21-Mar-2023 | Facts and Factors
According to Facts and Factors, the global smart electric drive market size was worth around USD 0.92 billion in 2022 and is predicted to grow to around USD 14.5 billion by 2030 with a compound annual growth rate (CAGR) of roughly 36% between 2023 and 2030.
Smart electric drive is a sub-segment of the larger automotive sector that deals specifically with the production of electric vehicles (EVs) by Smart which is a subsidiary of Daimler AG. The company is known for manufacturing urban-oriented vehicles that are compact and offer excellent performance efficiency along with being environment-friendly. These vehicles are run by rechargeable batteries and electric motors that can cover short distances with the aid of electric power without the need for any other form of performance assistance.
Browse the full “Smart Electric Drive Market Size, Share, Growth Analysis Report By Electric-Vehicle Type (Hybrid, Plug-In, Battery, and Fuel Cell), By Vehicle Type (Light Commercial, Two-Wheeler, Passenger, and Commercial), By Component (Inverter System, EV Battery, Power Electronics, Electric Motor, and E-Brake Booster), By Drive Type (All Wheel Drive, Rear Wheel Drive, And Front Wheel Drive), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030" report at https://www.fnfresearch.com/smart-electric-drive-market
Currently, the company is responsible for producing different types of EVS and has established a consumer database. The fraternity surrounding smart electric drive is growing rapidly due to several reasons as consumers have started opting for vehicles that allow them to save extra expense while leaving no trail on the environment.
The global smart electric device market is projected to grow owing to the increasing advancements in battery systems and technologies. Currently, researchers are working on finding more ways of harnessing the potential that the EV market holds as it is one of the few ways that promote sustainable growth for the long term. Scholars, Universities, and government and non-government institutes have increased spending on developing effective batteries in all formats. This could act as a major growth propeller for the industry.
Furthermore, the rising government initiatives promote the manufacturing and adoption of electric vehicles in a bid to reduce carbon emissions and fuel dependency, especially on non-renewable resources. Some of these initiatives include providing attractive incentives to electric vehicle (EV) manufacturers as well as people who opt for EVs over traditionally-powered vehicles. Additionally, EV users are provided with tax rebates, credits, and more financial incentives. Such factors could help increase the demand in the global industry. The demand for smart electric vehicles could also be led by the high brand value that currently exists in the consumer database since Smart is already known for its product quality and delivery as per its reputation. Post-purchase services offered by Smart are another beneficial point working in its favor.
However, there could be several restraints that the global industry players could face in the coming years. One such key factor is the lack of charging infrastructure, especially in underdeveloped or developing nations. This leads to low product adoption since there is a significant lack of resources for the industry's sustainable growth. Many consumers are willing to spend extra for the benefits that smart EVs offer but they refrain from purchasing due to the absence of a relatively low number of charging stations. Furthermore, the industry also deals with a large segment of people who have negative perceptions of the products and the industry in general.
Research & development surrounding battery technology may promote further growth, Whereas range anxiety is a true phenomenon in the industry.
Segmental Analysis:
The global smart electric drive market is segmented based on electric vehicle, vehicle type, component, drive type, and region.
Based on electric-vehicle type, the global market segments are hybrid, plug-in, battery, and fuel cell.
Based on vehicle type, the global market segments are light commercial, two-wheeler, passenger, and commercial.
- The global market registered the highest growth in the light commercial segment owing to the high demand for compact urban car
- Manufacturer of Smart cars specialize in developing agile and compact vehicles that suit the need of the urban population since they can be accommodated in tight spaces and is easy to navigate in traffic or packed roads
- Models offered by Smart are highly efficient in terms of performance and battery quality leading to exceptional demand in the consumer group
- In Europe, Smart EQ forfour costs around €23,000
Based on component, the global market is divided into inverter system, EV Battery, power electronics, electric motor, and e-brake booster.
Based on drive type, the global market segments are all wheel drive, rear wheel drive, and front wheel drive.
- Smart vehicles mainly focus on being electricity-driven and there is no significant difference between the different types of drive
- However, some Smart models are available in convertible body styles and coupe whereas some offer variety of motor configurations and a battery that directly impacts the driving characteristics along with the performance
- In 2020, more than 30,000 units of smart EVs were sold in Europe
Regional Analysis:
Asia-Pacific is projected to dominate the global smart electric drive market with China, India, and Japan acting as the major contributors. The countries are registering rapid urbanization with a surging movement of people from rural areas to urban cities. The increasing rate of high disposable income and employment rate are crucial factors in driving regional demand.
Furthermore, growing concern over the environmental impact of the automobile industry and increasing consumer awareness has led more people to opt for electric vehicles, further encouraged by surging fuel prices. Smart cars best suit the requirements of the urban population residing in countries where there are problems related to space availability. North America is anticipated to register a high CAGR mainly driven by increasing government initiatives to promote EV adoption.
Report Scope
Report Attribute |
Details |
Market Size in 2022 |
USD 0.92 Billion |
Projected Market Size in 2030 |
USD 14.50 Billion |
CAGR Growth Rate |
36% CAGR |
Base Year |
2022 |
Forecast Years |
2023-2030 |
Key Market Players |
Nissan Motor, Ford, Tesla Motors, Daimler, Volkswagen, Hyundai, BYD, Toyota, Volvo, Denso Corporation, AISIN Corporation, Continental AG, Robert Bosch GmbH, Honda, and others. |
Key Segment |
By Electric-Vehicle Type, Vehicle Type, Component, Drive Type, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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Competitive Analysis:
The global smart electric drive market is led by players like Nissan Motor, Ford, Tesla Motors, Daimler, Volkswagen, Hyundai, BYD, Toyota, Volvo, Denso Corporation, AISIN Corporation, Continental AG, Robert Bosch GmbH, and Honda.
Recent Developments:
- In February 2021, Tesla Inc. announced the selection of Karnataka, the Indian state, for opening its first manufacturing unit in the country. This will aid Tesla to expand its global footprint
- In November 2021, Ford Motor Company stated that it plans to expand its EV production by adding over 600,000 units by 2023
- In August 2021, ZF Friedrichshafen AG announced the launch of the company’s next-generation EVs in the North American market by 2023
The global smart electric drive market is segmented as follows:
By Electric-Vehicle Type
- Hybrid
- Plug-In
- Battery
- Fuel Cell
By Vehicle Type
- Light Commercial
- Two-Wheeler
- Passenger
- Commercial
By Component
- Inverter System
- EV Battery
- Power Electronics
- Electric Motor
- E-Brake Booster
By Drive Type
- All Wheel Drive
- Rear Wheel Drive
- Front Wheel Drive
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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