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Driveline Electrification to Support OEMs Meet Stringent Emission and Fuel Efficiency Objectives


News provided by

Frost & Sullivan

07 Feb, 2017, 16:23 GMT

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Electric and hybrid vehicles with front-wheel drive layout offers strong growth opportunities for manufacturers in North America, finds Frost & Sullivan's Mobility team

SANTA CLARA, California, Feb. 7, 2017 /PRNewswire/ -- The market for electric and hybrid vehicles is experiencing strong double-digit growth due to favorable government policies, increasing incentives, declining lifetime ownership costs, and falling battery prices, all of which reduce the overall cost of the vehicle. To remain competitive in this dynamic market, Tier I suppliers must consistently develop more efficient internal combustion engines and electrified powertrains for different vehicle segments.

Frost & Sullivan's new analysis, Strategic Overview of Electric & Hybrid Vehicle Driveline Systems Market in North America, finds that with a compound annual growth rate of 49.2 percent between 2015 and 2022, plug-in hybrids with eAWD will be the industry's fastest growing market segment. In addition, commercial production of fuel cell electric vehicles will commence by the end of this year and will most likely have a front-wheel drive (FWD) layout.

Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan thought leaders.

"Original equipment manufacturers (OEMs) are examining all possible options to reduce fuel consumption and emissions without sacrificing driving dynamics," said Frost & Sullivan Mobility Research Analyst Kamalesh Mohanarangam. "Electric all-wheel drive (eAWD) technology is emerging as an advanced technology with rear-axle electrification, the most preferred eAWD architecture, due to its significant weight-saving potential when compared to front-axle electrification."

Ford, Toyota and Renault-Nissan account for 80.6 percent of the total FWD cars manufactured in North America, and the top 10 FWD models account for 68.9 percent of all electric and hybrid vehicles. Furthermore, 88.9 percent of FWD models come from the C and D vehicle segments, which, as a result, will also be responsible for the increasing uptake of eAWD. As more OEMs start offering eAWD, Tier 1 suppliers are expected to invest in technologies that offer more functionality at a lower cost.

"Japanese OEMs, in a race to offer the most fuel-efficient vehicles, are expected to offer FWD in 76 percent of the cars they manufacture, whereas about 45 percent of the cars manufactured by American OEMs are likely to sport either rear-wheel drive or AWD," notes Mohanarangam.

Strategic Overview of Electric & Hybrid Vehicle Driveline Systems Market in North America, a part of Frost & Sullivan's Mobility: Automotive & Transportation Growth Partnership Service program.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion.

Strategic Overview of Electric & Hybrid Vehicle Driveline Systems Market in North America
K131-18

Contact:
Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: clarissa.castaneda@frost.com

http://ww2.frost.com

Related Links

http://www.frost.com

SOURCE Frost & Sullivan

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