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Electrified truck and bus powertrain market revenues to grow by 24x between 2020 and 2030 in Europe and North America – Interact Analysis

Joseph Walker

Jos Walker

Marketing Communications

Jos has over 10 years' experience in B2B marketing, mostly for blue-chip industrial automation companies like Emerson and General Electric. He started working with IA in 2019, and handles a variety of PR and marketing communications-related activities.


  • Battery-packs will continue to account for over half of total forecast component revenue
  • Strong price erosion predicted for all types of powertrain due to tough market competition
  • Overall average prices to stay flat increase as medium & heavy-duty trucks take increasing market share

Market research company Interact Analysis today released a new report – Electrified Truck and Bus Powertrain Pricing and Architecture – showing that revenues from powertrains will increase from under $1bn in 2020, to $6.8bn in 2025 and then on to $22.7bn in 2030. The report considers the market for all powertrain types in the Europe and North America regions: hybrids, battery electric vehicles, and fuel cell electric vehicles.


The increasing revenues of powertrains from 2020 - 2030


Revenues are predicted to be much higher in the second half of the forecast period as more medium and heavy-duty vehicles enter the market. The battery pack will account for over half the total revenue throughout the period for all systems (54% in 2025), but the fuel cell system will start to bring in significant revenues after 2025. For mild hybrids, the transmission occupies a much higher percentage of total revenues.


Percentage revenues for electrified powertrains showing over 50% for battery packs


The average price of the battery pack in 2019, for all powertrain types, was $8,000. This will rise to $8,600 by 2025, defying the usual trend of price reduction as time passes. This is owing to the fact that the average pack size will increase as more medium and heavy duty electric vehicles enter the market and the market becomes less dominated by light vehicles. Conversely, battery packs for pure battery electric vehicles will see a gradual price reduction, from an average of $13,800 in 2019, through $11,800 in 2025 to $10,300 in 2030. This drop reflects the fact that many pure BEVs will be cars and light commercial vehicles, requiring smaller battery packs than large vehicles.


Fuel cell systems, currently found almost uniquely in buses, cost a hefty $96,000 in 2020. But the research forecasts a dramatic decline in fuel cell prices out to 2030 (in $/KW) as their application spreads in a range of heavy-duty vehicles. 2030 prices are predicted to average 23% of the 2019 figure – a more dramatic decline than any other component in the report.


While the prices of battery packs and battery-related equipment such as battery management systems will hold up over the forecast period, where the whole powertrain is concerned, there will be a strong decline in prices for all categories of vehicle.


Jamie Fox, principal analyst at Interact Analysis says: “Tough competition causes strong price erosion, and machined processes for equipment such as transmissions allow less expensive production when volumes become larger. As an example, the average cost of an eAxle was $5,000 in 2019. This will drop to $1,800 by 2030, even when we take into account the anticipated proliferation of medium and heavy duty vehicles over the time period.


“So, our research tells us that the average cost of the powertrain for a full electric medium or heavy duty truck will drop from $105,000 in 2019 to $50,000 in 2030. Interestingly, however, the overall average price for all categories of vehicle powertrain will stay flat, as these new and exciting technologies lead to more and more heavy vehicles on our roads.”


About the report


Data regarding estimated numbers of trucks and buses was extracted through primary research with industry experts and secondary research online. In particular, the report benefitted from a model built up at the OEM and model level, as well as a total cost of ownership model for forecasting. Further research for this report was conducted on the number of devices per vehicle and the pricing. The main source of this was primary research with component suppliers in the form of 20 telephone discussions. In addition, supplementary information for the report was gained from online sources and other Interact Analysis reports. To learn more, click here


About Interact Analysis


Interact Analysis is an international provider of market research for the Intelligent Automation sector. Our team of experienced industry analysts delivers research into three core sectors: industrial automation, robotics and warehouse automation, and commercial vehicles. Intelligent Automation – which is the integration of artificial intelligence and automation – will change virtually every industry imaginable. This combination enables greater efficiencies, productivity, convenience, and scale. It has the potential to drastically alter the outlook for many traditional industries such as manufacturing, healthcare and automotive as well as to lead to the emergence of entirely new industries. To learn more, visit

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