Automotive Electric Drivetrain Components Market Report 2026

The automotive electric drivetrain components market size has grown exponentially in recent years. It will grow from $78.74 billion in 2025 to $96.86 billion in 2026 at a compound annual growth rate (CAGR) of 23%. The growth in the historic period can be attributed to electric vehicle adoption, advancements in power electronics, lithium-ion battery commercialization, drivetrain electrification, OEM electrification strategies.

The automotive electric drivetrain components market size is expected to see exponential growth in the next few years. It will grow to $225.87 billion in 2030 at a compound annual growth rate (CAGR) of 23.6%. The growth in the forecast period can be attributed to stricter emission norms, growth of BEVs and PHEVs, solid-state battery development, demand for high-performance EVs, charging infrastructure expansion. Major trends in the forecast period include integration of electric drive modules, demand for high-efficiency inverters, adoption of advanced thermal management, growth of battery pack innovation, expansion of regenerative systems.

The growing adoption of electric vehicles is expected to drive the expansion of the automotive electric drivetrain components market in the coming years. An electric vehicle is a fully electric, zero-emission automobile equipped with an onboard electrical energy storage system that can be recharged through an external power source. Electric drivetrain components in an electric vehicle convert electrical energy into mechanical energy to propel the vehicle’s wheels. For example, in January 2024, according to a report published by Kelley Blue Book, a US-based Cox Automotive company, a record 1.2 million car buyers in the United States selected electric vehicles in 2023, accounting for 7.6% of the total U.S. vehicle market, up from 5.9% in 2022. Therefore, the increasing adoption of battery electric vehicles is contributing to the growth of the automotive electric drivetrain components market.

Major companies in the automotive electric drivetrain components market are adopting a strategic partnership approach to expedite electric vehicle (EV) powertrain design through virtual prototyping. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. A case in point is the partnership announced in December 2023 between Hexagon AB, a Sweden-based technological company specializing in EV powertrains, and JSOL Corporation, a Japan-based information technology service company. This partnership aims to expedite the virtual prototyping of electric powertrains using multi-physics simulation. Building on a longstanding technological collaboration, the partnership combines Hexagon's robust engineering simulation software suite with JSOL Corporation's JMAG electromagnetic field analysis software. This collaboration enables clients to address a wide range of system design challenges in the virtual world more swiftly, thoroughly, and economically than physical prototyping allows, emphasizing the strategic role of partnerships in advancing technology and design in the automotive electric drivetrain components market.

In May 2024, Genuine Parts Company (GPC), a Germany-based provider of automotive components, acquired Motor Parts & Equipment Corporation (MPEC) for an undisclosed sum. This acquisition is intended to strengthen Genuine Parts Company's market presence and enhance its product range in the automotive components sector by leveraging Motor Parts & Equipment Corporation's distribution network and expertise. The integration aims to improve operational efficiencies and better serve GPC's customer base. Motor Parts & Equipment Corporation (MPEC) is a Philippines-based manufacturer of automotive components.

Major companies operating in the automotive electric drivetrain components market report include Robert Bosch GmbH, ZF Friedrichshafen AG, Denso Corporation, Continental AG, Magna International Inc., Aisin Corporation, Valeo SA, Schaeffler AG, Nidec Corporation, BorgWarner Inc., Dana Incorporated, GKN Automotive, MAHLE GmbH, Infineon Technologies AG, Hitachi Astemo, Hyundai Mobis, Mitsubishi Electric, Panasonic Corporation, Eaton Corporation, Parker Hannifin.

Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electric drivetrain components market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive electric drivetrain components market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive electric drivetrain components market consists of sales of traction battery packs, electric motors, power inverters, charge ports, onboard chargers, and Controllers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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