Electric Powertrain Market Size

Global Electric Powertrain Market size was valued at USD 13.04 Billion in 2023 poised to grow from USD 16.17 Billion in 2024 to USD 90.38 Billion by 2032, growing at a CAGR of 24% in the forecast period (2025-2032).

Governments across the globe are mandating tougher emission regulations in order to reduce the effects of global warming and air pollution. Rules such as the EU's Euro 7 regulations and China's NEV requirements compel automakers to shift from internal combustion engines (ICEs) to electric powertrains. Such regulatory pressure compels OEMs to spend on EV development, creating demand for electric powertrain products such as motors, inverters, and battery systems. With higher non-compliance penalties, automakers hasten EV output, leading to market growth.

Improved lithium-ion battery efficiency enhances EV range, performance, and affordability. Increased energy density lowers battery weight, and quicker charging options enhance convenience. Economies of scale and new materials such as solid-state electrolytes reduce the cost of producing batteries, lowering EV prices to compete with gasoline cars. Increased consumer adoption with improving battery technology drives the growth of the global electric powertrain market.

How does AI Improve Battery Efficiency in Electric Powertrains?

AI is revolutionizing electric powertrains by optimizing energy management, making batteries more efficient, and driving vehicle performance. Machine learning software interprets driver behavior and road conditions to regulate power distribution for maximum range and efficiency. Predictive maintenance with AI minimizes downtime by identifying potential motor, inverter, and battery failures before they happen. Among major developments is Tesla's AI-enabled Drive Unit Efficiency Optimization, unveiled in 2024, where real-time analysis enhances motor management and thermal operation. This improves EV performance and lifespan, speeds up market traction, and enforces AI as a driving factor behind electric powertrain innovation.

Graz University of Technology researchers launched in January 2025 the OPED (Optimization of Electric Drives) software, a system based on artificial intelligence which automates the design of electric powertrains. This significantly cuts development costs and time while optimizing components such as power electronics, electric motors, and transmissions at the same time.

How do Startups are Accelerating EV Transition Around the World?

The global electric powertrain market is witnessing an accelerated growth with the advancements in technology and transition towards green mobility. Startups play a critical role in this transformation, presenting new solutions that improve the performance, efficiency, and environmental-friendliness of vehicles. Startups concentrate on emerging areas like sophisticated motor designs, energy storage systems, and charging technologies to make a greater impact on the use of EVs globally.

Founded in 2021, DeepDrive specializes in high-efficiency electric motors with cost-effective designs. Its flagship dual-rotor electric motor enhances efficiency while reducing production costs by 30%, using fewer rare-earth materials. This enables manufacturers to produce affordable EVs with greater range. DeepDrive's master innovation—its U-shaped dual-rotor architecture—maximizes power density while reducing material waste, making EV propulsion more sustainable. This innovation has direct impacts on EV affordability and performance, accelerating widespread adoption.

Established in the year 2020, Exponent Energy specializes in super-fast EV charging solutions, eliminating range anxiety. Its e^pack battery and e^pump charging point charge to 0-100% in only 15 minutes with standard lithium-ion cells. Exponent's technology avoids battery degradation by reducing overheating and lithium plating compared to traditional fast charging. The technology provides long-lasting, low-cost battery packs, which makes EVs a more feasible option for commercial fleets and mass market users in developing markets.