Abstract:

The McKinsey report analyzes how the global shift from internal combustion engine (ICE) vehicles to electric vehicles (EVs) will transform the powertrain machinery and machine-tool industry. It finds that EV powertrains require far fewer components—around 9 key components compared with about 30 in ICE vehicles—leading to lower demand for traditional manufacturing equipment. The study projects a roughly 25% decline in global powertrain machinery capital expenditure between 2020 and 2030 as EV adoption accelerates. It concludes that machinery manufacturers must redesign their product portfolios, adopt new technologies, and develop strategic responses to remain competitive in the emerging e-mobility ecosystem.