Electric Vehicle (EV) Powertrain Market Size

Global Electric Vehicle (EV) Powertrain Market size was valued at USD 13.04 billion in 2023 and is poised to grow from USD 16.17 billion in 2024 to USD 90.38 billion by 2032, growing at a CAGR of 24.0% during the forecast period (2025-2032).

Global electric vehicle powertrain market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. Continental, Bosch, Magna, Mitsubishi, Hitachi dominate the electric vehicle powertrain market growth. Stable distribution and supply chain networks at a global level and portfolios gives an extensive product range are likely to lead to the dominant key players retaining their positions. 'Tesla, Inc. (USA) ', 'BYD Company Ltd. (China) ', 'NIO Inc. (China) ', 'Rivian Automotive, Inc. (USA) ', 'Lucid Group, Inc. (USA) ', 'Xpeng Inc. (China) ', 'Li Auto Inc. (China) ', 'Fisker Inc. (USA) ', 'Nikola Corporation (USA) ', 'Workhorse Group Inc. (USA) ', 'Lordstown Motors Corp. (USA) ', 'Proterra Inc. (USA) ', 'Canoo Inc. (USA) ', 'Arrival Ltd. (UK) ', 'REE Automotive Ltd. (Israel) ', 'ElectraMeccanica Vehicles Corp. (Canada) ', 'Arcimoto, Inc. (USA) ', 'GreenPower Motor Company Inc. (Canada) ', 'Hyliion Holdings Corp. (USA) ', 'Lion Electric Company (Canada)'

Stringent regulations by the Governments for vehicle emission is expected to drive the market growth. Increase in carbon and particulate matter emissions from automobiles have resulted in severe depletion of air quality, which has a negative impact on human health and the environment. As a result, governments all over the world have imposed stringent emission standards on automobile manufacturers. As a result, manufacturers have increased R&D for electric vehicles to provide customers with a cost-effective alternative, which has fuelled the growth of e-powertrains.

Increase in demand from OEMs: Electric vehicle powertrain design to cost (DTC) approaches are increasingly being used by OEMs for electric vehicle powertrain simulation. This trend has been especially noticeable in second-generation EVs. The DTC approach is primarily concerned with making better use of lightweight materials in structural parts and integrating components in the e-powertrain.

Asia Pacific is expected to grow significantly during the forecast period. The primary driver of the high market penetration includes regulatory programmes encouraging EV sales, such as EV sales quotas, fuel economy targets, and EV advantages in licence plate assignments in countries such as China. Strict emission regulations, such as BS-VI in India and China VI in China, are propelling the e-powertrain market in this region. Partnerships between leading players to build charging infrastructure are driving market growth in this region. For example, China's Didi Chuxing and British oil giant BP collaborated to build EV charging infrastructure in China. China has lithium reserves, which is driving up investment in battery production. Tesla also launched the Model 3 in South Korea at a significantly reduced price due to favourable government incentives. These factors are likely to lead to APAC's dominance in this market.