PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1944486
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1944486
The Electric Powertrain Market size was valued at US$125,567.34 Million in 2024, expanding at a CAGR of 14.5% from 2025 to 2032.
The electric powertrain describes all parts of an electric vehicle system that produce energy and drive the wheels through electric power instead of using combustion engines. The standard system includes an electric motor together with a battery pack and power electronics that contain inverters and converters and control units, and a single-speed or reduction transmission system that operates at particular times. The electric powertrain uses battery power to create mechanical energy which drives the vehicle while achieving better energy efficiency and producing less emissions and making the system easier to operate than traditional internal combustion engine systems. The technology serves as a fundamental component for battery electric vehicles (BEVs) plug-in hybrid electric vehicles (PHEVs) and fuel cell electric vehicles (FCEVs) which promote cleaner and sustainable transportation systems.
Electric Powertrain Market- Market Dynamics
Rising Demand for Electric Vehicles (EVs)
The electric powertrain market grows because more customers show interest in buying electric vehicles. The public and transportation companies now choose electric vehicles instead of traditional gasoline-powered vehicles because they understand environmental problems and climate change issues, and the need to reduce greenhouse gas emissions. Government subsidies and tax incentives, together with stricter emission regulations, create conditions that encourage both passenger and commercial vehicle users to adopt electric vehicles. The worldwide manufacturing of electric vehicles increases the need for vital electric powertrain components, including batteries and electric motors, and power electronics parts, which drives market growth.
For instance, according to the International Energy Agency, Electric car sales neared 14 million in 2023, 95% of which were in China, Europe, and the United States.
Electric Vehicle Insights
The Battery Electric Vehicle (BEV) segment leads the market. The global market for battery electric vehicles shows rapid expansion, which will continue for the next ten years because customers and vehicle fleets choose zero-emission transportation options to meet their environmental needs and government regulations that promote clean mobility. The development of battery technology, which includes both increased energy density and decreased cost provides better driving range capabilities while lowering operational expenses thus making battery electric vehicles more appealing to consumers who choose to buy them. The combination of government financial support and improved charging stations makes it easier for customers to adopt battery electric vehicles which leads car manufacturers to create more BEV models while they invest in development of essential powertrain technologies.
Electric Powertrain Market- Geographical Insights
The Asia Pacific is expected to dominate the market over the projected period. The main automobile production hub of this region includes China Japan South Korea and India as its main automobile manufacturing countries. The Asia Pacific market will experience growth because governments enforce strict regulations and emission standards which they use to combat global warming through reduced CO2 emissions. The demand for electric vehicles will increase in countries like India and China because people are increasingly using these vehicles. China has increased its efforts to construct electric charging stations throughout the nation. The Chinese company Didi Chuxing (DiDi) and British gas and energy and oil company BP formed a partnership to build electric vehicle charging stations throughout China. The development of electric car charging stations will proceed because these organizations work together to implement their strategic partnerships.
The electric powertrain market shows competitive dynamics that combine established automotive suppliers with emerging electric vehicle manufacturers who operate their own production facilities. The market shows signs of consolidation because Tesla Inc, BYD Co. Ltd., Robert Bosch GmbH, Magna International Inc, and BorgWarner Inc compete with Nidec Corporation and Infineon Technologies AG through their specialized component products. The global market operates under the influence of regional powers, which include Chinese businesses that have achieved rapid production growth and market expansion to dominate price competition and drive international business growth. Incumbent companies and their suppliers implement vertical integration through their development of in-house battery systems and e-axle systems while they form strategic partnerships and boost their research efforts in power electronics and software development. The companies use these strategies to create more efficient systems, which reduce costs and improve overall system performance. The strategic changes made by companies are driving industry consolidation while they create new patterns of collaboration between suppliers and original equipment manufacturers in different countries.
In October 2025, Horse Powertrain, which leads the field of sustainable powertrain technology, displays its operation Horse Technologies, which offers a complete collection of range extender and combustion power systems, at the Busworld Europe 2025 event. The Horse M20 Hydrogen system can easily be fitted to any existing vehicle architecture, enabling low-emission alternative-fuelled commercial vehicles. The Horse M20 Hydrogen system, which generates 90kW of power and 300Nm of torque, uses an existing Horse Powertrain 2.0-liter four-cylinder turbo diesel engine as its foundation. The engine meets upcoming Euro7 standards for nitrogen oxide emissions while producing less than one gram of CO2 emissions per kilometer driven.
In February 2025, for several decades, Magna has been a strategic partner to Mercedes-Benz, creating a legacy of innovation and excellence. This collaboration has spanned multiple areas of the vehicle, including powertrain and drivetrain systems, ADAS technologies, body and chassis components, electrification, interior systems, vehicle assembly, and more.