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The e-axle market size is estimated to grow by USD 50.75 billion at a CAGR of 46.12% between 2023 and 2028. The market is experiencing significant growth due to increasing environmental concerns, advancements in technology, and government initiatives. Major automakers are responding with new product launches, such as Tesla's Model Y and Ford's Mustang Mach-E. These vehicles offer long ranges, fast charging capabilities, and competitive pricing, making EVs an attractive alternative to traditional internal combustion engine vehicles. Furthermore, government incentives, such as tax credits and subsidies, are encouraging consumers to make the switch. For instance, the U.S. federal government offers a tax credit of up to USD 7,500 for the purchase of a new EV. These factors are driving the adoption of electric vehicles and positioning them as the future of transportation.
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The market is witnessing significant growth due to the increasing adoption of battery electric vehicles (BEVs) and the shift towards a carbon neutral society. An e-axle is an electric drivetrain system that integrates an electric motor, power source (battery), gearbox, inverter, and power electronics into a single compact unit. This modular design offers several advantages such as improved efficiency, downsizing, and reduced power consumption. The market for e-axles is particularly prominent in the electric vehicle (EV) segment, with heavy commercial vehicles being a promising application area. The rear segment is expected to dominate the market due to its ability to provide better traction and power distribution. The market is driven by factors such as the growing recharging infrastructure, increasing vehicle prices, and the need for efficient electrification systems. The front wheel drive and four wheel drive configurations are also gaining popularity in the market. Overall, the market is poised for robust growth in the coming years as the automotive industry transitions towards electric powertrains. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing adoption of EVs is notably driving market growth. The electrification of the automotive industry is gaining momentum with the increasing adoption of hybrid electric vehicles (HEVs) and electric drive trains. One of the critical components of an electric vehicle's powertrain is the electric drive train, which includes Silicon carbide MOSFET switches, multilevel inverters, integrated E-axles, and other electric drive components. The cost of producing these components is a significant factor in the overall price of electric vehicles, particularly due to the expensive batteries they require. The cost of batteries, which account for a substantial portion of the vehicle's total cost, is influenced by the price of raw materials and production volume. However, the cost has been decreasing due to the growing usage of batteries in various applications, including HEVs, battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and industrial equipment.
Furthermore, this trend is expected to continue as battery energy density improves, leading to longer electric ranges and reduced vehicle weight. Moreover, the modularity, scalability, and flexibility of electric drive trains offer advantages in vehicle engineering, such as cooling system management, active current losses, bus bars, and stator housing design. The integration of electric drive components in independent suspension-based vehicles and rigid axle suspension systems also enhances vehicle dynamics. The development of hydrogen fuel cell technology may further reduce the dependence on batteries, providing an alternative energy source for electric vehicles. In the context of the ARAI mobility outlook, small commercial vehicles are expected to be a significant market for electric drive trains due to their lower unsprung weight, which improves vehicle performance and reduces fuel consumption. The advancements in electric drive train technology will continue to drive the market, providing cost-effective solutions for both passenger cars and commercial vehicles. Thus, such factors are driving the growth of the market during the forecast period.
Increase in popularity of E-axle system is the key trend in the market. The electrification trend in the automotive industry is driving the demand for advanced electric drive train systems, specifically the e-axle. In hybrid electric vehicles, the e-axle integrates an electric motor, power electronics, and a transmission into a single modular unit. This design offers several advantages, including weight reduction, improved vehicle dynamics, and increased efficiency. Silicon carbide MOSFET switches and multilevel inverters are key components of the e-axle system, contributing to its high efficiency and low Total Harmonic Distortion. Integrating the electric motor with a rigid rear axle in a single streamlined module further enhances efficiency by reducing unsprung weight and improving cooling system management.
Furthermore, this design also offers scalability and flexibility, making it suitable for various vehicle applications, from small commercial vehicles to passenger cars. Moreover, the integration of the e-axle system enables the development of independent suspension-based vehicles, which offer better vehicle dynamics and improved electric range. The electric drive components, such as the stator housing and bus bars, are engineered for optimal space utilization and minimal active current losses. The battery energy density and hydrogen fuel cell technology also play a crucial role in increasing the electric range of the vehicle. The ARAI mobility outlook indicates that the e-axle market will continue to grow, offering significant opportunities for vehicle engineering advancements. Thus, such trends will shape the growth of the market during the forecast period.
The decline in automotive production due to global semiconductor chip shortage is the major challenge that affects the growth of the market. The global automotive industry is experiencing disruptions due to the semiconductor chip shortage, leading to temporary production halts in several manufacturing plants. For instance, General Motors announced potential losses of up to USD 2 billion due to this crisis, causing temporary shutdowns. Fiat similarly slowed down production at its Betim factory in Brazil. These production halts, preceding anticipated sales declines, may decrease the demand for associated components. In the context of the automotive industry's electrification trend, this situation could impact the production and adoption of advanced electric drive train systems, such as Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EVs), which incorporate complex electric drive components like Silicon carbide MOSFET switches, multilevel inverters, and integrated E-axles.
Furthermore, these systems require sophisticated cooling system management to mitigate active current losses and ensure vehicle dynamics. Modularity, scalability, and flexibility are essential in electric drive train design, with independent suspension-based vehicles and rigid axle suspensions both employing electric drive components. The ARAI mobility outlook indicates that small commercial vehicles and passenger cars will increasingly adopt electric drive trains, influenced by battery energy density improvements and electric range expansion. The shift towards hydrogen fuel cells may also impact the market dynamics. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Linamar Corp.- The company offers e-axles such as the eLin commercial vehicle electric axle and eLin electric axle for light vehicles.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the passenger cars segment will be significant during the forecast period. The market is experiencing significant growth, particularly in the sector of battery electric vehicles (BEVs) and heavy commercial vehicles. The modular e-axle design, an essential component of electric vehicles (EVs), is gaining popularity due to its ability to act as a power source, integrating an electric motor, inverter, and gearbox into a single compact unit.
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The passenger cars segment was valued at USD 3.15 billion in 2018. This design offers several advantages, including improved efficiency, downsizing, and reduced CO2 emissions, making it an attractive alternative to traditional internal combustion engines (ICEs), such as gasoline-powered engines and diesel engines, with their associated components like Diesel Oxidation Catalyst, Diesel Particulate Filter, Lean NO Catalyst, and Selective Catalytic Reduction. The increasing demand for zero-emission vehicles and the transition towards a carbon neutral society necessitates the development and adoption of advanced electric drivetrain systems. The market for E-Axles is expected to grow substantially, driven by the increasing sales of battery electric vehicles and the expanding demand for hybrid electric vehicles, catering to various vehicle users and their preferences for front-wheel drive and four-wheel drive systems. The market is segmented based on vehicle types, including passenger cars and heavy commercial vehicles. Passenger cars can be further segmented into entry-level, mid-level, and premium or luxury-level vehicles. Based on car body type, passenger vehicles include hatchbacks, compact sedans, mid-size sedans, and luxury sedans. The growing popularity of larger utility vehicles, such as sport-utility vehicles (SUVs), crossovers, and multipurpose vehicles (MPVs), is expected to further fuel the demand for E-Axles. The implementation of E-Axles in electric vehicles offers several benefits, including improved driving range, reduced power consumption, and enhanced vehicle performance. The recharging infrastructure and vehicle prices are essential factors influencing the market's growth. As the world moves towards electrification systems, the E-Axle market is poised to play a pivotal role in the future of automotive parts and the automotive industry as a whole.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
E-axles, a crucial component of battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs), are revolutionizing the automotive industry by offering advanced electric drivetrain systems. These systems integrate an electric motor, power source (battery), inverter, and gearbox into a single compact unit, replacing the traditional internal combustion engine, transmission, and exhaust emission control systems such as Diesel Oxidation Catalyst, Diesel Particulate Filter, Lean NO Catalyst, and Selective Catalytic Reduction. Modular e-axle designs offer significant benefits for heavy commercial vehicles, enabling zero-emission transportation with extended driving ranges. Electric powertrains provide improved efficiency, downsizing, and reduced power consumption compared to gasoline-powered engines. Vehicle users appreciate the quiet operation, instant torque, and smooth power delivery of electric motors. The shift towards electrification systems in vehicles is driven by the need for a carbon neutral society, recharging infrastructure development, and increasing concerns over ozone layer depletion and CO2 emissions. While the upfront vehicle prices for BEVs and HEVs may be higher, the long-term benefits, including reduced fuel consumption and lower maintenance costs, make them a cost-effective solution for both personal and commercial use. Front wheel drive and four wheel drive configurations are available, catering to various vehicle applications. Automotive parts manufacturers are investing in research and development to improve the performance and efficiency of electrification systems, ensuring that electric vehicles remain a competitive alternative to traditional vehicles.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Automotive Axles Market: Analysis North America, APAC, Europe, South America, Middle East and Africa - China, US, Germany, Japan, Canada - Size and Forecast
Electric Vehicle (EV) Transmission System Market: Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Norway, Germany, UK - Size and Forecast
Electric Vehicle (EV) Traction Motor Market: North America, Europe, EMEA, APAC: US, Canada, China, Germany, UK - Forecast
The market is witnessing significant growth due to the increasing adoption of battery electric vehicles (BEVs) and heavy commercial vehicles (HCVs) worldwide. An e-axle is an electric drivetrain system that integrates an electric motor, power source (battery), inverter, and gearbox into a single compact unit. This design offers several advantages such as improved efficiency, downsizing, and enhanced power. Electric vehicles (EVs), including BEVs and hybrid electric vehicles (HEVs), are gaining popularity among vehicle users due to their zero-emission capabilities and driving range. The electric powertrain, which includes the e-axle, is a crucial component of EVs, enabling them to function without the need for a gasoline-powered engine and transmission.
Furthermore, the modular e-axle design allows for front wheel drive (FWD) and four wheel drive (4WD) configurations, making it suitable for various vehicle applications. The e-axle market is expected to grow as the world transitions towards a carbon neutral society, with the development of recharging infrastructure and increasing vehicle prices becoming less of a barrier. However, the efficiency of e-axles depends on several factors, including power consumption, motor design, and power source. The electrification systems market is expected to continue growing as concerns over Ozone layer depletion, CO2 emissions, and fossil fuel consumption increase. The automotive parts industry is investing heavily in the development of advanced e-axle systems to meet the demands of the evolving market.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 46.12% |
Market growth 2024-2028 |
USD 50.75 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
32.84 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, UK, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AVL List GmbH, BorgWarner Inc., BRIST Axle Systems Srl LLC, Cardone Industries Inc., Continental AG, Cummins Inc., Daimler Truck AG, Dana Inc., Dorman Products Inc., GKN Automotive Ltd., Hyundai WIA Corporation, J.K. Fenner India Ltd., Linamar Corp., Magna International Inc., Nidec Corp., PACCAR Inc., Robert Bosch GmbH, Schaeffler AG, SONA BLW Precision Forgings Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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