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The electric vehicle (EV) transmission system market size is forecast to increase by USD 52.60 billion at a CAGR of 36.38% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). The market is witnessing a trend towards the adoption of both single-speed and multi-speed transmission systems in EVs. Single-speed transmissions are commonly used in BEVs due to their simplicity and efficiency, while multi-speed transmissions are preferred in HEVs for their ability to optimize energy consumption and improve vehicle performance. However, the lack of adequate supporting infrastructure for EVs, including charging stations and battery swapping facilities, poses a challenge to the market's growth. Moreover, the weight and battery capacity requirements of EVs are major factors influencing the design and development of transmission systems to ensure fuel efficiency and reliability.
The market is witnessing significant growth due to the increasing adoption of electric traction motors and e-axles in EVs. Electric traction motors offer high efficiency and better performance compared to traditional internal combustion engine (ICE) systems. EV transmissions come in various forms, including multi-speed transmission and single-speed transmission, catering to different vehicle types such as battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The transition towards zero-emission vehicles is driving the demand for EV transmissions. Strict pollution standards and the need to reduce emissions from fossil fuel-based vehicles are further boosting the market. New materials and multi-material strategies are being employed to enhance the durability and efficiency of EV transmissions.
The integration of battery management systems and signal isolation techniques is also gaining importance to ensure seamless power transfer and efficient energy utilization. The charging infrastructure development and the expansion of renewable energy sources are expected to provide ample opportunities for the EV transmission business. The market is witnessing innovation in high-speed motors and hybrid transmissions to cater to the diverse requirements of various EV segments. The IEA's push towards a net-zero emissions future is further expected to fuel the growth of the EV transmission system market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The single-speed transmission segment is estimated to witness significant growth during the forecast period. The market is primarily driven by the increasing adoption of single-speed transmission systems in all-electric vehicles (EVs). In 2022, single-speed transmission systems held the largest market share and are anticipated to continue their dominance throughout the forecast period. This growth can be attributed to the less complex design of single-speed transmission systems, which is a significant factor in the increasing demand for all-EVs. Moreover, electric motors generate maximum torque at low speeds, making single-speed transmission systems highly suitable for EVs. Notable EV manufacturers, including General Motors Co., Ford Motor Co., and Volkswagen AG, have integrated single-speed transmission systems in their EV models.
Battery management is a crucial aspect of the EV transmission system market, ensuring efficient energy usage and longevity of EV battery packs. Signal isolation is another essential factor, preventing electromagnetic interference between various components of the transmission system. The transition towards EVs is a critical step towards reducing emissions and mitigating pollution. New materials and a multi-material strategy are being employed to enhance the performance and durability of EV transmission systems. The expansion of charging station infrastructure is a significant development in the EV market, further fueling the growth of the EV transmission system market. The transmission business is poised for substantial growth as the world moves towards a more sustainable and eco-friendly transportation system.
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The single-speed transmission segment accounted for USD 4.40 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 50% 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.
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The market is witnessing significant growth, particularly in the APAC region, which is currently the largest geographical segment. China and Japan are key contributors to this growth due to the strong adoption of EVs. Factors driving the EV market in China include government initiatives to reduce carbon emissions, increasing stringent emission norms, the expansion of charging infrastructure, and the participation of both local and foreign Original Equipment Manufacturers (OEMs) to make EV technology more efficient and cost-effective. The Chinese government prioritizes EVs as an effective solution to combat pollution in densely populated urban areas like Beijing and Shanghai, leading to various promotional measures.
Further, in this context, the EV transmission system market is expected to grow substantially due to the increasing demand for EVs and the need for advanced transmission systems to ensure optimal battery management, signal isolation, and emissions reduction. Additionally, the use of new materials in EV battery packs and the implementation of a multi-material strategy in transmission systems are expected to further boost market growth.
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.
Increasing demand for BEVs is the key driver of the market. The market has experienced notable growth due to the increasing demand for BEVs (Battery Electric Vehicles). BEVs accounted for over 6% of global EV sales in 2021, with approximately 4.2 million units sold, marking a significant increase from the 2.5 million units sold in 2020. This trend is primarily driven by the widespread adoption of all-electric powertrains and related systems and components, such as electric traction motors and electric vehicle gearboxes, in BEVs. Norway led the sales of BEVs in 2021, with Iceland and Sweden following closely. Factors contributing to this growth include advancements in EV technologies, the expansion of charging infrastructure, and improving socioeconomic conditions.
Additionally, the shift towards electric mobility is gaining momentum as governments and automakers prioritize reducing pollution and adhering to stringent emission standards. Multi-speed transmissions and E-axles are also gaining popularity in the EV market as they enhance vehicle performance and efficiency. The market for EV transmission systems is poised for further growth during the forecast period.
The increase in popularity of e-axle system is the upcoming trend in the market. The market is experiencing significant growth due to the increasing demand for electric vehicles (EVs) to reduce reliance on fossil fuels and meet stricter pollution standards. The integration of advanced technologies, such as electric traction motors and electric vehicle gearboxes, into EVs is a key factor driving market growth. Lightweighting and increased battery size are essential for enhancing the efficiency and driving range of EVs. One approach to achieving this is by integrating the electric motor into the rigid rear axle, reducing the vehicle's weight by up to 100 kg. Moreover, the development of multi-speed transmission e-axles, which combine an electric motor and a rigid rear axle into a single streamlined module, further improves the efficiency of EVs.
Additionally, the e-axle system's optimization allows for better utilization of vehicle space, enabling larger batteries to be installed while maintaining optimal weight distribution. Overall, the advancements in e-axle technology are crucial to meeting the growing demand for high-performance, long-range EVs.
Lack of adequate supporting infrastructure for EVs is a key challenge affecting the market growth. The market encompasses the electric traction motor, electric vehicle gearbox, multi-speed transmission, and e-axles. The rising popularity of electric vehicles (EVs), including electric cars, motorcycles, and scooters, presents significant opportunities for market growth. However, the lack of proper charging infrastructure poses a significant challenge. Long charge times and the inability to support various charging ports hinder the mass adoption of electric motorcycles, specifically.
Further, this issue is particularly relevant as the demand for high-performance electric motorcycles continues to escalate. The persistent absence of adequate charging infrastructure negatively impacts the buying decision of mainstream customers. The transition from gasoline-powered vehicles to electric ones is influenced by stringent pollution standards, which further accentuates the need for advanced EV transmission systems.
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.
AISIN CORP. - The company offers electric vehicle transmission system such as eAxle, electric 4WD unit, 1 motor hybrid transmission, CVT.
The market research and growth report 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 is witnessing significant growth due to the increasing adoption of electric traction motors in battery-driven automobiles. The electric vehicle transmission system includes components such as electric vehicle gearboxes, multi-speed transmissions, e-axles, and battery management systems. The shift towards zero emission vehicles and stringent pollution standards is driving the demand for electric vehicles, leading to an increased focus on the development of advanced transmission systems. High-speed motors and hybrid transmissions are gaining popularity in both BEVs (Battery Electric Vehicles) and PHEVs (Plug-in Hybrid Electric Vehicles). The use of new materials and multi-material strategies in EV transmission systems is helping to reduce vehicle weight and improve battery capacity, leading to more fuel-efficient and low-emission vehicles.
Additionally, the transmission business is witnessing a paradigm shift as the focus moves away from traditional internal combustion engines (ICEs) powered by fossil fuels towards electric motors. The cost of EVs, including the cost of EV battery packs, is a key factor influencing the market. Government initiatives, such as the promotion of renewable energy and the implementation of scrappage policies for CO2 vehicles, are also expected to boost the growth of the EV transmission system market. The EV transmission system market is expected to witness significant growth due to the increasing demand for electric vehicles, advancements in battery technology, and government initiatives to reduce emissions.
Further, the market is expected to be driven by the development of cost-effective designs, such as downsized engines and compact designs, and the availability of charging stations to support the growing number of electric vehicles on the road. The use of single-speed transmissions and CVT transmissions is also gaining popularity in the EV market, as they offer improved efficiency and reduced complexity compared to traditional multi-speed transmissions. The market is expected to be competitive, with automobile companies investing in research and development to offer innovative transmission solutions to meet the evolving needs of the electric vehicle market.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 36.38% |
Market growth 2024-2028 |
USD 52.60 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
26.82 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
China, US, Norway, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AISIN CORP., Allison Transmission Holdings Inc., AVL List GmbH, BorgWarner Inc., Divgi TorqTransfer Systems, Eaton Corp. Plc, GKN Automotive Ltd., Hewland Engineering Ltd., Hitachi Ltd., JATCO Ltd., Magna International Inc., Magnetic Systems Technology, Marposs Spa, Mitsubishi Electric Corp., OC Oerlikon Corp. AG, Ricardo Plc, Robert Bosch GmbH, Schaeffler AG, Xtrac Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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