New Delhi, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The global Electric vehicle transmission market is projected to attain market size of US$ 64.01 billion by 2032 from US$ 10.38 billion in 2023 at a robust CAGR of 22.4% during the forecast period, 2024–2032.
The electric vehicle transmission market is witnessing a promising outlook, driven by innovations and increasing adoption of EVs globally. In 2023, the global EV market saw sales exceeding 14.2 million units, illustrating a robust demand for electric drivetrains. This surge in EV adoption is primarily supported by advancements in transmission technologies, such as single-speed and multi-speed transmissions, which enhance the efficiency and performance of electric vehicles. Companies are heavily investing in R&D, with an estimated $5 billion allocated in 2023 to develop more efficient transmission systems tailored for EVs. The market is further buoyed by government incentives and policy support aimed at accelerating EV adoption. In 2023, over 50 countries had implemented mandates or incentives favoring electric vehicles, thereby increasing the demand for efficient transmission solutions that can optimize battery usage and extend vehicle range. The transition to EVs is also supported by the automotive industry's commitment to electrification, with over 200 new electric vehicle models launched in 2023, each requiring sophisticated transmission systems to meet consumer expectations for performance and efficiency.
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Moreover, the rise in EV production is pushing the demand for advanced materials and components used in the electric vehicle transmission market. The global market for EV power electronics, crucial for managing power flow in transmissions, reached $18 billion in 2023. Furthermore, the integration of cutting-edge technologies, such as AI-driven transmission control units, is projected to enhance system efficiency and reliability. As the EV market continues to grow, with forecasts predicting a stock of 100 million EVs by 2030, the transmission sector is set to play a pivotal role in realizing the full potential of electric mobility. These dynamics underscore a lucrative opportunity for stakeholders in the EV transmission market, as they capitalize on the evolving landscape and technological advancements
Key Findings in Electric Vehicle Transmission Market
| Market Forecast (2032) | US$ 64.01 billion |
| CAGR | 22.4% |
| Largest Region (2023) | Asia Pacific (54.4%) |
| By Transmission Type | Single Speed (80.1%) |
| By Transmission System | AT Transmission (58.2%) |
| By Vehicle Type (Power) | Battery EV (54.2%) |
| By Vehicle Type (Design/Model) | Car (63.7%) |
| By Distribution Channel | Offline (90.6%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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AT Transmissions To Keep Dominating the Market, Projected to Hold Over 58.2% Market Share
The automatic transmission (AT) systems continue to hold a significant position in the electric vehicle transmission market due to their ability to provide a user-friendly and efficient driving experience. In the landscape of EVs, where ease of use and performance optimization are key, ATs align perfectly with these consumer expectations. The capacity of AT systems to manage power distribution efficiently makes them an ideal fit for electric vehicles, which require precise control over torque and power to maximize range and efficiency. This is crucial as the global production of electric vehicles reached 14.2 million units in 2023, signaling an expanding demand for reliable transmission systems. Additionally, advancements in AT technology have allowed for smoother and more responsive driving experiences, which are essential features that consumers look for in electric vehicles.
For instance, modern AT systems have been integrated with software that enhances torque management and energy efficiency, with certain models now offering up to an additional 50 kilometers in range due to these innovations. The electric vehicle transmission market has also seen the expansion of infrastructure, with over 2 million public charging points installed worldwide by 2023, further driving the adoption of vehicles equipped with advanced AT systems. Furthermore, the average battery capacity of electric vehicles increased to 80 kWh in 2023, necessitating transmission systems that can handle higher power outputs efficiently. Consumer satisfaction surveys have shown that vehicles with AT systems are preferred for their smooth acceleration and ease of operation, which aligns with the quiet and efficient nature of electric motors. The automotive industry's investment in research and development, exceeding $120 billion in 2023, has also played a crucial role in enhancing the reliability and performance of AT systems. This strategic focus ensures that ATs remain a dominant force in the evolving market.
Hybrid Vehicles are Set to Influence the Electric Vehicle Transmission Market By Great Extent and Estimated to Grow at a CAGR of 21.2%
Hybrid vehicles are significantly altering the landscape of the electric vehicle transmission market by bridging the gap between traditional internal combustion engines (ICEs) and fully electric vehicles (EVs). These vehicles, which combine conventional engines with electric propulsion systems, demand unique transmission technologies capable of managing both power sources efficiently. As of 2023, hybrid vehicles have gained significant traction, with over 15 million units sold globally. In the United States alone, there were approximately 5 million hybrids on the road, indicating a strong consumer interest in vehicles offering both fuel efficiency and reduced emissions. The Japanese market, traditionally a hybrid stronghold, saw sales of over 2 million hybrid vehicles, reflecting the continued preference for such vehicles in regions prioritizing fuel economy and lower emissions.
The growing popularity of hybrid vehicles is driving innovation in transmission systems, as manufacturers in the electric vehicle transmission market seek to optimize the power delivery from both electric and gasoline engines. This has led to the development of advanced transmission technologies, such as continuously variable transmissions (CVTs) and dual-clutch systems, which are specifically designed to enhance the performance and efficiency of hybrid vehicles. In 2023, the global production of hybrid-specific transmission systems reached 8 million units, showcasing the industry's response to the rising demand. Additionally, the market for hybrid transmission components, including electric motors and power electronics, was valued at $25 billion, further emphasizing the economic impact of hybrid vehicles on the transmission sector. The European market, where stringent emission regulations are accelerating the adoption of hybrids, recorded over 3.5 million new hybrid registrations. This shift is not only influencing transmission technology but also encouraging automakers to invest in research and development, with major manufacturers like Toyota and Ford dedicating significant resources towards enhancing hybrid powertrains. As hybrids continue to gain market share, their influence on the transmission market will likely persist, driving continuous technological advancements and reshaping industry dynamics.
Asia Pacific is Poised to Remain the Largest Contributor the Market, With Revenue Share of 54.2%
The Asia Pacific electric vehicle transmission market has solidified its position as a pivotal player in the electric vehicle (EV) transmission market, driven by strategic factors and evolving market dynamics. China's role as a global leader is highlighted by its status as the largest auto exporter, with more than 4 million cars shipped in 2023, including 1.2 million EVs. This export strength underscores China's robust manufacturing capabilities and strategic focus on EVs, which are increasingly being exported to markets like Europe and other Asia Pacific countries such as Thailand and Australia. Notably, the Asia Pacific accounted for over half of the global EV sales in 2023, with China leading the charge.
- Technological Advancements and Market Growth
Technological advancements are pivotal in driving the Asia Pacific electric vehicle transmission market. Innovations such as solid-state batteries, regenerative braking, and advanced driver assistance systems (ADAS) are accelerating market growth. BYD, for example, introduced a new technological system in April 2023 designed to stabilize car rides through challenging terrains, exemplifying the region's commitment to enhancing EV technology. The Asia Pacific is home to over 70% of the world's battery production, with China, Japan, and South Korea leading the charge. This dominance in battery production not only supports vehicle performance improvements but also enhances consumer confidence in EVs, thus boosting demand.
- Economic and Regulatory Dynamics
Economic factors and regulatory frameworks also play crucial roles. In emerging economies like India, where vehicle penetration remains lower compared to developed countries, the demand for EVs is rising sharply. India registered over 1 million EVs in 2023 alone. The desire for car ownership, coupled with cost sensitivity, drives demand for affordable EV models. The transport sector's contribution to global greenhouse gas emissions has prompted Asian countries to stimulate EV adoption to meet national emissions targets and global climate goals. Consequently, over $20 billion was invested in EV infrastructure development across the region in 2023, supporting the transition to electric vehicles and underscoring the region's commitment to environmental sustainability.
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Top 10 Players Hold over 62% Revenue Share of the Electric Vehicle Transmission Market
The global electric vehicle transmission market is moderately consolidated, with the top ten players collectively holding over 62% of the market share. Among these, Robert Bosch GmbH, ZF Friedrichshafen AG, and Denso Corporation are recognized as the top three players, according to Astute Analytica. Robert Bosch GmbH stands out due to its extensive product portfolio and strategic partnerships, which have bolstered its position in the market. The company has been actively involved in developing advanced electric motors and transmission systems, which are crucial for enhancing the efficiency and performance of electric vehicles. Bosch's collaboration with EV manufacturers like Rivian further strengthens its market presence.
ZF Friedrichshafen AG is another major player, known for its comprehensive range of electric drivetrain components, including 2-speed and multi-speed transmissions. The company's strategic acquisitions and collaborations have significantly enhanced its product offerings and market reach. For instance, ZF's acquisition of GKN Automotive Limited has fortified its position as a leading supplier of electric vehicle transmission systems. This move allows ZF to offer integrated solutions that combine transmission systems with advanced battery technologies, catering to the growing demand for efficient and compact electric drivetrains.
Denso Corporation, a key player in the electric vehicle transmission market, leverages its expertise in automotive technology to develop innovative transmission solutions for electric vehicles. The company's focus on research and development has led to the creation of highly efficient and compact transmission systems that meet the evolving needs of the electric vehicle industry. As the market continues to grow, driven by the increasing adoption of electric vehicles and the need for eco-friendly mobility solutions, these leading companies are expected to maintain their competitive edge through continuous innovation and strategic partnerships. The market's projected growth, with a CAGR of 21.4% from 2024 to 2032, underscores the significant opportunities for these players to expand their market share and influence.
Global Electric Vehicle Transmission Market Major Players
- Aisin Seiki Co., Ltd.
- Allison Transmission Inc.
- AVL List GmbH
- BorgWarner Inc.
- Continental AG
- Dana Limited
- Denso Corporation
- EATON Corporation
- GKN Plc
- Hewland Engineering Ltd.
- Hitachi Automotive Systems Ltd
- JATCO Ltd.
- Magna International
- Mando Corporation
- Porsche AG
- Robert Bosch GmbH
- Schaeffler Technologies AG & Co. KG
- Xtrac Ltd
- ZF Friedrichshafen AG
- Other Prominent Players
Key Segmentation:
By Transmission Type
- Single Speed
- Multi Speed
- 2 Speed EV Transmission
- 3 Speed EV Transmission
- 4 Speed EV Transmission
By Transmission System
- AMT Transmissions
- AT Transmission
- CVT Transmissions
- DCT/DHT Transmissions
By Vehicle Type (Power)
- Battery EV
- Plug-In EV
- Hybrid EV
By Vehicle Type (Design/Model)
- Cars
- Buses
- Trucks
- Other
By Distribution Channel
- Online
- Offline
- OEMs
- Aftermarket
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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