Electric Vehicle Powertrain Market to Grow at a CAGR of 13.8% over 2025 to 2032; Rising Interest in Green Mobility to Drive Market Growth

The global electric vehicle powertrain market size was valued at USD 34.03 billion in 2024. The market is projected to grow from USD 38.40 billion in 2025 to USD 94.67 billion by 2032, exhibiting a CAGR of 13.8% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Electric Vehicle Powertrain Market Size, Share & Industry Analysis, By Vehicle Type (Two Wheeler, Three Wheeler, Microcars, Passenger Vehicle (Hatchback/Sedan and SUV), and Commercial Vehicle (Light Duty Vehicle and Medium & Heavy Duty Vehicle)), By Product Type (Motor (Motor Stator, Rotor, Shaft and Bearing, Permanent Magnet, Casing and Wiring & Connectors), Traction Inverter (IGBT/SiC Power Module, Microcontroller, Sensing Element and Others)), and On-Board Charger), By Propulsion Type (BEV and PHEV), By Motor Power Rating (Below 50 KW (Below 50 V and 50 to 100 V), 50 kW to 250 kW (100 to 400 V and 400 to 600V), and Above 250 kW (600V to 800V and Above 800V)), and Regional Forecasts, 2025-2032”.

An electric vehicle powertrain is the core system of electric mobility, turning battery power into motion. With core elements such as the motor, inverter, battery, and transmission, it delivers instant torque and smooth acceleration. Unlike traditional engines, it’s more efficient, has fewer parts, and needs less upkeep. Surging interest in green mobility and cutting-edge battery and motor tech is fueling strong growth in the market.

DENSO, in Collaboration with USJC, STARTED MASS-PRODUCING AUTOMOTIVE-GRADE IGBTS to boost EV power efficiency

DENSO, in partnership with USJC, started mass-producing automotive-grade IGBTs in May 2023 to boost EV power efficiency. These components are vital for managing energy in electric vehicles. The initiative reflects DENSO’s focus on meeting rising EV demand and accelerating electrification efforts.

Stringent emission regulations and Rising Fuel Prices to Fuel Market Growth

Stringent emission regulations and global carbon reduction targets are accelerating the shift from ICE to electric powertrains. Incentives and mandates such as California’s ZEV rules and the EU’s 2035 ICE ban are driving EV investments. EVs emit 17–30% less GHGs than ICE vehicles, with potential 73% life-cycle emission cuts by 2050, as per the EEA report. Rising fuel prices and stable electricity costs make EVs more economical—charging a Tesla Model 3 costs just USD 0.05–USD 0.10/mile vs. USD 0.12–USD 0.20 for ICE vehicles. Fleet electrification by Amazon and Uber, plus expanding infrastructure, further fuels demand.

However, high initial EV costs, driven by expensive battery components and raw materials, restrict electric vehicle powertrain market growth.

Industry Participants Focus on Partnerships to Expand their Facility

Bosch leads in electric vehicle powertrains with advanced e-Axle, inverter, and control solutions, leveraging system integration and strong R&D to boost range and efficiency. Strategic alliances drive its growth in Europe and Asia. Valeo excels in 48V mild hybrids and high-voltage systems, focusing on power electronics, electric motors, and thermal optimization. Its dominance in Europe and OEM partnerships give it a strong competitive edge.

List of Key Players Mentioned in the Report:

• Robert Bosch Gmbh (Germany)
• Mitsubishi Electric (Japan)
• Magna International Inc (Canada)
• Continental AG (Germany)
• Hitachi Astemo Ltd (Japan)
• DANA TM4 INC (Canada)
• Denso Corporation (Japan)
• Valeo (France)
• ZF Friedrichshafen AG (Germany)
• NXP Semiconductors (Netherlands)
• Schaeffler (Germany)

Key Industry Development:

• March 2024- Schaeffler and Vitesco joined forces, forming a major player in electric vehicle powertrain technology. This merger boosts their innovation capabilities and positions them strongly in the evolving electric vehicle landscape.

Further Report Findings

• Asia Pacific captures the key global electric vehicle powertrain market share, driven by urban congestion, high fuel costs, and rising demand for affordable electric two-wheelers. Countries such as India and Indonesia are seeing rapid adoption of electric scooters and bikes. Government incentives, infrastructure development, and expanding manufacturing in China and India are further propelling regional market growth.
• Europe is experiencing the fastest growth in electric vehicle powertrains, driven by strict CO₂ regulations and ICE phase-out plans. Nations such as France, Germany, and the U.K. are heavily investing in charging infrastructure and battery tech, while automakers fast-track electric fleet transitions to meet policy targets.

Table of Segmentation