Electric Powertrain Market Report 2025

The electric powertrain market size has grown exponentially in recent years. It will grow from $135.91 billion in 2024 to $181.68 billion in 2025 at a compound annual growth rate (CAGR) of 33.7%. The growth in the historic period can be attributed to technological support and research, automotive industry shift, infrastructure development, consumer demand for sustainable mobility.

The electric powertrain market size is expected to see exponential growth in the next few years. It will grow to $544.56 billion in 2029 at a compound annual growth rate (CAGR) of 31.6%. The growth in the forecast period can be attributed to rapid urbanization and smart city initiatives, environmental awareness and sustainability goals, cost reductions and economies of scale, consumer acceptance and demand, expanding charging infrastructure. Major trends in the forecast period include product innovations, automaker commitment to electrification, infrastructure development, and battery technology advancements.

The growing demand for electric vehicles is anticipated to drive the electric powertrain market in the future. Electric vehicles are powered by a motor that operates on electricity stored in batteries. Moreover, the push against COVID-19 and the goals to achieve net-zero emissions have accelerated the adoption of EVs and hybrid vehicles. This surge in adoption has led to a heightened demand for electric vehicles, which, in turn, has increased the production and need for electric powertrains that replace traditional combustion engines. For example, in July 2023, the International Energy Agency, a France-based intergovernmental organization, reported that electric vehicle sales reached 10 million in 2022, with projections indicating a rise to 14 million in 2023. Therefore, the rising demand for electric vehicles will drive the need for electric powertrains.

The electric powertrain market is set for growth, driven by increasing investments in research and development (R&D) within the automotive sector. R&D investments indicate that companies in the automobile industry are allocating resources and funding to advance technologies and products. Regarding electric powertrains, these investments focus on improving the efficiency, range, and overall performance of electric vehicles. Such strategic investment is crucial for making electric vehicles more affordable, extending their ranges, and enhancing their performance. For example, in November 2023, the Society of Motor Manufacturers and Traders, a UK-based trade association, reported that the UK automotive manufacturing industry secured $26.03 billion (£20 billion) in investments in 2023. Additionally, the government committed an extra $2.6 billion (£2 billion) to the sector, backed by an Advanced Manufacturing Plan and a comprehensive battery strategy. Consequently, the increasing R&D investment in the automotive sector is emerging as a significant driver for the growth of the electric powertrain market.

Major companies in the electric powertrain market are concentrating on launching new plants to boost production capabilities and satisfy the increasing demand for electric vehicles. For example, in September 2023, TEXA S.p.A, an Italy-based provider of electronic diagnostic equipment for vehicles, inaugurated its e-Powertrain plant in Monastier di Treviso, marking a significant advancement into the electric mobility sector. This facility represents an investment of over $28.3 million (20 million Euros) and covers an area of 24,000 square meters, aimed at enhancing the company's capacity to produce advanced components for electric vehicles, including inverters and vehicle control units. The plant will focus on developing axial-flux electric powertrains and systems for converting direct current to alternating current.

Major companies in the electric powertrain market are actively engaged in developing new technologies to fortify their market positions. A notable example is the focus on parallel hybrid powertrain technology, exemplified by the efforts of US Hybrid, a US-based designer and manufacturer of power conversion systems. In May 2022, US Hybrid introduced near-zero-emission, natural gas-powered parallel hybrid powertrain technology designed for drayage and long-haul trucks. This innovative technology boasts features such as increased power, extended range, and an efficient powertrain compared to conventional diesel-powered engines or alternative compressed natural gas (CNG) and renewable natural gas (RNG) solutions. The introduction of parallel hybrid powertrain technology underscores the commitment to providing near-zero-emission solutions for long-haul fleet operators, offering enhanced flexibility and convenience through innovative technological advancements.

In February 2023, innolectric AG, a Germany-based electrical engineering company specializing in component solutions for electrified powertrains and related charging processes, partnered with Bel Fuse Inc. This collaboration aims to enhance onboard power electronics for electric vehicles (EVs), particularly focusing on next-generation fast charging technology. Bel Fuse Inc. is a US-based manufacturer of electronic connectors.

Major companies operating in the electric powertrain market are Bosch Ltd., Mitsubishi Electric Corp., Magna International Inc., Hitachi Astemo Americas Inc., Schaeffler AG, Valeo, Nidec Corporation, Marelli Holdings Co Ltd., Panasonic Corporation, Brusa Elektronik AG, Cummins Inc., ZeroAvia Inc., Damon Motors Inc., eLeapPower Co. Ltd., Tesla Inc., General Motors, BYD Auto Co. Ltd., Volkswagen AG, SAIC-GM-Wuling Automobile, Stellantis N.V., Hyundai Motor Company, BMW AG, Zhejiang Geely Holding Group Co. Ltd., Renault-Nissan-Mitsubishi Alliance, GAC Motor, Chery Automobile Co. Ltd., Polestar, Changan Automobile Co. Ltd., Dongfeng Motor Corporation, Denso Corporation.

Europe was the largest region in the electric powertrain market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric powertrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric powertrain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric powertrain is a system of components responsible for generating and distributing the power required to propel a vehicle. Its primary function involves converting direct current electricity to alternative current during the vehicle's operation.

Key categories within the electric powertrain for vehicles include hybrid and plug-in hybrid vehicles (HEV/PHEV), battery electric vehicles (BEV), and 48V mild hybrid vehicles (MHEV). Plug-in hybrid electric vehicles (PHEVs) utilize cells to drive the motor and an additional fuel source, such as gasoline, to operate an internal combustion engine (ICE). These hybrid and plug-in hybrid vehicles are integral to transportation and commuting needs. Components of HEV/PHEV systems encompass the motor/generator, HV battery, 12V battery, battery management system, controller, DC/AC inverter, DC/DC converter, power distribution module, idle start-stop, and on-board charger, featuring motor and battery elements. These systems find application in both passenger cars and commercial vehicles.

The electric powertrain market research report is one of a series of new reports that provides electric powertrain market statistics, including electric powertrain industry global market size, regional shares, competitors with a electric powertrain market share, detailed electric powertrain market segments, market trends and opportunities, and any further data you may need to thrive in the electric powertrain industry. This electric 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 electric powertrain market consists of sales of engine, transmission, driveshaft, differentials, axles, emissions control, exhaust, and engine cooling systems that are included in electric powertrain. 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.

This product will be delivered within 3-5 business days.