Automotive Electric Drivetrain Components Global Market Report 2024

The automotive electric drivetrain components market size has grown exponentially in recent years. It will grow from $51.11 billion in 2023 to $64.43 billion in 2024 at a compound annual growth rate (CAGR) of 26.1%. The growth observed in the historical period can be attributed to several factors, including stringent government regulations focusing on emissions reduction, heightened consumer demand for eco-friendly vehicles, declining battery costs, advancements in power electronics, and substantial investments in charging infrastructure.

The automotive electric drivetrain components market size is expected to see exponential growth in the next few years. It will grow to $150.81 billion in 2028 at a compound annual growth rate (CAGR) of 23.7%. The anticipated growth in the upcoming period can be attributed to swift technological advancements, stringent regulatory initiatives favoring zero-emission vehicles, continuous evolution in battery chemistries, a focused drive towards vehicle electrification within the automotive industry, and a notable shift towards e-mobility solutions. Key trends in the forecast period encompass increased energy density in batteries, incorporation of integrated vehicle-to-grid (V2G) technology, adaptive solutions for thermal management, personalized user experiences with enhanced connectivity, and improvements in vehicle-to-vehicle (V2V) communication capabilities.

The growth of the automotive electric drivetrain components market is anticipated to be propelled by the increasing adoption of electric vehicles. Electric vehicles, characterized as completely electric, zero-emission vehicles with onboard electrical energy storage systems rechargeable via external sources, rely on electric drivetrain components to convert electrical energy into mechanical energy for driving the vehicle's wheels. According to the International Energy Agency, sales of electric vehicles reached a record of 6.6 million in 2021, doubling from the previous year, with approximately 16.5 million electric cars on the world's roads by the end of 2021. This surge in the adoption of battery electric vehicles serves as a significant driver for the growth of the automotive electric drivetrain components market.

A influential factor driving the market is the increasing focus on renewable energy. Renewable energy, derived from natural resources renewed on a human timeline, has gained prominence due to the imperative to reduce carbon emissions and address concerns about global warming. The heightened emphasis on clean and renewable energy sources, including electric vehicles, contributes to the growing demand for automotive electric drivetrain components. In March 2023, the International Renewable Energy Agency reported a 10% increase in global renewable energy capacity in 2022, representing a 0.4% uptick from the previous year. This upward trend in renewable energy aligns with the broader objective of reducing environmental impact, further boosting the automotive electric drivetrain component market.

Product innovation stands out as a significant and popular trend in the automotive electric drivetrain components market. Major companies in this sector are actively engaged in developing innovative products to maintain their competitive positions. A notable example is Volkswagen, a Germany-based vehicle manufacturing company, which, in April 2023, launched the improved electric vehicle drivetrain APP550. The new APP550 rear-wheel drive units not only offer high performance but also contribute to improved vehicle efficiency. The enhancement includes an improved heat management system, further increasing overall efficiency. Notably, the device has the capability to control its temperature by utilizing the transmission's gear wheels, showcasing a commitment to innovation and performance in the automotive electric drivetrain components market.

Major companies in the automotive electric drivetrain components market are adopting a strategic partnership approach to expedite electric vehicle (EV) powertrain design through virtual prototyping. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. A case in point is the partnership announced in December 2023 between Hexagon AB, a Sweden-based technological company specializing in EV powertrains, and JSOL Corporation, a Japan-based information technology service company. This partnership aims to expedite the virtual prototyping of electric powertrains using multi-physics simulation. Building on a longstanding technological collaboration, the partnership combines Hexagon's robust engineering simulation software suite with JSOL Corporation's JMAG electromagnetic field analysis software. This collaboration enables clients to address a wide range of system design challenges in the virtual world more swiftly, thoroughly, and economically than physical prototyping allows, emphasizing the strategic role of partnerships in advancing technology and design in the automotive electric drivetrain components market.

In June 2021, Turntide Technologies, a US-based software developer, completed the acquisition of AVID Technology for $225 million. This strategic move positions Turntide Technologies to spearhead the decarbonization efforts within the transportation sector by offering superior, high-performance alternatives to rare earth magnets commonly used in electric vehicles. AVID Technology, a US-based company specializing in vehicle components, focuses on designing and producing electrified powertrain components and systems tailored for heavy-duty and high-performance electric (EV) and hybrid (HEV) vehicles.

Major companies operating in the automotive electric drivetrain components market report are Volkswagen AG, Robert Bosch GmbH, Siemens AG, Panasonic Corporation, ZF Friedrichshafen AG, Denso Corporation, Continental AG, Hyundai Mobis, Magna International Inc., Aisin Seiki Co. Ltd, Valeo SA, Eaton Corporation PLC, Hitachi Astemo Ltd., Parker Hannifin Corporation, Schaeffler AG, Schaeffler Technologies AG & Co. KG, Nidec Corporation, BorgWarner Inc., MAHLE GmbH, Infineon Technologies AG, Marelli Holdings Co. Ltd., Dana Incorporated, Hexagon AB, GKN Automotive Limited, JATCO Ltd., Delphi Technologies, The Johnson Electric Group, AVL List Gmbh, Univance Corporation, Hofer Powertrain GmbH.

Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive electric drivetrain components market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive electric drivetrain components market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary categories of automotive electric drivetrain components include the electric drive module, DC or DC converter, battery packs, thermal system, DC or AC inverter, power distribution module (PDM), among others. An electric drive module, also termed an electric powertrain module, consolidates the electric motor, transmission, and power electronics into a single unit, significantly reducing overall system weight. These components cater to diverse vehicle types such as battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), and are supplied through original equipment manufacturers (OEMs) and the aftermarket.

The automotive electric drivetrain components market research report is one of a series of new reports that provides automotive electric drivetrain components market statistics, including automotive electric drivetrain components industry global market size, regional shares, competitors with an automotive electric drivetrain components market share, detailed automotive electric drivetrain components market segments, market trends and opportunities, and any further data you may need to thrive in the automotive electric drivetrain components industry. This automotive electric drivetrain components market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive electric drivetrain components market consists of sales of traction battery packs, electric motors, power inverters, charge ports, onboard chargers, and Controllers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.