicle division until 2029-2030 and aims to launch six more e-car models by March 2026.
Technological Advancement Pushes the Global Smart E-Drive Market Demand
Technological advancements including advanced driver assistance systems, vehicle-to-grid, and integration of composite materials in smart e-drives are propelling the global smart e-drive market demand in the forecast period. Companies in the market are significantly integrating advanced technologies that allow drivers to take long journeys and offer near-instant acceleration, coupled with higher levels of torque. Additionally, the demand for smart e-drives rises as it allows seamless integration of electric motors, control systems, and batteries.
Also, the adoption of EVs rises due to advanced electric drive systems that give reliable and high-effectiveness, propelling significant sales growth for smart e-drive. Moreover, the integration of high-capacity batteries combined with efficient electric drives confirms that vehicles can accomplish optimal performance and range. Companies in the market are advancing technologies of smart e-drives to enhance the overall EV experience.
For instance, in February 2024, BYD Company Ltd. announced the launch of a newly developed smart driving advanced driver assistance systems tech to enter the electric vehicle segment with the brands, including Yanwang and Fang Cheng Bao.
Government Favorable Rules and Regulations Surge the Global Market Growth
In emerging countries, a considerable increase in air pollution compelled governments to frame different rules and regulations, driving the global smart e-drive market demand in the forecast period. The significant surge in electric vehicle demand and different corrective measures taken by the government to protect the environment would offer acceleration in the global smart e-drive market in the forecast period. Different tax subsidies and initiatives offered by the government would be another benefit for the purchase of passenger vehicles and commercial vehicles in the forecast period. The growing electric vehicle sales, government initiatives for electric vehicle production, rapid automotive electrification, and tax subsidies are projected to foster the global smart e-drive market growth.
For instance, in March 2024, the Government of India is promoting EV adoption to improve air quality by restricting ICE vehicles and decreasing carbon emission rate by phasing out ICE vehicles.
Commercial Vehicles Dominate the Global Smart E-Drive Market Share
Commercial vehicles dominate the global smart e-drive market with the largest share due to an increase in transportation and logistics sector and expansion in e-commerce sector. The demand for the segment is projected to rise as they offer smooth transportation and advancing driver visibility. In addition, major transportation and logistics companies in the market are significantly adopting smart e-drives for their operations which further offers cost-effectiveness. Different initiatives and subsidies offered by the legal authorities would be another benefit for the commercial vehicle segment in the forecast period. Manufacturers in the global market are launching advanced commercial vehicles to address the growing demand for commercial vehicles in different industries including logistics and e-commerce.
For instance, in April 2024, Daimler Truck AG announced the launch of a Class 4-5 electric truck under the brand name RIZON in Canada to offer zero-emission solutions to Canadian customers.
Europe Registers the Largest Global Smart E-Drive Market Size
Europe registers largest size in the global market due to rapid technological innovations in e-drives and increase in the requirement for electric vehicles. The market in Europe is driven by rising concerns about the environment, demand for more sustainable and innovative transportation choices, and increase in fuel costs. Key companies in Europe smart e-drive market are efficiently investing in different research and development activities and collaborating to expand their footprint and product portfolio. Also, governments across Europe are framing rules and policies to encourage the production and adoption of electric vehicles, driving the market growth in the forecast period.
For instance, in October 2023, Infosys Limited announced a five-year collaboration with smart Europe GmbH to redefine the online EV buying experience and precisely equip state-of-the-art machine learning models to forecast sales and aftersales requirements.
Future Market Scenario (2024 - 2031F)
- Favorable government plans to promote the adoption and usage of electric vehicles and reduce carbon emissions are driving the global smart e-drive market growth in the forecast period.
- Rapid automotive electrification and a significant rise in EV sales are propelling the global market growth in the forecast years.
- Government-announced bans on conventional automotives, coupled with tax benefits and subsidies on advanced electric vehicle purchases, driving growth of the global market.
- The companies are now focusing on implementing strategies including product innovations, new technology, and others to expand their market position across the global market.
Key Players Landscape and Outlook
Key participants in the global smart e-drive market are significantly planning to invest in different research and development activities to address the rising demand for smart e-drive. Companies are working on zero carbon emissions due to rising government policies and growing awareness concerning environmental sustainability. In addition, companies are planning to implement different market growth opportunities including collaborations, mergers and acquisitions, partnerships, joint ventures, and others to expand the product portfolio and footprint in the forecast period.
In March 2024, Rivian Netherlands B.V. announced the launch of its new mid-size platform which underpins the R2 and R3 product lines features two battery sizes, and offers better performance, usability, and capabilities.
In June 2023, Robert Bosch GmbH announced the collaboration with X Shore to enhance the performance and effectiveness of the electric drive system of X Shore 1.