Electric Propulsion Systems Market - By Propulsion (Hybrid, Full-electric), By Component (Electric Motor, Battery, Controller/Inverter, Propeller/Thruster), By Application & Forecast, 2024 - 2032

The Electric Propulsion Systems Market size will grow with over 6% rate during 2024-2032, driven by the increasing adoption of electric vehicles EVs. According to IEA, almost 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million. The heightened environmental awareness and stringent emission regulations aimed at reducing GHG emissions are favoring EV adoption. Governments worldwide are offering incentives, subsidies, and rebates to encourage the purchase of EVs. Additionally, significant advancements in battery technology have led to longer driving ranges and shorter charging times, making EVs more appealing to consumers.

There are continuous technological innovations in electric motor efficiency, focused on enhancing the performance, reliability, and energy efficiency. The development of high-efficiency permanent magnet motors and the integration of advanced materials are contributing to reduced energy consumption and increased power output. These technological strides not only support the broader adoption of electric propulsion systems but also play a crucial role in meeting stringent regulatory standards for more sustainable transportation solutions.

The electric propulsion systems industry is classified based on propulsion, component, application and region.

The hybrid segment will expand at a fast pace through 2032, as they offer a compelling balance between performance and sustainability. Hybrid propulsion systems, which combine internal combustion engines with electric motors, provide enhanced fuel efficiency and reduced emissions. These systems are particularly advantageous for applications where full electrification may not yet be feasible due to range or power limitations. The maritime industry, for instance, has seen a surge in the adoption of hybrid systems for vessels, enabling them to switch between electric power for port operations and conventional fuel for longer voyages.

The battery segment will witness decent growth over 2024-2032, as it provides the necessary energy storage and power output required for efficient operation. Advances in battery technology, such as increased energy density, faster charging times, and extended lifecycle, are critical factors driving the adoption of electric propulsion systems. Lithium-ion batteries, in particular, have become the standard due to their high energy density and reliability. Furthermore, ongoing research into alternative battery chemistries, such as solid-state batteries and lithium-sulfur batteries, promises even greater performance and safety.

North America electric propulsion systems industry will exhibit impressive growth through 2032, driven by robust government initiatives and a strong focus on technological innovation. The United States is at the forefront, with significant investments in electric vehicle infrastructure and incentives to promote the adoption of electric and hybrid vehicles. The presence of major automotive manufacturers and technology companies in the region further accelerates the development and deployment of electric propulsion technologies. Additionally, Canada's commitment to reducing carbon emissions and transitioning to a low-carbon economy is propelling the product demand in both the automotive and maritime sectors.