Better well-to-wheel efficiencies vital for green mobility adoption

As the next decade looms, the automotive industry finds itself on the cusp of profound change. Indeed, McKinsey estimates that while diesel and gasoline powertrain component demand will shrink by 7% annually over the next five years, the demand and popularity for electrified powertrain will explode. Current forecasts estimate that battery electric and fuel cell component demand will rise by as much as 26%, plug-in hybrid components by 30% and mild-hybrid components by 78%. This growth will push the total value of powertrain market from today’s US$316bn to US$435bn by 2025.