Automotive Retrofit Electric Vehicle Powertrain Market Report 2026

The automotive retrofit electric vehicle powertrain market size has grown strongly in recent years. It will grow from $73.48 billion in 2025 to $79.71 billion in 2026 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to emission reduction initiatives, aging vehicle fleets, early retrofit projects, fuel cost concerns, government pilot programs.

The automotive retrofit electric vehicle powertrain market size is expected to see strong growth in the next few years. It will grow to $110.99 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to ev retrofit incentives, growth of circular mobility, battery cost reduction, urban zero-emission mandates, standardization of conversion kits. Major trends in the forecast period include growth of ev conversion demand, expansion of retrofit kits for fleets, adoption in two and three wheelers, modular powertrain solutions, rising urban emission control initiatives.

The growing demand for electric vehicles is anticipated to drive the growth of the automotive retrofit electric vehicle powertrain market in the future. Electric vehicles are powered by electric motors that draw electricity from batteries, which can be charged from external sources. The automotive retrofit electric vehicle powertrain facilitates the conversion of traditional vehicles to electric, eliminating the need for internal combustion engines, resulting in lower maintenance and reduced noise pollution. Consequently, as the demand for electric vehicles rises, so does the need for automotive retrofit electric vehicle powertrains. For instance, in November 2023, the U.S. Energy Information Administration reported that the share of battery-electric vehicles (BEVs) in new light-duty vehicle sales reached 17.7% in the third quarter of 2023. So far this year, BEVs accounted for 16% of total new vehicle sales, an increase from 12.5% in 2022 and 9% in 2021, as noted by Wards Intelligence. Therefore, the increasing demand for electric vehicles is fueling the growth of the automotive retrofit electric vehicle powertrain market.

Major companies operating in the automotive retrofit electric vehicle powertrain market are focusing on the development of innovative solutions, such as smart controller systems, to enhance vehicle performance and improve energy efficiency. Smart controller systems are advanced electronic control units that intelligently regulate motor operation, power distribution, and energy usage in electric vehicles to ensure optimal performance and safety. For instance, in January 2023, Starya Mobility, an India-based electric vehicle company, introduced an indigenously developed, ARAI-approved electric powertrain featuring a proprietary 5.5 kW permanent magnet synchronous motor (PMSM) and controller. This controller enables the conversion of petrol scooters into fully electric vehicles and is designed to withstand diverse climatic conditions. In this retrofit solution, the internal combustion engine and fuel tank are replaced with an electric powertrain that delivers the required propulsion for road use.

In August 2023, TREMEC Corporation, a US-based motor vehicle manufacturing company, acquired Electric GT, LLC. for an undisclosed sum. This acquisition is intended to incorporate Electric GT's innovative electric drive systems into TREMEC's existing product offerings. By doing so, TREMEC aims to strengthen its position in the rapidly evolving electric vehicle market. Electric GT, LLC. is a US-based provider of electric vehicle (EV) powertrain systems and components.

Major companies operating in the automotive retrofit electric vehicle powertrain market report include Altigreen Propulsion Labs, Transition One, XL Fleet, ZeroLabs Automotive, EV West, Electric GT, New Electric, Fellten, Retro EV, Phoenix EV, SEA Electric, Etrio, Folks Motor, Bharath Mobi, EV Dynamics, Electric Classic Cars, Everrati Automotive, Lunaz Design, REV Mobilities, Hyundai New Horizons Studio.

Asia-Pacific was the largest region in the automotive retrofit electric vehicle powertrain market in 2025. The regions covered in the automotive retrofit electric vehicle powertrain 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 retrofit electric vehicle powertrain market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive retrofit electric vehicle powertrain market consists of sales of engines, driveshaft, power distribution modules, and inverters. 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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