Automotive Retrofit Electric Vehicle Powertrain Market size was USD 66.1 billion in 2023 and is predicted to cross USD 167.3 billion by the end of 2036, expanding at a CAGR of 8% during the forecast timeline, i.e., 2024-2036. In 2024, the industry size of automotive retrofit electric vehicle powertrains is evaluated at USD 71.05 billion.
The growing demand for eco-friendly commuting options has led to an alarming increase in the value of sustainable and environmentally friendly products. Credited to the implementation of strict regulations for vehicle emissions as there is a decline in air quality. The increase in particulate matter emissions from vehicles has negative impacts on both the environment and the health of living things. As a result, governments across the world have imposed strict emission regulations on automakers. The White House in 2021 set a target of a minimum 50% EV sales share predicted by 2030. Moreover, electric-powered mobility solutions are also projected as a cost-effective and environmentally beneficial mode of transportation. In 2023, the European Parliament stated that about 61% of EU transport emissions are credited to passenger cars.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8% |
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Base Year Market Size (2023) |
USD 66.1 billion |
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Forecast Year Market Size (2036) |
USD 167.3 billion |
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Regional Scope |
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Component Type (Transmission, Electric Motors, Converter, Battery, Controller)
The transmission segment in the automotive retrofit electric vehicle powertrain market is poised to capture a share of 32.1% in the coming years, impacting the landscape of the automotive retrofit electric vehicle powertrain sector. Significant growth in this revenue share is anticipated as a result of the ability to multispeed transmission and to create load-shifting capability on account of the latest research and development. For instance, Porshe Taycan 2020 has a feature of two-speed automatic transmission near its rear axle in its EV. The goal of this multispeed gearbox is to increase efficiency and acceleration at higher speeds. In addition, the Taycan has the option to run mainly on its front axle by disconnecting its rear axle.
Vehicle Type (Commercial Vehicle, Two Wheelers, Passenger Vehicle)
The commercial vehicle segment in the automotive retrofit electric vehicle powertrain market is set to be a fast-growing segment with a substantial CAGR by the end of the forecast period. This growth is accredited to the growing consumer demand for cars for everyday use, along with the rapid adoption of electric vehicles, especially in developing countries. According to a recent report by Research Nester in 2024, 24.93 million vehicles were projected to be sold globally in the commercial vehicle market.
Our in-depth analysis of the automotive retrofit electric vehicle powertrain market includes the following segments:
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Component Type |
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Vehicle Type |
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Electric Vehicle Type |
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APAC Market Statistics
The automotive retrofit electric vehicle powertrain market in the Asia Pacific is set to hold the largest share of 45.9% during the forecast period. The surge in the purchase of electric vehicles owing to their benefits such as one-pedal driving, and remote starting drives the growth of automotive retrofit electric vehicle powertrains in this region. According to a report by the Economist Intelligence Unit in 2024, Asia will witness a growth rate of 63% in EV sales globally by 2029.
In China, there are various government laws and regulations to curb carbon emissions. According to the Guide to Chinese Climate Policy 2022, several major Chinese cities impose license plate-based driving bans on passenger cars on specific days but do not apply to electric cars. This can act as a growing factor for this market revenue.
Japan is a hub of top companies such as Mando Corp., Mitsubishi Electric Corp., and Hitachi Astemo Ltd. Moreover, demand for logistics solutions for efficient transportation in this industry is surging in Japan. For instance, Trading Economics estimated that the transportation landscape in Japan observed a growth of 153 million in 2023 from 134 million in 2021.
Europe Market Analysis
Europe will also encounter huge growth in the automotive retrofit electric vehicle powertrain market share during the forecast period with a notable share. This region will account for the second position in this landscape owing to the demand for eco-friendly solutions boosted by their rising awareness of sustainability. European Environment Agency in 2024 reported that electric vehicles such as electric cars in Europe are increasing with a growth rate of 23% in 2023 as compared to previous years.
There is a high demand for efficient and convenient commuting alternatives in Germany, as the European Cyclist Federation 2022, stated that most Germans would prefer public transport and bicycles to commute over their cars. The gain in this sector will augment the electric car rental value in the near future.
There is a high usage of technologically advanced products in the UK as a report- Trend Deck 2021 published by the UK government, estimated that the number of IoT devices surpassed 150 million as compared to 13 million between 2006 and 2024.
Automotive retrofit electric vehicle powertrain market expansion is estimated to witness a lucrative share during the forecast period. The competitive environment is attributed to the tremendous spike in electric vehicle powertrains for retrofitted cars globally. More companies are entering this sector owing to the potential growth opportunities. In the forecast period, the market will observe emerging competitors and a growing demand for automotive retrofit electric vehicle powertrains around the world.
Some of the key players include:
Author Credits: Saima Khursheed
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