The EV Drive System Market is segmented By Components (EV Motors, EV Speed Reducers, EV Power Electronics, Drive Units (E-Axle)), and By Geography (North America (U.S., Canada), Europe (Germany, France, U.K., Italy, Spain, Nordic Region, and the Rest of Europe), Asia Pacific (China, Japan, India, Australia, Rest of Asia Pacific), Latin America (Brazil, Mexico, Rest of Latin America), Middle East & Africa (South Africa, Rest of the Middle East & Africa)
EV Drive System Market was valued at USD 26.9 billion in 2022. The EV Drive System Market is a combination of the market size of the EV Motors Market, EV Speed Reducers Market, EV Power Electronics Market, and Drive Units (E-Axle) market.
The Drive System of an electric vehicle converts electrical energy from the power supply system or a battery into mechanical energy and transmits the resulting force into motion. This system, which is a critical component of hybrid and plug-in electric vehicle (PEV) propulsion systems, includes an inverter, an electric motor, a boosts converter, and an onboard charger. The driving system of a battery-electric vehicle is its most significant component. The drive systems stators, rotors, and electrical controllers may be manufactured and designed in such a manner that they can be utilized in a customers bespoke powertrain.
EV Motors Market
The Electric Vehicle Motor Market was estimated at USD 9.2 billion in 2022 and is forecast to grow at a CAGR of 21.7 % during the forecast period.
The electric vehicle motor market is predicted to increase at a significant rate over the forecast period, due to the rising consumer demand for greener transportation, the expansion of the electric vehicle sector, the scarcity of limited fossil resources, and growing concern over lowering the environmental pollution. Additionally, AVERE (The European Association for Electromobility), the World Electric Vehicle Association (WEVA), the Society of Manufacturers of Electric Vehicles (SMEV), the Australian Electric Vehicle Association (AEVA), and the Electric Auto Association are expected to support the mark through increased government rules and regulations pertaining to the reduction of vehicular emissions and promotion of electromobility and sustainable transport.
Top players in EV Motors Market are Aisin Seiki Co. Ltd, Toyota Motor Corporation, Hitachi Automotive Systems, DENSO Corporation, Honda Motor Company Ltd, Mitsubishi Electric Corp., Magna International, Robert Bosch GmbH, BMW AG, Nissan Motor Co. Ltd, Tesla Inc., Toshiba Corporation and BYD Co. Ltd.
Key Market Trends
The Rise in Demand for Electric Vehicles
Electric vehicles have become an essential component of the automobile industry. It provides a path toward greater energy efficiency, as well as lower pollution emissions and other greenhouse gas emissions. The key elements driving this rise include rising environmental concerns, as well as beneficial government efforts. The yearly sales volume of electric passenger vehicles is estimated to exceed 5 million units by the year 2025, accounting for 15% of total vehicle revenue by the end of 2025. The electric car industry has shown excellent growth in recent years, with total sales of electric vehicles reaching around 1,614,048 units in the third quarter of 2019 compared to 1,279,527 in the third quarter of 2018. This increase in sales is due to an increase in regulatory criteria implemented by various organizations and governments to limit pollution levels and promote zero-emission automobiles.
Asia-Pacific has the largest market share in Electric Motors Market
Because of increased EV sales, particularly in China, Asia-Pacific has captured the greatest share of the global electric motor market. China is the worlds top manufacturer and buyer of electric cars. National sales objectives, favourable laws, and local air-quality targets all help to sustain domestic demand. China, for example, has set a quota on producers of electric or hybrid cars, which must account for at least 10% of completely new sales. Furthermore, in order to encourage residents to transition to electric vehicles, the city of Beijing only gives 10,000 licenses for the registration of vehicles with combustion engines every month. As the industry for electric vehicles grows, the demand for electric motors is expected to rise throughout the forecast period, as the majority of OEMs launch, encourage collaboration with electric vehicle manufacturers, form joint ventures, and so on.
EV Motors Market Segmentation
Application Type (Revenue, USD Million, 2022 - 2032)
• Passenger Cars
• Commercial Cars
Motor Type (Revenue, USD Million, 2022 - 2032)
• AC Motor
• DC Motor
Vehicle Type (Revenue, USD Million, 2022 - 2032)
• Hybrid Electric Vehicle (HEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Pure Electric Vehicle (PEV)
EV Speed Reducers Market
The EV Speed Reducers Market was estimated at US$ 152 million in 2022 and is expected to reach US$ 1.7 billion by the end of 2032 with a CAGR of 27.2% during the forecast period.
The electric vehicle speed reducers market is predicted to increase at a considerable rate over the forecast period. High-efficiency speed reducers can save a lot of energy while also cutting component costs. Greenhouse gas emissions can be significantly reduced by using high-efficiency reducers, such as gear reducers, to reduce motor power consumption, driving the global electric vehicle reducer market. Tax breaks, non-monetary benefits such as new car registration and carpool lane access, expanded vehicle range, active OEM participation, frequent charging infrastructure, and other factors are important market drivers that will propel the EV Speed Reducers Market.
Top players for EV Speed Reducers Market are GETRAG FORD Transmission GmbH, Tsingshan Industry, AVL GmbH, HOTA Industrial, GKN, ZF Friedrichshafen AG, Robert Bosch GmbH, BorgWarner Inc., Aichi Machine Industry, Zhuzhou Gear, SAGW and Magna International.
Key Market Trends
Government focuses on the Reduction of Greenhouse Gas Emissions
Governments all around the world are working hard to reduce greenhouse gas emissions first from the car industry. As a result, manufacturers of electric vehicle components are increasing expenditure on the production of electric mechanical systems, which is expected to accelerate the electric vehicle speed reducer globally. During the projected period, the expansion of the electric vehicle industry is also likely to provide considerable opportunities for EV component manufacturers of electrical vehicle speed reducers.
Asia-Pacific Dominates the market for EV Speed Reducers Market
China boasts the largest number of electric vehicles in the globe. As a result, the country is projected to lead the market for electric vehicle speed reducers. It is estimated that over 1.8 million electric vehicles are now on Chinese roads. The popularity of electric vehicles due to their environmental friendliness is expected to drive up the electric vehicle market in China. However, the automobile sector in North America is rapidly developing. In the country, there is a large demand for electric vehicles for minor interchange routes. The availability of a big customer base and high preference as a method of transportation are significant elements pushing the countrys electric car industry at a quick pace. The growing number of electric cars is pushing up demand for electric vehicle speed reducers all around the world.
EV Speed Reducers Market Segmentation
Type Analysis (Revenue, USD Million, 2022 - 2032)
• Single Stage
Application Analysis (Revenue, USD Million, 2022 - 2032)
• Electric Vehicles
• Plug-In Hybrid Electric Vehicles
EV Power Electronics Market
The EV Power Electronics Market was estimated at US$ 8.73 billion in 2022 and is expected to reach US$ 175 billion by the end of 2032 with a CAGR of 35.6% during the forecast period.
Electric vehicle power electronics is predicted to increase at an increasing rate over the forecast period owing to the increased need for energy-efficient battery-powered devices, rigorous emission requirements to minimize vehicle weight and emission, and government attempts to balance environmental pollution and vehicle emission. Technological advancements in automobile batteries, as well as an increase in R&D activities, are driving the market. Power electronics also support high input impedance and enhanced parallel current sharing, which expands the use of power electronic parts in electric vehicles.
Top players in EV Power Electronics Market are Denso Corporation, Robert Bosch GmbH, AG Delphi Technologies, Continental AG, Hitachi Automotive Systems, Ltd., Delphi Technologies, Valeo, Mitsubishi Electric Corporation, Infineon Technologies, Hella, Panasonic Corporation, Toyota Industries Corporation, and Hangzhou Tie Cheng Information Technology
Key Market Trends
The Passenger Vehicle category is expected to have the Largest Market Share.
The passenger car category contributes heavily to the global power electronics industry. In emerging economies, market growth for safety systems and fuel-efficient technologies connected with vehicle power trains are fuelling drivers for passenger car domination. Over the last five to ten years, passenger automobiles have been outfitted with a variety of safety, comfort, entertainment, and vehicle management technologies. This is due to reasons such as changing car buyer preferences, which are backed by government regulations aimed at improving vehicle safety.
The Asia-Pacific Region Will Probably Dominate the Market
During the projected period, the Asia-Pacific Automotive Power Electronics Market is predicted to occupy a large market share. China, South Korea, and Japan constitute the majority of the Asia-Pacific vehicle power electronics market. The Asian-Pacific regions marketing plan may be ascribed to Japans high vehicle manufacturing and greater usage of modern electronics. The governments of these nations have recognized the automobile industrys potential for expansion and have made various steps to attract major OEMs to penetrate in local markets. Furthermore, key semiconductor suppliers and Tier-1 companies are located in the region. As a result, the post-pandemic use of electronic components in modern cars is likely to fuel market expansion throughout the projection period.
EV Power Electronics Market Segmentation
Product Analysis (Revenue, USD Million, 2022 - 2032)
• On-Board Charger
Drive Units (E-Axle) Market
The Drive Units (E-Axle) Market was valued at US $8.87 billion in 2022 and is projected to reach US $142.5 billion by 2032, growing at a CAGR of 32.6% during the forecast period.
The Drive Units (E-Axle) Market is predicted to increase at an exorbitant rate over the forecast period owing to increasing global sales of electric and hybrid vehicles, as are fuel prices. Furthermore, the rise in pollution, the development of the vehicle sector, and the depletion of fossil fuel reserves have spurred global market growth. Increased R&D activities for improving electric and hybrid vehicles, as well as increased deployment of E-Axle in ICE vehicles, are expected to provide attractive chances for E-Axle market expansion. The global increase in the sale of electric vehicles is also predicted to provide new growth possibilities for the industry.
Top players for Drive Units (E-Axle) Market are Axletch International, BorgWarner Inc., Continental AG, Dana Incorporated, GKN Plc, Schaeffler Technologies AG & Co. KG, Robert Bosch GmbH, Nidec Corporation, ZF Friedrichshafen AG, AVL List GmbH
Key Market Trends
The rise in the demand for Electric Vehicle boosts Market Growth
Government initiatives, subsidies, and tax return schemes, as well as expanding charging infrastructure, will promote market expansion. Furthermore, in terms of operation and operating expenses, electric cars offer various benefits over conventional vehicles, which will support market expansion throughout the forecast period. However, the global surge in sales of electric and hybrid cars is propelling the e-axle industry forward. Electric vehicles are one of the most apparent technologies that are assisting in the reduction of air pollution. As a consequence, governments all over the world have offered tax breaks to support the development of electric vehicles.
Asia-Pacific contributed to a sizable portion of the worldwide Drive Unit (E-Axle) Market.
Given the availability of limited labor and raw materials, Asia-Pacific accounts for a considerable proportion of the worldwide automotive e-axle market. Furthermore, increased discretionary money and an increasing population have resulted in an increase in automotive sales. Furthermore, the demand for premium and luxury electric vehicles, particularly in growing nations like as India and China, is predicted to fuel future development in Asia-Pacific for automotive e-axles. Furthermore, favorable government efforts, quick charging station deployment, aggressive electrification of public transportation, and the heavy-duty fleet will boost market expansion in this area. During the projection period, technological developments and stage VI emissions rules are likely to stimulate vehicle manufacturing expansion, notably in China and India. This aspect is likely to boost market growth for the drive unit (e-axle) market
Drive Units (E-Axle) Market Segmentation
Drive Units E-Axle Market by Vehicle Type (Revenue, USD Million, 2022 - 2032)
• Passenger Vehicle
• Commercial Vehicle
Drive Units E-Axle Market by Drive Type (Revenue, USD Million, 2022 - 2032)
• Forward Wheel Drive
• Rear Wheel Drive
• All-Wheel Drive
Drive Units E-Axle Market by Component Type (Revenue, USD Million, 2022 - 2032)
• Combining Motors
• Power Electronics
The EV Drive System Market Proliferates in North America
North America dominates the global EV Drive Systems market attributed to the presence of a well-defined regulatory framework and recommendations of government and automotive agencies in this region. Additionally, the growing adoption of minimally invasive procedures will flourish the markets growth rate in this region. In the United States, state-level measures to improve EV deployment and accessible EV models (particularly in the Sports Utility Vehicle sector) are expanding. Furthermore, the government has declared its intention to change federal tax credit programs in order to increase zero-emission vehicle adoption and aid domestic manufacturers.
• In December 2022, American Axle & Manufacturing Inc. (AAM) (NYSE: AXL), a leading global Tier 1 automotive provider of drivetrain and metal casting technologies, and EKA Mobility, an electric vehicle, and technology company, announced a collaboration in which AAM will supply the companys 2.5T battery electric commercial vehicle with its first-ever e-Beam axle.
• In November 2022, Nidec, a Japanese automaker, plans to invest an estimated $100 billion (US$715 million) in Mexico to develop an EV E-Axle plant.
• In November 2022, Magna will take over CES 2023, with the latest technology for a better world of mobility. Magnas Power of Magna will be applied across four areas of total vehicle and systems expertise.
• In November 2022, HELLA joins the high-voltage EV Power Electronics industry with a large customer order. HELLA provides high-voltage voltage converters to ten different car series of a German luxury automaker; production begins in mid-2025.
• In October 2022, GKN Automotive, the global leader in drive systems, assisted in the development of a 1,180bhp electric powertrain for the Ariel HIPERCAR, a new high-performance EV coupe.
• In September 2022, NTT DATA Corporation ("NTT DATA") and DENSO Corporation ("DENSO") began to build an industry-wide ecosystem for electric vehicle (EV) batteries in order to create worldwide trustworthy dataspaces where only necessary data can be shared while protecting private data.
• In August 2022, Toyota Industries adds an onboard battery production line to its new Ishihama Plant, increasing the output of bipolar nickel-hydrogen batteries for hybrid automobiles.
• In August 2022, BorgWarner revealed that Hyundai Motor Company (HMC) had selected the iDM146 integrated drive module (IDM) to power an additional A-Segment electric vehicle platform, with manufacturing scheduled to start in Q3 2024.
• In September 2021, Dongfeng Passenger Car Corporation has begun the commercial introduction of its completely integrated electrical axle drives (EMR3).
• In September 2021, Dana Limited launched the eS9000r EV E-Axle for various Class 7 & 8 medium and heavy-duty vehicles that will further advance the adoption of electric mobility in the commercial vehicle segment.
• In July 2021, Dana Limited started the market launch of its fully integrated EV E-Axle drives (EMR3) for Dongfeng Passenger car Corporation.
• In Feb 2021, ZF Friedrichshafen AG (ZF) announced that in September 2023 it would begin producing its first 800V electric drive axle in Hangzhous Xiaoshan District. A local team from ZFs Electrified Powertrain Technology division in Shanghai oversaw the development process. ZF made an investment of almost $300 million in its factory in Hangzhou.
• In February 2021, Continental announced that it is investing in a German-US AI chip start-up, Recognize.
• In February 2020, Nidec introduced two Ev E-Axles: a 50kW version for PHEVs/Kei vehicles, where it currently has no presence, and a 200kW version geared at Premium BEVs.
• In April 2020, The CoolMOSTM CFD7A series a new product family introduced by Infineon Technologies. These silicon-based, high-performance components can be used in both the PFC and DC-DC stages of on-board charger systems, as well as HV-LV DC-DC converters designed exclusively for electric-vehicle applications
EV Drive System by Geography Outlook (Revenue, USD Billion, 2022 -2032)
• North America (U.S., Canada)
• Europe (Germany, France, U.K., Italy, Spain, Nordic Region, Rest of Europe)
• Asia Pacific (China, Japan, India, Australia, Rest of Asia Pacific)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Middle East & Africa (South Africa, Rest of the Middle East & Africa)
Available Versions of Global EV Drive System Market Report:
The United States EV Drive System Market Report
Europe EV Drive System Market Report
Asia Pacific EV Drive System Market Report
India EV Drive System Market Report
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