Automotive Retrofit Electric Vehicle Powertrain Market Overview:
As per MRFR analysis, the automotive retrofit electric vehicle powertrain Market Size was estimated at 0.56 (USD Billion) in 2022. The automotive retrofit electric vehicle powertrain market is expected to grow from 0.76 (USD Billion) in 2023 to 11.16 (USD Billion) by 2032. The automotive retrofit electric vehicle powertrain market CAGR (growth rate) is expected to be around 34.8% during the forecast period (2024 - 2032).
Key Automotive Retrofit Electric Vehicle Powertrain Market Trends Highlighted
The market for automobile retrofit electric vehicle powertrains is expanding rapidly as a practical way to lower carbon emissions and improve vehicle efficiency. Advances in power electronics and battery technology have made it possible to create retrofit powertrains that can turn regular cars into electric vehicles.
All throughout the world, governments are enforcing strict emission laws, which incentivize customers to choose environmentally sustainable alternatives. The need for retrofit electric car powertrains is further fueled by growing gasoline prices and growing awareness of the environmental impact of transportation.
Government subsidies, technology developments, and customer desire for environmentally friendly transportation are important market drivers. Possibilities include the rising desire for car personalization from commercial fleets and aftermarket modification.
Investments in R&D to maximize efficiency and economy, along with partnerships between automakers and aftermarket providers to offer complete electrification solutions, are examples of recent trends.
The market is anticipated to grow significantly over the next several years, propelled by the growing trend of electric vehicles and the acceleration of the transition to a carbon-neutral future.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Retrofit Electric Vehicle Powertrain Market Drivers
Government Regulations and Incentives
Government regulations are one of the leading factors of the global automotive retrofit electric vehicle powertrain market. In a bid to decrease air pollution and fight climate change, a substantial number of authorities across the globe have put in place strict guidelines with regards to emissions.
In addition, to encourage the adoption of electric vehicles, many governments provide financial incentives, such as tax cuts and refunds. Subsequently, the overall cost of purchase and operation of electric vehicles is reduced for both individual customers and corporations.
Technological Advancements
Technological advancements are another key driver of the global automotive retrofit electric vehicle powertrain market. The development of more efficient and affordable electric motors, batteries, and power electronics has made it possible to retrofit a wider range of vehicles with electric powertrains.
Additionally, advances in battery technology have increased the range and performance of electric vehicles, making them more appealing to consumers.
Rising Fuel Costs
Rising fuel costs are also driving the growth of the global automotive retrofit electric vehicle powertrain market.
The price of gasoline and diesel has been steadily increasing in recent years, making it more expensive to operate gasoline-powered vehicles.
This has led many consumers to consider more fuel-efficient alternatives, such as electric vehicles. Retrofitting a vehicle with an electric powertrain can significantly reduce fuel costs, making electric vehicles a more attractive option for consumers.
Automotive Retrofit Electric Vehicle Powertrain Market Segment Insights:
Automotive Retrofit Electric Vehicle Powertrain Market Power Source Insights
Global Automotive Retrofit Electric Vehicle Powertrain Market, By Power Source, is segmented as Battery, Plug-in Hybrid, and Fuel Cell. Battery holds the largest market share. The battery segment is expected to dominate the market during the forecast period.
The increasing adoption of electric vehicles and the declining cost of batteries will have a positive impact on the market. However, the plug-in hybrid segment is expected to grow at a higher rate during the forecast period. The increase in the choice of vehicle options that offer electric as well as gasoline power has driven this demand.
The market share of the fuel cell segment will be the smallest; however, there is an increasing interest in the hydrogen fuel cell technology.
The growth of the market is expected to be driven by the following trends: the increasing demand for electric vehicles, the decreasing cost of batteries and the growing awareness regarding the benefits of the environment from electric vehicles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Retrofit Electric Vehicle Powertrain Market Vehicle Type Insights
The Automotive Retrofit Electric Vehicle Powertrain Market is segmented by vehicle type into passenger cars, commercial vehicles, and two-wheelers. In 2023, The passenger car market segment is anticipated to be the largest market in terms of share, owing to the high demand for passenger cars and the increasing adoption of electric vehicles.
The commercial vehicle market segment is also expected to display considerable growth, owing to the increasing demand for electric commercial vehicles in last-mile delivery and logistics applications.
The two-wheeler market segment is expected to display a slower growth rate as compared to the passenger car and commercial vehicle market segments but is also expected to display a significant growth rate, owing to the increasing demand for electric scooters and motorcycles in emerging markets.
In 2023, the Passenger Car Market Segment is expected to hold an approximately 60% share in the Automotive Retrofit Electric Vehicle Powertrain Market Revenue. The commercial vehicle market segment will account for an approximately 30% share of the market revenue, while the two-wheeler market segment will hold an approximately 10% share of the market revenue.
Automotive Retrofit Electric Vehicle Powertrain Market Drive System Insights
Front-Wheel Drive, Rear-Wheel Drive, and All-Wheel Drive are the three primary drive system types in the global automotive retrofit electric vehicle powertrain market. In 2023, the Front-Wheel Drive segment held the largest market share, accounting for over 55% of the global market.
The Front-Wheel Drive system is widely adopted due to its cost-effectiveness and simplicity, making it popular in entry-level and mid-range electric vehicles. Rear-wheel drive, on the other hand, offers improved driving dynamics and performance, leading to its preference for high-performance electric vehicles.
All-wheel drive provides enhanced traction and stability, especially in challenging driving conditions, making it suitable for off-road and all-weather vehicles.
The growth of the All-Wheel Drive segment in the automotive retrofit electric vehicle powertrain market is expected to accelerate, driven by the increasing demand for electric vehicles with improved handling and performance.
Moreover, government regulations promoting electric vehicle adoption and technological advancements in electric motors and power electronics are contributing to the overall growth of the automotive retrofit electric vehicle powertrain market.
Automotive Retrofit Electric Vehicle Powertrain Market Purpose Insights
The automotive retrofit electric vehicle powertrain market is segmented into purpose, which includes private and commercial. The private segment is expected to account for a larger share of the market in 2023, with a market value of 0.45 (USD Billion).
This is due to the increasing demand for electric vehicles among private consumers, who are looking for more environmentally friendly and cost-effective transportation options.
The commercial segment is also expected to grow significantly over the forecast period, with a market value of 0.31 (USD Billion) in 2023, as businesses and governments adopt electric vehicles to reduce their carbon footprint and operating costs.
Automotive Retrofit Electric Vehicle Powertrain Market Power Output Insights
The power output segment in the automotive retrofit electric vehicle powertrain market plays a crucial role as it determines the performance and capabilities of the electric powertrain system. Among the three sub-segments, '100-200 kW' is projected to dominate the market, accounting for a substantial revenue share by 2032.
This growth can be attributed to the increasing demand for vehicles with higher power output for enhanced acceleration and performance. The 'More than 200 kW' segment is also expected to witness significant growth due to the rising popularity of high-performance electric vehicles.
Meanwhile, the 'Less than 100 kW' segment is expected to capture a smaller market share, but it is likely to remain relevant in specific applications, such as low-speed electric vehicles for urban commuting.
Automotive Retrofit Electric Vehicle Powertrain Market Regional Insights
The Automotive Retrofit Electric Vehicle Powertrain Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to witness the highest growth rate over the forecast period.
The growth in this region is attributed to the increasing adoption of electric vehicles in countries such as China, India, and Japan. Additionally, government initiatives and subsidies to promote the adoption of electric vehicles are further driving the market growth in the region.
For instance, in 2023, the Chinese government announced plans to invest $10 billion in the development of electric vehicle charging infrastructure, which is expected to boost the adoption of electric vehicles in the country.
North America is another major region in the global automotive retrofit electric vehicle powertrain market. The presence of major automotive manufacturers such as Ford, General Motors, and Tesla in the region is driving the growth of the market.
Additionally, the increasing demand for electric vehicles from consumers is further contributing to the market growth in the region. In 2023, the U.S. Department of Energy announced plans to invest $5 billion in the development of electric vehicle technologies, which is expected to stimulate the growth of the market in the country.
Europe is also a significant region in the global automotive retrofit electric vehicle powertrain market. The presence of major automotive manufacturers such as Volkswagen, BMW, and Daimler in the region is driving the growth of the market.
Additionally, the increasing adoption of electric vehicles in countries such as Germany, the United Kingdom, and France is further contributing to the market growth in the region.
In 2023, the European Union announced plans to ban the sale of new gasoline and diesel cars by 2035, which is expected to boost the adoption of electric vehicles in the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Retrofit Electric Vehicle Powertrain Market Key Players and Competitive Insights:
Major players in the automotive retrofit electric vehicle powertrain market are focusing on developing new technologies to improve the performance and efficiency of their products. Leading automotive retrofit electric vehicle powertrain market players are also investing in research and development to expand their product portfolio and gain a competitive edge in the market.
The automotive retrofit electric vehicle powertrain market development is being driven by the increasing demand for electric vehicles and the need to reduce emissions.
The automotive retrofit electric vehicle powertrain market competition is expected to intensify in the coming years as more players enter the market. Key players in the market are focusing on expanding their global presence and increasing their market share.
A leading company in the automotive retrofit electric vehicle powertrain market is Turnkey Conversions. The company is headquartered in the United States and has been operating in the market for over 10 years. Turnkey Conversions offers a wide range of electric vehicle powertrain conversion kits for a variety of vehicles, including cars, trucks, and SUVs.
The company's kits are designed to be easy to install and can be completed in a few hours. Turnkey Conversions also offers a variety of other services, such as battery installation and maintenance.
A competitor of Turnkey Conversions in the automotive retrofit electric vehicle powertrain market is EV West. The company is also headquartered in the United States and has been operating in the market for over 10 years.
EV West offers a variety of electric vehicle powertrain conversion kits for a variety of vehicles, including cars, trucks, and SUVs. The company's kits are designed to be high-performance and efficient. EV West also offers a variety of other services, such as battery installation and maintenance.
Key Companies in the automotive retrofit electric vehicle powertrain market Include:
- Lumax Industries
- ZF
- Schaeffler
- Allison Transmission
- Denso
- Valeo
- BorgWarner
- GKN Driveline
- Continental
- Magna International
Automotive Retrofit Electric Vehicle Powertrain Market Developments
Governments worldwide are implementing stringent regulations to reduce carbon emissions, driving the adoption of electric vehicles. Additionally, rising fuel prices and increasing consumer awareness about environmental sustainability further contribute to the market growth.
Key developments include strategic partnerships between automakers and powertrain suppliers, technological advancements in battery and motor systems, and government initiatives to promote EV adoption.
As a result, the market is witnessing a surge in investments, mergers, and acquisitions, shaping the competitive landscape.
Automotive Retrofit Electric Vehicle Powertrain Market Segmentation Insights
- Automotive Retrofit Electric Vehicle Powertrain Market Power Source Outlook
- Battery
- Plug-in Hybrid
- Fuel Cell
- Automotive Retrofit Electric Vehicle Powertrain Market Vehicle Type Outlook
- Passenger Car
- Commercial Vehicle
- Two-Wheeler
- Automotive Retrofit Electric Vehicle Powertrain Market Drive System Outlook
- Front-Wheel Drive
- Rear-Wheel Drive
- All-Wheel Drive
- Automotive Retrofit Electric Vehicle Powertrain Market Purpose Outlook
- Automotive Retrofit Electric Vehicle Powertrain Market Power Output Outlook
- Less than 100 kW
- 100-200 kW
- More than 200 kW
- Automotive Retrofit Electric Vehicle Powertrain Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
0.56(USD Billion) |
| Market Size 2023 |
0.76(USD Billion) |
| Market Size 2032 |
11.16(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
34.8% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Lumax Industries, ZF, Schaeffler, Allison Transmission, Denso, Valeo, BorgWarner, GKN Driveline, Continental, Magna International |
| Segments Covered |
Power Source, Vehicle Type, Drive System, Purpose, Power Output, Regional |
| Key Market Opportunities |
Growing awareness of environmental sustainability Government incentives for EV adoption Rising fuel prices Technological advancements in powertrain systems Increasing demand for used and preowned vehicles |
| Key Market Dynamics |
Rising EV Adoption Government Incentives Technological Advancements Increasing Environmental Concerns Growing Demand for Aftermarket Solutions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The overall valuation of the Automotive Retrofit Electric Vehicle Powertrain Market is projected to reach 11.16 (USD Billion) by 2032.
The CAGR of the Automotive Retrofit Electric Vehicle Powertrain Market from 2024 to 2032 is estimated to be 34.8%.
The Asia-Pacific region is expected to hold the largest market share in the Automotive Retrofit Electric Vehicle Powertrain Market by 2032.
The key factors driving the growth of the Automotive Retrofit Electric Vehicle Powertrain Market include rising concerns over environmental sustainability, increasing government regulations promoting electric vehicles, and technological advancements in electric powertrains.
Some of the major players in the Automotive Retrofit Electric Vehicle Powertrain Market include Tesla, BYD, Volkswagen, Toyota, and General Motors.
Automotive Retrofit Electric Vehicle Powertrains are used in various applications, including passenger cars, commercial vehicles, and public transportation vehicles.
Some of the challenges faced by the Automotive Retrofit Electric Vehicle Powertrain Market include high upfront costs, limited charging infrastructure, and range anxiety.
Opportunities for growth in the Automotive Retrofit Electric Vehicle Powertrain Market include increasing government incentives, technological advancements reducing costs, and growing consumer awareness about environmental sustainability.
The Automotive Retrofit Electric Vehicle Powertrain Market reached 0.76 (USD Billion) in 2023.
Key trends shaping the Automotive Retrofit Electric Vehicle Powertrain Market include the electrification of transportation, advancements in battery technology, and government policies supporting electric vehicles.
