Automotive Retrofit Electric Vehicle (EV) Powertrain Market Size, Share, Growth Analysis, By Vehicle Type(Two Wheelers, Passenger Vehicle, Commercial Vehicle), By Component Type(Electric motor, Inverter, Converter, Power distribution module), By Region - Industry Forecast 2024-2031

Global Automotive Retrofit Electric Vehicle (EV) Powertrain Market size was valued at USD 58.89 billion in 2021 and is poised to grow from USD 60.23 billion in 2022 to USD 116.2 billion by 2030, growing at a CAGR of 7.1% in the forecast period (2023-2030).

Global automotive retrofit electric vehicle powertrain market is highly competitive with the presence of local as well as global companies. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of global automotive retrofit electric vehicle powertrain market. 'EV West', 'Electric GT', 'Zero EV', 'Revolution Electric Vehicles', 'EV Source', 'HSR Motors', 'BorgWarner', 'AVID Technology', 'UQM Technologies Inc.', 'Magna International Inc.', 'Meritor, Inc.', 'TM4', 'Bosch Limited', 'Continental AG', 'Cummins Inc.', 'Danfoss A/S', 'Denso Corporation', 'GKN Automotive Limited', 'Hitachi Automotive Systems, Ltd.', 'Johnson Electric Holdings Limited'

Reducing the cost of EV batteries to support demand for cost-effective EVs

The government began to promote the development and sales of the market for electric vehicles and related charging infrastructure. For example, the US government invested USD 5 billion in 2017 in the electric vehicle industry to promote electric vehicle infrastructure such as charging stations. Norway and Germany are investing heavily in promoting sales of the electric vehicle market. Thus, due to strong incentives and subsidies in Europe, there is a high growth rate in the sale of electric vehicles. Most of these countries also offer incentives for setting up electric vehicle charging stations. Europe should be the first region to consider switching entirely too electric vehicles. Most countries in the region have announced their intention to stop sales of ICE vehicles in the coming decades.

Asia Pacific is expected to witness significant growth during the forecast period. Several legal initiatives such as EV sales quotas, fuel economy targets, and benefits for EVs in the assignment of license plates in countries such as China are the primary reasons for significant market penetration. The adoption of stringent emission norms like BS-VI in China and India is boosting the industry in this region. Partnerships among leading companies to build charging infrastructure are also fueling the growth of this market. For example, BP, the world's largest oil company, and Chinese company Didi Chuxing have partnered to build EV charging stations in China. Chinese lithium reserves are encouraging additional investment in the battery segment. Thanks to the government's supportive policies, Tesla also introduced the Model 3 in South Korea at a significantly lower price. These factors are expected to account for the largest market share in APAC.