Automotive Retrofit Electric Vehicle Powertrain Market Size, Share, Growth Analysis, By Vehicle Type(Two Wheelers, Passenger Vehicle, Commercial Vehicle), By Component Type(Electric motor, Inverter, Converter, Power distribution module), By Region - Industry Forecast 2024-2031

Asia Pacific is expected to witness significant growth during the forecast period. Several legal initiatives such as EV sales quotas, fuel economy targets, and benefits for EVs in the assignment of license plates in countries such as China are the primary reasons for significant market penetration. The adoption of stringent emission norms like BS-VI in China and India is boosting the industry in this region. Partnerships among leading companies to build charging infrastructure are also fueling the growth of this market. For example, BP, the world's largest oil company, and Chinese company Didi Chuxing have partnered to build EV charging stations in China. Chinese lithium reserves are encouraging additional investment in the battery segment. Thanks to the government's supportive policies, Tesla also introduced the Model 3 in South Korea at a significantly lower price. These factors are expected to account for the largest market share in APAC.

Europe is expected to grow at a significant CAGR during the forecast period. The main driving force in this sector is the regulations governing carbon emissions for newly registered vehicles, which every vehicle manufacturer must comply with. Additionally, both e-mobility acceptance and opposition to internal combustion engine-powered transportation are growing. These factors are fueling the growth of the market in this region.

It is estimated that North America will continue to grow during the forecast period. However, some regions, especially the coastal ones, are expected to have a large market share for electric vehicle powertrains, thereby fueling the growth of this industry. The typical US consumer chooses larger cars and longer drives.