The Electric Vehicle Transmission Market has been gaining huge traction over the past few years owing to the increasing vehicle electrification. Electric vehicle transmission integrates motor, power electronics and transmission system which transmits power from the electric motor to wheels. Electric vehicles are equipped with single speed or multi-speed transmission systems to provide optimal performance.
The Global Electric Vehicle Transmission Market is estimated to be valued at US$ 15.26 Bn in 2024 and is expected to exhibit a CAGR of 13.3% over the forecast period 2024-2031.
Electric vehicle transmission plays a vital role in powering electric vehicles by efficiently transmitting power from electric motor to wheels. Different types of transmission systems such as single speed, multi speed are integrated in electric vehicles based on vehicle type and performance requirements. Government support for electric vehicle adoption and stringent emission norms have propelled OEMs to widely incorporate electric powertrains in vehicles. The Electric Vehicle Transmission Market Growth is witnessing significant demand for efficient transmission systems from electric buses, trucks and passenger vehicle manufacturers.
Key Takeaways
Key players operating in the Electric Vehicle Transmission Market are ZF Friedrichshafen AG, Eaton Corporation, Continental AG, BorgWarner Inc., GKN Automotive Limited.
Increasing sales of electric vehicles across major automotive markets have augured well for the Electric Vehicle Transmission Market. Stringent emission regulations and supportive government policies regarding electric vehicle adoption are further bolstering the electric vehicle sales.
Advanced transmission technologies such as automated-manual transmission, DCT, CVT are being integrated in electric vehicles for optimized performance and driving range. Manufacturers are focusing on developing lightweight and efficient electric vehicle transmission systems.
Market Trends
- Growing preference for automated transmission - Automated transmission systems are witnessing higher adoption backed by advantages such as improved vehicle performance, driving comfort and drivability.
- Development of single speed transmission - Single speed transmission provides benefits such as reduced component count, weight and complexity. However multi-speed transmission deliver better driving range and performance.
- Integration of electric axle and direct drive technology - These technologies help to eliminate the needs for multi speed transmissions and provide better energy recuperation.
Market Opportunities
- Rising demand for commercial electric vehicles - Increasing focus on electrification of commercial vehicles especially buses and trucks will drive the Electric Vehicle Transmission Market.
- Development of multi mode E-Axle - E-axles with capability to function both as transmission and axle will witness higher demand backed by its advantages.
- Infrastructure development in emerging economies - With supportive policies, infrastructure development in countries like China and India will continue to push the electric mobility revolution thereby benefiting transmission system providers.
Impact of COVID-19 on Electric Vehicle Transmission Market Growth
The COVID-19 pandemic has significantly impacted the growth of the Electric Vehicle Transmission Market. During the pre-COVID period, the market was growing at a robust pace owing to the increasing demand for electric vehicles across major regions and supportive government policies and initiatives promoting clean mobility. However, the outbreak of the pandemic led to lockdowns worldwide which disrupted the entire automotive supply chain. This resulted in the closure of production facilities and decline in sales of electric vehicles in 2020.
With the easing of lockdowns and reopening of economies in 2021, the Electric Vehicle Transmission Market has started recovering gradually. However, demand is yet to return to the pre-pandemic levels. The economic slowdown and decline in disposable income have impacted consumer spending negatively. Original equipment manufacturers are also facing issues related to rising raw material costs and global chip shortage. This has hampered their ability to ramp up electric vehicle production. Going forward, normalization of supply chains and revival of consumer sentiment will be crucial for the market to regain its pre-COVID growth trajectory. OEMs will need to focus on new product development, competitive pricing and expanding dealership networks to boost electric vehicle sales.
China Dominates Global Electric Vehicle Transmission Market in Terms of Value
China is by far the largest and most valuable market for electric vehicle transmissions globally. It accounted for over 40% of the global market value in 2020. Factors such as strong government support, massive investments in charging infrastructure and attractive purchase incentives have propelled China to the forefront of the global electric vehicle revolution. Chinese automakers such as BYD and SAIC Motor are also aggressively expanding their electric portfolio which is driving transmission demand. Moreover, China is also a key manufacturing hub for electric vehicle components including gearboxes and differentials. This has made the country a dominant player in the global supply chain as well.
Southeast Asia Emerging as Fastest Growing Regional Market
Among all regions, Southeast Asia is expected to witness the highest growth in the Electric Vehicle Transmission Market during the forecast period. Countries such as Thailand, Indonesia and Vietnam are experiencing rapid economic development and rising disposable incomes. This has boosted consumer appetite for electric vehicles, especially in the two-wheeler and three-wheeler segments. Favorable regulations, including tax exemptions for electric vehicles, are encouraging adoption. Moreover, growing environmental concerns are compelling both private buyers and fleet operators to switch to electric options. All these factors are contributing to Southeast Asia's position as the fastest expanding regional market for electric vehicle transmissions globally.
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About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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