Automotive Retrofit Electric Vehicle Powertrain Global Market Report 2024

The automotive retrofit electric vehicle powertrain market size has grown strongly in recent years. It will grow from $63.93 billion in 2023 to $69.69 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. The historical growth in the automotive retrofit electric vehicle powertrain industry can be primarily attributed to several key factors. These factors include the growing environmental consciousness among consumers, government incentives encouraging the adoption of cleaner technologies, escalating fuel prices driving interest in alternative fuel sources, rising consumer enthusiasm for electric vehicles, regulatory pressures mandating cleaner transport solutions, and the concurrent development of infrastructure supporting electric vehicle technology.

The automotive retrofit electric vehicle powertrain market size is expected to see strong growth in the next few years. It will grow to $97.44 billion in 2028 at a compound annual growth rate (CAGR) of 8.7%. The anticipated growth in the forthcoming period can be ascribed to cost efficiencies, worldwide electrification drives, competitive dynamics in the market, evolving consumer preferences, and the momentum behind smart city initiatives. Key trends expected in this period encompass a surge in demand for retrofit solutions, advancements in battery technology, reinforced support from regulations and incentives, technological breakthroughs in powertrain components, expansion of retrofit kits and solutions, and increased collaborations and partnerships within the industry.

The automotive retrofit electric vehicle powertrain market is anticipated to experience significant growth, driven by the increasing demand for electric vehicles. Electric vehicles, powered by electric motors and rechargeable batteries, eliminate the need for internal combustion engines, resulting in low maintenance and minimal noise pollution. The surge in electric vehicle sales, as highlighted in the Global EV Outlook 2022 report of September 2022, which reported a doubling of sales from the previous year to 6.6 million units, underscores the growing market for automotive retrofit electric vehicle powertrains. This trend is expected to persist as the demand for electric vehicles continues to rise.

The automotive retrofit electric vehicle powertrain market is poised for growth, fueled by the upward trajectory of fuel prices. Retrofitting vehicles with electric powertrains involves an initial investment, but the subsequent reduction in fuel costs contributes to a favorable return on investment. The increase in fuel prices, exemplified by a 49% rise in the price of regular motor gasoline and a 55% increase in diesel fuel prices from January to June 2022, according to the Bureau of Transportation Statistics, further incentivizes the adoption of automotive retrofit electric vehicle powertrains. As fuel costs continue to escalate, the market for retrofit solutions is expected to expand.

In the automotive retrofit electric vehicle powertrain sector, product innovation is a noteworthy trend, with major companies actively developing innovative solutions to strengthen their market position. An illustrative example is the introduction of an ARAI-approved electric powertrain by Starya Mobility, an Indian-based electric vehicle company, in January 2023. This proprietary powertrain, featuring a 5.5kw PMSM motor and controller, is designed to convert petrol scooters into electric vehicles. The innovative controller, capable of withstanding various climatic conditions, replaces internal combustion engines and gasoline tanks, providing the necessary power for electric vehicle operation. This emphasis on product innovation is anticipated to drive the competitiveness and growth of the automotive retrofit electric vehicle powertrain market.

In the automotive retrofit electric vehicle powertrain market, major companies are strategically pursuing partnerships as a key element of their market sustainability strategy. A strategic partnership involves a formal alliance between two companies, with the specific aim of achieving mutual benefits and objectives. An illustrative example is the collaboration between Stellantis, a Netherlands-based automotive company, and Qinomic, a France-based specialist in electric and hydrogen retrofit solutions for mobility. This partnership, formed in December 2022, focuses on developing a retrofit solution for converting internal combustion engine light commercial vehicles to electric drivetrains. The initiative, a joint effort between the Circular Economy and Commercial Vehicle Business Units, aims to prolong vehicle life while aligning with sustainability goals. Stellantis seeks to provide professional customers with an affordable and sustainable choice to convert existing vans to electric, ensuring OEM quality and specifications, including safety and durability. This strategic partnership is a proactive response to legislative requirements and enables access to low-emission zones in cities.

In August 2021, Mercedes-Benz, a Germany-based luxury vehicles company, made a strategic move by acquiring YASA for an undisclosed amount. This acquisition reflects the collaborative effort of both companies to advance electric drive innovations, aiming to provide exceptional performance for the German automaker's electric vehicles. YASA, a UK-based company specializing in manufacturing automotive retrofit electric vehicle powertrains, contributes to Mercedes-Benz's pursuit of delivering cutting-edge solutions in the electric mobility sector. This strategic acquisition reinforces Mercedes-Benz's commitment to staying at the forefront of innovation and maintaining a competitive edge in the rapidly evolving electric vehicle market.

Major companies operating in the automotive retrofit electric vehicle powertrain market report are Robert Bosch GMbH, Mitsubishi Electric Coroporation, Magna International Inc., Altigreen Propulsion Labs - Engineering, Bharath Mobi, Hitachi Astemo Ltd., Delphi Technologies, Continental AG, EV Europe, Etrio, Folks Motor, Transition One, XL Fleet, Johnson Electric Holdings Ltd., ZeroLabs Automotive, SkyQuest Technology, ABB Ltd., BorgWarner, Cummins, Dana Incorporated, Eaton, GKN Automotive, Magneti Marelli, Mahle, Nexteer Automotive, Schaeffler, Valeo, ZF Friedrichshafen, Tesla Inc., BYD Company.

Asia-Pacific was the largest region in the automotive retrofit electric vehicle powertrain market in 2023. The regions covered in the automotive retrofit electric vehicle powertrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive retrofit electric vehicle powertrain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of automotive retrofit electric vehicle powertrains encompass inclusive conversion kits, electric motors, batteries, controllers, chargers, and other auxiliary parts. A conversion kit involves the process of transforming a conventional vehicle into an electric one. These retrofit systems are adaptable for various vehicle types, including two-wheelers, passenger vehicles, and commercial vehicles, accommodating all types of electric vehicles, such as all-electric vehicles powered solely by batteries, plug-in hybrid vehicles, and hybrid vehicles that combine electric and conventional power sources.

The automotive retrofit electric vehicle powertrain market research report is one of a series of new reports that provides automotive retrofit electric vehicle powertrain market statistics, including automotive retrofit electric vehicle powertrain industry global market size, regional shares, competitors with an automotive retrofit electric vehicle powertrain market share, detailed automotive retrofit electric vehicle powertrain market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive retrofit electric vehicle powertrain industry. This automotive retrofit electric vehicle powertrain market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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