Electric Powertrain Systems Market Size

Electric Powertrain Systems Market Size

Electric Powertrain Systems Market size was valued at USD 34.5 billion in 2023 and is anticipated to register a CAGR of over 28.4% between 2024 and 2032. Urbanization and changing mobility is driving the market growth. As more people move to cities, there is a greater need for sustainable transportation to reduce traffic, pollution, and fossil fuel use. Electric vehicles (EVs) are becoming important in smart city plans to improve urban mobility and lower environmental impact.

This combination of urban growth and new mobility factor is creating opportunities for the electric powertrain market, speeding up the adoption of electric vehicles in busy urban areas. Additionally electric powertrain systems are growing fast, mainly because more people are using electric vehicles (EVs). This change is due to rising environmental concerns and a global effort to reduce carbon emissions.
 

Governments around the world are making emission rules stricter and offering financial incentives like tax credits, rebates, and subsidies to encourage people to buy EVs. For example, the U.S. government provides a federal tax credit of up to USD 7,500 million for EV buyers, and the European Union aims to cut CO2 emissions from new cars by 37.5% by year 2030. These actions, along with zero-emission vehicle mandates, are pushing automakers to invest heavily in EV technologies driving the industry growth.
 

A major challenge slowing the growth of electric vehicles (EVs), and the electric powertrain systems industry is the lack of enough charging stations. Even though more people are buying EVs, the number of public and private charging stations hasn't grown as quickly. This causes range anxiety, where potential buyers worry about finding convenient and reliable charging options, especially during long trips or in remote areas.
 

Moreover, uneven distribution of charging stations across regions, especially in rural and developing areas, further exacerbates this challenge. The high cost of installing charging stations, along with the time required for grid upgrades and permitting processes, slows down the expansion of charging networks.