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The electric vehicle (EV) transmission system market size is estimated to grow by USD 52.60 billion, at a CAGR of 36.38% between 2023 and 2028. The market size is projected to grow due to the rising demand for Battery Electric Vehicles (BEVs), spurred by environmental concerns and government incentives promoting sustainable transportation solutions. Additionally, the decreasing prices of battery packs contribute significantly to market expansion, making electric vehicles more cost-effective and appealing to consumers. Another factor fueling growth is the increasing adoption of multi-speed transmissions in electric vehicles, enhancing their performance and efficiency. These trends reflect a broader shift towards sustainable mobility solutions and technological advancements in the automotive industry. As consumers prioritize eco-friendly options and manufacturers innovate to meet these demands, the electric vehicle market is poised for substantial growth in the coming years, reshaping the future of transportation towards a greener and more efficient paradigm. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is experiencing significant growth due to the increasing popularity of Electric Vehicles (BEV and PHEV) and the shift towards zero emission transportation. Key components of EV transmission systems include electric traction motors, multi-speed transmissions, and e-axles. These systems enable efficient energy transfer from the Electric Vehicle battery packs to the wheels, enhancing vehicle performance and reducing emissions. The use of advanced materials, such as new multi-material strategies, in EV battery packs and transmission systems is crucial for improving energy density, reducing weight, and enhancing signal isolation. The transmission business is evolving, with a focus on hybrid transmissions and high-speed motors to cater to the varying power requirements of different EV types. Government regulations and pollution standards continue to drive the demand for electric vehicles and more efficient transmission systems. The IEA's commitment to renewable energy and zero emission targets further strengthens the market outlook for EV transmission systems. Charging stations and the development of infrastructure to support the growing market are also essential factors contributing to the growth of the EV transmission system market. 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 increasing demand for BEVs drives the market growth. The Market has experienced notable growth, with EVs utilizing all-electric powertrains and related components contributing over 6% of global EV sales. In 2021, BEV sales reached 4.2 million, up from approximately 2.5 million in 2020. Norway led regional sales, with Iceland and Sweden following. Factors such as advancements in EV technologies, enhanced charging infrastructure, and socioeconomic improvements are anticipated to boost demand. Key components include electric traction motors, electric vehicle gearboxes, multi-speed transmissions, and e-axles.
Moreover, battery management, signal isolation, and emissions reduction are essential considerations. New materials, multi-material strategies, and the proliferation of charging stations are shaping the transmission business. ICE engines, gasoline, diesel, and petrol vehicles face increasing pollution standards, driving the shift to zero-emission EVs and renewable energy sources. Hence, such factors are driving the market during the forecast period.
Increase in popularity of e-axle system is a primary trend in the market. The market is experiencing significant growth due to the increasing demand for high-efficiency EVs with extended driving ranges. Lightweighting and larger battery sizes are key factors in enhancing efficiency. Optimal space utilization is essential for expanding battery packs in vehicles. Integrating electric traction motors into rigid rear axles can reduce vehicle weight by up to 100 kg.
Moreover, developments in e-axles, such as integrating electric motors and rigid rear axles into a single streamlined module, further improve efficiency. Multi-speed transmission systems, including Automatic Transmission (AT) and Automated Manual Transmission (AMT), are used in Electric Vehicles (BEV, PHEV, and HEV) to optimize battery usage. The transition from Gasoline and Diesel ICE engines to EVs is driven by stricter pollution standards and the shift towards zero emission vehicles powered by renewable energy. New materials and battery management systems are crucial in enhancing EV performance, signal isolation, and emissions reduction. Hence, such factors are driving the market during the forecast period.
The lack of adequate supporting infrastructure for EVs is a major challenge hindering the market. The Market encompasses the demand for electric traction motors and electric vehicle gearboxes in multi-speed transmissions for various EV types, including motorcycles, cars, scooters, and buses. The shift from Gasoline and Diesel ICE engines to EVs, driven by pollution standards, necessitates advancements in EV transmission systems. Challenges include long charge times, incompatible charging ports, and the lack of charging infrastructure.
Moreover, high-performance electric motorcycles face hindrances due to these issues, affecting mainstream adoption. New materials, battery management, signal isolation, and emissions reduction are key considerations in the EV transmission business. Multi-material strategies, EV battery packs, and renewable energy sources are shaping the future of this market. Hence, such factors are hindering 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 market forecast 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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 single-speed transmission segment is estimated to witness significant growth during the forecast period. The market is primarily driven by the adoption of single-speed transmission systems in EVs. These systems, also known as electric vehicle gearboxes or E-axles, are favored due to their simpler design and compatibility with electric traction motors that generate maximum torque at low speeds. In contrast to multi-speed transmission systems used in Gasoline and Diesel vehicles, single-speed transmissions do not require complex gearboxes or clutch systems. Prominent EV manufacturers, including General Motors Co., Ford Motor Co., and Volkswagen AG, have embraced single-speed transmission systems in their EV models to meet increasing demand and stringent pollution standards.
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The single-speed transmission segment was the largest segment and was valued at USD 4.40 billion in 2018. The market is expected to grow as the shift towards Zero Emission vehicles and Renewable Energy sources continues. Battery management, signal isolation, and new materials are crucial factors in the development of advanced EV transmission systems. Cost-effective solutions, such as Continuously Variable Transmission (CVT), are also gaining popularity in Hybrid EVs, Plug-in Hybrid Electric Vehicles (PHEVs), and Battery Electric Vehicles (BEVs). The IEA forecasts significant growth in the EV transmission business, with the market expected to expand as governments implement policies like scrappage policies and CO2 vehicle emissions regulations. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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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. The market is primarily driven by the significant adoption of multi-speed battery-driven automobiles in the Asia Pacific region. Factors fueling this growth include government initiatives to promote fuel-efficient and low-emission vehicles, increasing the number of EV charging stations, and the participation of automobile companies in developing cost-effective designs. In the context of the Asia Pacific market, China and Japan are key contributors due to their large populations and supportive regulatory environments. Other factors influencing the market include the vehicle type system design, battery capacity, and the cost of raw materials and batteries. As fossil fuel reserves dwindle, the need for more efficient and cost-effective battery-driven vehicles continues to grow. Downsized engines and compact designs are also important considerations for automobile companies seeking to reduce vehicle weight and improve overall efficiency. Hence, the growing adoption of EVs in these two countries is driving the revenue growth of the market in APAC.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth, driven by advancements in electric traction motor technology and the adoption of multi-material strategy for lightweight design. As the demand for electric vehicles continues to rise due to scrappage policies and concerns over CO2 emissions, manufacturers are focusing on developing efficient electric vehicle gearboxes and transmission systems. Options such as AT transmission, AMT transmission, and CVT transmission offer flexibility to meet various driving needs, while innovations like single speed transmission and multi speed transmission enhance performance and range. With a focus on cost-effective designs and compact battery-driven automobiles, the market aims to address concerns regarding battery costs and fuel efficiency. As the industry moves towards battery-driven and fuel-efficient vehicles, the electric vehicle gearbox plays a crucial role in achieving optimal performance and reducing reliance on gasoline as a fossil fuel.
Further, the market is evolving rapidly with the adoption of multi-material strategies to achieve lightweight and durable designs. As governments implement scrappage policies to encourage the transition to cleaner transportation, demand for CO2 vehicles is increasing. However, concerns over the cost of EVs and battery costs persist, driving manufacturers to innovate in areas such as electric motors and battery driven automobiles. Transmission systems play a crucial role in enhancing the efficiency of fuel-efficient vehicles, offering options like single-speed and multi-speed transmissions to optimize performance. The focus is on developing compact design and cost-effective desig to make EVs more accessible to consumers, further accelerating the shift towards sustainable mobility.
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, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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